External Environmental Analysis: External Environment Analysis Of BMW

Companies & Businesses without a vision are like a human looking into despair. Centering their focus on achieving their goals is priority for most companies. Evaluating the business from different standpoints can be crucial. Businesses are evualted on external and internal basis to indenfiy any outlying factors. More so internal factors are those that are dealt within the company. Being able to identify strengths and weakness within the company help leaders plan for unforeseen circumstances. Majority of internal factors particularly weakness if not taken into analysis disrupts the business not only internally but externally. Being able to distinguish the strength and weakness in the company can prepare the business for new venture and new

An internal analysis’ purpose is very similar to that of an external analysis. Both are essentially developed to assist an organization build a successful strategy. Where they differ is that the external analysis focuses on the influential external elements; an internal analysis focuses on the internal forces. An internal analysis can unquestionably assist an organization drive up the profits aligning with internal matters. First, it is important to recognize what an internal analysis entails. In the course of this paper we will be looking into the key components that comprise this analysis. These components are StilSim’s value-chain, resources, core competencies, stakeholders, and finally their mission and vision.

“The US auto industry directly employs 1.55 million Americans and impacting a total of 7.25 million US jobs, generates $500 billion in annual compensation.” (1) With such a large industry looming in the economy, it is inevitable that it will face environmental challenges. Environmental challenges can be hard to control and are essential to the success of a company. The challenges that the auto industry must contend with are many and complex, such as; global competition, consumer opinions, and new technology, a difficult fight lies ahead.

The quality of the new BMW products could be affected because the quantity of cars produced will increase, making it challenging to maintain technological advances growing. (www.bmweducation.co.uk)

Over time the prices of automobiles have become on expensive due to the rise in the inflation rate. In terms of infrastructural development in the auto industry is one of most demanding fields of business. One of the major external factors that can affect the price elasticity comes from the oil dependence. Some other factors that cause shifts in supply & price elasticity; are the taxes that the government place on automotive manufacturers. In addition, to the population figures, and the buying potentiality of the consumers. Another aspect that can cause an area of concern is the price of steel. Although a lot of cars produce today are made of fiberglass, steel is still a needed necessary component in the automotive industry.

Fierce competition, fluctuating market demand and rising customer requirements has led to customers becoming more demanding with increased preferences (Zhang and Cheng, 2006). In, the 21 st century, participating largely in globalization has created significant opportunities, and at the same time, put pressure on the automotive industry manufacturers to enhance quality, improve styling, increase organizational efficiencies and drive innovative features into their products in an effort to attract customers and expand into new markets (BCC, 2005). This paper explores the concept of supply chain management with a case study of one of the greatest motor brands BMW. We will look at the supply chain strategy of the company and how successfully it

In order for the strategy to be successful it should realistically assess the company’s internal resources. An internal analysis is used to identify the strengths of the company and identifies the weakness to overcome in the strategy. The internal analysis will help with understanding the internal issues that exist at StilSim by evaluating a value chain analysis, a resource analysis, core competencies and a stakeholder analysis.

In order to understand and conduct a complete financial analysis of either organization, or any company for that matter, that desires to increase aspects of business, an analysis becomes fundamental when defining the company’s current standings in the market. This can also be a great way in order to discover new ways for expansion of productivity and development within the organization. Throughout the execution of a financial analysis of any business, it is imperative to understand the background of the company and the products they produce and sell. By understanding these

Answer: I think there are several reasons in BMW’s new model development way like below;

Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.

Suppliers have a very high bargaining power because their goods are not those of commodity type. The company is limited to the amount of suppliers used in order to maintain its level of manufacturing. For example, more than 33 suppliers invested in the Tesla Model S in 2013. If Tesla is unwilling to pay a certain price demanded by one supplier, their manufacturing procedure will be handicapped. Therefore, suppliers are capable of setting their prices without considering whether or not Tesla is willing to pay.

The American Auto Industry has grown ever since it 's upgraded in the early 1900s. “Although the design for the modern car was produced in Germany and France in the late 1800s, Americans controlled the industry in the first half of the twentieth century. Henry Ford innovated mass production systems that enhanced model, with Ford, General Motors and Chrysler beginning as "the Big Three auto firms by the 1920s ,(Foner - Garrity 1991)" But this manufacturing has continually been one of the best manufacturing for environmental concerns and risks around the world, particularly in the United States. Many of the concerns in this industry include; global race, modern technology for controlling the product, the impacts of emission on the environment and the government’s answer, as well as customer sentiments about the outcome.

For example, enforcement of new laws related to CO2 emission and change in EU legislation related to end-of-life vehicle (ELV) recycling are major political factors that affect BMW manufacturing processes. Level of political stability in emerging markets such as Russia, China, and Brazil can be highlighted as additional political factors impacting BMW in a way that political instability in these countries can have negative implications on local consumer spending patterns. Additionally, in case of political instability BMW investments in respective countries may be subjected to

Specific Purpose: To inform my audience of the excellence achieved by BMW over the coarse of the past 85 years.

The support of government to the ecofriendly products helped BMW to improve its products in order to exceed the environmental expectations. (Opportunities)