Key Issues and Pestle Analysis of BMW

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
1) Key issues that affect the sub-sector .......................................................................................1
2) Pestle analyses of BMW..........................................................................................................2
3) Two key issues.........................................................................................................................3
4) Two challenges faced by me while preparing the report.........................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment id the collection of the external and internal factors that are
customers expectations and needs, demand and supply, management, suppliers, clients, social
trends, economic changes etc. BMW is a German MNC company that was founded in 1916 and
produce the motorcycles and auto-mobiles(Li, 2015). At first the BMW was manufacturing the
aircraft engines. BMW is dealing in the brands BMW and the Rolls Royce. This report highlights
the key issues that affect the organization and also reveals the pestle model on the basis of key
issues of the firm. Also, shows the positive and negative impact on the business and finally
summarize the experience. In this regard the whole report has been prepared. The report is
including the business environment of the automobile industry and so the impacts of the
automobile sector is explained in the report.
1) Key issues that affect the sub-sector
As the increase in the demand of the automation vehicle functions that is inextricably that
are tied for the development for the cars. Therefore, introduction for an advance driver assistance
systems (ADAS), Like the parking distance control (PDC) and the radar based speed & distance
control (ACC) in the nineties of last century that a logic step. As the raise the performance of the.
ADAS that make next step to realizable that provide the possibility that completely delegate an
driving task. Also, fully automated also offers that chance the completely mobility concepts that
high potential for an optimize the situation that is special in urban areas. The evaluation of
functionalities through a normal consumer by a earliest possible information for an integral part
For standard development for the process of BMW. Where the evaluation that usually that starts
in driving simulator. Where the BMW invites the buyers for a test drive and that public roads and
ground roads at large stage of development. These activities are on going that intensified today
for development for fully and highly autonomous car. An even broader operational test that have
to discussed that respect for a communication aspect. As the customer wants the new changes
from the Automotive company in the form of Automation driving functional in the car, such
changes and requirement by the customer make the company more conscious about how to fulfil
the needs of the customer. It creates a major problem for the BMW automotive industries to
develop the industry. As the customer wants the innovative technical changes in the car(Melgar,
2018).
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Another issue of the BMW organization is the sustainability of the company in the
competitive market. As the taste and preference of the customer changes day by day their
demand also increases and want more technical functions in the products of the company. As the
consumer wants the more technical functions are to be given by the other company. It creates an
issue for the organization for the sustainability of the company in the business market. As the
other automotive companies bringing the new technologies in the products and providing better
services to the customer in the market, which create more hurdles for the BMW industries to
compit with the other automotive company in the market. To sustain in the competitive market
the organization has to give more attention to the market and try to analysis the market. If the
company want to survive in the competitive business market(Vinayak, 2017).
2) Pestle analyses of BMW
Political factors-
Due to the political changes in the economy such as government policy and tax policy,
foreign policy, political instability etc. It creates a major impact on the organization. Because of
political changes faces sustainability in the market and the automation issues of the organisation
as the government not allowed and permission for such techniques to use in the company for
example self driving.
Economic Factors-
Changes in the economic factors it makes a significant impact on the sustainability and
automation of the BMW company. Due to changes in the interest rates, exchange rates,
economic growth and disposable income of business & consumer(Li, 2015). Due to such
changes in the economic it creates major problem to survive in the competitive business market.
Social Factors-
It is the factors where the attitude and belief of the population, it includes age
distribution, health consciousness, population growth, career attitudes etc. Such interest of the
customer changes due to social reason and which changes the interest of the customer and
demand. Such changes may create issues fir the organization to sustainability of the industries in
the business market.
Technological Factors-
As the continuous changes in the technology create an issue for the BMW organization
for the sustainability in the competitive market as the company want to keep update of the
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