Environmental Analysis of BMW Industry

This report includes analysation of BMW which is a German company that is offering luxury vehicles as well as motorcycles. It also consists development of survival and success factors for their industry with consideration of mega trends that can be critical and relevant.

Assessment 2
Environmental
Analysis of an Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Impact of pandemic ....................................................................................................................3
Survival and Success factors related to mega trends..................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Environmental analysis is a tool that can be used by companies for purpose of analysation of
environment. It helps them to identify different factors that can create negative impact over
operation of company (Centobelli, Cerchione and Esposito, 2020). In order to overcome of threat
of this factor, managers of company need to develop different types of strategies. This report
includes analysation of BMW which is a German company that is offering luxury vehicles as
well as motorcycles. It was introduced by Camillo Castiglioni in German in the year 1916. This
project report includes analysation of impact of pandemic on industry. It also consists
development of survival and success factors for their industry with consideration of mega trends
that can be critical and relevant.
TASK
Impact of pandemic
Pandemic create huge impact over economy of many countries which to which economy is
facing recession. It also creates impact over industry of many countries in which results in both
opportunity and threat for company. This pandemic create impact over business of BMW in
many ways which are mentioned below:
Regulation of government: Government impose regulation over business which create
negative impact over business. Due to pandemic situation and outbreak of covid-19, government
impose regulation over people to out coming out of their home. It results in huge loss for BMW
which create negative impact over profitability of business. They also have made some guideline
for business which is to be adopted by them strictly. Adopting these regulations in business leads
to increasing cost of company.
These regulations not only create negative impact over company but also create positive
impact. As due to overcome of these impact, government also develop strategies to helps
business to overcome of loss. It helps BMW to overcome of impact of global pandemic which is
important for them to earn profit and increase sales of company. Adoption of all regulation of
government create good image of company over business of BMW.
Economic condition: Economy of many country is facing huge crisis which create
impact over business of BMW. Due to pandemic situation, business is facing huge loss as
government of UK has put many restriction (Di Maria, De Marchi and Spraul, 2019). It also

creates impact over purchasing power of people due to which they are unable to buy products
and service of company. BMW is providing highly luxurious products and service to their
customers. For these products, they are charging premium prices which cannot be affordable for
people as there is decrease in purchasing power of people.
In order to overcome of these impact, government is developing various new policies and
also giving freedom in taxes which provide opportunity to business like BMW. It helps them to
create demand for their products in market. BMW is developing autonomous vehicle for their
customers which is in huge demand. Policies of government is providing support to business and
also allow company to take advantage of these demand.
Increasing demand of new cars: In UK, there is increasing awareness of health and
environment among people due to global pandemic situation which create positive impact over
BMW. It is developing autonomous vehicle and also focusing more on electric cars (Geng and
Cui, 2020). These are not involving in producing pollution which create positive impact of
company and also provide them subsidies from government. In pandemic situation there is
increasing demand of environmental friendly products in market of UK as it increases
environmental awareness among people. BMW is not only focusing on environmental protection
but also providing new and innovative design to their customers which increase more demand of
their products in market of UK.
Due to pandemic people have face financial crisis which create changes among their
habits. As people are now focusing on saving money in compare to situation before pandemic. It
creates negative impact over business of BMW as people are not interested to buy their products
rather focusing on saving money. It also results in decreasing demand of products and service of
luxurious products in UK.
Technological impact: Technology play important role in any organisation as it
improves efficiency of products and service. It allows company to improve quality of their
products and service and also leads to improved performance of company (Maddah, Deymi-
Dashtebayaz and Maddah, 2020). Due to pandemic situation, trends of using technology for
business increase rapidly. BMW is adopting technology in their organisation for purpose of
promoting their products and service. They are adopting digital technology method for purpose
of promotion of their products and service. It increases awareness of their products and service

and also allow company to build good relationship with their customers. They are also focusing
on adopting new technology in their organisation as it provides them competitive advantage.
Technology not only provide competitive advantage for a company but also create threat
for privacy of an organisation. In pandemic, cybercrime and data breaching cases has rapidly
increasing which create threat for company. It increases threat of privacy of data of company as
it can reveal private information of company. Competitors of an organisation can take advantage
of these situation as they can hide private information, customer information, new strategies. It
can result in huge loss for BMW as it can create impact over business.
Introduction of virtual business environment: Due to pandemic government announce
lock down in their countries which does not allow people to going out from their home. In order
to avoid its impact on business, managers of BMW are working virtually which allow them for
purpose of continue to work (Pipatprapa, Huang and Huang, 2018). It is important in order to
ensure smooth flow of work in company which allow them to gain profit and also to improve
productive of company.
Virtual environment provides various benefit to a company but also it creates negative
impact over operation of company. In situation of pandemic, managers need to ensure smooth
flow of productivity and for which they introduce virtual environment in business in which they
need to coordinate efforts and work with employees that can be done by them online from their
homes. It is not easier for managers to coordinate these work as sometimes, due to
misunderstanding and miscommunication, it creates problems for managers of company.
Survival and Success factors related to mega trends
Digitalisation: Digitalisation is one of mega trend in auto-mobile industry which is
adopted by BMW that is success factors for company. Invention is bringing new ideas in
business which is important in auto-mobile industry as it can be done through digitalisation. This
digitalisation create impact over living of people and allow people to connect digitally. It creates
significant impact over complexity of system (Tariq, Yasir and Majid, 2020). This digitalisation
allows BMW to use new technology and make their products more user friendly for their
customers. As company is increasingly focus on digital technology by adopting electric car,
company is differentiating their products from other marketing players. It is make steering of car
lighter which enhance experience of user while driving a car.

Sustainability: Sustainability is one of important business practice which allow business
to meeting their own needs without making any compromise in ability of a person to meet needs
of future generation (Tuzcu, Sohret and Caliskan, 2021). It is not only including natural
resources but also economic resources and social resources. It is a practice which is in trends due
to increasing awareness of people related to environment and other issues. In automotive
industry, cars are causing pollution and global warming. These cars include use of combustion
engines that cause emission due to which it is not getting acceptance socially. There is ban of
cars in German city centre that also giving push to these developments. There are changes occur
in paradigm in automotive industry which promotion transition of electronic cars. BMW is using
electric cars which create impact over demand of their products. These require charging
infrastructure and also vehicle architectures. There is a significant impact over changes in
organisation that occur in order to provide guarantee to process, methods as well as
competencies for purpose of future development.
Connectivity: Connectivity is one of important mega trend in business as it requires
artificial intelligence as well as autonomous driving which is important in order to ensure
connectivity (Vellini, Gambini and Stilo, 2020). Major goal in auto mobile industry is to be fully
autonomous driving that require use of new technologies in business like introduction of
machine learning in automotive industry. There is increasing use of sensor as well as actuator
that provide hand comfort, additional functionality to their customers. BMW is also planning to
introduce fully autonomous car in their organisation which create impact over their business.
Urbanisation: Urbanisation is also a trend which refers to shift in population from rural
to urban areas due to corresponding decrease in proportion of living of people in rural areas and
also different ways in which societies are adopting these changes. There is increase in numbers
of people are living in cities in compare to rural areas in different parts of company. It creates
impact over business and is one of trend in which automotive industry discover new model and
revenue that are required by cities for future as well as supplement existing car ownership
models. With increasing urbanisation, there is improvement in living standard of people and they
are moving to normal products to luxurious products. It creates significant impact over demand
of products of BMW in market which make them successful in market.
Promotional strategy: BMW is adopting strong promotional strategy in their
organisation which provide them success in their organisation. Promotional strategy allow

company to increase awareness of their products and service which is important in order to
improve sales of their products and service. They are different methods for purpose of promotion
of products and service of company which can be adopted by companies for purpose of
promotion of products and service like digital marketing, advertising, personal selling, sales
promotion and other. This promotion strategy allow company to increase awareness among
customers about products and allow them to differentiate about products and service of company
in compare to other players.
Strategic management: Strategic management can be described as process of setting
goals, objectives and procedure of company in order to be more competitive. It includes different
activities like analysation of competitive environment, evaluation of strategies, ensuring
management rolls out of strategies across organisation. BMW is adopting strategic management
which allow them to be more competitive in market. It helps company to identify various
opportunities and also helps them to prepare for future period of time. It company to gain
sustainable competitive advantage in market by developing effective strategies.
Risk management:
Competition analysis: BMW is considering competition analysis which is important in
order to conducting business and also to get success in market. Competition create impact over
business negatively as it does not allow company to increase their marketing share and also
reduce their profitability level in market. Managers BMW is adopting different model in order to
identify competition factors present in market and also to analyse its impact over business. It is
essential for them in order to develop effective strategy which allow them to overcome of threat
of this competition factors. It helps them to differentiate their products from those of competition
which is important in order to gain competitive advantage in market.
CONCLUSION
From above mentioned project report, it can be concluded that it is important for a business to
analyse environment in which they are providing their products and service. It is important for
them to develop different types of strategies for business which helps them to overcome of
competition. Pandemic create huge impact over business of company and these impact can be
both positive and negative. There are also different trends in market which can be considered as
success factors of company and also helps to ensure survival of company in market.

REFERENCES
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