Business and Business Environment - General Motors

Business
and
Business
Environment

Table of Contents
INTRODUCTION...................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Explicate assorted types and purposes of public, private and voluntary organization with their legal
structure...................................................................................................................................................3
P2 Explicate size and Scope of different type of organisations................................................................6
TASK 2..........................................................................................................................................................8
P3 Relationship between different organisational functions and how they link to organisational
objectives and structure...........................................................................................................................8
TASK 3.......................................................................................................................................................9
P4 Positive and negative aspects of macro environment..........................................................................9
TASK 4.....................................................................................................................................................11
P5 Internal and external analysis of specific organisation in order to identify strengths and weaknesses
...............................................................................................................................................................11
P6 Strengths and weaknesses interrelate with external macro factors....................................................12
CONCLUSION.........................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
Business environment refers to aggregation of different factors, some of these factors can
be controlled but certain may not be controllable and creates impact on growth, performance and
profitability. These factors comprise of both internal as well as external which have relevant
impact on operations of organization. Internal factors contain employees, suppliers, shareholders
and customers while external factors encompasses of technology, economic conditions,
government rules and competitors (Anıl and Ficici, 2017). This report comprises of General
Motors, it is an American multinational organization which designs, manufactures and sells
automobiles and spare parts. They are headquartered in Detroit, Michigan, America. This report
deals with different types of organizations, they are voluntary, public and private along with their
legal structure. Scope and size of various organizations are explained. Furthermore,
interrelationship of different organizational functions is provided and ways in which they are
linked with organizational structure and objectives. Apart from this, macro environments are
critically identified with usage of precise examples. Internal and external analysis is done to
categorize their strengths and weaknesses. At last external macro factors are explained along
with their strengths and weaknesses.
TASK 1
P1 Explicate assorted types and purposes of public, private and voluntary organization with their
legal structure.
Different types of organizations carry out their operations to enhance economy of
country. These entities comprises of public, private and voluntary organizations. Their purpose
and legal structure is present below:
Public Organisations: These organizations are wholly or partially owned, managed and
controlled by government as well as other entities. These organizations carry out their
functionalities and operations by taking into consideration welfare of people and delivery of
services and products so that they can furnish benefits to society (Burayidi, 2013). These
organizations are responsible for providing benefits to society in terms of health services,
transportation, infrastructure, communication and education. Consider Crown Prosecution

Service, it is a public prosecution organization which is present in Wales and England for
carrying out criminal prosecutions.
Legal Structure: Public organizations are either completely or partially executed by
government. Basically, they are of 3 types which include local, state and national government
(Charfeddine, 2016). Each has their own set of policies and regulations. Legal structure of these
enterprises depends on government which is ruling at present moment and is responsible for
controlling and managing them. Therefore they are categorized into:
(A) Local organisation: These organizations are controlled and administered by local
government and they need to adhere to rules and regulations set by them.
(B) State organisation: These organizations are controlled, managed and owned by
authority of State. They need to comply to policies made by them so that they do not
land into any kind of trouble .
(C) Central organization: They are those enterprises which are maintained by central
government and they are responsible for controlling operations, actions and activities
conducted by them.
Purpose: CPS (Crown Prosecution Service), it is a public prosecution agency which
conducts prosecutions in Wales and England. The organization carries out criminal cases
which have been investigated by police and other investigation organizations but still
justice has not obtained. They focus on finding out the culprit and punish them for
offense which they have conducted.
Private Organisations: These are owned, managed and executed either by individual, firm,
financial institutes or group of individuals. They are normally incorporated for gaining profit
within market (Hacioglu, Dincer and Celik, 2012) . Consider General Motors, it a multinational
organization which is headquartered in Michigan, America. This company is responsible for
designing vehicles and supplying their spare parts as well as financial service. They emphasize
on profit making.
 Legal Structure: It is provided below:

(a) Sole Proprietorship: There are completely possessed and maintained of an
individual who is referred to as sole proprietor. In this case there is no difference in between
business enterprise and owner.
(b) Partnership: It refers to written agreement between parties who agrees on certain
terms and conditions for generating high profit. It is basically classified into limited and general
partnership.
(c) Company: It includes different individuals who do not give their shares to public by
initially offering them. They execute their businesses for earning huge profit.
Purpose: General Motors, American multinational organization which deals in manufacturing of
vehicles, their designing and its distribution in different parts of world. The elementary purpose
of this organization is to acquire competent and skilful workforce so that they can attain
organizational objective in decided time duration (Hussin and et. al., 2017) . Their primary
emphasis is on providing their customers with satisfaction so that they can be retained with
passage of time.
Voluntary Organisations: These are organizations in which individuals become part by their
own which means voluntarily to attain specific goal. There objective to for an enterprise is not to
earn profit but they are formed to eliminate or reduce impact of some problem and provide
healthy environment for living to people (Otoo and Drechsel, 2018). These organizations include
religious corporations, foundations, charitable trust, non government and nonprofit organizations
as well as trade unions. Consider Oxfam, it’s an association which comprises of 20 self-
governing charitable enterprises which aims at removal of poverty from world.
 Legal Structure: The legal structure of voluntary organisations is specified below:-
(a) Unincorporated Association: It refers to an organization which signs an agreement
among different individuals who comes forward for fighting for this cause rather than
for generating profit. These groups are accountable for contractual obligations.
(b) Trust: It is understanding between different groups in which trustee has right to
provide benefits for receiver.
(c) Limited Organisation: This is a nonprofit organization due to which number of
people or shares associated with them is less.

Purpose: Their purpose is to purge poverty and provide the solution through which this can
be completely resolved. Their vision is to have world which is free from poverty.
P2 Explicate size and Scope of different type of organisations
In a business environment there are different forms of organisations that have variations in
their size, scope and scale. They are performing there functions within public, private and
voluntary sector. Mention below there is a formative discussions made on size and scope of
different type of organisations:
Public organisation:
Organisations working under public sector are those entities that are performing their
activities within full government involvement. Companies in public sector offer their services to
individuals without aiming towards profit motive (Sood and Sukthankar, International Business
Machines Corp, 2013). In this context, Crown prosecution services are taken in the section of
public sector as it is a non-ministerial government department. CPS engages in the service of
offering criminal proceeding to police and other investigative agencies of England and Wales.
Crown Prosecution Services effectively conduct their activities in order to bring justice to right
individual. There is a size and scope of entity described:
Size: CPS is providing their formative advisory services in the United Kingdom region of
England and Wales. Organisational structure of entity includes 14 regional teams that contribute
their efficient support in criminal prosecution. Chief Crown Prosecutor heads 14 regional teams.
CPS employees more than 6000 employees who effectively offer their support towards effective
achievement of entity actual goal and objectives which is to bring right individual in right
proceeding and punish the real culprit.
Scope: Crown Prosecution Services can consider offering their services in other part of
United Kingdom along with taking advantage of digitalization in their working process this will
help them to communicate emergency cases in faster manner and reduction in the burden of
paperwork.
Private organisation:

Organisations working under this section enjoy little indulgence of government
interventions in there management, ownership and control (Toedt, M. ed., 2014). Private sector
organisations operate there functions with aim to earn more and more profit. In context with this,
General Motors perfectly fits the criteria of private sector organisation. Company headquartered
in Detroit, Michigan and indulges in the process of designing, building and selling cares and
other related automobile parts including trucks in all around the world. There is size and scope
of GM is mentioned below:
Size: General Motors offer 158 types of different services with 207,000 staff members.
Company offers their formative services in six different continents. GM engages in the process
of manufacturing vehicles and related parts in an effective manner with more than 146, 50, 00
skilled and trained employees (Vasilcovschi and Georgescu, 2012). Company tops the market
position in market area of US and China by delivering high quality products and services.
Scope: General Motors effectively conduct their business operations in a formative
manner but by taking their organisational operations to next higher level they can consider to
provide their services in those regions and area where they haven’t reached yet. Along with this,
in order to effectively perform their business activities GM hires potential and skilled employees
those who effectively benefits company to gain more heights.
Voluntary organisation:
Voluntary organisations include those entities who are formed by different group of
individuals those who willingly come together for a particular cause. These organisations
conduct their businesses with a motive to provide welfare to society rather than to earn profit. In
relation this, Oxfam is being considered in voluntary section, as this organisation effectively
fulfils the criteria of voluntary organisation (Warkentin, Sugumaran and Sainsbury, 2012).
Present entity operates their functions on a certain principle which is to uplift poor people by
encouraging them towards better and by empowering them. Oxfam size and scope is defined
below in brief:
Size: Oxfam is a union of 20 different charitable organisations who conjointly perform
their welfare operations in 14 different nations around the globe. Oxfam aim towards eradication
of poverty and other related social causes which is facing by individuals and groups all around

the world. In order to accomplish this goal there is numerous numbers of individuals working
with Oxfam as volunteers and offering there effective contributions towards entity real cause.
Scope: Oxfam is doing a great welfare business for a social cause. Thus in order to
support more individuals and accomplish their goal and objective in a fullest way they can thin to
expand there are of services in different nations where they haven’t yet reached. It will not only
help Oxfam to offer support from other people but also aid them to serve more and more people
enhance their standard of living towards better.
TASK 2
P3 Relationship between different organisational functions and how they link to organisational
objectives and structure
Every business firm’s has been created effective working structure, where higher level of
an authorities & responsibilities of an every individual or functions of management in a business
entity are highly defined (Anıl and Ficici, 2017) . In context with General Motors, this globalised
firm has adopted clear and productive corporate culture, which is mainly sub divided into
departments and business functions such as finance, operations, marketing, HR, research &
development, IT etc. The major inter-relationship among different functions of the General
motors is as follows:
Human Resource and Finance Department: General Motors HR’s unit is responsible
for big and an effective, skilled and competent worker’s, who mainly possess perfect level of
knowledge to led professional tasks with an ease manner. Along with this, it would be imperative
that an old employee’s are given adequate training, so as to make them informed about latest
technology being useful in an operation of the General motors. For this business entity, HR Dept.
needs to have funds that are confirmed after evaluation by the Finance Dept. of the General
motors. Finance will help HR department of the General motor’s to recruit major and hire
employees at a bigger level of working operations.
Marketing and Research & development Dept.: Marketing department of the General
motors is highly focused on doing proactive promotion of the product. This is major possible
with an efforts of R&D Dept. whose moral job is to design a product with great meaning or

reality, on which support of the marketing team are highly pro-active and highly based on results
(Burayidi, 2013) . This kind of inter-relationship is based on each-other collaboration, whose
focus is giving the best product into the market. This relationship is very much pro-active and
also contributed towards the common goals of enhancing profit for a General motor at the higher
and optimized stage.
Brief Summary: General motor needs to establish strategic planning or effective
motivation to each and every team or Dept. so as to enhance business functioning or operations
of the General motors’ at a productive and optimized level.
TASK 3
P4 Positive and negative aspects of macro environment
Management at the top in General Motors has to analyse both micro and macro factors
during the course of its operations. These factors may have positive as well as adverse effects on
the operations of the company. The macro environment factors that can affect General Motors
working and process. For which respective company conduct analysis by using PEST analysis,
explanation of which is given below:-
PEST Analysis: It refers to a method which is adopted by a company in order to evaluate
and analysis macro environmental factor which affect an organization from outside (Anıl and
Ficici, 2017). The General Motors conduct analysis through respective methods which help in
developing strategies and plans accordingly in effective manner.
Political Factors: These factors reflect the extent of government intervention in the operations
of a business. Such factors are policies, rules and regulations, and laws & legislations made
by the government of a country.
• Positive: the USA has a stable government which implies growth and expansion opportunities
for the enterprise (Toedt, 2014). Also, the company conducts its operations abiding by the
laws and regulations made my company. These laws relate to customs duties, embargo,
quotas and trade regulations.
• Negative: Government in the US promotes the use of public transport and other alternatives
which poses a serious threat to General Motors. A company can cope with this situation by
keeping an action plan for given situations.

Economic Factors: These are the factors that affect the economic conditions of a country. It
comprises of factors like inflation rates, interest rates, foreign exchange rates etc.
• Positive: Favorable economic conditions of the US ensure that the disposable income of
people is high. Thus, in turn, increases the market for products of General Motors.
• Negative: A number of factors like fluctuations in prices of fuel & steel and relative demand
of customers affect the operations of the company (Burayidi, 2013). Keeping sufficient
steel and fuel reserves for future use by a company can be seen as an effective measure
to deal with this situation.
Social Factors: Social factors include the trend in society and demographics such as
population, occupation, age etc. and accordingly an organization need to update or change
their products and services.
• Positive: According to social status of diverse customers respective company offer high end
vehicles. By this they able to provide effective and appropriate services as well as products
to customers through which customers get attracted and enhance market shares.
• Negative: Need, trends and demand of customers change according to time due to which
respective company has to develop new products and services through which they able to
attract customer. Along with this when there is change or updating in technology occurs then
General Motors also need to update their vehicles with respective technology.
Technological Factors: It refers to that factor which is related to technology which is
adopted by an organization in order to attract customers in huge ration (Toedt, 2014). Along with
this when there is change occur in technology at marketplace an organization needs to update
accordingly so that they earn more profit and market shares in effective and appropriate manner.
• Positive: to adopt this factor General Motors conduct market analysis so that they understand
and aware about recent trends, then accordingly they develop strategies as well plans in
order to develop products or vehicles accordingly. By this respective company able to attain
goal and attract customers at high ratio.
• Negative: It also include some negative aspect such as it is very expensive and time taking for
respective company to conduct analysis in every few days. Along with this they also need to
develop new strategies and plans due to which working as well as productivity of respective
company employees got affected.

TASK 4
P5 Internal and external analysis of specific organisation in order to identify strengths and
weaknesses
It is necessary for an organization to conduct analysis of internal and external environment
for which they use various types of methods such as SWOT analysis, PESTEL analysis and
many more. In respect of General Motors they conduct SWOT analysis whose explanation is
given below:-
SWOT Analysis- It refers to tool or technique which is used by a company in order to
identify its strength and weakness so that they can develop its strategies as well as plans in
effective and appropriate manner (Charfeddine, 2016) . Along with this they can also minimise
or reduce its weakness so that they can implement their strategies in proper way. By this General
Motors also able to identify its opportunities that helps them in enhancing its business as well as
profitability ratio. Analysis of strength, weakness, opportunities and threats of respective
company are given below:
Strength Weakness
 General Motors are offering variety of
products and services ranges which
help them in assisting company and
managing it at global level in effective
way (Hacioglu, Dincer and Celik,
2012).
 The respective company are mainly
focus on adopting new and innovative
technology which helps in attaining
customers and clients in effective
manner.
 Along with this, respected organization
develop or adopt various new as well as
innovative technology so that they able
to conduct work and attract customer
 In past few years many vehicles of
respective company are called back due
to their is fault in part of automobile
which harm image and name of General
Motors. Due to which there is also
reduction in customer’s base as well as
market shares of company.
 During this time respective company
financial conduction also get effected
which leads to improper functioning
and conducting of process of
manufacturing (Hussin and et. al.,
2017).
 For earning huge amount of revenue
General Motors are depend upon

proper way. market of United State. So that if any
changes occur in respective market
General Motors activities and process
gets affected.
Opportunities Threats
 Now a day market of automobile
industry is growing due to which there
is huge chance for General Motors to
expand as well as grow their business
in various location with their innovative
and unique technology vehicles.
 Along with this now market are
demanding more electrical and fuel
vehicles which can be big opportunity
to respective company to increase their
production as well as sales (Otoo and
Drechsel, 2018).
 There is also opportunity for respective
company to again entre into united state
market along with an agreement this
will be an expected door to enhance
profitability ratio for entity.
 Process or activities of General Motors
get affected due to change in exchange
rate in various countries in which they
are operating its business operations
and functions.
 There are huge number of competition
which is faced by respective company
while conducting its business
operations and function.
 Along with this an automobile
company also get affect due to change
in policies and procedures on global
basis. Moreover they also need to
develop strategies and plans
accordingly which hamper its
operations.
P6 Strengths and weaknesses interrelate with external macro factors
External macros factors are those which affects entity of a company in an indirect manner,
those factors are political, economic, social and technological factors. In context with General
Motors, the company must analyze and interrelate the strength and weakness of such external
macro factors to attain knowledge for the improvement (Sood and Sukthankar, International
Business Machines Corp, 2013). For this respective company manager conduct analysis through
PEST analysis, that are explained below:
Political Factor

Strength- This refers to strength where the company has to make and maintain a good
relationship with respected inter-government bodies for ensuring easy availability of the
resources etc. This creates positive roles of the company in the country's growth and
image of a company by operating their business and ensuring increased stake and brand
positioning.
Weakness- This affects the decisions making process and independent functioning, policies
and processes of General Motors. A company must implement a strong structure to make its
own decisions.
Economical Factor
Strength- The price of the commodity, rate of interest and growth rate of the company is
decided under this factor. In this context, General Motors have a strong position in deciding
the price and other major decisions.
Weakness- This includes high inflation rates that can have a large impact on the process of
work and management of the business (Toedt, M. ed., 2014). If the inflation rate will be
high, there could be chances of loss of job of employees in General Motors.
Social Factor
Strength- It influences and includes different tastes and preferences of every customer of a
country that can affect the decisions making process of General Motors. The social factor
can help in the growth and development of a country as well as for society.
Weakness- In context with the given company i.e. General Motors, this factor can lower
down the values, morale and vision of the company. Different options and preference would
affect the manufacturing process of the company.
Technological Factor
Strength- In the context of General Motors, this adaptation can affect the company as this
would influence the behavior of a buyer for buying products or services from a particular
company (Vasilcovschi and Georgescu, 2012). Updated technology can engage the minds
of a customer for buying a product and service and also interest and thought into the
purchase decision.

Weakness- This updated technology can raise the prices of a product or service and this will
result in affecting the purchase behavior of an individual because it influences their overall
budget or purchasing power for the products of General Motors.
CONCLUSION
It has been analyzed from the above report that organisations are classified in mainly three
categories that are public, private and voluntary enterprises. Also, it is been analyzed that various
organisation working in an economy differ from each other in terms of their size, scope, purpose
and legal structure. It is upon the individual or group for choice and preference for selecting the
form of organisation in which they want to incorporate and where they want to conduct the
operations. Hence, enterprises can use SWOT (Strength, Weakness, Opportunity and Threat)
analysis for internal check of the organisation and PESTLE (Political, Economic, Social,
Technological, Legal, Environmental) analysis for an external check of the organisation. By this
they able to know their strength, weakness, opportunities, factors which are affecting and many
more that help manager of a company in developing strategies, plans and policies in effective
and appropriate manner.

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