Far Eastern University

Institute of Accounts, Business, and Finance

INTERNATIONAL BUSINESS AND TRADE

MGT1111 – CASE STUDY

CASE NO. 1: Globalization on BMW, Rolls-Royce, and the MINI, page 625

Introduction:

Bavarian Motor Works or famously known as one of the luxurious brands of car
called BMW has been known to have an incredible performance of innovation with their
brand. BMW owns Rolls Royce the iconic brand of car that gives people the luxurious
feeling and exclusivity. One of the most expensive brands that is deep rooted in the
history of rich and luxury. They also own the MINI brand that crafts small cars while
giving you the experience of riding a luxury brand that maximizes everything in a small
space. One of the most famous MINI cars is the named after John Cooper a legendary
British racer is the MINI Cooper.

Aims:

With the continuous globalization and innovation of big brands like BMW who
have over 120,000 employees and sells 2.4 million cars every year, it is fair enough to
be concerned of what is happening as they trade from third world countries that do not
have ordinance of ensuring the employees from labor and environment abuse.
The purpose of this study is to explain further the effect of Globalization on the
labor policies and to the environment as they innovate their automobile products of the
BMW Group.

Method:

This study was carried out by doing research to collect data and information to
answer the purpose of the study. The circumstances of the data collection are only
limited to research and no further methods were carried out.

Results:

Labor Policies

As trading is part of the business to innovate and satisfy the needs of the people,
it should also be a concern for the company to know the societal problems that their
employees may deal with. BMW have a Joint Declaration on the topic of Human Rights
and Working Condition. It was implemented from different countries they trade with to

MGT1111 – COURSE ANALOG INSTRUCTION 1

ensure the company’s social responsibility and respect for their workers. The following
are the preamble.
- BMW do not force their workers as they believe that their choice will always
be considered
- BMW is inclusive and gives fair opportunities and treatment no matter what
race, gender, skin color, religion, how you identify yourself, beliefs etc.
- No child labor. They will stick with the minimum age requirement for the
people to work.
- BMW protects the employee’s interests and respects their bargain towards
their working condition
- They will follow the rate of minimum pay prescribed by the law
- BMW will follow the national protocol of working time.
- BMW will comply with respect to the safety and health of the workers that is
prescribed in the national regulation.
- The employees will be hired by their skills and qualifications

Environment

Hydrocarbons, Nitrogen oxides & Carbon Monoxides are being released in a

motor engine when the fuels are burned. The pollutants cause lung damage and
respiratory diseases. Pollutants that came from motor vehicles forms acid rain that
causes climate changes due to the release of greenhouse gases.

BMW was able to provide eco-friendly low-emission vehicle.

- BMW Diesel Vehicles
o It is an upgrade to switch from traditional gasoline, that emits dark
smoke. It gives power that helps the environment in the process
- BMW ActiveHybrid
o Gives power to the vehicle whilst being eco-friendly

Discussion:

The significance of the study is beneficial for the future plans of the company. As
they invest and continue to innovate this study would help to contribute on how they can
do better for both their employees and the environment that would also help them in the
long-run as they are working to satisfy their customer might as well improve their
internal production to create a domino effect to the society and environment.

Recommendations:
BMW is a company that delivers luxurious vehicles to people all around the world
which earns them billions of dollars every year. This study recommends them to
innovate and invest in a zero-emission vehicle, a battery electric vehicle to reduce gas
emissions, no more using of gases, that would contribute to improving the health of the
public and reduce the damage of the ecosystem.

MGT1111 – COURSE ANALOG INSTRUCTION 2

References:

Employees. (2020). Retrieved June 17, 2021, from Bmwgroup.com website:

https://www.bmwgroup.com/en/responsibility/employees.html

. (n.d.). Joint Declaration on Human Rights and Working Conditions in the BMW Group.

Retrieved from http://www.industriall-

union.org/sites/default/files/uploads/documents/GFAs/BMW/bmw-gfa-english.pdf

Controlling Air Pollution from Motor Vehicles - NYS Dept. of Environmental

Conservation. (2018). Retrieved June 17, 2021, from Ny.gov website:

https://www.dec.ny.gov/chemical/8394.html
‌

Electric Vehicle Benefits. (2021). Retrieved June 17, 2021, from Energy.gov website:

https://www.energy.gov/eere/electricvehicles/electric-vehicle-benefits

MGT1111 – COURSE ANALOG INSTRUCTION 3