Template Assignment The Effects of the Environment on a Business (1) (1)
3.2. The external environment that Affects the business
A method for determining the macro (external) influences that are affecting an organization is known by the moniker PESTEL. Political, Economic, Social, Technological, Environmental, and Legal are represented by the letters. In this article, we'll examine the purpose of a PESTEL study as well as the benefits and drawbacks of applying it to business situations. An abbreviation for a method used to determine the macro (external) influences that are influencing an organization is PESTEL analysis. Legal, Political, Economic, Social, Technological, and Environmental are represented by the letters. The purpose of a PESTEL study and its benefits and drawbacks in a corporate context will be discussed in this blog.
3.2.1. PESTLE Analysis of the chosen Company
Pestle analysis of bmw company
POLITICAL
These are the laws, rules of legislation, and safety precautions developed by governments to regulate the performance of the car industry. Which are:
the environmental standards and requirements that automakers must meet in order to help create a pollution-free environment
Both local and international taxes and tariffs have an impact on the effectiveness of the policy.
regulatory agencies' preferred strategies for promoting the manufacturing of high-mileage automobiles.
ECONOMIC
Luxury automaker BMW competes fiercely in the auto industry. Like Toyota, there are many other significant competitors in the industry, and the brand values of the companies change with time. The state of the world economy is fragile. It has caused instability in a variety of sectors, including GDP and currency exchange rates.
The European automotive market is affected by a decline in euro exchange rates. The sector was impacted by the European market's downward trend. Top companies like BMW are significantly impacted by the global economic situation as it spreads around the globe. The demand and buying power of developing nations draw new advancements.
