Instructions: word limit: 1500 Suitable Reference System: Harvard Assessment Criteria: ‘An in-depth analysis of the firm’s environment can be achieved by applying the principles of P.E.S.T.L.E.’....

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An in-depth analysis of the firm’s environment can be achieved by
applying the principles of P.E.S.T.L.E.’. Discuss by using the
example of one organisation that you are familiar with.
PESTLE Analysis of BMW
Introduction
With constantly enhancing level of market competition as well as rapid advancement
in technology, firms all across the world (in almost all the work domains and sectors)
have started to invest in unique and different strategies to attain long term
competitive edge and sustainability. The core objective lies in creating a corporate
culture and environment that is in strict alignment with the regularly changing needs
and demands of the market. Some of the main tools and strategies used for this
purpose include PESTLE analysis, SWOT analysis, Porter’s Five Forces analysis,
BCG matrix etc.
Likewise, the strategic objective of this paper is to perform PESTLE analysis for a
globally recognised automobile manufacturer i.e. BMW. The paper starts with an
overview of the PESTLE analysis approach and moves ahead with the PESTLE
analysis of the BMW (Bayerische Motoren Werke AG).
An Overview of the PESTLE Analysis Approach
To begin with, the famous PESTLE analysis approach can be described and
explained as a globally accepted industry analysis approach, mainly adopted for the
purpose of analysing and examining the external market environment (Kotler and
Armstrong, 2004). It helps an organisation better understand the surrounding
Political, Economic, Social, Technological, Legal and Environmental factors in order
to modify its strategies and attain long term competitive advantage (Kotler, 1998).
According to Kotler and Armstrong (2004), all these six factors have different level of
significance and importance and cannot actually be ignored. For instance, the
political forces basically include the different political and government related factors
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that could impact the working of an organisation or a business, economic forces
include dimensions such as fluctuation in currency, economic downturn, changes in
economic policies etc, social factors comprise of aspects such as lifestyle of the
society, likings and preferences of the customers etc, technological factors include
the aspects such as advancement in science and technology, Research &
Development (R&D) initiatives etc amongst the several other factors (Kotler and
Armstrong, 2004). Moving ahead, environmental forces include factors such as
greenhouse effect, global warming etc and lastly, the legal factors that comprise of
changes in laws and regulations, legislative rules and policies etc (Kotler, 1998).
After having explored PESTLE analysis approach in brief, the paper now moves
ahead to perform the PESTLE analysis of BMW in specific.
PESTLE Analysis of BMW
Political Factors
In a brief sense, political factors tend to highlight and present the various different
government laws and regulations in addition to restrictions and security measures
that can basically be applicable to any industry or a sector. Some of the main
political factors that are applicable in the case of BMW include (Woodyard, 2015):
 Government related foreign policies and taxes are highly critical for the global
automobile sector. Different foreign policies help in deciding...