Business and the Business Environment

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Purpose and legal structures of different types of organizations............................................3
P2 Size and scope of different types of organizations.................................................................4
P3 Interrelation of different organizational functions and their impacts on organizational
structure........................................................................................................................................5
P4 Macro environmental factors and their impact on general motors and jaguar.......................8
P5 Internal and external analysis of General motors and Jaguar...............................................10
P6 Relation of strengths and weaknesses of external environmental factors............................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is a collection of both internal and external factors such as
employees, customers, political, social and others which affect company's performance in both
positive and in a negative manner (Calabrese and et.al., 2018). Analysis of business environment
plays an important role as it helps companies in identifying all types of factors. This present
study is mainly based on General motors, which is an American multi-national automotive
corporation. It was founded in the year of 1908 by William C. Durant and Charies Stewart Mott.
This present study is going to show different types and purposes of organizations like public
sector, private sector and voluntary sector. It will also discuss their size and scope along with
legal structure. Furthermore, this study will discuss effectiveness of interrelation of functional
units of organization and their impacts on organizational structures and objectives as well. It also
shows importance of PESTLE analysis and SWOT analysis models in identifying or analysing
both internal as well as external business environmental factors which impacts on organizational
performance.
P1 Purpose and legal structures of different types of organizations
There are different types of organization which can be differentiated on the basis of their purpose
and legal structure. On the basis of legal structures and purpose, organization are being divided
into 3 types such as:
Private: It refers a type of business which is controlled and run by an individual and not
by the government. Such types of organizations earn profit out of the sales and it is their main
purpose. Private sector of organizations believes that by providing qualitative products to
customers they can maximize profits or their main purpose depend upon their innovation and
quality of products (Walker and et.al., 2017). Profit allows employees to get a raise in their
benefits. In addition, it can be said that such organizations generate revenue by competing
against big players and make sure that their products give value in relation to price to customers.
Because it is the main key of their success and by doing, so they can attract customers to the
great extent and take advantages of competition. Jaguar is a private sector of organization. It is a
British multinational car manufacturer, owned and produced by Jaguar Land Rover. Private
companies are incorporated and limited by shares which means company can have shareholders.

In the context of legal structure it can be said that private sector of organizations may be sole
traders and partnership.
Public: It refers and consists of all those companies whose controlling power is in the
hand of the government. They do not segment people and provides services to everyone
(Pedersen, 2018). Main purpose of such companies is to help people and improve their living
standards and not to earn money. Public sector companies are funded by the government and all
operations are being run by money collected from taxes and fees by all citizens. Providing better
and improved public services to general people such as education and others. All those
companies which are being traded and controlled by the government is known as public.
General motors is a public company as in the year of 2010 it became publicly traded company
(GM Celebrates its Rebirth as Publicly Traded Company, 2010). It is also an American
multinational automotive company, founded in the year of 1908. Public traded companies have a
separate legal entity and each shareholder becomes a part of it. They are funded directly by the
government for providing public services.
Voluntary: It consists of all those companies whose main aim is to improve health of
vulnerable and needy people. They are also known as community sector of organizations. They
do not focus on earning money or making profits as they only want to help people who are in
needs by providing them health care, education and others services in free of cost (Chen, Fah and
Jin, 2016). Oxfam is one of the voluntary confederation, having around 20 charitable
organizations. Main aim of this company is to decrease poverty and the gap between the poor
and the rich. An unincorporated association, trust and company limited by guarantee are legal
structures of voluntary sector of organizations.
P2 Size and scope of different types of organizations
Basis of
difference
Private Public voluntary
Size In the context of Jaguar,
which is a private company
it is found that it has around
43,224 employees. It sales
thousands of vehicles every
year. It operates worldwide.
General motors has
around 212,000
employees and it operates
in more than 140
countries. Products range
of this company includes:
In the context of Oxfam
it is found that it is a
global organization with
a massive reach. It has
reached around 22.2
million people in its