Should BMW's responsibilities to the stakeholders have continued beyond the eventual sale of Rover? Critically discuss considering BMW's activities both from justice and care perspective.
In 1994, BMW bought British company Rover for £ 800 m. Some reasons for the purchase were:
i. To expend and diversity its own product range
ii. To develop its transnational facilities in order to achieve bargaining power over workers iii. To establish production facilities in the UK where, at the time, labour costs were lower than in
Germany iv. Also, the Land Rover division of the Rover group was particularly attractive
Six years later BMW put most of the Rover Group up for sale. Keeping possession of the Oxford - Cowlant plant for the production of the Mini. They sold Land Rover to the Ford Motor Company for £ 1.8 b. Sold MG-Rover for the token sum of £ 10 to the Phoenix Consortium. 5 years later, the company fell into bankruptcy owning £ 1.3 b to its creditors and putting 6,300 employees out of work. The Phoenix Consortium sold MG-Rover to a Chinese car manufacturer.
Should BMW's responsibilities to the stakeholders have continued beyond the eventual sale of Rover? Critically discuss considering BMW's activities both from justice and care perspective.
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