BMW Mini: Big Decisions Under the Brexit Cloud
(7 pages of text)
Case (Pub Mat)
In April 2017, BMW AG (BMW) faced a big decision regarding which plant should receive the mandate to produce the first electric version of BMW’s iconic Mini car. The leadership team of BMW’s UK operations was determined to keep the Mini at its historical home base in the United Kingdom. However, given the uncertainty arising from the United Kingdom’s decision to leave the European Union—a move commonly known as “Brexit” —how would the team be able to convince corporate headquarters?
This case is suitable at the undergraduate or graduate level for courses on strategy, supply chain management, or managerial economics. This case has been developed for advanced stages of an international business course, bringing together the international business environment, global supply chain management, and strategic decision-making under uncertainty. The learning objectives will vary depending on how the case is used; however, the case aims to enable students to do the following:
- Explain the nature of alternative international trade agreements and how they have an impact on how business is conducted.
- Explain the opportunities and implementation challenges of cross-border supply chains.
- Develop options and decision criteria for major investment decisions that are made under a high degree of uncertainty.
- Develop organizational structures that enable flexibility in responding to policy changes.
United Kingdom, Large, 2017
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