Socio-cultural factors Essay

Published: 2020-02-18 10:51:48
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Socio-cultural factors refer to demographic and cultural forces that influence a business. The factors include diverse customers needs, health consciousness, safety concerns, and age distribution (QuickMBA. com, 2006). In automobile industry, the consideration of socio-cultural factors is inseparable. The customers behavior in purchasing new cars and their preferences that is different from one country to another are just two samples of factors that influence the industry. At BMW, the consideration of socio-cultural factors goes beyond merely conducting research on customers preferences.

In fact, the German automobile manufacturer also develops new system that selects their suppliers not only based on their innovative products/solutions and technical expertise but also their adoption of technology that takes into accounts the ecological and social criteria. Technological Factors Another macro environmental factor is technology. In fast moving consumer goods industry, technology plays significant role since it reduces barriers to entry and increases production efficiencies, to name a few.

Some activities relate to technological factor are the degree of R&D, production automation, rate of product invention, new technology or invention (QuickMBA. com, 2006). The highest order of BMM product line is BMW 7 series that always equipped with the latest technology. In the latest 7 Series, 730i, there are interesting features as the products are equipped with robotic technology that helps drivers of this 7 series to park in a parking lot while the driver stands outside the car. Figure 7 BMW 7 Series Legal Factors Legal factors refer to law in effect that influences the way business operates.

In Reckitt Benckiser, many legal forces influence the firm such as employment, environmental, and safety, to name a few. Environmental Factors Environmental factors relate to environmental issues that influence an industry or business in local, national, and worldwide point of view. In Reckitt Benckiser, the firm pays great attention to such issues since they realize their waste of chemical production may endanger environment. At BMW, the consideration of environmental factors drives the company to initiate a program that assesses the quality standards of their suppliers to find whether they already comply with social and ecological targets.

The result of this program is that the companys 90 % of the Groups purchase volume is from suppliers who have certification on environmental and quality management systems. Ansoff matrix to analyze the growth of BMWs product portfolio Ansoff Matrix is a business analysis tool, developed by the Harvard Business Review in 1957 (Ansoff Matrix, 2005). The matrix elaborates how companies directed their corporate strategy to achieve corporate growth. As we know, each company relies on different competitive advantage in order to gain profitability and growth.

The Ansoff Matrix simplifies the complicated nature of individual corporate competitive advantages by dividing all of them into four large quadrants. The quadrants can be elaborated through the simple table in figure 1. Ansoff matrix provides a simple but effective focus for considering different options of strategies for growth. The company can choose between finding new customers for existing products, or more products to existing customers, or stay with existing products and customers, and putting more efforts on gaining greater share of the market. References BMW Group.

(2006). BMW Group in Figures. Retrieved December 18, 2007 from http://www. bmwgroup. com/bmwgroup_prod/e/nav/index. html? http://www. bmwgroup. com/bmwgroup_prod/e/0_0_www_bmwgroup_com/home/home. html Kotler, Philip and Amstrong, Gery. (2006). Principles of Marketing. New Jersey Kotler, Philip. (2002). Marketing Management. New Jersey: Prentice Hall Inc. National Jeweler. (2006). MINI Cooper draws large crowd Longs Jewelers enjoys the ride. Retrieved December 19, 2007 from http://www. nationaljeweler. com/nationaljeweler/search/search_display. jsp? vnu_content_id=2069550.

Porter, M. (1979). How Competitive Forces Shape Strategy. Harvard Business Review, 57(2), 86-93 QuickMBA. com. (2006). PEST Analysis. Retrieved December 21, 2007 from http://www. quickmba. com/strategy/pest/ ”. (2004). Ansoff Matrix. Retrieved December 19, 2007 from http://www. quickmba. com/strategy/matrix/ansoff/ The European Automotive Industry: Competitiveness, Challenges, and Future Strategies. European competitiveness report 2004. Tutor2U. (2007). Boston Consulting Box. Retrieved December 21, 2007 from http://www. tutor2u. net/business/strategy/bcg_box. htm.

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