Automobiles & Automotives sector lead by Germany's BMW

March 5, 2002 - BMW topped charts for the Automobiles & Automotive sector in a global study released today. The Competitive Fitness of Global Firms ranks top North American and European firms across eight business sectors using a composite rating termed Overall Market Effectiveness Capability (OMEC). The study is conducted at INSEAD business school in France and published by Pearson Education.

About 1,225 executives employed in 55 different countries contributed to the 2002 study. Firm OMEC results range from a low of 46 to a high of 82 - where BMW rated. Only 86 firms, out of the 326 covered, achieved a rating over the World Class level with enough data points. The eight sectors covered were: Automobiles & Automotive, Computers & Electronics, Consumer Goods, Engineering & Machinery, Finance & Insurance, Pharmaceuticals & Healthcare, Process Industries, and Services.

In terms of OMEC, the Automobiles & Automotive sector achieved a 4-points increase to 65 just after a 5-point dip in 2001. This puts the sector just at the World Class level of 65.

BMW lead the sector with an OMEC of 82 but other firms also achieved above World Class level in the study.

OMEC is based on 12 capabilities that comprise the fundamental capabilities of a firm and hence, its competitive fitness. Those capabilities are: Mission & Vision, Customer Orientation, Corporate Culture, Organization & Systems, Planning & Intelligence, Human Resources, Technical Resources, Innovation, Market Strategy, Marketing Operations, International, and Performance.

While BMW achieved general recognition for competitive fitness in the sector, both DaimlerChrysler and Renault have similar OMEC ratings but emphasize different capabilities. DaimlerChrysler shows specific strength in Customer Orientation, Marketing Operations, and Performance, whereas Renault excels in Mission & Vision, Corporate Culture, Human Resources and Innovation. Pirelli shows the strongest International capability in the sector and specific strength in Market Strategy and Organizations & Systems.

E-Business capability improved 30% over 2001 to a sector average of 47. Pirelli leads the sector with an E-Business rating of 82, followed next by BMW (78) and DaimlerChrysler (68). E-Business is the newest measure of corporate competitive fitness that even the top global firms are battling with.

About The Competitive Fitness of Global Firms Report
This report publishes results of an annual study conducted by Professor Jean-Claude Larreche, at INSEAD business school. The study ranks top North American and European firms based on fundamental business capabilities based on a survey of top managers from those firms. The capabilities measured are: Mission & Vision, Customer Orientation, Corporate Culture, Organization & Systems, Planning & Intelligence, Human Resources, Technical Resources, Innovation, Market Strategy, Marketing Operations, International, Performance and E-Business. Out of the 326 firms covered, a total of 86 firms achieved above a World-Class rating for 2002 with BMW, Nokia, and Pfizer ranking as the "best". For more information and results of the study, visit: www.corvaltec.com.