Report on Global Business Environment of BMW
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Added on 2020-06-03
Report on Global Business Environment of BMW
Added on 2020-06-03
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Global BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Key factors of cost, market, environment and competitors which drive global trade andcommerce....................................................................................................................................1P2 Complexities of strategic challenges which face by BMW in international environment.....3P3 Impact of globalisation on governance, structure, leadership, culture and functions ofBMW...........................................................................................................................................5P4 Impact of ethical and sustainable globalisation on organisation functions at BMW.............6P5 Various ways decision making which can work effectively in international context............7P6 Determine and articulate the different routes to internationalisation which BMW mayadopt............................................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES .............................................................................................................................10
INTRODUCTIONGlobal environment is concerned with different factors which directly affect to the homeatmosphere of an organisation. Environment is mainly define as various aspects such as internaland external which directly affect on business operations and its functions. Such kind of factorsare accessible within an enterprise and it influence on decision making procedures, usage ofresources and abilities in different manner. In current era, Automobile industry is fast growingsector in all over the world because human can not live without cars. This industry is one of theleading worldwide economy. This report is based on Bayerische Motoren Werke (BMW) whichis German multinational organisation that develop motorcycle and auto-mobiles. In this project,analyse the cost factors, market, environment and competition in international commerce andtrade. It will describe the difficulties of strategic challenges that are facing by BMW and defineimpact of globalisation on individual governance, structure, leadership and culture (Cantwell,Dunning and Lundan, 2010). There are various ways of decision making which has beenevaluated in this. It will articulated with different routes for internationalisation which BMW hasbeen adopted by them with major key barriers. TASK 1P1 Key factors of cost, market, environment and competitors which drive global trade andcommerceInternational trade is mainly define as the exchange of capital, commodities, products orservices among people and organisation at global level and different nations. It is play importantpart of Gross Domestic Products (GDP). Global trade has exist for long time period and enhancemore in some previous years. Also they have face major impact on enhancing income and thiswill contributing to the country's economies. It includes various factors such as exchange ofcommunication, finance, economic and transaction in all over the world. Thus, global businessenvironment determine effective strategies and decision while smoothly running of businessoperations and its functions (Cavusgil and et. al., 2014). It will help in achieving competitiveadvantages in better manner. There are different factors which can directly affect to the BMWdue to this auto-mobile company deals within global place so it will assist them in makingeffective decisions regarding effective business operations. It can mainly effect on business and1
drive international trade or commerce in effectively and efficiently manner. These factors are asfollows:Cost – This is mainly related with business term and there are different issues which canoccurs during production, merchandising, investigation, etc. Therefore, it can refers as that valueof cost which assist in manufacturing products and services for satisfying their customers indifferent nations. If any business enter in new market so this will directly affect on variousactivities such as advertisement, promotions and trade shows which main purpose is to spreadingawareness so it will reflect on cost factors (Colfax, Rivera and Perez, 2010). BMW generallyfocus on promoting their new car model or featured car with the assistance of media channelssuch as Televisions, commercial aids, other advertisement modes for achieving with targetcustomers. It will assist in driving international trade and commerce and increasing economiesfor knowing the GDP of the country. There are major key factors of costs are as follows:Direct cost – Such type of cost are mainly help in smoothly running of businessoperations and functions which put some efforts in the goods and services in better manner. Itinvolves different direct cost like material, workforce and labour which required formanufacturing correct products and services for satisfying their customers needs and demand.BMW required for determining Fixed and Variable costs in producing procedure for smoothlyrunning of business operations and its functions. Indirect cost – It is define as income and expenditures which can occurs duringmanufacturing process and their business activities. There are various indirect cost such asadvertising, maintenance and administration expenses and management. Such cost are occurswhile merchandising and purchasing their commodity and services in better manner. It will alsorelated with compasses of pricing scheme and policies for maintaining their whole businessoperations and its functions in effective manner (De Jonge, 2011). Market – This can describe as that place where all the innovative products and servicesare being sale and offered. In this, there are different person who are coming for main purposesuch as purchasing goods with exchanging money value in the entire market place. BMW is oneof the leading global market and they are selling their motor products such as motorcycle andcars at different countries as well as in market. It is not stable for market change as per theirenvironment and time so it will directly affect on the company success and growth. Here aresome key factors of market are as under:2
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