Global Business Environment Assignment - BMW
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Added on 2020-06-04
Global Business Environment Assignment - BMW
Added on 2020-06-04
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GLOBAL BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Key factors of cost market and competitions which drive global commercial trade .......1P2 Complexity of strategic challenges faced by companies during operate in globalenvironment............................................................................................................................3TASK 2............................................................................................................................................5P3 Impact of globalisation on organisational function, culture, structure and governance...5P4 impact on sustainable and ethical globalisation on companies functions.........................5TASK 4............................................................................................................................................6P5 Decision making process of global companies.................................................................6P6 Different routes of internationalisation ............................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness environment consist various internal and external factors which influences decisionmaking and operations of companies. These elements arises many challenges and opportunitiesfor organisations in context with social, political and economical terms. Similarly, globalbusiness environment refers to place where small and big enterprises sell their commodities atsame place (Wetherly, 2014). This process arise competition in these firms in order to gain largenumber of customers. Globalisation leads a company to sell or buy their commodities atinternational market. Competition at global market as compared to domestic countries is more.Therefore, managers need to analyse needs and demands of international market beforelaunching business at global level. With this assistance, a project has made on BMW Companyof UK. It produces cars and motorcycles in many countries. This firm seeks to expand itsbusiness operations in international market so, its managers are required to analyse all majorfactors of environment. TASK 1P1 Key factors of cost market and competitions which drive global commercial trade Globalisation helps in removing barriers between two territorial regions which assistcompanies to earn high productivity and proficiency. Through international market, enterprisescan sell or purchase their goods or services easily in other countries which helps in improvingsales performance as well. The major factors which impact on business of firms are needed tounderstand by management of organisations (Wild, Wild and Han, 2014). These elementsinclude cost, market, competition, rules and regulations therefore; manager of companiesidentifies these factors in order to control them. This would help in operating business activitiesin a proper manner at global level. With this assistance, management of BMW Company hasevaluated that this firm fails to earn high return of investment. So, to improve its salesperformance they have decided to expand business at global level. In order to conduct business atinternational level, its employers are required to formulate some effective strategies and policieswhich help in conducting business in an appropriate manner. Furthermore, they have to analysefollowing factors also:-Competition: Launching business at global level gives many opportunities to companies. Ithelps in conducting operation at large level. Therefore, today all enterprises whether big or1
small, want to take their business at international level. This would raise competition inindustries which are dealing in same sectors. Thus, in order to gain competition management ofcompanies used to formulate different strategies and policies which help in gaining competitiveadvancement. In context with BMW, to expand business at global level it has made a jointventure with Rolls Royce Plc. It helps in improving production better as well. Apart from this,for gaining competition from rivals, an organisation needs to analyse factors like productdifferentiation also. This process aid firms to manufacture wide range of products which aredifferent in terms of technologies used in. Along with this, they are required to adopt latesttechnologies in operations which also proves beneficial to enhance production. Managers shoulduse special techniques to promote products or services in international and national markets.Marketing techniques helps in attracting large number of clients also. Henceforth, globalisationalso reduces circumstances of trade barriers. Cost: This factor of globalisation is also as important as other ones. So, mangers arerequired to examine cost in an appropriate way. Operating business at international level helpcompanies to purchase resources like labours, raw materials and more easily as well as low cost.Along with this, to gain large number of customers, firms like BMW are required to offer theirproducts on different rates according to economical condition of marketplace of those countrieswhere it sells commodities. Along with this, investment return rate is also a cost related termwhich creates large impact on price of goods or services (Voegtlin, Patzer and Scherer, 2012).When BMW faced economical crises like bankruptcy then its management has decides to launchbusiness in other countries. Furthermore, this firm has joined hands of foreign companies likeChinese manufacturer Great wall Motor, Rolls Royce Plc and more. This process has helpedBMW to come over from economical crises as well as it gets much fund by joint venture. Market: In order to globalise business, employers of a firm are required to determinecondition of marketplace where they want to launch their companies. Good economical situation,high purchasing power of people as well as large number of competitors present at samemarketplace assist organisations to conduct business activities in a wide manner. Such type ofprocedure improves revenues of this firm as well as business of BMW has become able to gainsustainability at marketplace. Along with this, it also helps in selling or buying goods andservices to customers who are living at different places. Therefore, management of this firm hasidentified all these factors before carrying out business operations at global level. But2
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