BMW CASE: Globalization of Manufacturing OperationsINTRODUCTIONThis case focuses on the dilemma that BMW Manufacturing Corp. President Al Kinzer faced in 1995 in relation to the new BMW plant in Spartanburg, South Carolina. and significantly increased demand in the US market for the Z3 model. To study the BMW case, the background information and the role of the new plant in Spartanburg will be described at the beginning. Secondly, the 3 alternative options will be analyzed and compared accordingly to determine an appropriate conclusion. Finally, the recommendation will be presented with various considerations.BMW BACKGROUNDBMW was founded in 1913 by Karl Rapp as an aircraft engine design workshop. After World War I, the company began building motorcycles, then expanded into the automobile industry in the 1930s. After World War II, the company suffered again but later survived when Herbert Quandt took control in 1959. The company experienced rapid and considerable growth and reached a market value of nine billion US dollars in 1979; however, it was still small compared to the large American automaker. Profits continued to grow rapidly. In 1995, BMW had thirty-four wholly owned subsidiaries, fourteen in Germany and twenty worldwide. They also discovered that the US market would be the largest and fastest growing market for BMW. BMW soon realized that there were many threats affecting its market share in the United States. Japanese automakers began building factories in the United States to meet increased American demand at lower costs. than import their cars. BMW's US export situation was further aggravated by the appreciation of the German mark and rising German labor costs. As a result, the decision was made in 1991 to build a ......paper medium system. It will definitely take time to set up a new factory and keep production running smoothly with quality assurance. The first priority BMW should think about would be reducing the learning curve for these jobs. Investing more in building a facility would be a long-term consideration. In the short term, we suggest that BMW focus on producing the Z3 in Spartanburg and send the 318 back to Germany for production. The 318 is seeing global demand, while the trend in the US is prioritizing the Z3. The 318 series or other 3 series have a strong potential to gain market share in the future, and eventually production will be shifted to a low-cost production line to remain competitive. With international production, having flexible manufacturing capabilities to produce a wider group of products will play a crucial role in the automotive industry of the future..