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Globalization and its Impact on BMW Group: A SWOT Analysis

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Added on  2019-09-20

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This article discusses the impact of globalization on BMW Group through a SWOT analysis. It covers the strengths, weaknesses, opportunities, and threats of BMW Group in the global market. The article also explores the benefits and challenges of global expansion and outsourcing for competitive advantage. The case study of BMW Group highlights the importance of strategic planning, corporate governance, and cultural adaptation in global business.

Globalization and its Impact on BMW Group: A SWOT Analysis

   Added on 2019-09-20

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ABCSECTION [RollNo.]MANAGING GLOBALISATION
Globalization and its Impact on BMW Group: A SWOT Analysis_1
In the today’s world, an organisation running in a global platform needs to analyse its cost & benefit of its survival. Survival is the key & projecting in-depth research regardingkey resources devoted, human resource hired blending with operational, finance costs & projecting sales revenue or profits helps us in strategizing a company frame to expand (Purcell, 2007). In the modern context, globalization is integrating dometic company with an internationalstandards. Due to the bilateral trade agreements such as WTO and NAFTA cross-country trading, investments & balancing the barriers are possible . This helps in managing the surging invstments globally & devising a plan to expand on a larger scale be it through joint ventures or by merging, acquiring etc. APAC region started making its parts & manufacturing in te western region to gain more acces to latest techonologies & Western countries penetrated into the Asian countries to gain access to skilled labour alng with cheap inputs (Ngo, 2008). Tariffs & migration of foreign workers & investment might hamper or result in the boomfor a country which can help in balancing it. But due to balancing countries do learn techonolgies, skills, people management & other important techiniques. Some of the risksdue to the globalisatin which can occur are-:A shifting risk profile-: Globalisation leads to the increased risks for e.g. unstable economies, fluctuations in interest and exchange rates etc. Frequently analysing the global risks & playing in an unexplored terrain can help a country to capture unleashed opportunities.Regulatory obstacles-: Legally changing hassles & barriers to penetarate in a country an organisation needs to be adaptive. Devising a suitable contingency plans & making an organisation to penetrate into market, they should explore all the major challenges. For e.g. in certin countries legal can be quite strong which do not entertain monopoly or form 1
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a cartel. Hence a company blending into the new atmosphere must study well the targeted country before setting up a plant. Cultural differences-: When trade opens up it results in the mixing of two economies along with two mindest people whoi come from the different relgion, background, culturally different. For example in certain countries womens are not encouaraged to do market serices & only male is deployed. In such scenario, a company needs to be adapative in its approach & should integrate as per the country cultural. To cope, the central organization must be able to refine portfolio management and create an infrastructure that maintains the diversity of international teams while also empowering local delivery.Resource constraints-: Due to the high competion which comes in the market there can beshortages of resurces in the form of key people or inputs. To balance it oiut a company should always find out an alternative approach in finding new opportunities to streghthen it ties.Problem flexibility -: Exchanging resources & forecasting key requirements to be integrated into the system needs to be identified & fixed. The alternatives or substitutes should always be devised & formulated.EPPM Is Essential-: The senior management should be decisive & should be aggressivelyintelligent in approaching a new environment. It should be able to convince & convert barriers into opportunities. We did in research over the BMW Group, a Germany Company which is governed by German Corporate Governance Code & it ethically follows §161 German Stock Corporation Act to report once a year. BMW is a strong luxury brand car manufacturers worldwide. BMW premium luxury cars includes 3 series, the 5 series, the 7 series, the Z line ,X line, BMW’s “sport activity” ,Rovers, Land Rover .Rolls Royce vehicles etc. High branding & greath protmotional activiites has resulted in a strong image makeover. 2
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It has expanded in countries like U.S.A, India, Canada, Australia etc. Across globally, BMW knows its customer globally, bringing uniform services to many local admirers dueto stronger presence worldwide & structuring organization evenly. BMW Group adheres to corporate governance in all countries it exists. For the interest of shareholders, BMW Group follows an ambiguity reporting & it requires immense coordination for a smooth cooperation between the Board of Management and the Supervisory Board. The underlying principle of BMW Group is based on transparency, trust & responsibility.When BMW expands globally , this will only result in generating more revenues, sales, profits & get fair visibility. Strong marketing campaigning, aggressive sales strategies more promotional activities has already made BMW a strong brand (Kirton, 2001). Hence when it plans to explore a new terrain whether in developed or developing countryit will be easy for a brand like BMW to identify & penetrate.Globalisation has its pros & cons, after analysing the risks factors if we mix it with company like BMW it will be able to convert barriers or risks into big investments & profitability.While expanding globally it has to balance all its pros & cons which BMW has been able to control & sub dued some of the challenging factors which are-:Expanded MarketsDue to the globalisation comes an advantage to an organsaition to expand in new markets& spread its wings in a new horizons. An organisation like BMW which has explored domestic terrain might do a good business within the country but when it penetrates in to a new markets to can generate new opportunities. Expanding doing business globally 3
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