Re-examining the BMW-Rover affair:a case study of corporate, strategic and government failure?


This paper analyses corporate and government strategies during the purchase, period of control and divestment by BMW of the car manufacturer Rover over the period 1994 to 2000. This paper examines three types of ‘failure’. It views BMW’s purchase of Rover as a ‘corporate failure’, with British Aerospace keen to sell Rover to raise cash and with BMW not realising the real condition of Rover. It then moves on to examine BMW’s ‘divide and rule’ strategies with regard to working conditions and subsidy-seeking and its decision to sell Rover as an example of ‘strategic failure’. Finally, it considers the ‘hands-off’ nature of British policy towards such transnational firms, and BMW in particular, as an example of ‘government failure’. This paper concludes by raising the possibility of an EU-wide policy towards transnationals, especially in terms of monitoring the activities of such firms.

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Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > School of Social Sciences & Humanities > Aston Centre for Europe
College of Business and Social Sciences > Aston Business School
Additional Information: © Inderscience Enterprises Ltd
Uncontrolled Keywords: BMW,Rover,takeover,disinvestment,transnationals,strategic failure,monitoring,corporate failure,government failure,automobile industry,automotive manufacturing,government policy,United Kingdom,UK
Publication ISSN: 1741-5012
Last Modified: 08 Dec 2023 09:40
Date Deposited: 17 Feb 2014 14:30
Full Text Link: http://www.inde ... er.php?id=46858
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PURE Output Type: Article
Published Date: 2012
Authors: Bailey, David (ORCID Profile 0000-0002-1956-0556)
de Ruyter, Alex



Version: Accepted Version

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