M3: Analyse how external factors have impacted on the two contrasting organisations

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Abdul Rana Unit 1 M3

M3: Analyse how external factors have impacted on the two contrasting organisations

In this unit I need to analyse how the changes in the business environment have a impacted the organisation.

I have to concentrate on

  • Changes to functional activity
  • Changing profit levels
  • Changes to strategic plans
  • Growth, rationalisation and closure
  • Impact on stakeholders

External factors that I need to look at are:

The influence is from political factors are very important as these include consumer right, employment and considering the effect on the environment and the change. The main political factors that have an impact on the BMW Company are the, Consumer legalisation rights legislations. These include: Sales of goods act 1975 this act insures customers are paying the right amount money for the vehicles the customer buys, this insures that the customers does not get charged more than they should of. Sales and supply of goods to consumer act 2002, Trades description act 1968 this act insures that the customers get what is written on the description and labels and they don’t get something that isn’t written, Consumer credit act (1974) 2005. This plays a major roll and affects the strategic plan of BMW because all the strategic plans are linked to the customers. If the customers do not like the product of BMW such as the X6, X3 then they will not buy it after tasting it, this is a bad factor for the business because it would lose them a lot of money and customers and the company might go in a decline stage. The laws would have an impact on the stakeholders of the company because if BMW goes in a loss or decline then they might have set redundancies some of their employees. Most likely the employees may not find any other job, which could then increase the unemployment rate.

The rights has of consumers have changed and affect the functional areas of the business due to the consumer right became more important, BMW and the automobiles industry introduced a new functional area called the product integrity this is important because the business makes sure that the efficiency of their product is the same everywhere in the world. The consumer rights have an impact on the growth of the company, because if the business flow all laws laid out to keep the customers happy then they would be more willing to buy their product, this will then increase the profit of the business. The BMW company can use the profit to grow and expand also invest in their research and develop new products. The other political factors that have an effect on the BMW are legal factors, which are related to employment for example; age discrimination, minimum wage, equal opportunities and contracts of employment.

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From this we can see that BMW employees over 100,041 employees which tells us that the company has quite allot of employees which affects the political factor so the stakeholders are interested such as the government as they will have more people paying tax rather than gaining benefits and even consider giving the a grant which is a source of finance.

The 2nd factor is the economic factors these include: coast of credit, competitive pressures, pay ...

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