Pestel Analysis for Bmw

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Part - PEST analysis

Political:In recent times political factors such as the EU laws concerning the carbon emissions, produced bycars, have meant that BMW has had to review their cars and engines in order to adhere to EU laws.Therefore BMW has had to invest in ³greener´ technologies as well as providing new technologicaladvances. Although this has increased BMW¶s manufacturing costs, the consumer is becoming far more aware of their carbon footprint and so BMW¶s failure to change would damage sales and their market presence. In order for BMW to promote their greener image they have manufactured the first passenger car running on hydrogen ready for common use. Their greener image is being heightened by new engine technology called Efficient Dynamics that is being promoted in the UK with anintegrated campaign promising 'Less emissions and more driving pleasure'. cEconomic:A very important environmental factor, which has had an effect on the company, is the economicclimate in which it operates, the financial crisis. The economic recession that has occurred in the lastyear has taken a knock on consumer purchase behaviour and also consumers ability to gain credit because of the credit crunch. Obviously the fact that BMW produces and sells cars at a premium price puts BMW in a risk position. Another factor regarding the economic climate is that the dollar has fallen against the Euro meaning that in 2007 BMW lost 517 million Euros due to adversecurrency fluctuations and increasing raw material prices. So although they have had strong sales their profits were reduced by external factors.In recent times oil prices have reached 150$ a barrel which is another contributing factor that hasaffected BMW¶s sales. The first reason is that raw materials, due to increasing transport costs, wentup in price, which increased BMW¶s own costs and therefore affected