The Mini Case-study

The 'Mini' brand was one of the few parts of the former Rover group to be retained by BMW following its takeover in 1994. The 'Mini' was seen as a valuable brand by BMW and they developed the brand following the introduction of the new mini in 2001. Production of the car was transferred to the Cowley plant in Oxford from Birmingham in 2002 and the company spent £230 million on improvements to the production facilities. The plant currently produces 140,000 vehicles a year but BMW want to increase that to 200,000.s

The new Mini - a success story in British manufacturing.

Questions (show all workings)

1.	Identify 3 fixed costs and 3 variable costs from the above pictures.	6 marks
2.	Explain 3 advantages and 3 disadvantages from organising the production line in the method chosen above.	6 marks
3.	Suggest one way in which BMW is currently attempting to increase the sales of ‘The Mini’.	1 mark
4.	If BMW were to reach their target of 200,000 sales, what revenue would they generate at a selling price of £8,000 per car?	2 marks
5.	If £230 million represented BMW’s total costs, at what price would the mini break-even at an output of 200,000. Explain the term break even.	5 marks
6.	Explain how BMW could reduce its total costs.	4 marks
	Total marks	24 marks