Report on BMW's Global Business Environment: PESTLE, SWOT, and Drivers

This report provides a comprehensive analysis of BMW's global business environment. It begins with an introduction to international businesses and their need to assess external factors. The report then conducts a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors impacting BMW. A SWOT analysis follows, identifying BMW's strengths, weaknesses, opportunities, and threats. The report further explores the key drivers identified in the SWOT analysis and their impact on the functional areas of the business, such as operations and marketing. The conclusion summarizes the importance of international business presence and the insights gained from the PESTLE and SWOT analyses. The report includes a list of references to support the findings.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Pestle analysis on the chosen company.......................................................................................3
SWOT analysis for the chosen company.....................................................................................4
Key drivers identifies in SWOT analysis that impacts the functional areas of the business.......5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
International businesses are the organizations which have global presence in different
countries. International presence to acquire large market share and achieve profitability goal of
the business. Business must evaluate different factors of the external business environmental in
order to right manage the internal management of the business ad adopt to all the challenges of
the external business environment factors in order to achieve productivity in the business
activities. In the context of Bayerische Motoren Werke AG (BMW) which a global car
manufacturing company producing luxury vehicles and motorcycles. The company was found in
1916 and headquartered in Munich, UK. It is world’s fourth largest motor vehicles producing
company. This report covers the SWOT and PESTLE analysis in the context of BMW and the
key factors that affects the function of the business activities (Brenner, 2018).
TASK
Portfolio Paper 2: SWOT Analysis
Pestle analysis on the chosen company
Pestle analysis is the external business environmental analysis whch helps to analyze the
different factors external business environment that positively or negatively impacts the business
performance. Pestle analysis on BMW is discussed below:
Political factors
BMW complies with all the political factors framed by the business in order to derive the
authentic and ethical business position of the business functions. With the BREXIT, the
company have faced negative outcomes with increased taxes of raw material and production
activities, restriction on imports and exports of the business (Groşanu and et.al., 2015).
Economic factors
With the stable economic conditions in UK and high income earning capacities pf people living
in UK. Thus BMW achieves huge revenue generation by delivering luxury cars and motor
vehicles of large section of the customer segments
Social factors

People living in UK are huge income earning which makes them living their lives with higher
standards and high spending power which further helps BMW to accomplish profitability goals
and sales revenue from the business operations.
Technological factors
With high technological advancements in UK, BMW uses the latest technologies in order to
brings efficiencies in the business function moreover it uses technologies embedded in the
vehicles t produces which attracts its customer segments (Hooper, 2016).
Legal factors
BMW complies with all the legal norms framed by the government of UK in order to run the
business in the transparent manner and maintaining the corporate image of the business in the
marketplace.
Environmental factors
With rising environmental concerns, BMW adopts different environmental protection ad safety
measures by developing low pollutant emission vehicles, low fuel consumption and no engine
noise.
SWOT analysis for the chosen company
SWOT analysis on BMW is discussed below:
Strengths
Production capacity
With the production capacity of the business wherein the BMW is the fourth largest motor
vehicles producing countries in the world (Kasemsap, 2018 ).
Market offerings
BMW deliver luxury vehicles with embedded high end technologies, which attracts the customer
to take quality service and experience luxury by purchasing vehicles of BMW.
Financial capacities

The high financial capacities due to multinational business, it comes easier of the company to
adopts to new challenges in the market offerings, wherein the business adopts to the new
innovative changes as per technological and other business environmental factors in order to
meet the increasing market demand.
Weaknesses
High prices
Due high prices of the vehicles offered by BMW for luxury vehicles, it demotivates the
customers to purchase the vehicles of the company wherein the customer with high-income
earning capacities only purchases the offerings delivered by the company (Lee ed., 2017).
Opportunities
Global presence
With the global presence of BMW in the marketplace, it helps the company to capture the larger
market share and build the global image of the business at international level.
Threats
Rising competition
With the increasing competition wherein more luxury vehicles producing companies gives tough
competition to BMW. Thus, due to increasing competition the business loses it sales and existing
customers ratio (Saleem, 2015).
Portfolio Paper 3: Operational Impact Analysis
Key drivers identifies in SWOT analysis that impacts the functional areas of the business
As per the SWOT analysis conducted above, different key driver that can be identified
that impacts the business function, these are discussed below:
With high production capacity of the business, the operational department of the in BMW
manages the operations, which involves managing the day to day production activities of the
business. The high production capacity in BMW positively impacts the business wherein the
company adopts different new technologies for manufacturing in order to bring efficiencies in
the operational functions. The production of the vehicles in BMW on the basis of order demand.

The operation manager in the operation department manages the order demand which he/she
receives as per day. In order to maintain the productivity and efficiency I the operational
department it is the role of operational manager to ensures that the work goes as per the giving
deadline and standards, wherein the manager deploys different role and duties to his subordinates
and scrutinize each job performed (Tuleja, 2016).
In order to maintain the global presence in the marketplace, the marketing department in BMW
conducts the marketing campaigns in order to promote the products of the company with
innovative features it has added to improve customer experiences. Also the global presence of
the company in the marketplace positively impacts the marketing function as it becomes easier of
the company to deliver marketing message and attracts the customer share. The marketing
department focusses digital marketing in order to engage to the large part of the customer
segments.
CONCLUSION
In the nutshell, this can be said international business presence plays an important role to
reach out to the targeted customers. wherein it rendered more exposure to the business with
improved market offerings investors to fund the business, improved business functions and
accomplish profitability goals of the business. The above report delivers PESTLE and SWOT
analysis which delivered that different external and internal business environmental factors and
how business environment impacts the business performance and the key drivers identified in the
SWOT analysis that impacts the functional pf the business activities.

REFERENCES
Books and Journals
Brenner, B., 2018. Transformative sustainable business models in the light of the digital
imperative—A global business economics perspective. Sustainability. 10(12). p.4428.
Groşanu, A. and et.al., 2015. The influence of country-level governance on business environment
and entrepreneurship: A global perspective. Amfiteatru Economic Journal. 17(38). pp.60-
75.
Hooper, M. J., 2016. The global business handbook: The eight dimensions of international
management. CRC Press.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Tuleja, E. A., 2016. Intercultural Communication for Global Business: How leaders
communicate for success. Taylor & Francis.