Organizational Structure: An analysis of BMW

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3.1 Organizational Structure

  • BMW

Due to the complexity of global business, BMW has a tall and massive organizational structure that looks like a pyramid. The 2-tier organizational structure comprising a Board of Management and a Supervisory Board has different layers that reflect strong chain of command, specialization, and delegation of authority.

Figure 1: BMW Organizational Hierarchy

Source: BMW Group Annual Report (2021)

BMW Group operates the Multi-Business Geographic Model, which allows country-level independence for regional operations and product segments (Silva and Grützmann, 2022). This implies that every country (where BMW operates) has the autonomy to initiate strategies and follow industry best practice. As shown in Figure 1, Oliver Zipse (Chairman, Management Board of BMW Group) is at the top of the pyramidal structure. His leadership roles include the implementation of BMW vision, mission and strategies in collaboration with employees and top management executives at all levels. He functions with the 20-member Supervisory Board comprising of four different committees (Kukkamalla et al, 2022).

Figure 2: BMW Leadership Structure

Source: BMW Group Annual Report (2021)

The Management Board of BMW Group comprises the Vice President, Secretary, Treasurer, and Directors of various departments—e.g. Purchasing & Supplies, Production, Development, Finance, Sales & Marketing, Human Resources (HR) and After Sales. The second level is made of an Executive Director whereas the Office Manager, Accountant, Managing Editor, Art Director, Advertising Director and Volunteer staff fall into the third level. Receptionists make up the fourth level.