BMW 2008 Annual Report Download - page 154

155 Other Information
Production network
The BMW Group production network consists worldwide
of  plants, six assembly plants and one contract produc-
tion plant. Within this network, the plants supply one an-
other with systems and components and are all character-
ised by a high level of productivity, agility and flexibility.
Rating
Standardised evaluation of a company’s credit standing
which is widely accepted on the global capital markets.
Ratings are published by independent rating agencies,
e. g. Standard & Poor’s or Moody’s, based on their analysis
of a company.
Return on sales
Pre-tax: Profit before tax as a percentage of revenues.
Post-tax: Profit as a percentage of revenues.
Risk management
An integral component of all business processes. Follow-
ing enactment of the Law on Control and Transparency
within Businesses (KonTraG), all companies listed on a
stock exchange in Germany are required to set up a risk
management system. The purpose of this system is to
identify risks at an early stage which could have a signifi-
cant adverse effect on the assets, liabilities, financial posi-
tion and results of operations, and which could endanger
the continued existence of the company. This applies in
particular to transactions involving risk, errors in accounting
or financial reporting and violations of legal requirements.
The Board of Management is required to set up an appro-
priate system, to document that system and monitor it reg-
ularly with the aid of the internal audit department.
Subscribed capital
The share capital of a company is computed by multiplying
the nominal value of the shares by the number of shares.
Subsidiaries
Subsidiaries are those enterprises which, either directly
or indirectly, are under the uniform control of the manage-
ment of BMW AG or in which BMW AG, either directly or
indirectly
– holds the majority of the voting rights
– has the right to appoint or remove the majority of the
members of the Board of Management or equivalent
governing body, and in which BMW AG is at the same
time (directly or indirectly) a shareholder
– has control (directly or indirectly) over another enterprise
on the basis of a control agreement or a provision in the
statutes of that enterprise.
Supplier relationship management
Supplier relationship management (SRM) uses focused
procurement strategies to organise networked supplier
relationships, optimise processes for supplier qualification
and selection, ensure the application of uniform standards
throughout the Group and create efficient sourcing and
procurement processes along the whole value added
chain.
Sustainability
Sustainability, or sustainable development, gives equal
consideration to ecological, social and economic develop-
ment. In  the United Nations “World Commission on
Environment and Development” defined sustainable de-
velopment as development that meets the needs of the
present without compromising the ability of future genera-
tions to meet their own needs. The economic relevance
of corporate sustainability to the BMW Group is evident in
three areas: resources, reputation and risk.