I just need requirement 3 & 4. Please focus only on that. I have attached the chapter 4 of the format. I have added rubric & guideline to be more specific. Please do not ruin like a last time. This is my final assignment. I am trusting it for the final time.
2. Prepare a comprehensive report on your company and its Industry that addresses the following: 1. Provide an overview of the company, including its mission and/or values; organization structure and governance; its products or services; its locations, its stated capabilities and a summary of its most recent performance. 2. Undertake a comprehensive and targeted analysis of the external environment that will identify trends that may impact the industry and the company. This will require a specific definition of the industry in which the company operates and an analysis of the competing forces within that industry. As part of your recommendations you will need to determine how the company is competitively positioned. You should identify potential challenges (threats) and opportunities that would affect the company. (Note: many of these companies operate in various industries – pick the one that most contributes to overall revenue). 3. Undertake a comprehensive analysis of the company’s capabilities and its key strengths and weaknesses. This will require an analysis of its financial performance; its product/service portfolio; its operations etc. 4. Outline the company’s current strategies for the long term and evaluate them in the context of the challenges and opportunities you found in Requirement 2 and the strengths and weaknesses you found in Requirement 3. 5. Provide a conclusion as to the attractiveness of the company to an investor and make a recommendation as to buy or divest. BMW Group Annual Report 2019 Power of Choice A N N U A L R E P O R T 2 0 1 9 CONTENTS 1 TO OUR SHAREHOLDERS Page 4 BMW Group in Figures Page 8 Report of the Supervisory Board Page 18 Statement of the Chairman of the Board of Management Page 22 BMW AG Stock and Capital Markets in 2019 Page 24 Financial Calendar Page 24 Contacts 2 COMBINED MANAGEMENT REPORT Page 26 General Information and Group Profile Page 26 Organisation and Business Model Page 44 Management System Page 48 Report on Economic Position Page 48 General and Sector-specific Environment Page 52 Overall Assessment by Management Page 53 Comparison of Forecasts for 2019 with Actual Results in 2019 Page 64 Review of Operations Page 76 Comments on Financial Statements of BMW AG Page 82 Report on Outlook, Risks and Opportunities Page 82 Outlook Page 88 Risks and Opportunities Page 101 Internal Control System Relevant for Accounting and Financial Reporting Processes Page 102 Disclosures Relevant for Takeovers and Explanatory Comments 3 GROUP FINANCIAL STATEMENTS Page 108 Income Statement Page 108 Statement of Comprehensive Income Page 110 Balance Sheet Page 112 Cash Flow Statement Page 114 Statement of Changes in Equity Page 116 Notes to the Group Financial Statements Page 116 Accounting Principles and Policies Page 133 Notes to the Income Statement Page 141 Notes to the Statement of Comprehensive Income Page 142 Notes to the Balance Sheet Page 164 Other Disclosures Page 184 Segment Information Page 190 List of Investments at 31 December 2019 4 CORPORATE GOVERNANCE Page 200 Corporate Governance (Part of the Combined Management Report) Page 200 Information on the Company’s Governing Constitution Page 201 Board of Management Page 201 Supervisory Board Page 202 Shareholders and Annual General Meeting Page 202 Declaration of Compliance Page 202 Corporate Governance Statement Page 203 Members of the Board of Management Page 204 Members of the Supervisory Board Page 207 Overview of Supervisory Board committees and their composition Page 208 Compliance and Human Rights in the BMW Group Page 211 Compensation Report (Part of the Combined Management Report) Page 242 Glossary – Explanation of Key Figures Page 246 Responsibility Statement by the Company’s Legal Representatives Page 247 Independent Auditor’s Report 5 OTHER INFORMATION Page 256 BMW Group Ten-year Comparison The figures for fuel consumption, CO2 emissions and power consumption are calculated based on the measurement methods stipulated in the current version of Regulation (EU) 715 / 2007. This information is based on a vehicle with basic equipment in Germany; ranges take into account differences in wheel and tire size selected as well as optional equipment and can change based on configuration. Fuel consumption and CO2 emissions information are available on page 70. ThefigureshavebeencalculatedbasedonthenewWLTPtestcycleandadaptedtoNEDC forcomparisonpurposes.Inthesevehicles,differentfiguresthanthosepublishedheremay apply for the assessment of taxes and other vehicle-related duties which are (also) based on CO2 emissions. ForfurtherdetailsoftheofficialfuelconsumptionfiguresandofficialspecificCO2 emissions of new cars, please refer to the “Manual on fuel consumption, CO2 emissions and power consumption of new cars”, available at www.dat.de /co2 /. Discover the Power of Choice from Rob, Faith and Sachiko as well as our financial year 2019 in our digital Annual Report. F A I T H M K H O M B E S O U T H A F R I C A R O B V A N R O O N N E T H E R L A N D S T A D A M I S A C H I K O J A P A N Our customers across the globe have different mobility demands. Ultimately, they decide for themselves what they want and desire. That’s the Power of Choice. annualreport.bmwgroup.com / 2019 Page 4 BMW Group in Figures Page 8 Report of the Supervisory Board Page 18 Statement of the Chairman of the Board of Management Page 22 BMW AG Stock and Capital Markets in 2019 Page 24 Financial Calendar Page 24 Contacts TO OUR SHAREHOLDERS 1 To Our Shareholders BMW Group in Figures Report of the Supervisory Board Statement of the Chairman of the Board of Management BMW AG Stock and Capital Markets BMW GROUP IN FIGURES Key non-financial performance indicators • 01 2015 2016 2017 2018 2019 Change in % Group Workforceatyear-end1 122,244 124,729 129,932 134,682 133,778 – 0.7 Automotive seGment Deliveries2, 3 2,257,851 2,352,440 2,468,658 2,483,292 2,538,367 2.2 Fleet emissions in g CO2 / km 4, 5 127 124 128 128 127 – 0.8 motorcycles seGment Deliveries 136,963 145,032 164,153 165,566 175,162 5.8 Further non-financial performance figures • 02 2015 2016 2017 2018 2019 Change in % Automotive seGment Deliveries BMW2, 3 1,913,213 1,989,817 2,093,026 2,114,963 2,185,793 3.3 MINI3 340,880 358,586 372,194 364,135 347,474 – 4.6 Rolls-Royce 3 3,758 4,037 3,438 4,194 5,100 21.6 Total 2, 3 2,257,851 2,352,440 2,468,658 2,483,292 2,538,367 2.2 Productionvolume BMW6 1,933,647 2,002,997 2,123,947 2,168,496 2,205,841 1.7 MINI 342,008 352,580 378,486 368,685 352,729 – 4.3 Rolls-Royce 3,848 4,179 3,308 4,353 5,455 25.3 Total 6 2,279,503 2,359,756 2,505,741 2,541,534 2,564,025 0.9 motorcycles seGment Productionvolume BMW 151,004 145,555 185,682 162,687 187,116 15.0 FinAnciAl services seGment Newcontractswithretailcustomers 1,655,961 1,811,157 1,828,604 1,908,640 2,003,782 5.0 1 Figures exclude suspended contracts of employment, employees in the non-work phases of pre-retirement part-time working arrangements and low income earners. 2 IncludingthejointventureBMWBrillianceAutomotiveLtd.,Shenyang(2015:281,357units,2016:311,473units,2017:385,705units,2018:455,581units,2019:538,612units). 3Deliveryfigureshavebeenadjustedretrospectivelygoingbackto2015.ThebasisfortheadjustmentsisareviewofsalesdatainpriorperiodsfortheBMWGroup’smostimportantmarkets (China,USA,Germany,UK,ItalyandJapan).Theretrospectiveadjustmentenablesbettercomparability.Additionalinformationcanbefoundinthesection“ComparisonofForecastsfor2019 withActualResultsin2019”. 4 EU-28. 5From2018,adjustedvaluebasedonplannedconversiontoWLTP(WorldwideHarmonisedLightVehiclesTestProcedure). 6 IncludingthejointventureBMWBrillianceAutomotiveLtd.,Shenyang(2015:287,755units,2016:305,726units,2017:396,749units,2018:491,872units,2019:536,509units). 4 To Our Shareholders BMW Group in Figures Key financial performance indicators • 03 2015 2016 2017 2018 2019 Change in % Group Profitbeforetax 1 in € million 9,224 9,665 10,675 9,627 7,118 – 26.1 Automotive seGment EBIT margin in % (change in %pts) 9.2 8.9 9.2 7.2 4.9 – 2.3 RoCE in % (change in %pts) 72.2 74.3 77.7 49.8 29.0 – 20.8 motorcycles seGment EBIT margin in % (change in %pts) 9.1 9.0 9.1 8.1 8.2 0.1 RoCE in % (change in %pts) 31.6 33.0 34.0 28.4 29.4 1.0 FinAnciAl services seGment RoE in % (change in %pts) 20.2 21.2 18.1 14.8 15.0 0.2 Further financial performance figures • 04 in € million 2015 2016 2017 2018 2019 Change in % Total capital expenditure 2 5,890 5,823 7,112 8,013 7,784 – 2.9 Depreciation and amortisation 4,659 4,806 4,822 5,113 6,017 17.7 Free cash flow Automotive segment 5,404 5,792 4,459 2,713 2,567 – 5.4 Group revenues 1 92,175 94,163 98,282 96,855 104,210 7.6 Automotive 85,536 86,424 85,742 85,846 91,682 6.8 Motorcycles 1,990 2,069 2,272 2,173 2,368 9.0 FinancialServices 1 23,739 25,681 27,567 27,705 29,598 6.8 Other Entities 7 6 7 6 5 – 16.7 Eliminations 1 – 19,097 – 20,017 – 17,306 – 18,875 – 19,443 – 3.0 Group profit before financial result (EBIT) 1 9,593 9,386 9,899 8,933 7,411 – 17.0 Automotive 7,836 7,695 7,888 6,182 4,499 – 27.2 Motorcycles 182 187 207 175 194 10.9 FinancialServices 1 1,981 2,184 2,194 2,172 2,312 6.4 Other Entities 169 – 17 14 – 27 29 – Eliminations 1 – 575 – 663 – 404 431 377 – 12.5 Group profit before tax (EBT) 1 9,224 9,665 10,675 9,627 7,118 – 26.1 Automotive 7,523 7,916 8,717 6,977 4,467 – 36.0 Motorcycles 179 185 205 169 187 10.7 FinancialServices 1 1,975 2,166 2,207 2,143 2,272 6.0 Other Entities 211 170 80 – 45 – 96 – Eliminations 1 – 664 – 772 – 534 383 288 – 24.8 Group income taxes 1 – 2,828 – 2,755 – 2,000 – 2,530 – 2,140 15.4 Profit / loss from continuing operations 1 6,396 6,910 8,675 7,097 4,978 – 29.9 Profit/lossfromdiscontinuedoperations – – – – 33 44 – Group net profit 1 6,396 6,910 8,675 7,064 5,022 – 28.9 Earnings per share 1 in € 9.70 / 9.72 10.45 /