Understanding “Pillar” Industries

Students at the Tsinghua School of Economics and Management (SEM) sought insights into the global strategy and leadership culture of BMW on the 21st September 2010.  This opportunity was presented through a new class that SEM had started in partnership with BWM. 

The class aims to acquaint MBA students with the latest operations and developments of “pillar” industries which have substantial influence to the Chinese economy as well as the world economy now and in future.  Top executives of BWM would be invited to the class for a series of five lectures on the following topics: Global Strategy, Global Purchasing and Logistics, Strategic Alliances and joint Ventures, Sales and Marketing, and Financing Strategy.  Installed as “Analysis of ‘Pillar’ Industries (1): BMW and the World Auto Industry”, this is the first of many more such Tsinghua-leading companies partnerships to come to SEM. 

 

 

Professor JIAO Jie, from the Department of Business Strategy and Policy, who is in charge of this new class shared on the benefits the class would bring to students. With the close collaboration between the faculty and BMW, the students would be able to combine theory and practice as they seek insights from business leaders directly and at such close proximity.  Others benefits from the collaboration were at the National and University levels.  The exchange of ideas and information between the University and leading companies of these “pillar” industries would allow SEM to put a even closer pulse on the economy of China from the business perspective.  From BMW’s perspective, Dr. Christopher STARK, BMW President and CEO, Region China, sees this collaboration as the first of many future steps to a closer and fruitful working relationship with Tsinghua.  He expects to learn from the exchange of ideas with the faculty and students especially in the areas of research and development as well as in management.

 

 

Strategy and Leadership

The first lecture was delivered by the Dr. Stark. He shared on the strategic and leadership roles he takes on in BMW.  Insights included the need to maintain BMW’s leading position in the premium market and its instantly recognizable design yet also to understand the local market as the key to success.  For example, while maintaining the design shape and lines that makes up the DNA of its brand that has been so closely associated with BMW, it also recognized the China’s market demand of bigger cars. 

 

 

On the leadership front and in response to a question of differences in managing the Chinese site from its European site, Dr. Stark steered the MBAs to recognize the shared characteristics that exists across all communities e.g. fairness.  The differences he experienced were summed up as that leading in Germany was effectively done by leading with objectives, while in China, the leadership style has to be more personal.  Thus communication and trust building is an extremely necessary factor. He remarked “This is like the brand, a very cherished and the vital factor”.

 

 

Continuing on his role as a leader, in terms of succession planning, Dr. Stark saw to it that he grooms local talents and places them in the right positions.  As a leader, he saw this as a priority in his capacity as the CEO.

A successful class

The first lecture saw the MBAs engaged Dr. Stark well where there was a healthy exchange of ideas and questions from the students.  Prof. Jiao commented on his expectations of the class with the following equation:

 

 

“Number 1 University + Number 1 Industry Leader + Number 1 quality of students = Number 1 class.”