BMW Group Plant Oxford's 'The New Oxford Way' (NOW) Program: From Culture Clash to Performance Culture

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Case Details:

Case Code : OPER073
Case Length : 19 Pages
Period : 2006-2008
Organization : BMW AG
Pub Date : 2009
Teaching Note :Not Available
Countries : UK
Industry : Auto and Ancillaries

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

While the production of the MINI received a major impetus with the launch of the MINI Production Triangle⁵ in 2006 by BMW, the foundation for the success had been laid in 2000 with the company initiating various measures at the Oxford plant (which was responsible for the bodyshell production, paintshop and final assembly of the MINI). In particular, its 'The New Oxford Way' (NOW) program was credited with bringing about a transformation at the plant.

In 1994, BMW acquired The Rover Group (Rover Group), an ailing British volume car maker that had iconic brands such as the Land Rover and the Mini⁶ in its product line.

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Problems soon cropped up for BMW as it failed to turn around the ailing British car maker. To make matters worse, there were post merger integration issues as the two companies had totally different cultures. As a result, in 2000, BMW sold off the Rover Group but retained the Mini brand. As part of the changes initiated, BMW shifted production from Longbridge to Cowley (in Oxford).⁷

Excerpts >>

5] In September 2006, BMW formed the MINI Production Triangle by combining three of its UK-based manufacturing resources. It invested £200m to create the new model and to lift the Mini production capacity by around 20 percent. In addition to Oxford, the two other plants in the triangle were the BMW Group Plant Swindon (the main supplier of MINI body pressings and sub-assemblies) and BMW Group Plant Hams Hall (which produces four-cylinder petrol engines for the BMW and the MINI brand's new MINI petrol engines).

6] Mini was considered the biggest British car brand and it achieved iconic status in the 1960s. After coming under the control of BMW, the German carmaker reinforced the image of the Mini brand with a new badge - MINI.

7] Angela Stangroom, "BMW Empowers its Employees to Push through Change," http://www.internalcommshub.com/open/change/casestudies/bmwpower.shtml

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