Assignment 1: Environmental Analysis
Submitted by Susannah Hardy a1608392
The aim of this report is provide an overview of the macro and micro-environment of the operations of the BMW Group, specifically their operations in large-scale manufacturing of automobiles.
BMW Group is comprised of many segments, from bicycles, motorbikes and automobiles, as well as intangible products such as financial services; but for the purposes of this assignment it will be limited to a scope of the core BMW business: the manufacturing and selling of high performance luxury cars, and their operations primarily in Australia as opposed to their worldwide operations and organization.
The report begins with a macro PESTEL (political, economic, social, technological and legal) analysis of the relevant environmental trends of BMW Group. This is followed by a competitive analysis, focusing on the direct and indirect competitors of the company using Porter’s 5 Forces Model that affect businesses as a framework to provide a greater understanding of the nature of the operations of luxury car manufacturers. Their competitive strategies in the market will also be analyzed.
This will be followed by an analysis of the company, which outlines the purpose of the company, and their future objectives, and the resources they have at their disposal. This section will cover the subject of their customer base, competitors and their market share.
This will be followed up by a SWOT Analysis (Strengths, weaknesses, opportunities and threats), detailing the most important issues that BMW Group faces. This analysis is designed to identify the organization’s international strengths and weakness, and external opportunities and threats.
The aim of this report is provide an environmental analysis of the macro and micro-environment of the operations of the BMW Group. BMW Group is one of the most successful multi-brand manufacturers of cars and motorcycles worldwide (Microsoft, 2012) and has one of the best reputations in the automotive industry as it embraces the underlying principles of sustainability.
BMW was founded in 1916, and has been publicly traded since 1969. Today, the Bayerische Moterwerke AG (BMW) is a German based original equipment manufacturer for automobiles, motorcycles and engines operating globally. The company produces and markets a varied range of high-end cars and motorcycles. The headquarters of the company operates in Munich, Germany.
BMW Group has worldwide subsidiaries and manufacturing plants throughout Germany Australia, the UK, the USA, Mexico, Brazil, South Africa, Egypt, Thailand, Malaysia, Indonesia, the Philippines and Vietnam (BMW Group, 2012). BMW Group has 22 production and assembly plants, 34 sales subsidiaries and a research and development network unique to its brand (Appendix 6).
The BMW Group focus is on the production, development, manufacture, assembly and sales of premium products for the automotive market, owning and producing other cars such as the Mini marque, and is the parent company of Rolls-Royce.
In 2012, BMW remains on a successful course, producing new record figures for sales in volume and revenues, second-best quarterly earnings in the company’s history, profit before financial result amounts to € 2.27 billion, automotive segment second-quarter EBIT margin of 11.6%, and BMW Group reaffirms targets for financial year 2012 (Bimmerpost news, 2012)
“The mission statement up to the year 2020 is clearly defined: the BMW Group is the world’s leading provider of premium products and premium services for individual mobility” (BMW UK Website, 2001-2011)
The company also has a number of slogans; in English they are “The Ultimate Driving Machine” and “Sheer Driving Pleasure”, in...