Global Business Environment Analysis for BMW (Module Report)

This report provides a comprehensive analysis of BMW's global business environment. It begins by examining key drivers like cost, market, competition, and the overall environment influencing global trade. The report then delves into the strategic complexities BMW faces, including challenges related to strategic ideation, engagement, and maintaining focus in a globalized market. The analysis further explores the impact of globalization on organizational governance, leadership, structure, culture, and functions within BMW. The report also considers the influence of ethical and sustainable globalization on organizational functions, different decision-making approaches in a global context, and various internationalization routes BMW might adopt. The report concludes with a summary of key findings and recommendations for BMW to navigate the complexities of the global business environment effectively.

Global Business Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis key factors of cost, market, environment and competition that drive global
environment trade...................................................................................................................1
P2 Complexity of strategic challenges faced by BMW when operating in a global
environment............................................................................................................................3
TASK 2............................................................................................................................................5
P3 Influences of globalization on organizational governance and leadership, structure, culture
and functions..........................................................................................................................5
P4 Influences of ethical and sustainable globalization on organizational functions..............6
P5 Different ways decision making can work effectively in a global context.......................7
P6 Articulate the various routes to internationalisation BMW may adopt, including key
barriers....................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Global business is a place where more and more companies used to operate their
activities just to please themselves at wide number of customers. It is a place which enable and
support many individuals to perform their business operations properly and generate more and
more revenue as compared with others. This project define and describe about the BMW
(BayerischeMotorenWerke) which was founded in the year 1916 and deal in all kind of
automotive vehicles. They have good and appropriate market share which define the feasibility
of a company to get sustain at keen competitive world. With this report, management of BMW
become more aware about global business environment properly so that working could be
improved in near future course. This project will lead to define about various key drivers which
used to operate the global business environment in better manner. It will also describe about
strategic complexities which used to identify at global environment. Thus, it also need crucial
aspects to determine which highly influence decision making and strategy of a company.
TASK 1
P1 Analysis key factors of cost, market, environment and competition that drive global
environment trade
Global environment is based on several number of consideration which used to determine
by business organisation properly so that better and effective working could be done (Canals,
2011). thus, such factors and elements need to understand and assess properly by the
management of a company so that they used to carried down operations in better and suitable
manner. Such aspects are related with cost, environment, market and competition which need a
critical understanding as well as related benefits and challenges which enable managers to
operate safely. BMW needs to understand such sections properly as they are one of a major
company by revenue of such automotive industry so for managing appropriate and effective
working this assessment is really important:
 Competition: Business operations at globalised level is not a easy task and it really need
highly understanding of all related aspects. One of a major key factor which drive
globalisation is competition. High range of competition could be determine at global
business environment which need and required to understand properly for maintain and
made a business healthy. BMW need to determine their major rivalry at global
1

environment so that they could drive their globalisation in positive frame. BMW used to
face heavy competition at Japanese market where luxury cars define a major threat for a
company. Although, some other major competition at global market was evaluated from
the side of Mercedes Benz whom define as major luxury car manufacturer of German.
They offer products at more keen competitive price with higher standard services which
used to determine by company managers properly. Although, a high competition drive
the globalised market properly where business required appropriate and effective
understanding with better strategies.
 Cost: Cost should be derive as another section which used to drive the global business
environment in better and appropriate manner. For gaining higher profit management
used to cut down their cost of production and need to focus on working in better and
effective manner.(Gammeltoft, Filatotchev and Hobdari, 2012). BMW used Just in Time
approach for their production as well as their all outlets or industries are near to each
other. This enable and support them to reduce and cut down the heavy cost of final
assembling. Although, each and every production unit is near to each other which used to
define that not such huge and heavy cost incur on transfer of one part to another. Hence,
BMW also overcome this factor which drive global environment so that they could
determine better and appropriate outcome.
 Market: Business need to understand the nature of market properly where they want to
expand themselves properly. This understanding of global market world enable business
organisation to manage their operations in better and determine frame of reference. The
business market is not stable in nature and get changed with every due course of time.
BMW operated in each and every kind of market world like UK, Europe, Japan,
Germany etc. Thus, they need to understand about nature of such market world properly
which further facilitate them in managing operations properly. Like Germany support
business to grow and expand where annual records sales as compared with previous year
got underpin with selling of around 191,000 units. At Europe, sales tend to rise by 5%
which signify better and effective working. All these values and terms define that
business was in appropriate state of position which enable them to become a global
market leader in auto-mobile industry very much.
2

 Environment: Whenever business used to operate at big level, they used to face some
environment related problems which have to understand by business managers properly
and need to deal out effectively otherwise it will influence negative aspect of contribution
of operations (Goerzen, Asmussen and Nielsen, 2013). BMW used to face some
environment related issues while operating at such vast level which easily used to
influence the consumer behaviour towards them. Used recycle material in old cars which
enable in drafting positive attribute towards business and its working. Although, for
recycling business used advanced technology so that better and effective attribute could
be facilitate on environment. This factor also drive global environment where positive
and negative influence on users estimated just because of effective operations.
P2 Complexity of strategic challenges faced by BMW when operating in a global environment
Strategies are a core part of business which need to understand by owner as well as
management. Without implementation of strategies none of an organisation will used to become
successful in nature. Thus, there is a need to understand about the importance of strategies
towards business and its functions so that better and effective operations lead to take place. At
global environment, strategies support in made a firm sustainable and feasible in tenure so that
better and effective working options could be estimated.
Rapid increase of technology utilisation made vast impact on nature of working. Many
business units start to become globalised in manner while expansion of technology get
determine. Along with this, customers become more choose in tenure as well as their taste and
preferences also getting modify. Hence, it become quite difficult for management to formulate
strategies and consider as complex aspect of strategies crafting. Although, government of
countries also signify and made elastic trade policies which assist and aid in increase of
globalisation. A major support in delivering of goods and services related with technological
expansion where now any customer order online from anywhere. But these benefits are not
sufficient and despite from all these several number of strategic challenges used to face by a
company when they operate at global environment (Mauri and de Figueiredo, 2012).
Such strategies oriented challenges and drawbacks need and required to understand by
managers of BMW so that they could maintain and manage feasibility in diverse number of
operations. Some complex strategic challenges faced by companies like BMW while operating at
3

globalised level are define and signify as follow (3 Of The Biggest Business Strategy Challenges,
2018): Strategic ideation and creation: One of a major strategic challenge used to face by
globalised company are strategy ideation and creation where a need arise with
appropriate formulation of vision and mission. Strategic ideation must ensure that all
things are properly written as well as it also includes about customer expectations etc.
Thus, determination of customer expectation and taste and preference define as complex
situation in nature (Globalization Challenges for Businesses, 2018). This used to affect
the formulation of clear mission, vision and core values of a company. Hence, this is an
initial and major challenge or issue which used to face by BMW while operating at wider
environment area. This used to overcome with effective survey on market which further
enable in define things appropriate and suitable in nature. Getting engagement: The second and major challenge which used to face by a company
is getting engagement. This is an another problem which related with business working
and operations. Like without any engagement with customers, working attribute chances
of getting success temporarily low. Thus, this situation is also complex in nature because
at globalised level, more number of customers get evaluated whom belong to differ kind
of areas and cultures. Thus, this is another major and serious problem at the time of
strategic challenge because all internal and external stakeholders involvement become not
so much problem. BMW need to assess and understand this section in appropriate and
effective manner as well which further facilitate in deriving better and effective return.
 Maintain focus: The third and last strategic challenge used to related with managing
focus on business operations and strategy implementation. This is another major and
serious complex problem which related with internal associates of a company. Like might
be sometimes, several conflicts and problems arise among each and every individual of a
company which create problem in maintain focus on each and every target properly.
Thus, management required to understand this aspect properly and try to resolve all kind
of conflict arise at global level. BMW need to understand this aspect as well properly so
that they could maintain and manage working and keep the business focus on each and
every working target and objectives.
4

TASK 2
P3 Influences of globalization on organizational governance and leadership, structure, culture
and functions
Organisational governance refer to as such process where business activities and
operations used to maintain and manage by senior authority of an entity (Arends, 2014). at the
time of globalisation, major threats could determine on organisational governance just because
business used to get expand where operations lead to take place at vast level where management
of each and every unit is quite difficult. Thus, business used to evaluate major influence due to
globalisation on organisational governance. Although, it create negative influence on business
and its operations which need to understand by senior management properly and determine better
and appropriate outcome.
Number of capacities at huge level additionally get increment which bolster an
association to expand benefit. In any case, in negative setting, numerous number of capacities
require more proper course and in addition cost with the goal that successful working could be
advanced. Globalization made a double viewpoint on business in which positive and negative
ideas are decide legitimately. In addition, they have to alter their working society too which
require them as indicated by alteration in an association setting. Structure of business likewise
get changed in light of the fact that at neighbourhood level not so much changes occurred but
rather with basic change in task require more mind boggling structure which affected
representatives.
BMW is a multinational company whom operating at wider level where the culture,
leadership, structure and functions of a business could be modify. These considerations need
suitable and better direction which further facilitate in define effective and better strategies.
Globalization in their business tasks made increasingly effect on their business structure and
additionally working. Alongside this, pioneers likewise need to change their working style
appropriately generally numerous hazard get reflect into an association approaches. Despite the
fact that, globalization is a sort of progress which can be or not be stand up to. A change isn't
generally useful yet at some point reflect positive perspectives too. Subsequently, business need
to decide every one of these things legitimately and take fitting choice with the goal that better
and viable working could be advanced.
5

P4 Influences of ethical and sustainable globalization on organizational functions
There are various functions used to take place in business which need to assess and
understand in better and appropriate manner. Thus, management need to maintain ethical and
sustainable globalisation which further facilitate them to generate more and more profit. Hence,
business define and determine a vast influence of ethical and sustainable globalisation. The
various functions at BMW are define and signify as follow: Marketing function: If a business used to opt better and efficient activities then
marketing function used to perform their duty properly. Ethical and sustainable
globalisation used to present a company in better and efficient manner. It will influence
the marketing function properly which support in gain and define the market area more
properly. The overall impact of marketing function become positive if a business could
opt appropriate operations till starting course. BMW already engage in ethical practices
towards the environment where they highly focus on recycling, wastage reduction etc.
This support their marketing activities which enable in crafting better practices and
support to maximise goodwill as well.
 Human resource function: Another function at workplace is HR department. All ethical
and sustainable activities enable business to gain and recruit such individuals whom have
creative nature in aspect as well as they have good directional skills. Although, a good
image at market area will support business to expand themselves in better and appropriate
frame which further assist in deriving suitable gains. BMW have provided
apprenticeship, industrial opportunities etc. for providing career paths in better and
definite manner. Such activities used to present and define a feeling of responsibility
among each and every individual which further enable in deriving better and suitable
gain.
These are several number of functions which used to perform and determine at BMW.
Hence, management need to focus on them properly as ethical and sustainable influence on
business and its operations tend to rise high which further assist in define their targets and goals
properly. Thus, it will directly enable in define the things properly. Although, such practices
reflection could be determine in terms of profit and growth. As well as they become more able to
deal at market area by including and engaging effective and efficient individuals at workplace.
This lead to define them better and efficient working.
6

P5 Different ways decision making can work effectively in a global context
Judgements are a core part of business which need to understand by managers properly so
that better and effective working could be done. The various ways of decision making which
have to consider by BMW while operating at global environment describe and evaluated as
follow:
 Programmed decision making: These are such kind of operating consideration which
influence and used to be based on high planning and evaluation technique. It used to and
enable in deciding that things are getting done properly or not. Although, a keen focus
has been made on operations where customer feedback need to assess and deal out in
better manner. Hence, management become able to perform well as well as managing
their existence at market world with suitable goodwill. BMW could opt this aspect
properly which enable them to facilitate effective marketing strategies which results
could be evaluated in terms of more production.
 Unprogrammed decision making: These are highly based on logical attributes rather
than others so that all kind of risk and uncertainties could be deal out in better frame. On
the basis of logics and definition better judgement could be evaluated. At globalised
market world, BMW could go with this decision making process so that better and
efficient working could be promoted for long term aspects.
P6 Articulate the various routes to internationalisation BMW may adopt, including key barriers
Internationalization is a procedure through which business activities winds up ready to get
worked at wide level. It is one of a urgent procedure when an association needs to create
increasingly benefit for the business with the goal that odds of supportability and increasing
upper hand end up conceivable. There are different hazard are related with an association whom
need to consider by supervisors of an organization. Expansion isn't a simple thing in which new
market advancement and in addition item upgrade need to consider appropriately. One of a path
for making business globalized in nature is merger and procurement through which affiliation
wind up ready to extend number of activities in other nation. Although, there are various barriers
are evaluated properly which are associated with this internationalisation for BMW evaluated as
follow:
 One of a hindrance for an organization is fetched for globalization in which
administration need to put increasingly in another nation with the goal that better and
7

proper working could be advanced (Grant, 2016). In this manner, chiefs of an
organization need to assess such nation where they can put effectively in setting for
increasing better and proper result. Waitrose discover that India is one of a nation which
advanced FDI in low loan cost. Hence, cost can be consider as one of a hindrance of
limitation for an organization which need to overcome by an association just by receiving
alternatives like merger and so forth.
 Cultural obstruction is another limitation for an organization in which it gets assessed that
culture of an organization in parent organization contrasts from another nation. In this
manner, it limits business to pick up progress and expand the gainfulness of business
(Gurung and Prater, 2017). Despite the fact that, it is basic for authoritative chiefs to
increase such viewpoint appropriately and take helpful choices which bolster in long haul
setting. This boundary gets defeat just through receiving a culture of another nation with
the goal that business pioneers to make their exercises fitting and compelling in nature.
CONCLUSION
It get concluded from the report that global business environment is also dynamic in
nature which define the changes in customer taste, preferences and attitude of purchasing. There
is a need to evaluate about such factors by each and every organisation whom operating at
globalised level so that effective and better strategies could be crafted. There are various factors
are related with global environment which have to understand by managers properly as they
define as key influential to drive global environment. Although, several strategic challenges also
used to face by a company when deal at wider level which need to rid out by effective
judgements. Global environment completely used to influence the governance of an organisation,
culture and their ethical attributes. This need to understand by business managers properly which
facilitate and support them to determine better and effective outcome. Hence, a business become
more successful in nature with effective understanding of global business environment.
8

REFERENCES
Books and Journals
Adger, W. N. and et. al., 2013. Cultural dimensions of climate change impacts and adaptation.
Nature Climate Change. 3(2). pp.112-117.
Alkhafaji, A. F., 2011. Strategic management: formulation, implementation, and control in a
dynamic environment. Development and Learning in Organizations: An International
Journal. 25(2).
Arends, R., 2014. Learning to teach. McGraw-Hill Higher Education.
Brouthers, K. D., 2013. A retrospective on: Institutional, cultural and transaction cost influences
on entry mode choice and performance. Journal of International Business Studies.
44(1). pp.14-22.
Canals, J., 2011. The future of leadership development. Houndmills: Palgrave Macmillan.
Clegg, S. R. and et. al., 2011. Strategy: theory and practice. Sage.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Epstein, M. J. and Buhovac, A. R., 2014. Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts.
Berrett-Koehler Publishers.
Gammeltoft, P., Filatotchev, I. and Hobdari, B., 2012. Emerging multinational companies and
strategic fit: a contingency framework and future research agenda. European
Management Journal. 30(3). pp.175-188.
Goerzen, A., Asmussen, C. G. and Nielsen, B. B., 2013. Global cities and multinational
enterprise location strategy. Journal of international business studies. 44(5). pp.427-
450.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Grant, R. M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Guimón, J., 2011. Policies to benefit from the globalization of corporate R&D: An exploratory
study for EU countries. Technovation. 31(2). pp.77-86.
Gurung, A. and Prater, E., 2017. A research framework for the impact of cultural differences on
IT outsourcing. In Global Sourcing of Services: Strategies, Issues and Challenges (pp.
49-82).
Liu, H. and et. al., 2013. Strategic flexibility and international venturing by emerging market
firms: the moderating effects of institutional and relational factors. Journal of
International Marketing. 21(2). pp.79-98.
Magnusson, P. and et. al., 2013. The role of cultural intelligence in marketing adaptation and
export performance. Journal of Marketing Research. 21(4). pp.44-61.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Online
Globalization Challenges for Businesses. 2018. [Online]. Available through
:<https://yourbusiness.azcentral.com/globalization-challenges-businesses-22245.html>.
9