impact of technology and globalization on Bmw
Introduction
Globalization is the art of interconnecting the world and making communication easier and more convenient. Through globalization, different countries come together to pursue common goals. Technology facilitates the art of globalization. For instance, through the transport system, it has been easy for people around the world to work together and come in contact. BMW has also experienced change over time through the art of globalization. The following content brings out the impact of technology and globalization on Bmw, uses the industrial and resource-based model to determine the returns, assess the influence of the vision and mission statement on the corporation, and evaluates the categories of stakeholders on the corporation.
Globalization
One of the things that globalization has brought in the ability to export and import items. Through globalization, there has been an opportunity for BMW to export its products throughout the world. The company has been able to sell cars overseas. For instance, in the year 2017, 1.98 million cars, in general, were exported by BMW. Hence the company became the largest exporter in the US. There was revenue of around 57 billion dollars attained from the same. The company was also ranked as the largest manufacturer in international trade.
The company was able to sell over 80,000 brands in the year 2017. The trade was made possible by tax and trade laws surrounding the same. The sales were not only in Germany but also in countries such as China, Japan, and Latin America. States were able to fix the laws around imports and exports hence making it easy to conduct trade between nations. Through the latter, there has also been the aspect of a global partnership that helps in promoting BMW’S products. One of the global corporations connected to the same is SAIC china’s automobile brands. Also, the merging of BMW and Artsy in the year 2017, was viewed as the future of the two companies. These companies were able to come together through the art of globalization, which promoted their partnership. From partnership, the company can make high sales and attain high revenues.
Research shows that BMW models are created in eight assembly plants: there are four in Germany, two in China, one in South Africa, and one in Spartanburg. Some have been opened recently in Thailand and India. The new outlets opened around the world have made it possible for the company to expand globally and attain more revenue. Opening the new stores in the various companies was made possible by the partnerships, as said earlier. Logistics in the mentioned countries also made it possible for the expansion of the markets.
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Technology
BMW is built around technology; therefore, it is through technology that the impact of technology and globalizationexists. Cars, are an appreciation of technology, which opened the doors to trade on the same. One of the technologies embraced by BMW is automation. There is a feature of automatic car-parking that allows the vehicle to scan the areas around the car and generate the image of the regions. It becomes easy to drive the vehicle independently and safely. Therefore this feature has made BMW vehicles attractive and gets more sales.
Moreover, BMW works with an e-drive technology in the new models that is BMW 225xe and BMW330e. This technology has hybrid components that reduce the rate of fuel consumption. Through e-drive, BMW has stood out and created a niche for itself. In the present world, there is a rise in economic standards; therefore, everyone wants to cut their costs in every way. Thus, BMW won a large market through the new models that use e-drive as there is low use of fuel.
As much as old is gold, humans have a constant desire to get better ad high quality in different products, which includes the vehicles. There have been efforts by researchers to come up with. Better products. For instance, the cars that existed 20 years ago cannot be compared to the vehicles being used in the present generation. BMW has not been left out in the trial to keep up with the trends as they also have the Dynamic Stability Control system that helps in the integration of sensors and the control units that help in maintaining and maximizing traction and driver control. Whenever a vehicle loses a grip, the system can regain traction. Moreover, the DSC system can be partially turned off or fully deactivated. Through the development of technology in the vehicles, BMW has also ensured to tap it and serve their clients in a better way.
Industrial Organization Model
The industrial organization model has five parts that help it define the success and expansion of any organization. It brings out the problems that affect the progress of an organization. There is competition facing the company from companies such as Mercedez Benz and Nissan Motor, among others. Therefore, BMW needs strategies to meet and win over the market against its competitors. Some of the efforts that can help in curbing this are such price elasticity. The company needs to have the capacity to make the prices affordable to their customers. Hence, the company should ensure that the prices are at a price that will encourage buyers and, in return, promote their revenue. Additionally, the company also needs to ensure that its prices are lower than the competitors’ for them to stand out in the market.
Whenever a client attains a product, he or she wants something durable. Therefore the company needs to ensure that the technology of its products is sustainable. Also, since BMW is a reputable corporation, compromising on their quality and durability is calling for doom. Moreover, their prices can be rated high to an ordinary person. Hence, not everyone can attain or use the product. Once a customer achieves it, he or she expects a high quality and durable car. Thus, the raw materials used in the production should remain of high quality and durability to promote the brand.
Besides being of high quality and durability, any BMW should look into their customer service. Clients always like being respected and honored even without a purchase; therefore, for the company to win and retain clients, they need to ensure there are adequate customer care representatives who can help the clients on email, phone, and social media. Replying to the customers, requests on time, and being supportive will open an array for the company to retain clients and get more purchases. Having secure payment and purchase methods also ensures that a company makes more sales. Clients like easy ways of completing their payment and attaining their bought items. Besides, there is the necessity to keep the client’s records in case of fraud, which brings in the aspect of transparency. Clients need to feel that their money is safe, and they can have closure over the latter. Applying this would make it easy to gain a bigger market and revenues.
Resource-Based Model
According to Resource-based theory, resources are “valuable, rare, difficult to imitate and non-sustainable.” Therefore through the resources, the company can grow, expand, and attain its desired levels. BMW has an option to use its resources, such as employees. One of the greatest assets any company has is the employees. BMW needs to protect the employees as they carry the brand’s name. The manufacturing process is handled and executed by the latter. Also, the sales process is handled by the employees; they can make or break the company.
Hence, BMW needs to focus more on motivating and empowering their employees.
Moreover, the company has also focused on ensuring they deliver high-quality products. They also have a variety of models that increase buying chances. Therefore the company should place more emphasis and time on building more products with a focus on the needs of the clients. Making their products more dynamic, according to the clients, will open up a market for the latter. Buyers will have a great option to take at affordable prices hence winning a big market. The models should also come with a variety of prices to ensure that people from all walks of life and backgrounds can attain the latter.
Vision
“to be the most successful premium manufacturer in the industry.” This vision statement is evidence of the current state of events in BMW. Through the latter, the company will be able to shape its path in growth and success. The leaders in the company are all aimed at ensuring the latter vision is attained. Every employee is also geared towards achieving the vision of the company. Every resource is also directed towards the same. Therefore, the vision statement serves as a motivation for the employees and the company at large.
Mission
“to become the world’s leading provider of premium products and premium services for individual mobility.” According to the mission statement mentioned above, it is evident that BMW desires to bring out exceptional quality in the products they produce. Through this statement, the company strives to attain the best in their production. As they follow the statement, it is evident that the vehicles produced are both safe and comfortable for the customers. Every client wants a safe car that is also comfortable. Therefore, the company can win over a large market. They also ensure to produce varieties of vehicles, which gives the clients to choose as per their preferences. The products also have the e-drive that helps in lowering fuel consumption. Thus the company has ensured to keep its customers content as there is the production of high quality, safe, comfortable, affordable, and variety of models, which makes the company sell more than any other.
Stakeholders
There are different levels of stakeholders that are primary, secondary, and tertiary. Each of them has specific functions and interests. Primary stakeholders are directly linked to the company. For BMW, the stakeholders directly linked to them are the customers, the employers, and their suppliers. Primary stakeholders can a significant influence on success; for instance, if the customers are not satisfied with the products, there will be less revenue. Employees are also part of the primary stakeholders, and they determine the quality brought to the market. Therefore, in BMW, the primary stakeholders are treated with respect and honor as they can lead to the fall of the company; the high-quality products are a result of the employees, and the high revenue is a result of the customers.
Secondary stakeholders are indirectly affected by a corporation; some of the secondary stakeholders are such as media, associations, activist groups, regulators, and local government. The latter is indirectly affected by the corporation; however, they can affect how the company works. For instance, BMW should ensure that it protects the environment through its production as the community is concerned, also regulations are governing the latter. They should ensure that they follow the set regulations to protect the general public from any harm during their production. Hence, the company applies means that provide there are low fuel consumption and release of CO2 to the atmosphere. Their vehicles have been made in a way that protects the environment.
Tertiary stakeholders are the people relevant within and to the company. They might lie in the primary or secondary stakeholders. Shareholders lying in this category are such as financial institutions, national authorities, opinion leaders, and media, among others. Tertiary shareholders have a significant influence on the company’s success or failure as they can permanently stop it. BMW has ensured that the media only brings out a positive image because if they bring out a negative image, they put off clients. The company also has to follow the right legal procedures during its production to be on the right side of the government as it could maim its success. Other large companies are also important as they help in funding the company’s projects, which leads to their success. Therefore the tertiary stakeholders can also be identified as key stakeholders.
Conclusion
To wrap up, BMW is a corporation that manufactures vehicles; technology has been the main source of revenue because the company exists only because of technology. Through globalization, they can market and earn more revenues for their product. According to the industrial organization model, the company has several competitors, but due to their focus on quality and safety, no competitors matches them. BMW also has valuable employees who come in as their resources. They deliver high-quality products as they are motivated by the mission and vision of the company. The company also ensures to serve the interests of their primary, secondary, and tertiary shareholders to the letter.
Sources
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and Cases: Competitiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
