Global Strategic Management in the Auto-mobile Industry: A Comparative Study of Audi and BMW

GLOBAL STRATEGIC

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Auto-mobile industry.................................................................................................................1
External business environment .................................................................................................1
Macro environment ...........................................................................................................1
Micro environment ...........................................................................................................3
Internal analysis ................................................................................................................4
Responses to globalization and technology ......................................................................5
Task 2...............................................................................................................................................5
TASK3.............................................................................................................................................8
CSR strategies that enhances the organizational success............................................................8
Role of sustainability offerings...................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global strategic management refers to managing all the plans of actions on the
international level is known as global strategic management. It gives assistance to business in
acquire capitalize and opportunities all over the world. In order to increase the growth rate of
business enterprise the manger of the company allocated the resources with the help of strategic
management.
The present report will examine the auto-mobile industry with the assistance of two largest
auto-mobile companies namely Audi and BMW. Audi is the German company which deliver
luxury vehicles in the marketplace whereas BMW indicate as Bayerische Motoren Werke AG
which is leading the market since many years (Wilberforce, et.al 2017). Both the companies
operate the main function from the headquarters which is in Germany.
Furthermore, the study will analysis the PESTAL and Porters 5 force model , SWOT analysis
along with value chain and VRIO. The report also highlight the CSR comparison as well as
graphics of two auto-mobile company.
MAIN BODY
Auto-mobile industry
Auto-mobile industry refers to the manufacturing industry which manufacture or sales
self-powered vehicle to ample numbers of customer in marketplace. It is the largest leading
sector which contribute in income of nation in adequate manner.
External business environment
Macro environment
PESTAL analysis
The PESTAL analysis of the auto-mobile industry indicate external factors of organizations
which affect business and give assistance in improving usefulness of the organizations(Palinski,
2017). The analysis consist of various factor which are as follows:
1. political factor: the authority of nation form rules and regulation in order to deliver safety
concern to the consumers. The authority demand for production of vehicle which is safe
for the consumer. if the companies are unable to fulfil the requirements, permit of the
company will cancelled by authority leading the country. The organization test
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manufactured product before introducing in the market which is costly and time-
consuming for the companies.
2. Economic factor: it affects the auto-mobile companies of luxury cars because of the
implement of taxes on luxury commoditizes which increase the value of vehicles.
Therefore, income of the people will not allow buying high value cars. Due to increment
in the price of auto-mobile parts, the scale of conveyance price also increased which
result in lowering the demand of product in marketplace.
3. Social factor: what is in social trend affect the production of the product. The taste and
preferences are of consumer is included in social factor (Mao, 2018). People willing to
buy update version or car with advance facilities. If the manufacturing is not gone
according to fashion so sales of the production decreases. The culture and tendency to
devour the commodity affect sector.
4. Technological factor: the people are concerned with safety which require the innovative
technology so companies have opportunity to implement updated technology in cars for
safe experience to the buyers.
5. Environmental factor: in order to decrease pollution in the nation, governing authorities
take major steps which impact the production of industry. The companies started
manufacturing battery or electric driven cars which give assistance in decreasing the
revenue enhancement of emission.
6. Legal factor: it is consists of tax and environmental legal system which is essential to
survive in the international market. The company may get banned in the marketplace if
they do not follow the norms of the nation.
PORTALS 5 force model
It is plans of action which is utilized to analysis the competitiveness and attractiveness of
a industry (Khan, and Ahmed, 2019)]. It gives assistance in raising the potential and surplus of
the companies by various elements such as follows:
1. extent of rivalry between the competitors: it is high for both the reputed and highly
demanded companies due to high market share and growth.
2. threats of entry: it is low for both AUDI and BMW because both companies scale up the
economical values.
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