BMC SOFTWARE

Analysis of Macro-Environment of BMC Software



Analysis of Macro-Environment of BMC Software

Introduction

This paper, will be discussing the macro environment of BMC Software Company. Macro environment of the organization will be discussed with the help of PESTLE framework. This framework includes, Political, economical, social, technology, legal and environmental factors, that influence the, business operations in the country where organization is working.

BMC Software is one of the largest software vendors in the world. It provides systems management, service management and automation solutions primarily for large enterprises. BMC's portfolio of software solutions spans mainframe distributed and virtualized systems, databases, applications and information technology (IT) process management functions (BMC Software Advanced Search, 2006, Website). The company's strong customer base enhances its brand image and provides opportunities to handle large, complex projects. However, intense competition in the software industry may lower the demand for company's services and result in pricing pressures, thereby adversely affecting the financial performance of the company (BMC Software Advanced Search, 2006, website).

BMC Software is a U.S. developer of business solutions, which has 20 years experience in the IT market. The company provides systems management solutions, service management and automation mainly for large companies. BMC has offices in several countries, including Mexico and Brazil.

PESTEL Analysis

Political Factors

It is obvious that companies are closely dependent on the political constraints or because they result from the colour change of government policy such as they result from changes related to nationalization, privatization. BMC maintain contingency and business continuity plans for all significant locations, and to date, various regional conflicts or other local economic or political issues have not caused any major adverse impact on our operations in these countries (Honan, 2007: 45).

Economical Factors

We can no longer speak of capitalism but of "many capitals" - indeed, capitalism "Japanese" is significantly different from capitalism "American" capitalism or "European." The fact that we put behind this term is from this point of view more and more difficult to define. The industrial gigantism characterized Western economies and state intervention is more or less pushed by country (Mangum, 2008: 65). In summary, we are now witnessing a complete transformation of the competition - it moves in other areas; and that price also affects the quality, service, innovation.

Economic factors greatly influences the business operations; and these factors must be kept in consideration by the organization while implementing a new policy or launching a new product. Competition is the main element of economical factor which disturbs the business operation. In the case of BMC software, the Company lacks the scale to compete with large software developers and vendors like IBM, Hewlett-Packard, and CA. BMC generated total revenues of $1,911.2 million in 2010. Hewlett-Packard, a major competitor of the company, recorded revenues of $114,541 million in 2009. IBM, another competitor of the company, has reported revenues of $95,798million in 2009. Similarly, CA, another competitor of the company, recorded $4,364 million in 2010 (BMC Software, 1999: 1).

Socio-Cultural Factors

This is the changing lifestyle of consumers and social values, tastes and ...