This study will address the climate change impact on business strategies of top German automotive companies. Its goal is to assess the significant changes in business and the long-term susceptibility plans towards climate change to remain globally competitive due to increasing social and political pressure on the automotive companies. Business strategies of the German automotive industry are changing significantly as awareness of climate change is rising at an intense pace globally. The discussion of Climate change and CO2 reduction challenge is all over in the automotive and general media. According to the latest report on Climate change by IPCC, the global average temperature will likely rise by 1.5⁰ Celsius in the next 30 year.
This change in temperature will have no point of return, and It will show catastrophic effects on the world. The automotive industry is changing their business strategies and setting targets for zero carbon reduction to mitigate future climate change risks. This thesis delves deep into business strategies of top German automotive companies and their mitigation plans.This thesis highlights the different challenges that rose in top German automotive company groups. It begins with a literature review for understanding the Climate change challenge and mitigation strategy research.
The business strategies are discussed on the company activities such as organizational involvement, risk management, carbon measurement and policy, product improvement, process improvement, carbon compensation, new markets and product development, stakeholder engagement, corporate communication and political activities. The Daimler Group, Volkswagen Group and BMW Group, the leaders of the automotive industry in Germany are analyzed thoroughly in the case studies for assessing change in business strategies. Finally, based on the case studies and literature review the impact of climate change on business strategies explained and discussed.
Table of Contents
1. Introduction
1.1 Statement of the Problem
1.2 Purpose of the Study
1.3 Thesis research questions and thesis structure
1.4 Scope and Limitations
1.5 Definition of Terms
1.6 Research methodology for Business Climate Change Strategies
2. Climate change and the German Automotive industry
2.1 Introduction
2.2 The changing environment
2.2.1 The climate change: It is a real challenge
2.2.2 Understanding Climate Change
2.2.3 Reason for the rising temperature of the earth?
2.2.4 The impact and future of climate change
2.2.5 Resources security
2.2.6 Kyoto protocol
2.3 Business Climate Change Strategy: The automotive industry
2.3.1 The automotive industry emissions
2.3 2 Climate strategy as a competitive strategy
2.3.3 The connection between product, process, and economic system
3. Case studies of top German automotive companies
3.1 Case study 1: Daimler AG
3.1.1 Company profile
3.1.2 Governance for climate change
3.1.3 Greenhouse gases reduction
3.1.4 Climate change competitiveness
3.1.5 Future goals
3.2 Case study 2: Volkswagen
3.2.1 Company profile
3.2.2 Governance for climate change
3.2.3 Greenhouse gases reduction
3.2.4 Climate change competitiveness
3.2.5 Future Goals
3.3 Case study 3: BMW GROUP
3.3.1 Company profile
3.3.2 Governance for climate change
3.3.3 Greenhouse gases reduction
3.3.4 Climate change competitiveness
3.3.5 Future goals
4. Summary and finding of elements of Business Strategies in Case companies
4.1 Introduction
4.2 Summery and findings of the case companies
4.2.1 Company profiles
4.2.2 Elements of business strategy
5. Discussion and Conclusion
5.1 Discussion of questions:
5.2 Conclusions
Research Objectives and Core Themes
This master thesis aims to evaluate the impact of global climate change on the business strategies of leading German automotive manufacturers. It assesses how these companies are adapting their organizational, operational, and product-related structures to mitigate climate risks, comply with stricter environmental regulations, and remain globally competitive in a changing market landscape.
- Analysis of climate change challenges and mitigation in the automotive industry.
- Examination of business strategies regarding carbon management, product innovation, and process efficiency.
- Detailed case studies of Daimler AG, Volkswagen Group, and BMW Group.
- Assessment of long-term sustainable business plans and transition to electrification.
- Evaluation of the role of stakeholders, political activities, and corporate communication in climate strategy.
Excerpt from the Book
2.2.3 Reason for the rising temperature of the earth?
Radiation from Earth’s surface due to Sunrays traps into the Earth’s atmosphere and goes back to the Earth causes warming the planet’s surface. This process is known as the “Greenhouse-effect”.
These atmospheric gases (Greenhouse gases) radiates energy in all direction; some part of these radiations goes back towards the planet and increases the temperature. The number of greenhouse gases decided the intensity of downward radiation, and these radiations are directly proportional to the temperature of the earth (Bengtsson et al., 2001). The below figure (figure 5) shows the greenhouse effect, solar radiation (yellow arrows) and radiation from the atmosphere back to the earth surface in (0rrange arrows) (Anderson, Hawkins and Jones, 2016).
Summary of Chapters
1. Introduction: Presents the global challenge of climate change, the impact of the transport sector on greenhouse gas emissions, and defines the research scope and methodology for analyzing automotive business strategies.
2. Climate change and the German Automotive industry: Explores the scientific and political context of climate change, including the Kyoto protocol and the impact of these factors on the German automotive industry's strategic environment.
3. Case studies of top German automotive companies: Performs an in-depth analysis of Daimler AG, Volkswagen, and BMW, examining their governance, greenhouse gas reduction measures, and competitive positioning relative to climate change.
4. Summary and finding of elements of Business Strategies in Case companies: Synthesizes and compares the sustainability strategies and key performance indicators of the three case study companies within a structured framework.
5. Discussion and Conclusion: Discusses the findings to answer the research questions, summarizes the effectiveness of current abatement measures, and concludes on the overall sustainability trajectory of the German automotive industry.
Keywords
Business Strategy, Climate change, CO2, Automotive industry, Daimler group, Volkswagen group, BMW group, Carbon measurement, Organizational involvement, stakeholder engagement, corporate communication, Carbon compensation, Greenhouse gases, Decarbonization, Sustainable mobility
Frequently Asked Questions
What is the primary focus of this thesis?
This thesis examines the impact of climate change on the business strategies of top German automotive manufacturers (Daimler AG, Volkswagen Group, and BMW Group) and how these companies are planning long-term sustainability to remain globally competitive.
What are the core thematic fields covered?
The core fields include climate change mitigation, governance, greenhouse gas emission reduction (in product, process, and supply chain), carbon management, and strategic adaptation to environmental regulations.
What is the primary research objective?
The objective is to assess the significant changes in business strategies of these companies and their long-term susceptibility plans towards climate change, specifically regarding social and political pressures.
Which scientific methodology is applied here?
The study utilizes a qualitative research methodology based on extensive desk research of secondary data, including technical journals, annual reports, corporate sustainability reports, and environmental protection guidelines.
What topics are discussed in the main body?
The main body discusses the scientific basis of climate change, regulatory frameworks like the Kyoto protocol, and detailed case studies covering organizational involvement, risk management, GHG policies, and product/process improvements for the three analyzed automotive giants.
Which keywords classify this research?
Key terms include Business Strategy, Climate Change, CO2, Automotive Industry, Carbon Measurement, Organizational Involvement, and Carbon Compensation.
How does the transition to electric vehicles (EVs) specifically affect these companies?
The study highlights how all three companies are investing heavily in e-mobility as a strategic response to CO2 limits, though they face challenges regarding existing fossil-fuel dependencies and the need for significant infrastructure changes.
What is the role of Carbon compensation in these business strategies?
Carbon compensation is addressed through supplier management initiatives, adherence to environmental standards like ISO 14001, and participating in carbon trading markets and forestry conservation projects.
How do these companies manage their stakeholder relationships regarding environmental issues?
They utilize regular stakeholder dialogues, such as Daimler's "Sustainability Dialogue" and workshops with government and NGO policymakers, to improve transparency, build trust, and address critical environmental concerns.
- Arbeit zitieren
- Suyash Rewale (Autor:in), 2020, Impact of climate change on business strategies. German automotive companies' business strategies with respect to climate protection, München, GRIN Verlag, https://www.grin.com/document/1245173
