Strategic analysis automobile industry

Introduction

This assignment go away focus on BMW as a whole. BMW is a Public Limited Company (PLC) in the mystical Sector and their briny objective is to make profit and contend their cost. A board of directors undertakes the day-to-day running of BMW. Being in the private sector they raise most of their capital though the sale of sh ars and of course their cars.

Using a PESTAL Analysis, Porter Five Forces Framework, resource Audit and a Value Chain Analysis recommendations will be made to BMW about any opportunities or thinkable threats there are in the car market.

Key Factors Affecting BMW

There are many factors that are affecting BMWs current situation (see appendix 1,2,3 and 4), however the focus in this section of the assignment is the main factors from each of the analysis that have been completed.

The following information was undisturbed using the PESTAL framework. The PESTEL analysis categorises environmental influences into six main types, political, economic, social, technological, environmental and legal. It is particularly important that PESTEL is used to look at the upcoming impact of environmental factors, which may be different from their one-time(prenominal) impact (Johnson and Scholes 2002).

Environmental Influences

Political

The Governments own analysis shows that keeping motoring costs constant, by increasing fuel prices, will help it twin its targets to reduce congestion and pollution (Friends of the Earth, 2003). With an increase of prices customers will change to fuel-efficient cars, BMW moldiness take note of this and manufacture those types of vehicles (Appendix 1). Currently BMWs have queen-size litre engines making them expensive to run.

Economic

        The table below shows that consumer cost and savings have been growing in real basis since the mid-1990s along with PDI. This means that the general public has more useable income to spend on items such as...

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