The growing role of governmental and regulatory authorities in the field of international affairs has required special attention to political factors. BMW`s business in 2018 and 2019 will be influenced by two important political factors. It`s Brexit and trade wars. The uncertainty caused by these factors had a significant impact on the company during the previous year. BMW has revised its business strategy to take into account the downward pressure exerted by these forces. The trade conflicts of 2018 made it a difficult year for the entire industry. However, BMW has always proven to be versatile and has effectively coped with the increased pressure. Uncertainty in the political environment has had a negative impact on auto stocks around the world. From Italian elections to trade disputes between China and America, the United States and Europe, several policy changes around the world have continued to impact auto inventories and sales.
Other factors such as trade restrictions, customs policy and international trade policy had a significant impact on vehicle sales in 2018 and 2019. BMW`s Board of Directors has made the policy framework a major focus of business planning worldwide. In 2018, the Council held a detailed discussion on this topic and how the volatile political situation in the world will affect its activities over the next five years. Political risks are also an important aspect in the field of annual budget planning at BMW. Many political uncertainties shook the stock market in 2018. Trade disputes around the world and political uncertainties in Europe weighed on investor sentiment during the year. At the end of the year, BMW shares fell 18.6% from the beginning of the year. Despite the uncertain political situation in the key markets, however, BMW has developed satisfactorily.
Political risks continued to influence the company`s performance in 2019. In addition, managing political risks for automotive brands remains challenging. Controlling political risk is difficult because the political environment of a market is difficult to predict and sudden changes can force car brands to change their strategy. While these risks are not under their control over other risks, political and legal risks can create greater pressure. The best way to overcome these risks is to focus on customer experience and business planning. At the end of 2018, the company had a market valuation of €46 billion (Annual Report, 2018). BMW also remained at the top of the stock market charts. It was among the top ten national companies listed on the German stock exchange. Several car brands around the world are facing increasing heat from government and regulatory authorities.
Many of them are under increasing financial pressure, including Japanese car brands. BMW`s performance was stable. Compared to other car manufacturers, BMW achieved better results. Performance is expected to improve in the future. On the one hand, it has managed to avoid any major legal problems, on the other hand, it values the customer experience and innovation. PESTLE Analysis is one of the most important tools for analyzing the external environment that can affect the industry. This article analyzes the impact of political, economic, social, technological, legal and environmental factors that can affect the automotive industry. The PESTLE analysis would prove advantageous for car manufacturers to formulate strategies for efficient operation in Germany and China.
For help understanding the process of running a PESTLE analysis, you can check out our detailed guide to performing a PESTLE analysis. Technology plays a central role in the growth of the automotive industry. Digital technology has helped the automotive industry grow faster. He has helped automakers deliver a superior experience to their customers. Today, technological factors are at the heart of the overall customer experience. BMW is investing in digital technology to make driving BMW vehicles safer and better. Autonomous driving technology has also helped companies expand their customer base and tap into new customer segments. Digital technology helps companies market their brands more effectively and with greater impact. From websites and microsites to social media and blogs, businesses use multiple channels to reach their customers and increase sales.
BMW uses a global website and regional websites to reach its customers in regional markets. Technology is shaping the growth of the automotive industry and helping it bridge the gap in the customer experience. From production to supply chain, from marketing, from sales to customer service, digital technology has helped brands improve their efficiency in all areas. The growth of the automotive industry is not possible without investing in technology and researching how it affects the lifestyle of its customers. BMW has made digital technology a key part of its business strategy. As customer lifestyles change with the evolution of technology, the growth of automotive companies relies heavily on technological innovation. PESTEL BMW can allude to the future potential of the company as a car manufacturer, taking into account its current situation in the global economy. Since this is a large company, their efficient employees, funds, and brand awareness can be conducive to the growth of their business. The BMW PESTEL shows how macroeconomic factors can affect BMW`s business.
Since BMW is a brand that operates its business worldwide, they can also set the strategies. This will allow them to mitigate the negative effects of external factors in order to maintain their position in the competitive market. In this BMW PESTLE review by EdrawMax, readers discover many critical factors that have led to the success of the BMW Group. Business analysts in organizations want to understand the factors that can affect the environment in which the company operates. A framework for this is a PESTEL analysis. PESTEL illustrates an acronym that stands for Political, Economic, Social, Technological, Environmental and Legal (Yeates & Wakefield, 2004, p. 265). The BMW Group also provided funds to influence political factors in favor of the company. One such incident is affecting Europe, where BMW has been pushing to slow down European plans to increase the fuel efficiency of cars through a stricter cap on carbon emissions. BMW is part of the automotive industry. Therefore, environmental factors can have a direct impact on their business.
Consumers are aware of pollution reports and the ranking of cities according to the CO2 emitted by vehicles. They are more willing to take steps to keep the land green. As a result, BMW has strived to offer its customers more environmentally friendly options. The impact of a variety of economic factors on BMW`s performance is obvious and significant. The sharp fluctuations in GDP in EU countries in recent years, with a direct impact on consumer spending in EU countries, are a key economic factor that has a significant impact on the PERFORMANCE of the BMW Group. Legal and legal factors are now just as relevant to automotive companies as political factors. Compliance is an important goal for automotive companies. Automakers such as BMW have compliance committees that deal with legal issues and compliance to ensure that no legal issues arise. In recent years, the EU and other government structures have increasingly focused on how car manufacturers manage carbon emissions. There are also other laws, including the quality of work and products, that require concentration.
BMW`s success in global markets is also due to its responsible and legal management. The company has made business responsibility and compliance an integral part of its culture. The entire company, including BMW`s board of directors and employees, acts in accordance with laws and regulations in different parts of the world where BMW operates. NOT ONLY BMW, but also its partners are required to act responsibly and comply with applicable laws and regulations. A few years ago, BMW`s Board of Directors set up the Compliance Committee, which oversees all of BMW`s legal affairs. In addition, the Compliance Committee has implemented a compliance management system throughout the BMW Group. An effective compliance management system is a set of tools and techniques that help the company and its employees ensure that employees throughout the system comply with rules and regulations. BMW`s compliance management system includes a coordinated set of instruments and subjects that ensure that people act legally and responsibly throughout the system and in its representative bodies.
The compliance management system focuses on compliance with antitrust laws and the prevention of corruption and money laundering throughout the BMW system. To maintain its growth rate, BMW is focusing on technological innovation and customer experience. According to the 2018 annual report, the company has held a leading position in the premium vehicle segment for 15 years. BMW recorded record sales in 2018 for the 8th time in a row. The global automotive market is full of challenges and opportunities. It is shaped by several forces, including increasing digitalization and the demand for emission-free vehicles. While political and economic factors have increased the challenges facing BMW, the focus on technology and sustainability has helped maintain market share and leading positions in the premium vehicle segment. The automotive industry has entered an even more difficult phase in 2019.