Global Business Environment - BMW

Added on - 21 Jul 2020

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GLOBAL BUSINESS ENVIRONMENT
CONTENTSINTRODUCTION...........................................................................................................................1TASK – 1.........................................................................................................................................1P1 Analyzing key factors that drive globalization.......................................................................1P2 Explaining the complexity of strategic challenges faced by BMW in a global environment.3TASK – 2.........................................................................................................................................4P3 Evaluating the influences of globalization on organizational governance and leadership,structure, culture and functions at BMW................................................................................4P4 Assessing the influences of ethical and sustainable globalization on BMW’s functions.......6P5 Appraising the different ways decision making can work effectively in a global context.....7P6 Determining and articulate the various routes to internationalization BMW may adopt,including key barriers.............................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONGlobalization is a term that defines the worldwide economy. If it is viewed simply asinternational trade, it has been taking place for hundreds of years. Globalization can better beunderstood as a holistic approach being related with the general systems theory, wherein onetransaction completes on one domain can influence the other domain. In simple word, it is aprocess of integration as well as interaction between the people, government and companies ofdifferent countries. However, operating in the international platform and global environment isnot an easy task (Daniels, Radebaugh and Sullivan, 2013). Companies stepping towards theinternational markets come across with numerous challenges and issues which needs to besurpasses for achieving success.Pertaining to this, the current research report is aimed at exploring the wider positions oforganizations in the global environment. Further, as a training business manager of BMW, I willanalyze the complexities of operating in the global market and will develop an understanding ofvarious ways to cater with the issues and challenges coming across the way of globalization. Forthis purpose, the case of BMW is taken into account. The company is one of the most victoriousmulti-kind finest motor manufacturers all across the world. It is headquartered in Munich,Germany. At present, BMW is most respected and trusted brand in the whole world. As per thelatest financial report, the company is continuously maintaining leading position in premiumsegments in the whole automobile market (BMW Group, n.d.). The company has come acrosswith various challenges of globalization and thus, the present study will evaluate factors thathave driven globalization and the ways through which BMW has eroded the upcoming impactsand issues. The later part of the report will comprehend the influence of globalization on BMW’sdecision making, strategy, culture, structure, function and organizational governance.TASK – 1P1Analyzing key factors that drive globalizationCost– Most of the global companies including BMW extent their global reach in order tomaximize their investment. Organizations cannot achieve economies of scale and scopein single nation market especially when there are dramatic alternations in the market1
place. Then the main goal of the company is to get the most mileage from investmentcost. Furthermore, the promotion and advertising can bleed across borders and thus, it isimportant to make the product available in that market where people can recognize, hearand learn about the products and services of the company. It is tough for organization totake decision regarding appropriate strategies, market segment, target group and productpositioning.Market– Talking in relation with the advanced economies, consumers are becomingsimilar in regards with education, income, aspirations and using leisure time. Companieswant to extend their market reach and sometimes may find ready buyers in nations withhigh purchasing power (Deresky, 2014). On the other hand, they might fare best inmarkets which are not so sophisticated. Companies having a global strategy are not anauthentication that they can serve the entire globe. It is quite important to make criticalchoices including decision about allocation of resources.Environment– The demand for global products and services is accelerating due toincrease in the consumer wealth and mobility, transfer of information across borders,benefits of globalization and revolution in the technology. Emerging market are enjoyingbenefits being reaped out from the advanced communication. Many firms includingBMW are taking advantage of this raising trading regions as well as newer technologies.The smaller government in the existing market allows such born global companies tomove quickly to conquer new markets, change direction and develop new products as andwhen situations demands (Czinkota, 2011).Competitors– To remain competitive in the market, companies have to exaggerate theirmarketing in almost every market. It is being treated as a sustained advantage for thecompanies. Organizations compete which each and other and continuously introduce,distribute and upgrade new products and services faster than before. Additionally,leading organizations drive the process of globalization. BMW is also driving theirbusiness in a global direction by creating a global brand, demand and supply chain tomeet out those demands.Technology– Due to rapid increase in the technology, the trend of globalization isaccelerated. For example, due to telecommunication technology, companies canexchange millions of information instantly all around the world through telephone,2
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