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The Business Environment Of BMW

Satisfactory Essays

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

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