Business Environment Report: Key Issues and PESTLE Analysis of BMW

This report provides a comprehensive analysis of BMW's business environment, focusing on key issues such as the increasing demand for automation and the sustainability of the company in a competitive market. It includes a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors impacting BMW. The report discusses both the positive and negative impacts of these issues on the business, highlighting how sustainability can improve brand image and increase productivity, while costly facilities may lead to discrimination and reduced sales. Additionally, the report reflects on the challenges encountered during its preparation, including communication barriers and research difficulties, and strategies employed to overcome them. The conclusion summarizes the issues faced by BMW, the positive and negative impacts of the automobile sector, increasing market competition, and the challenges faced by the researcher.

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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several technical changes in the market that make quite difficult to sustain in market(Melgar,
2018).
Environmental Factors-
Due to changes in the environmental factors such as raise to sacrifices, population target,
raw material etc. Because of such environmental factors organization facing a sustainability in
the business market as the company has to follow the all environmental norms by the industries
for the betterment of the environment.
Legal Factors-
It includes the safety and health, advertising standards, equal opportunity, customer laws
and rights, because of such changes in the legal factors it creates impact on the sustainability of
the organization as the company has to follow the certain changes made and accordingly the
company has to change or set the rules and regulation of the company(Sabir, Faroogi and
Shahnawaz, 2015).
3) Two key issues
a) Positive impact on the business
Through the sustainability of the BMW company it can improve the brand image the competitive
advantage of the company and also increase the productivity of the organization and reduce the
cost that encompasses the energy that conserve the strategies by simply turning of the
unnecessary insulating walls and lights for more sophisticated. Sustainability of the organization
also raise the business ability to enacting of the regulation to save the environment. It attracts the
employees towards the company as keep on sustainability in the market it attracts the customer
and investor and make more familiar. BMW is dealing in the cars and the auto mobiles which
consist of the is having the positive impact on the business environment. In order to protect the
environment the company is improvising the products and also preparing the products in the
environment friendly way (Gopal and Thakkar 2016). The products are prepared in the way that
it would release the low carbon dioxide and also the company had to fulfil the needs of the
customers. BMW is the leading brand on the auto mobiles and is providing the facilities in the
auto mobiles which consist of the censors and other luxurious facilities.
b) Negative impact on the business
In order to provide the facilities to customers the company is compromising with the
environment and also the facilities are provided to the customers at the large cost. These facilities
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are increasing the cost of the products and some customers are able to buy the products it is
promoting the discrimination and also the standard of living is increasing. Due to these issues the
company is facing many problems which have affected the sales and the profits of the company.
Business environment include the internal factors and external factors. These factors are
affecting the business growth and not let the company achieve the long term goals. The economy
is affecting the sales because it is the automobile industry and at the time of the inflation no one
would buy the cars (Luthra, Garg and Haleem, 2016). Products would only be sold in the case of
the customers are not affected by the inflation. The decision s of the company is affected by the
business environment in the country. The government has made the rules for the new entries in
the market so the due to these the competition in the market is increasing. Due to the new entries
the competition is been increasing and the customers are provided with the best quality of the
products but the companies are facing the problems to set in the market.
4) Two challenges faced by me while preparing the report
I have faced the challenge while preparing the report which includes the communication
Challenge and the challenge while doing the research on the topic.
Communication is the biggest challenge for them which are not able to communicate
effectively. Effective communication is increasing the knowledge and also the work is done
while enjoying the work. The data collected form the way of the communication is right data and
the accurate data as well. I need to Improve my communication strategies and also use the
communication way for improving the language and the barriers while communication. I need to
improve the verbal communication and written communication as well. For these I have done the
classes to communicate with the people in their language. People are quite comfortable in
communicating with the language in which they communicate, but the language must be known
to us. So for effective communication I have done all the possible things through which I would
improve my communication.
I have started to listen care fully and also ficus on the person to whom I am
communicating with. Body language is must through which the communication would be
improved and also be specific about the topic I want to discuss. In some cases the if the topic is
not specified the communication is done effectively (Kushwaha and Sharma, 2016). One must
think before they are communicating to the people and also think before one is speaking to
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anyone else, because the in the process of the communication the other members must be present
physically and also with the mental condition.
Research is the main problem while doing the research on the topics. The report is based
on the automobile sector which is dealing in the cars. In order to collect the information on the
automobile sector the research has to be done and the lack of the research methods. Lack of the
experience is also affecting the research methods and also the work is done completely. Factors
like the economic and social barriers are also affecting the research. The information provide at
the time of the research need to be analysed and also the information need to be evaluated and
confirmed that it can be used in the research. In some cases the journals and the articles are not
providing the accurate information and it must be evaluated and checked by the person which is
doing the research (Dhingra, Ottaviano, Sampson and Van Reenen 2016).
I have evaluated and checked the information and also the information as checked
effectively. The research was done by the internet and the books which would containing the
information. The articles and the journals used in the research were checked and verified
effectively. Through these the research was done effectively and also have changed the methods
of the doing the research. Due to that the research was completed effectively. I have applied
various strategies through which I have overcomed the problems faced while preparing the
report.
CONCLUSION
From the report the company BMW is facing the issues in the market and the company to
deal with these issues. The automobile sector has given the positive impact on the environment
and also the impact includes the negative impact as well. The auto mobiles are affecting the
environment as the government has made the guide lines for the cars and also for the companies
which would make the product which would not pollute the environment. Competition has been
increasing in the Market which includes the market and the factors which are affecting the
market. The report also consist of the issues have faced by the researcher while preparing the
report. Report was prepared but the researcher had faced the problems of the lack of the
communication and while doing the research on the topic. The research was done ion the
automobile industry and the information collected was checked and evaluated effectively.
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REFERENCES
Books and journals
Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on
foreign investment in the UK. BREXIT 2016. 24. p.2.
Gopal, P.R.C. and Thakkar, J., 2016. Sustainable supply chain practices: an empirical
investigation on Indian automobile industry. Production Planning & Control. 27(1). pp.49-
64.
Kushwaha, G.S. and Sharma, N.K., 2016. Green initiatives: a step towards sustainable
development and firm's performance in the automobile industry. Journal of cleaner
production. 121. pp.116-129.
Li, J., 2015. How cluster, firm, and regional business environment influence different types of
innovative activities in European Union.
Luthra, S., Garg, D. and Haleem, A., 2016. The impacts of critical success factors for
implementing green supply chain management towards sustainability: an empirical
investigation of Indian automobile industry. Journal of Cleaner Production. 121. pp.142-
158.
Melgar, I.M.B., 2018. Bringing sustainability to Business Model thinking in Latin America.
Sabir, R.I., Faroogi, A.R. and Shahnawaz, M., 2015. Impact of corporate social responsibility on
socio-economic development in Pakistan. Scholedge International Journal of Management
& Development, 2(2), pp.1-8.
Vinayak, R., 2017. Quality assessment framework for business processes as a service in a
heterogeneous cloud environment (Master's thesis).
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