Post on 24-Oct-2015
description
Group-7
MCE PROJECT- PESTLE
GERMANY
PESTLE
Germany
Political
Economical
SocialTechnological
Environmental
Political Environment
Germany is a federal, democratic and socially responsible state
Consists of 16 states
Head of State: Federal President Joachim Gauck(Mostly representative)
Head of government: Chancellor Angela Merkel
Political Break up of Germany
Bundestag (Parliament)
Bundestag is the central institution of the political system with 603 members
Elected by all
Germans for 4 years
Elects the Federal Chancellor, passes laws and controlls the government
Bundesrat (Federal Council)
Representation of the Länder (States)
Participates on the legislation
It is often used as a party-political instrument
Federal Government
Formed by Ministers and the Chancellor
Chancellor determines ‚policy guidelines‘
Normally formed by a coalition
Accountability to
the Bundestag
Economical
Largest Economy of European
RelativelyPoor in Raw Materials
Only Ignite & Potash available in significant quantities
GDP: $ 3.197 Trillion (2012), GDP Growth: 0.9%
Inflation: 1.44% (Sep 2013)
Unemployment rate: 5.4%
Exports : $1.492 trillion (2012 est.)
Imports : $1.276 trillion (2012 est.)
Economical
Out of Fortune 500 companies 37 are headquartered in Germany
Between 1991 & 2000 40 mergers & 301 acquisitions with an involvement of German firms with a total known value of 2,422 bil. EUR have been announced.
World‘s 3rd largest exporter & account for more than 1/3rd of their national output
GDP by sector
1%
29%
71%
Sectors
agricultureindustryservices
1%1%2%3%4%4%
5%6%
7%
7%8%10%
9%
10%
11%
12%
Rank
Germany Germany North Rhine-Westphalia Bavaria Baden-Württemberg Lower Saxony Hesse Rhineland-Palatinate Berlin Saxony Hamburg Schleswig-Holstein Brandenburg Saxony-Anhalt Thuringia Mecklenburg-Vorpommern Saarland Bremen
Region wise Distribution
Major Industries
Automobiles
Iron, Steel
Coal, Cement
Chemicals, Machinery
Electronics, Food and Beverages
Shipbuilding, Textiles
Demographics
Population : Approx 82 million
Population growth rate : 0.061%
Birth rate : 8.33 births/1000 inhabitants
Life expectancy : 80.19 years (77.93 years for males and 82.58 years for females).
The 2nd most populous country in Europe after Russia, and ranks as the 16th most populous country in the world
Its population density stands at 225 inhabitants per sq km
Socio-Cultural factors
Architecture
Music
Literature
Sports
German Art
Technological Analysis
World's most technologically advanced telecommunications systems
Germany ranks 8th out of 139 countries for innovation in the World Economic Forum (WEF)
According to WEF, Germany is the international leader in terms of capacity for innovation, occupies 4th place for the company spending on R&D, & secures 6th spot for quality of scientific research institutions
Technological Analysis
Germany ranks 3rd after Japan & Sweden, for patents filed simultaneously with the US, Japanese & European Union trade offices
Germany is among the top five of 17 analyzed countries including US & UK for the development & marketing of high technology.
Collaborations between the Federal Government, federal state & the economy to invest 3% of GDP in R& D until 2015
Technological Analysis
Greatest Strength is in Automobile Industry
Owns World Leading Chemical Industry
The neuroscientist has made important contribution in the research of brain implants, also working on noninvasive brain machine interfaces
The main funding for R&D comes from the private sector. Businesses financed 68% of R&D expenditure in 2007
Legal
Germany uses an inquisitorial system where the judges are actively involved in investigating the facts of the case, as compared to an adversarial system where the role of the judge is primarily that of an impartial referee between the prosecutor and the defendant
The independence of the judiciary of Germany is historically older than democracy in Germany
The organization of courts is traditionally strong, and almost all federal and state actions are subject to judicial review
Environment
World’s 6th largest and Europe’s largest Carbon emitter – 2011
After signing Kyoto Protocol: 23% reduction in carbon emissions
39% of wind energy of worlds requirement
• Committed to use renewable energy sources
BMW“THE ULTIMATE DRIVING MACHINE”
Bayerische Motoren Werke
BMW – The CompanyHistory
1916RMW (Rapp Motoren Werke ) is founded as an aircraft-engine factory in Munich. In 1917, Changed to BMW.
1923The first BMW motorcycle R32 leaves the Munich production site.
1928The first BMW automobile, the Dixi 3/15, is developed in Munich.
1955The BMW 503 and 507 sports cars are today’s 'golden oldies'.
1962The 1500 model establishes the trend for the "new class" of sporty compact touring cars.
1981BMW becomes the first European carmaker to establish a subsidiary in Japan.
1977BMW introduces the first 7 Series car. The 733i sets new standards in technology, design and equipment.
1989In the year the Iron Curtain fell, BMW has another first by producing half a million cars.
BMW – The Company
Mission
To become most successful premium manufacturer in the car industry
Vision
Uniqueness through diversity, leadership, taking risk, courteous.
Competition
• Mercedes Benz
• Jaguar
• Audi
Customers
• The person that appreciates, and is willing to pay for, the “Ultimate Driving Machine.”
•
Japan
Brazil North America
South Africa
Europe IndiaChina
Russia
Global Markets
Products
Automobiles
Motorcycles
Bicycles
USP 22
The Ultimate Driving Machine
Innovations
Designs
Brand Value
Global Leader in Premium Cars
Strategy Number ONE
Strategy Number One focused on the four pillars
Growth
Future
Access to technologies and customers
Profitability
Sales
Year BMW MINI Rolls-Royce Motorcycle
2005 1,126,768 200,428 796 97,474
2006 1,185,088 188,077 805 100,064
2007 1,276,793 222,875 1,010 102,467
2008 1,202,239 232,425 1,212 115,196
2009 1,068,770 216,538 1,002 100,358
2010 1,224,280 234,175 2,711 110,113
2011 1,380,384 285,060 3,538 113,572
2012 1,540,085 301,525 3,575 117,109
Revenues
Amount In Million Pounds
2010 2011 2012
Revenues 60477 68281 76848
Capital Expenditure 3263 3692 5240
Depreciation & Amortization
3682 3646 3541
Operating cash Flows 8149 8110 9167
PBT 4853 7383 7819
Net Profit 3243 4907 5122
R&D Network
The Driving Force: Passion for Innovation.
The innovative power of the BMW Group is confirmed by approximately 60,000 design utilities and protective rights – thereof some 13,000 patents –already in place and almost 900 new or extended patents made out in the year 2008 alone.
Innovations
BMW: Touchpad iDrive. My BMW Remote. Near Field Communication Key. Remote-Controlled Parking. Lateral Collision Avoidance. Micropause Apps. Emergency Stop Assistant.
Failure of Rover Acquisition
In 1993 BMW introduced a new strategy to increase its market share by widening its product base.
Acquisition of ROVER group in Jan 1994 for 1.7billion pounds including MINI & Rover Brands.
Losses increased after Rover Acquisition Financial aid of 150 million pounds by
British Government to avoid increase in unemployment rate
Turnaround Success
1998 Pischetsrieder purchased ROLLS ROYCE for 40billion pounds
Milberg became the New CEO in Feb 1999.
In 2000 sold ROVER at the loss of 3.2 billion euro however it was able to recoup 2.9 billion euro by selling Land rover to Ford but kept MINI brand as part of it strategy to enter compact car market.
Milberg set 4 strategic goals Small BMW model
Development of BMW’s own brand market for SUV
Employing 10,000 workers in 3 factories and relocating production of MINI to Oxford
Preparation for the complete take over of rolls Royce brand
SWOT
Strengths Brand reputation
Environment friendly vehicles
Quality products
Highly skilled workforce
Corporate Social Responsibility (CSR)
Strong brand presence in China
Weaknesses High cost structure
Weak brand portfolio
Perception of high prices
Too few acquisitions and strategic partnerships
SWOT
Opportunities Increasing fuel prices
Positive attitude towards “green” vehicles
Expand brand portfolio
Changing customer needs
Threats Intense competition
Rising raw material prices
Decreasing fuel prices
Growing euro exchange rate
Ethics & Social Responsibility
Spends more than 1% of Net income in CSR activities Has been ranked No. 1 in CSR activities in 2012 by
Forbes Actively participates in the social interest of the
employees and society as a whole. BMW won the Corporate Responsibility Reporting
Award for best carbon disclosure. BMW has won awards in 2011 and this for the
Efficient Dynamics idea. BMW is also actively involved in various other social
causes.