Marketing Fundamentals Analysis and Evaluation BMW
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This report analyzes the impact of COVID-19 on BMW's marketing fundamentals through internal and external analysis. The report covers BMW's response to the pandemic, including its social responsibilities, and how it adapted to the changing market. The report also discusses BMW's strengths and weaknesses during the pandemic and its future prospects.
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Marketing Fundamentals Analysis and Evaluation BMW
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INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Conduct an internal and external analysis on BMW, considering the impact that the COVID- 19 pandemic.................................................................................................................................3 Conclusion....................................................................................................................................10 REFERENCES.............................................................................................................................11
INTRODUCTION Marketing fundamentals are those basic qualitative and quantitative information which helps in business organization to grow its effect in a particular market. This information is based upon various kinds of aspect which is covered within the product and services that would require to be sold by this organization. This concept has wider scope as it impacts functioning of an organization. Scope of these fundamentals are one of the most important perspective which helps in making organization attain profit and revenue from the product which is required to be sold by them. The organization that has been taken in this report is BMW which German Multinational corporate organization and sells luxurious cars. The Organization was founded in the year 1916 it has its headquarters in Munich,Germany. What are the report covers about internal and external analysis of organization in relation to the covid-19 pandemic other perspective and relevant theory regarding it. MAIN BODY Conduct an internal and external analysis on BMW, considering the impact that the COVID-19 pandemic External analysis of BMW: Business organizations all over the world has faced lot of difficulties during the time of COVID 19 as they mechanism to circulate goods and services was drastically impacted which lead upon making organization face heavy loss within their business. Also the COVID pandemic madegovernmenttakeharshdecisionswhichdrasticallyimpactedorganizationsgrowth. Organization like BMW also got affected due to COVID 19(Qian, 2020).During the corona virus pandemic, BMW Group's priority was protection of employees with the adoption of social responsibility. Also the organization also willing to protect liquidity which makes them achieve long term success. The impact of COVID-19 pandemic upon the growth of BMW was drastic as various rules and regulations were made mandatory which created hindrance within its various operations of the organization. Further, due to lock-down and Work From Home the supply chain process of the organization become lowered. The consequences of such perspectives createdproblem regarding physicaloperationswhich made BMW shiftedtowards online operations in order to create balance within its profits and revenue generation.It helped BMW
in creating new structure regarding business and which made impact of pandemic controlled though BMW faced heavy competition from its competitors as they started shifting to online mediumfor performing business. Due to corona virus various BMW was forced to shit over Work From Home which made innovative ideas regarding meetings and task completion to be outlined.Alsothepandemicbroughtvariouschallengeslikeemployeepayment,task accomplishment and use of technology but these challenges were handled by BMW in very effective manner.The BMW Group is in favor of pandemic-prevention efforts. The BMW Group fully supports COVID-19 containment measures and is fulfilling its social responsibilities. To ensure the mobility of health sector helpers and workers, the company provides automobiles to social and healthcare facilities. The BMW Group also assists social and public institutions with donations of goods and resources such as breathing masks and disinfectants at its German and foreign locations. The organization is currently collaborating with its global supplier network to quickly purchase the necessary breathing masks and other medical equipment (Sladoljev and Goleš, 2021). It is also looking at the idea of producing its own medical masks. In order to understand this impact analysis is done of the external factors over BMW which has been explained asPolitical factors: Adapting to carbon emission regulations: These are the factors that is based upon various forces of politics which are related to legislation and policies that has been formed by government. It is required to be followed by BMW Group in order to maintain its sales and profit. In the COVOID 19 period the major focus of BMW is based upon developingpolicieswhichsuitsworkfromhomeprocess.Thisgroupsupported15 manufacturing organizations through its flexible policies making them deal with the negative affect of BMW. Also its manufacturing polices were changed which made improvement done within the speed of manufacturing of parts required by the organization. Also the policies of government made BMW face political instability in a way the customers buying efficiency was reduced and changed were made within there buying patterns this impacted sales of cars sold by BMW. The second impact is that investment in the future products reduced making delay within the launching of cars.These challenging situations made BMW group face difficult time in coping up with there retail partners that made growth hindered within various markets and disturbed its customers base. Thismade BMW offer its customers extension in selling of new vehicles helping in developing string base from future perspective. Though BMW faced lot of problems within thetime of COVID 19 but due its highly trained management and visionary
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leaders BMW was able to make a come back. Also it created more effective structure for making business to be conducted in future. Economic factors: A quiet fear of tariffs and currency fluctuations:These are the factors which is based upon inflation and deflation with import and export rate. Also under the factor unemployment is covered with profit and revenue generation. Such factor impacts organization's growth and capacity to generate profit. During the time of COVID BMW's value decreased by ten percent which made organization face loss in relation to its global business. Further, the situations emerged during COVID 19 made BMW create economic welfare schemes for its employees in order to increase there trust upon organizations. In these schemes payment withhealthcareinsurancewasintroducedmakingemployeedeveloployaltytowards organizations. Also BMW faced fluctuations within its profits but due to positive approach within the market BMW successfully recovered these fluctuations. The pandemic made BMW form budgetary plans which keep resources surplus for future use and made BMW develop optimum utilization of resources under its process.During the time of COVID 19economic crises took place for big organization but BMW through its economic policies and understating about pandemic made employees satisfaction achieved which changed organizations employee credibility. In these hard times the organization was able to serve their employee with proper salaries and incentives which showed organizations commitment towards its employees and staff.Social factors: Heavy R&D meets millions of social media followers: These are those factors which deals mainly with culture, taste and preferences of customers which is required to be understood by organization for preparing product as per there needs and demands. During the time of COVID 19 the factor was more effectively understood customers were in direct reach of organization. In order to achieve this BMW made flexible customer care service which made organization achieve goals of customer satisfaction. Also it helped in preparing future projects as per customer aspirations. In the time ofCOVID 19 BMW spend time in researching about needs of customers in detail. The factor had positive impact on BMW as it helped in solving the pending queries of customers which made loyalty of customers maintained effectively that helped in creating awareness about brand and helped in maintaining its customers base. (Zamfir and Iordache, 2021).
Technological factors: The newest luxury gadgets: These are those factors that is based latest development taking place within technology on daily basis. It has helped organizations to developtheirmanufacturingandproductionprocesswhichmakesorganizationsstability increased. Through these factors innovation is brought with revolution in process of BMW. In the time of COVID 19 the most effective technology used is digital technology that brought ease within BMW functions. BMW in the time of COVID 19 used digital technology and social media to reach customers in more effective manner. Also using such platforms BMW changed its mode of business performance and developed new payment methods. Then BMW through digitalplatformsconductedmeetingwithitsmanagementandemployeeswhichmade productivity maintained within BMW's working process. Through using digital technology BMW developed innovative design for its future projects and focused upon making more fuel efficient cars. This factor made BMW enhance its performance in terms automotive perspective . In the time of COVID 19 BMW was able to develop positive approach towards its luxurious cars and provided more comfort within the services. Through digitization BMW was able to develop portals for online payment which made payment to be done in timely manner. This made BMW change its ways by introducing better structure for making Work From Home more successful in nature. The factors has uplifted organizations approach towards its employees making employer and employee relationship more strong.Through digitizing organizations online process got improved and customers were able tobook models which were to be launched by BMW in future.Legal factors: The need to abide by hundreds of rules at once:These factors are based upon various kinds of legislation and acts that has been formed by government. These factors deal with patents rights which is mostly used in order to protect design with technology used by BMW. In the time COVID 19 various laws has been formed by government in order to protect citizens. This created difficulty in functioning of BMW but its was mandatory to be followed by them. These laws and acts cannot be violated under any condition by BMW as it makes legal consequences occur for BMW. (Sladoljev and Goleš, 2021). During COVID 19 lot of new rules has been used enacted by government which made restriction to be followed while like social distancing, masking, sanitizing and vaccine. All these rules if not followed by BMW has drastic impact upon its legal stability.Ecological factors: Less CO2 and more hybrid model cars: These are the factors are based upon developing environment policies and maintain ecological balance. The factor made BMW shift to electric cars in the time of COVID 19 which made
message to be send in public about environment safety. This idea made BMW develop more effectiveness within its customer base. Also the factor lead upon making BMW achieve targets which are based upon environment protection. The analysis of external factors shows that BMW during the time of COVID 19 has faced lot of problems in performing its operations which made the organization face loss leading towards less profit generation. Also it has been covered within the study of certain factors like political, economic, society, technology, legal and environmental that organization has faced lot of difficulties in performing its tasks within the period of lock down. Also due to various other restrictions the full functioning of staff was not allowed. Internal analysis of BMW Internal environment of an organization helps in performing various kinds of task which makes organization achieve its goals at global level. Also the internal environment covers various perspectives like behavior of employees, working conditions trust and fairness they are required to be improved which makes business organization progress possible. This environment should be analyzed on regular basis in order to make better and efficient strategies formed for an organization. In order to develop better understanding about these factors an organization performs SWOT analysis. For an organization like BMW the analysis is helpful in making development of various strategies and takes important decision in relation to new product the organization is willing to produce. Through such perspective organization is able to capture new clients, introduce new manufacturing technologies, and whether the firm has the resources to construct and improve a value chain. This strategy enables us to detect dangers, or variables that may bring harm to the organization (Soni, 2020). BMW is a well-known brand in the automobile business. BMW is distinguished by its ability to strike a balance between high quality, style, and performance. In recent time of COVID 19 pandemic internal factors of an organization like BMW has faced problems which made internal functioning hinder. During the time of COVDI 19 most of the operations were conducted from home due to lockdown which made supply chain process slowdown. Also at times employees we not willing to attend meetings or are not available that made circulation of information impacted drastically. Due to work from home statistical data was not been submitted that made monthly analysis delayed. The main impact due to COVID 19 was seen upon Global Supplier Network as it was crashed because of lock down
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that created problems for BMW in performing its internal process leading towards reduction in quality of work. This made BMW face barriers in performing its internal operations which made organization success hinder. Since the time passed BMW played more focus upon making policies which makes supplier to redevelop strong network with the help of digital platforms. This made various models of BMW face quality problems and also employee were not fully functioning making productivity of work reduced. Also BMW developed its strengths through online modes which helped BMW in creating strong network which made organization achieve its goal of creating supply chain method. This leads BMW focused upon creating more lightweight car through introducingAluminum Stewardship Initiative which made its internal process improved and also it created efficiency in its production process. This made BMW recapture market and making more advent strategies for future. Through improving its car material BMW also used digital methods for making its employees feel motivated to do the work. These strengths were also lost by the organization like BMW since COVID brought changes within style of doing business by introducing digital means and social media platform to conduct meetings and discussion regarding BMW’s various process. Also BMW focused upon energy efficient and non pollution cars making consumer increased demand of better effective electric cars to be fulfilled. This made the concept of e vehicles more popular in nature which lead upon making mobility dilutions to be marked out leading upon making greater demand for greener mobility developed within the global market. This made BMW makes stability created within the organizational process which made its create stability within the market upon loopholes that were becoming barriers for BMW. Then BMW faced difficulties during COVID 19 that made BMW predictable about progress of its organization. These difficulties were turned into opportunities for BMW as they were able to create scope for its employees stability. Also BMW made its presence proved through this factors and created its better image of the organization within market. BMW has faced targets in better and effective manner making BMW develop more effective internal process. Future of self-driving vehicles: Demand for autonomous cars is expected to witness a rise in the coming years owing to increasing government regulations in various developed and
developing nations. BMW can rethink its products, design and business models for the advent of driverless cars. Also COVID 19 Brought lot of weaknesses for BMW some of them aresuits against emissions: Being on the wrong side of the law is one of the company's fundamental flaws since it makes it harder for customers to trust it. In the early findings of an antitrust inquiry, the European Commission charged BMW with collaborating to impede the introduction of clean emissions technology. BMW was fined $9.6 million in Germany for not conforming to diesel vehicleemissionrequirements.Old-modelautomobilerecalls:Therecallofcarshasa detrimental impact on the automakers' reputation. To replace Takata front airbag inflators, BMW recalled almost 357,000 older vehicles in the United States and 1.4 million worldwide. Brand sales are declining: BMW's essence is its unique ability to create successful new concepts while remaining true to its legacy(Zamfir and Iordache, 2021). The highlights of 2020 are a 26.4 percent fall in Rolls-Royce sales, a 15.8 percent decline in Mini sales, and a 7.1 percent decline in BMW sales. In 2020, profit before taxes fell by 26.6 percent. COVDI 19 bough theat in elation to innovation with new ways of conducting business for BMW which made the organizationbeawaretowardshighcompetition:ThismadeBMWfaceproblemasits competitors has increase there sale. In order to deal over these aspects BMW has made struggling done in relation over competitors.A great and strong organizational culture is essential for the company in order to develop those attributes which help an organization for its success. It is a collection of practices, expectations and values which help organization to inform and guide actions to its members in order to make their performance most effective. When the organization culture adjusts with the all employees of the organization in order to make feel them more supported, valued and comfortable(Gupta,2018).There is different type of organization are existing for them different organizational culture is needed so, it is important for an organization to select most effective which help them to make its organization unique and different from other. Great and effective organizational culture reflects certain specific quality which is important for the organization such as more align, appreciate all team members, trust worthy, high performer, teamwork, innovative, integrated and provide psychological safety. In context of Next plc it make its organizational culture more effective in order to make its better performances as well as make its employees more satisfied and motivated. By using different cultural model such as Handy's organizational culture model and BMW' cultural web model, they can maintain their organizational culture in effective manner. .
Conclusion From the above discussion can be concluded that, after covid-19 economic crisis as Orchid which has made plastic impact created over economy of a country. In relation to list various retail organizations has been implicated in a way that it has caused them use loss as they have to close their shops in order to save cost. This made their survival very tough within the physical market and they switch towards online mode of selling. Also can be observed that Organization in retail sectors have to struggle or 22 covid-19 as its various process were not able to run in more effective manner. Then in order to develop customer base organization has to shift to digital technology which help in getting connected to its various customers all over the globe.
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Business (Vol. 3, No. 1, pp. 1126-1139). University of Zagreb, Faculty of Economics and Business. Soni, N., 2020. Impact of COVID-19 on Business Organization, Industries and Economy. Industries and Economy (August 19, 2020). Zamfir, I.C. and Iordache, A.M.M., 2021. THE EFFECTS OF THE CORONAVIRUS ON EUROPEANCOUNTRIESECONOMIES.JournalofInformationSystems& Operations Management, 15(1), pp.172-182.Conclusion