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The Business Environment Of BMW: Its Impact On Corporate Strategy

1445 Words6 Pages

Introduction
BMW is a German company that manufactures premium cars and motorcycles under three brands the BMW, MINI and Rolls-Royce. It was founded in 1916 by Karl Rapp and its head offices are in Munich, Germany. During 2016 BMW sold 2.512.635 vehicles worldwide reaching €94.163 billion in revenue (BMW Annual Report, 2016, p.226).
The purpose of this essay is to analyse the business environment of BMW and assess its impact on corporate strategy. The PESTEL framework will be used to analyse significant factors in the macro-environment which affect the company. Also, using the Porter’s Five Forces Framework the competitiveness and attractiveness of the automobile industry will be studied. Finally, the internal environment of BMW will be examined with the use of the Value Chain and VRIO strategic capabilities focusing on key strengths and weaknesses.
Corporate strategy
Strategy is defined as “the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resource necessary for carrying out these goals” (Alfred D. Chandler).
BMW corporate strategy focuses on establishing the company as a technological market leader in the field of premium mobility and autonomous driving, whilst developing environmentally friendly cars.
“Our focus is clear: we are securing the BMW Group’s position as technological market leader,” said Klaus Fröhlich, member of the Board of Management. “With project I 2.0 we will lead the

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