Using appropriate theories, analyze the business environment of BMW and assess its impact on the company’s business or corporate strategy.
Bayerische Motoren Werke, popularly known as BMW, is a German based automobile manufacturing company. It was founded by Franz Josef Popp in 1916. Today, the BMW Group, with its 31 production and assembly facilities in 14 countries as well as global sales network, is the world’s leading manufacturer of premium automobiles and motorcycles, and provided of premium financial and mobility services. In this essay, I will be analyzing the business environment of BMW by collecting many reliable and useful journals and articles. By doing this, I will be using theories such as PESTAL, five forces, value chain and VRIO to analyze significant and relevant factors which have impact on the company’s strategy.
BMW Business Strategy
BMW has a corporate and a business strategy but their business strategy can be characterized as product differentiation with a particular focus on design and digitization. BMW offers powerful, reliable and luxurious vehicles that are different from those of competitors and widely valued by buyers.
“the mission statement up to the year 2020 is clearly defined : the BMW Group is the world’s leading provider of premium products and premium services for individual mobility” www.bmweducation.co.uk
Vision of the company; company’s vision is efficient dynamics vehicle that preview tomorrow driving pleasure using today’s technology
Macro – environment
The macro-environment of an organization can be analyzed using PESTEL framework, which categorizes environmental factors into six key types: Political, Economic, Social, Technological, Ecological and Legal.
The main political factor that affects BMW’s business strategy is Brexit. On 23 June 2016, the British people voted to leave the European Union that leaves uncertainty for BMW’s future as fears of the introduction of tariffs and other trade barriers being imposed on its cars and parts, meaning higher costs and higher prices. Therefore, the BMW Group is a strong supporter of free trade and further liberalization of global trade. The free flow of goods and the openness of foreign markets are essential to
The company’s strategic vision is “To be world’s leading company in IT industry ...and a reputable global auto brand by offering ECO friendly, high quality & low cost products & services.” (BYD Co. Ltd, 2007)
The automotive industry globally involves the processes of manufacturing as well as sales of cars and other automobiles. The business of this industry is also inclusive of retailing activities like services; sale of spare parts, gas-station retails etc. by the year 2015, and the growth rate of the industry is expected to have a rise of 5.5% (Market Line, 2012). Moreover, as per International Organization of Motor Vehicle Manufacturers, this industry is the leading driver in terms of global economic progress and the largest employer. The changing trends and rising demand for technically advanced cars are giving out more opportunities. This essay is going to be a presentation on the analysis of the Volkswagen positioning strategy with respect to the Porters models of competitive strategies. This essay would be vital, as this analysis would help in revealing the company’s competitive and strategic position in the industry.
In this report, I am going to evaluate the influence of different stakeholders exert at Mercedes Benz. The stakeholders I will be discussing is the owner of the business, customers who buy cars as they provide good quality of service, employees who help the business to perform well and making profits and the Government who support Mercedes Benz because they have been running successfully throughout the years so they want to invest money to further develop the business. On the other hand, I will make the following points in my report is by commenting on the level of influence that each stakeholder exerts on Mercedes Benz. I will also be referring to evidence from different sources for the comments that I make. I will state the strengths and the weaknesses on the influence of different stakeholders. Also, I will make recommendations on how Mercedes Benz can do to overcome the weaknesses which can affect their performance. At the end I will write a conclusion by summarising what I wrote in the report, which stakeholders have the most influence and which stakeholders have the least influence in Mercedes Benz.
The company that chose for this assignment is Mercedes-Benz. Mercedes-Benz is a old company. It established since almost one century ago. Mercedes-Benz is also a well-known automobile company on the world. It also have many competitors such as Audi, BMW, Volkswagen and so. In the following paragraphs will shows the Mercedes-Benz company background, country background, example of PESTEL, Porter’s 5 Forces, Strategic Recommendations and the conclusion.
The Volkswagen Groups’ mission statement is not made public but the closest statement that could be called VW Group’s mission statement is expressed as their company’s goal, which is, “The VW Group’s goal is to offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class.”1
The PESTLE analysis can be used to assess the strategic relevance of the six principal components of the macro-environmental: political, economic, social, technological, environmental, and legal forces. It can be used as a tool by companies to better understand of the macro- environment they are operating in.
To lead the premium automobile segment across the world. This vision is the core of the company 2020. They regularly fine tune the objectives to match the changing economic, ecological and social requirements.
As a company Daimler, has four core objectives: technology leadership and innovation, delighted customers, best teams (regarding diversity of gender, nationality and age), and profitable growth. Additionally, Daimler has outlined four strategic areas of growth which are strengthening the core business, growing in new markets, leading in green technologies, safety and driving ahead with connectivity and mobility concepts (Daimler, 2014). These could be interpreted as goals and it is because of these goals that Daimler celebrates great success.
The purpose of this essay is to provide a complete analysis of BMW Group. First, some background information about the company will be provided for a better comprehension of this study. Next, BMW will be assessed from a microeconomic point of view: its demand curve, organisational structure, customers, suppliers, strengths, weaknesses and its operating environment. Then, this firm will be reviewed in context of its sector from a macroeconomic perspective and more specifically its market environment, followed by a PEST analysis of other external factors such as GDP, interest rate, cost of raw materials. This study will be further quantified by a ratio analysis in order to evaluate BMW’s financial health. In the end you
The environment is like a double-edged sword, providing companies opportunities but threats as well. Therefore, in an increasingly hostile marketplace, a systematic and careful environmental analysis is supposed to be considered by companies (Johnson et al, 2011). The macro-environment of a company can be analysed by the framework of PESTEL, which includes six categories: political, economic, social, technological, environmental, and legal (Johnson et al, 2011, Appendix A ).
Specific Purpose: To inform my audience of the excellence achieved by BMW over the coarse of the past 85 years.
External analysis of general environment will be done using PESTEL which refers to how the political, economic, social, technological, environmental and legal environment affects an organization. Below will be a diagram of PESTEL, followed by a brief explanation of each factor and their examples.
The main business problem that BMW is facing is reducing its long product development time. BMW's current design process began
"The mission statement up to the year 2020 is clearly defined: the BMW Group is the world 's leading provider of premium products and premium services for individual mobility."
Audi is one of the world leading luxury vehicle brand that is own by Volkswagen group. It enjoys the same reputation as BMW and Mercedes-Benz in the international market. In China, it expands rapidly during the past two decades. Currently, in the segment of vehicle market for business and governmental use, Audi has achieved satisfactory performance (Hua, 2010). The aim of this essay is to study Audi’s marketing strategy in combination with marketing theories. Firstly, its marketing activity in China will be introduced. Secondly, relevant marketing theories that can be used to explain the activities will also be described. Thirdly, whether Audi’s marketing strategy has achieved