Environmental Analysis of BMW Industry

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