Business and Business Environment Report: BMW Analysis

This report comprehensively examines the business environment, exploring various organizational types such as public, private, and voluntary sectors, and their respective purposes and objectives. It delves into the size and scope of organizations, using BMW as a case study, and analyzes the relationship between organizational functions and their objectives. The report also discusses the positive and negative impacts of the macro environment, including economic, legal, political, and technological factors, on business operations. Furthermore, it conducts an internal and external analysis of BMW, examining its strengths, weaknesses, and their interrelation with external macro factors. The report concludes with a summary of key findings and insights into the dynamics of the business environment and its implications for organizational success.

Businesses and Businesses
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1) Discuss the different types of organisation and its purpose ...............................................1
P2) size and scope of the organisation........................................................................................3
LO2..................................................................................................................................................4
P3) Relationship between function of organisation and their objectives ...................................4
LO3..................................................................................................................................................5
P4) Positive and negative impact of macro environment has upon a business operations........5
LO4..................................................................................................................................................7
P5) Internal and External analysis of BMW organisation..........................................................7
P6) Strengths and
weaknesses interrelate with external
macro factors for the BMW
organisation.................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
This report will explain the different types of organisation and also describing its
objectives. The aim of this report is to providing all the important information of business and
business environment. It also defining the different functional organisation structures(Drucker,
2017) . This report will discuss the positive and negative impact of macro environment on the
business operation.
LO1
P1) Discuss the different types of organisation and its purpose
There are many organisations such as public, private ad voluntary sector corporations.
Each organisation works for different purpose and objectives. Private company is refer to they
have own business , individual ownership and they run their businesses only profit motives
(Drucker, 2017). It is non-governmental organisation and they have additional requirements like
income tax liabilities, government obligation employees relations, marketing opportunities and
other business decision. The main purpose of these firms to earning more profit and providing
quality services their customer for example BMW
BMW (Private company )
this is the private firm which is provided effective services to their the customers. This
types of industry main motive to fulfil their customer needs and loyal their product which is
provided to their client. BMW is the famous brand in the whole market. It is private company,
they have lot of opportunities for developing their business (Bryman, and Bell, 2015). The main
objective of this company maintaining relationship with their employees as well as generating
revenue. BMW increasing their sale volumes, it has number of stores have been increased their
profit margin last few years. They also raise their market share 9.54 percent in 2018 so they
focus on their product quality as well as customer services.
The legal structures of this organisation they have own entity and the shareholder of this
limited 50 or fewer and shares are prohibited from being publicly business. They people make
effective decision for the welfare of the company. They have limited liabilities and this
organisation control all the operation in better manner. They also paid dividend to their
shareholder (Drucker, 2017).So they also follow government rules for long run their business
and making healthy environment to their employees at their work places. The legal structures is
refer to the firm ha own right and can be sale their share or buy share from other organisation.
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Public organisation
A public can b listed and these types of firm raise their funds and it has many shareholders. They
have many shares of stock which is freely traded on a stock market (Drucker, 2017). This is
national health care industry it main purpose to provide health related service to their customer.
It is public organisation, for example NHS firm.
National health services
National health services (NHS) it is public organisation which is work under the rules and
regulation of the government. It main purpose to provide customer services with effective cost.
This company organizes emergency services for critical situations such as they provided
vaccination in proper time to their patient (Bryman, and Bell, 2015). They also provide health
care service to their customer and improve their services . NHS monitoring to their customer
and making all the facilities so they can also provide reasonable price treatment to the people.
The purpose of NHS organisation is to serve their patient and providing healthy
environment (Drucker, 2017). They also maintaining their relationship with customer and fulfil
their need. They also try to make better feel to their people they get easily ready to treatment
from this hospital. They have many shareholders and this company is also sharing profitability
margin with among employees. Government has full control all operations and they also make
decision for the firm.Voluntary organisation it is refer to the group of individual people who
enter into an agreement, usually as volunteers, it includes trade, unions, processional
associations, environmental (Drucker, 2017). Membership is not compulsory in this firm in
according to specific term and conditions. For example national trust company
The national trust This firm work day and night for providing the quality of service to their
customer. This and play very effective role to the preservation of historical and it is related to
the earn more profit but they people utilize cash on public services (Bryman, and Bell, 2015).
The structures of this limited are matrix when they higher authorities try to effective
communication with their people and try to fulfil their need. This organisation plays a very
important role for developing the conditions of the economic the main motive of this firm to
providing quality services.
P2) size and scope of the organisation
Size, scope of all these companies are different from each other.
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BMW
It is private industry the main motive to this organisation increasing their sales and
expand their business into worldwide (Drucker, 2017). They also provide effective services.
The size of this company they have large number of stores and employees the purpose of this
corporation expanding their business in whole market and they improve their product services.
So the scope of this industry maintain their brand name and goodwill of the business. They
increase their sales but after they provide quality of car with innovation so it main purpose to
earn profit as well as giving the best service to their customer. The scope of this firm has large
number of opportunities and they have strong financial resources . The number of employees this
corporation 2.2 million all over the world. The net profit margin of this last quarter 7.76 EUR
and also focus on their sales revenues. This company also providing variety of job for growth of
the economic.
National health services (NHS)
It is public company it main motive to provide quality service to their employees. They
also improved their employees skills, knowledge. This organisation has also provided quality
service to their patients (Drucker, 2017). They have worldwide famous hospital and they have
contributed £101,708 million in the year 2016. it have large number of 1.5 million employees
and they have also skilful worker. They main motive to provide the effective services and they
this organisation main motive to run their business in long run and all the function run in
smoothly way.
The national trust company
This organisation is working in effective manner and they have establishes strong
network worldwide (Bryman, and Bell, 2015). Currently there are 32700 members those who
working day and night to giving the best services to needed customers. They also hired 3600
employers for increasing their work efficiency. They also earn profit but they utilize in charitable
activities. Its structure is very large within authorities and they people try to communicate with
needed people. They provide them all those services which is necessary for help on particular
time so that their purpose can be achieved.
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LO2
P3) Relationship between function of organisation and their objectives
Structures, purpose and function of any organisation are similar to relationship of all
these three important terms which is help to achieve the goal of the company. BMW has
different department such as finance, HR, marketing etc. and all these area work together in
order to accomplish common goal (Bryman, and Bell, 2015). Objective of National heath
services is to giving best services to their customer, they also provide health care service in
proper manner to their patient. When they people work in coordination between among all the
departments that help in meet their objectives. Before making any decision BMW involves its all
seniors manager of the department and they people make effective plan for achieve the goal of
the organisation. It is very effective way it get new ideas to improve its quality of product or
services. All the department also work in proper manner so that it is helpful for run their
business in smoothly manner. BMW also implemented divisional structures where all the
sections work in equal manner and focus on their performance and also concentrates on their
responsibilities which is useful for reach the company goal.
Objectives of BMW is to improve the profitability ratio and providing the quality
services at reasonable prices to their target customer (Drucker, 2017). Human resources
department is very helpful for hiring skilled employees those who are completing their work in
effective manner and contributes their knowledge well to attract more customer for increasing
the sales of product or maintaining brand name. Customer service department is refer to the
solving the problems of clients regarding their products, services, prices. It is helpful for clearing
all quarries of people and providing the best services , this department ii also help to achieving
the goal of the firm. Marketing and human resources department work in team, they also
providing training to their new employees for developing their skills and they also provide
information regarding their product its price, market value, quality.
BMW follow flat structures, it is very effective for all the worker to make profitability
decision, they this organisation take right actions for improving the growth of the company or
welfare (Bryman, and Bell, 2015). It also give the power of staff to obtain their profit margin for
the development of the firm. There are some functions and interrelated with each department are
explaining in below.
Finance department
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BMW finance department is help to growing their business, it involves payroll, raising
funds, financing and help in long term business planning, book keeping records and it also
helpful for maintaining financial statement details (Drucker, 2017). This department is focus on
activities of cash flow which is very useful for utilising the funds and obtain the profit margin of
the company.
Human resources function
the main purpose of BMW organisation is providing quality service to their customer and
maintaining their relationship with consumer as well as employees also. So this company focus
on their worker so they people always hires knowledgeable employees those who have efficient
skill, experience and they have proper idea to their field (Bryman, and Bell, 2015). These types
of person are helped to achieve the accomplish goal of the firm. Human resource department also
play a very effective role in an organisation and it is also the entity of motivation. This firm also
motivate to their worker in different way such as rewards and recognition, incentives and bonus
through. It is very helpful for retaining and increasing the working efficiency to their employers.
HR department also focus on their polices gives a healthy environment at their workplaces.
People can sharing their views in front of their seniors team leader that is the best way to sharing
the ideas and creating healthy environment in workplaces. This function of human resource can
help BMW to achieve the goal of this company.
Customer services function
it is very important department for BMW organisation, it helps to maintaining the
relationship with customer. It is related providing the information regarding their products and
services. It is also helpful for solving the quarries of consumer related to their product, prices,
and their services (Drucker, 2017). This department only one objective to providing the proper
details and solve the problem related to their services.
LO3
P4) Positive and negative impact of macro environment has upon a business operations
Micro environment are consisted with all those factors which are uncontrollable and also
affects in decision making, performance of the organisation and business strategies (Bryman, and
Bell, 2015). There are some factors such as economic, legal, political and technological factors.
BMW is also affected with these external forces it is also related new challenges.
Economic factors
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it is related to the economic conditions , BMW organisation are working under complex
economic its direct affect both the decision related to the production and customer decision
making process.
Positive impact
The positive impact of the economic forces if this company focus on their business so they also
providing job opportunities and it is also developing their work in national or international
market (Drucker, 2017). They also rise their product prices though when increasing the income
level of economic people.
Negative impact
The negative impact of the economic production level is low, raising inflations rates in market,
lack of financial resource (Bryman, and Bell, 2015). It will creating many problem on market
strategies and decision making . So BMW also face this issue if they have lack of funds, changes
in interest rate so this firm always ready to face these challenges arises.
Political and legal factors
It is related to the legal policies, rules and regulations, it also includes the legal factors
change in the authorities activities (Drucker, 2017). Political and legal forces also affect BMW
organisation in making marketing decision.
Positive impact
if government provide low rate taxation or subsidy of BMW organisation or other business firm
so it is the positive impact on the marketing decision of this corporation (Botha and Snyman,
2014). If this organisation follow all the rules and regulation of government so they also making
peaceful environment in their industry.
negative impact
It is related to the government change their rules and legislation so BMW also facing some
problem like changes in taxes rates, restricted policies so these are the changes affect this firm to
faces legal issues.
Technological factors
These forces are involved innovation in technologies, knowledge and skills it is needful
for production of goods and services. BMW is also adopting new technological they people also
design their car with innovation.
Positive impact
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The positive impact of new technologies it is helpful for increasing the business and maintaining
product image in market. BMW is also use in new technology for expanding their work and
obtaining more profitability ratio (Botha and Snyman, 2014). It has great impact on this
company in decision making.
Negative impact
if BMW is not adopting or upgrading their old technology with new idea so this organisation'
has face many problem like in they reduce their financial strength, lack of innovation. It is the
negative impact on this firm.
LO4
P5) Internal and External analysis of BMW organisation
( Internal analysis) SWOT analysis
Strength
 BMW has a strong brand globally, it is
comfortable rear space and delivers
better fuels efficiency when compared
with same competitors' cars.
 They have high skilled employees for
making their car design and they have
strong relationship with customer.
Opportunities
 Innovation BMW has opportunities to
increase their profitability though new
idea (Kolk, 2016). They release a new
car indifferent market segment .
 This company design their new car
model with using new technologies.

Weakness
 Prices are very high and high status
branding (Kolk, 2016). Consumer need
but its prices are very expensive.
 Higher research and development of
their cost and funds
 They have high budget to invest which
use for pay their worker, product
Threats
 Recession it is related to the cut the
prices of car and lack of labour. On the
times of rescission they people obtain
low profit margin.
 Recession it is related to the cut the
prices of car and lack of labour. On the
times of rescission they people obtain
low profit margin.
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research and services.  Price war is also the main threat of
among competitors to attract new
consumers.
 Competition from other large auto-
mobile giants and increasing fuel cost.
External analysis
porter's five factors are the great method for analysing the external environment of
business organisation.
 Threat of new entrants : the threats of new entrants is very low because there are
already established auto mobile companies. It is difficult to another organisation to
compete with BMW organisation it is the best firm in the world. They also face many
challenges in the market and competing with lot of auto mobile industry. Some time they
need lot of funds, highly skilled employees, investment (Bryman, and Bell, 2015). So
they also need more money for spend for maintaining product images through effective
advertising. It is great threat of new car company so they need to improve their quality
of product.
 Threat of substitute: it is regarded as high threat because every established auto mobile
companies are providing various new features (Kolk, 2016). it is difficult for the
customer and market to think about the BMW substitute, because it is very strong bran
image in market and they maintaining their reputation in front of customer as well as
market (Armstrong and et.al , 2015. The threat come from when government awareness
regarding fuel and environment issues.
 Bargaining power of buyers: it is high threat because there are other competitors who
are providing world class auto mobiles therefore customer can switch very easily.
nowadays consumer depend on reviews from websites, social sites and magazines, it is
sources of information about the product, prices, features. Marketing and advertising are
the most important term to influencing and attracting te customer this aspect is also
helpful for providing the details of product (Bryman, and Bell, 2015). It is also very
effective to increasing the bargaining power of client.
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 Suppliers power: it is also moderate threat as suppliers provides various tools and
equipments on the bases of negotiation done with the company. This aspect is also
played a very important role in manufacturing the goods and services of BMW
organisation (Kolk, 2016). They have to need raw material, parts and materials.
 Competitive rivalry : it is also great high threat because there are lot of competitors in
the market and they have already innovative product (Kolk, 2016). There are many
companies in the market or globally all most industry compete with same level. So it is
also very difficult to competing in market, so BMW focus on their quality of the product
and price.
P6) Strengths and
weaknesses interrelate with external
macro factors for the BMW
organisation
Strengths and weakness
BMW if this company adopting new technology for development of their business but
after they have need to financial resources , it is very important without fund they cannot operate
new technologies in their organisation (Armstrong and et.al , 2015. So financial is the main
sources of running their business in long term. It is the main strength of the BMW business.
There are some factor which this corporation need to do more work on their quality , they need
to improve their employees skill with using new technological methods. If they people are not
focus new technological so they cannot improve the quality of their product as well as they
people do not upgrading existing employees or technical skills.
Strength and weakness are also interrelated with macro environment of the BMW
organisation (Armstrong and et.al , 2015). This company also compare their strength and
weakness with macro factors like economic, political, technology , legal and environment forces.
If government change some rules in tax so company also change their business strategies in
according to higher authorises.
CONCLUSION
It can be concluded that the importance of micro and macro environmental factors in
which BMW organisation operates all the function. It also describes the different kinds of
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analysis of this company though SWOT and PESTEL it is helpful for showing the actual
necromancer of the business and it also help in making strategies related to the firm.
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REFERENCES
Books and journals
Armstrong, G., Kotler, and et.al , 2015. Marketing: an introduction. Pearson Education.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.
International business. Pearson Australia
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Kljucnikov, A., Belás, J., Kozubíková, L. and Paseková, P., 2016. The Entreprenurial Perception
of SME Business Environment Quality in the Czech Republic. Journal of Competitiveness. 8(1).
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1). pp.23-34.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
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