BMW is a famous car company. It is from Germany. BMW makes cars that are fast and stylish.

People around the world like BMW cars. The company started in 1916. Since then, BMW has
become one of the best-known car brands. They make luxury cars and sporty models. BMW is
known for its logo, which looks like a spinning propeller. The company's cars are popular for their
quality and performance. Overall, BMW is a well-respected and successful car brand.
The external environment that effects the business:
The external environment, including political factors, can significantly impact BMW. Political issues
can influence the company's operations in several ways. Political decisions and government
regulations can affect the automotive industry. Changes in emission standards, safety regulations,
and other policies can impact BMW's manufacturing processes and product offerings. BMW, being
a global company, is affected by trade policies and tariffs. Political decisions on international trade
agreements can impact the cost of importing/exporting materials and finished vehicles, affecting
BMW's profitability. Political stability in regions where BMW operates is crucial. Unstable political
situations can disrupt production, supply chains, and market demand, affecting the company's
overall performance. In summary, the political environment plays a significant role in shaping the
conditions under which BMW operates. The company must monitor and adapt to political changes
to navigate potential challenges and capitalize on opportunities in the dynamic automotive
industry. Economic issues can have both positive and negative impacts on BMW's business
operations. Economic conditions, such as a recession or economic downturn, can impact
consumer spending. During tough economic times, people may cut back on luxury purchases like
high-end cars, affecting BMW's sales. Economic conditions, such as a recession or economic
downturn, can impact consumer spending. During tough economic times, people may cut back on
luxury purchases like high-end cars, affecting BMW's sales. BMW's target market often consists of
consumers with higher disposable incomes. Changes in income levels, either positive or negative,
can influence the demand for luxury cars. Economic prosperity can lead to increased sales, while
economic downturns may result in decreased demand. BMW operates in various markets
worldwide, and global economic trends, such as economic growth or recession in key markets, can
impact the overall demand for luxury cars.
The internal environment to include corporate culture and corporate Social Responsibility:
The corporate culture at BMW is deeply rooted in innovation, precision, and a passion for
delivering exceptional performance. Employees are encouraged to embrace a collaborative and
creative mindset, fostering a dynamic workplace where ideas flourish and excellence is continually
pursued. This culture extends beyond the product development process to encompass the
company's commitment to CSR. BMW recognizes the significance of its societal impact and actively
engages in initiatives that promote environmental sustainability, community development, and
ethical business practices. Through various CSR programs and partnerships, BMW strives to
minimize its environmental footprint, support local communities, and uphold high standards of
social responsibility. This dual emphasis on corporate culture and CSR reinforces BMW's identity
as a responsible global player, aligning its business objectives with ethical and sustainable
practices.

The competitive environment to include competition, competitive advantage and the factors
that influence competitive advantage:
BMW operates in a highly competitive environment within the automotive industry, facing
challenges and opportunities from various competitors. The competition in the luxury automobile
sector is intense, with key rivals such as Mercedes-Benz, Audi, and Lexus vying for market share
and consumer preference. To maintain a competitive edge, BMW focuses on creating a distinctive
competitive advantage through its commitment to innovation, design excellence, and cutting-
edge technology. The brand's reputation for producing high-performance and luxurious vehicles
contributes significantly to its competitive position. Factors influencing BMW's competitive
advantage include its emphasis on research and development, enabling the company to introduce
advanced features and sustainable technologies in its vehicles. Additionally, the brand's strong
global presence, robust marketing strategies, and emphasis on customer experience contribute to
its ability to differentiate itself in a crowded market. Collaborations with technology companies,
strategic partnerships, and a focus on electric and hybrid vehicles also play a pivotal role in
enhancing BMW's competitiveness in an industry undergoing rapid technological transformations.
Economic conditions, regulatory changes, and consumer preferences for eco-friendly and
innovative products are external factors that can impact BMW's competitive advantage, making it
imperative for the company to stay agile and adaptive to maintain its leadership position in the
automotive market.
The influences on the chosen business’ demand, supply and price, including elasticity of
Bdemand:
Several factors influence the demand, supply, and pricing dynamics of BMW, a renowned luxury
automobile manufacturer. The demand for BMW vehicles is significantly influenced by consumer
preferences, economic conditions, and changing trends in the automotive industry. As a luxury
brand, BMW caters to a specific segment of the market, and consumer demand is often tied to
disposable income and overall economic prosperity. Economic downturns may lead to a decrease
in consumer purchasing power, impacting the demand for luxury vehicles.

On the supply side, BMW's production and supply chain are influenced by various factors such as
raw material costs, technological advancements, and global market conditions. Fluctuations in the
prices of essential materials like steel and aluminum can affect production costs, subsequently
influencing the supply of BMW vehicles. Additionally, technological innovations, such as
advancements in electric and autonomous vehicles, can impact the company's supply strategy, as
it adapts to evolving market trends.

Price elasticity of demand is a crucial aspect for BMW, given its position in the luxury car market.
The demand for luxury cars is often less elastic than for mainstream vehicles, as consumers in this
segment may prioritize brand image, quality, and prestige over price. However, external economic
factors, such as recessions or economic downturns, can still impact the price sensitivity of
consumers. BMW must carefully assess and adapt its pricing strategy to balance the premium
image of its brand with market conditions, competition, and consumer expectations, considering
both short-term market fluctuations and long-term trends in the automotive industry.
The different market structures that the business operates in, their impact on pricing and
output decisions and the business’ response to these:
BMW operates in various market structures depending on the segment of the automotive industry
it targets. In the luxury automobile market, which is characterized by a monopolistic competition
structure, BMW faces competition from other premium brands such as Mercedes-Benz and Audi.
In this environment, products are differentiated, allowing BMW to exercise some control over
pricing and output decisions through factors like design, innovation, and branding. The demand
for luxury cars is often influenced by consumer preferences and perceptions of brand prestige.
BMW, recognizing the significance of these factors, invests heavily in research and development
to maintain a competitive edge and differentiate its products. In the electric vehicle market, BMW
operates in an oligopoly where a few major players dominate. Pricing and output decisions in this
sector are impacted by collaborative efforts on charging infrastructure, technological
advancements, and government regulations promoting sustainable transportation. BMW, in
response, has strategically expanded its electric vehicle lineup, aligning with global trends towards
environmentally friendly transportation. Furthermore, in the mass-market automobile segment,
BMW faces a more competitive, price-sensitive environment with numerous players. Here, the
company aims to balance quality and cost efficiency, implementing lean manufacturing practices
to optimize production processes. BMW's response to these varying market structures involves a
dynamic approach, combining innovation, brand management, and operational efficiency to adapt
and thrive in different market environments.
In conclusion, BMW, like any other business entity, operates within a multifaceted environment
that significantly shapes its strategic decisions and overall performance. The external environment
exerts substantial influence, encompassing political factors such as government policies, economic
elements including fiscal and monetary policies, social attitudes towards saving, spending, and
debt, as well as social responsibility requirements. Technological change, environmental
considerations, and ethical trends further contribute to the complexity of this external landscape.
The legal environment, marked by regulatory frameworks and compliance obligations, adds
another layer of influence. Internally, BMW is shaped by its corporate culture and commitment to
Corporate Social Responsibility (CSR), reflecting its values and principles. This internal environment
plays a pivotal role in defining the company's identity and guiding its operations. Within the
competitive environment, BMW contends with rivals, constantly seeking competitive advantages
to differentiate itself in the market. Understanding the factors that influence competitive
advantage is crucial for BMW's sustained success. Moreover, the dynamics of demand, supply, and
pricing are intricately interwoven with the business's positioning and responses to market
influences, including the elasticity of demand. BMW must adeptly navigate the different market
structures it operates within, considering their impact on pricing and output decisions. The
company's ability to adapt and respond effectively to these various environmental facets will
determine its resilience and success in the ever-evolving business landscape.