Business and the Business Environment

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Explain different types and purposes of the companies.........................................................3
P2 Scope and Size of the businesses............................................................................................4
LO2..................................................................................................................................................6
P3 Relationship of Organization Structure..................................................................................6
LO 3.................................................................................................................................................7
P4. Porter’s Five forces................................................................................................................7
LO 4.................................................................................................................................................8
P5. PESTEL Analysis..................................................................................................................8
P6. Interrelationship of internal and external factors analysis of General Motors and Ford.......9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment analyses all the internal and external factors that impact the functions
and operations of the company including the management, supply, demand, employees,
customers and even the regulations of business. General Motors (GM) deals in designing and
selling of vehicles and its parts and is headquartered in Michigan, America. It performs its
operations in many countries worldwide (About GM, 2020).
The report will describe the size and scope of different organisations along with highlighting the
interrelationship between the structure and functions of GM. It will also evaluate the impact of
internal and external factors on the business by using PESTLE and Porter’s five force model.
The TOWS matrix will be used to examine the interrelationship between these factors in GM and
Toyota which is its tough competitor.
LO1
P1 Explain different types and purposes of the companies
Private Company
Private companies are those organizations in the business market which do not allow
people to buy their shares and maximum board of members up to 200. These type companies
have different rule and regulations from other type of companies and anyone allows to start their
own business at private level with huge or small capital that they have in their hand. Nissan
Motor Manufacturing is a car manufacturing company that is operated by European division of
car manufacturing. It is headquartered in England, UK (Bashir and Verma, 2017). it is private
company of Nissan UK. It is car manufacturing company that deal with automobiles.
Purpose
 It has limited income of resources that focuses on making lower cost products as well as
quality so that it can meet large number of customer’s needs and in exchange can
generate high profit margin.
 It has focused on enhancing sales of the products so that it can enhance the profit.
Public Company
The shares of the business distribute with all the shareholders of the organization. There
are various shareholders in the business wherein more than 200 peoples are employed (Kaur and
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Sharma, 2018). This sector organizations allows anyone to become good shareholders by buying
their shares. Rule and regulations for the organizations are completely different from other type
companies in the business market. General Motors is a public limited company which operates
it’s business in UK. It deals with different type of products such as automobile, automobile parts
and commercial vehicles and offers vehicles financing services.
Purpose
 The main purpose of the company is to provide high quality automobiles as products to
the customers so that level of satisfaction can be gained by them.
 General Motors has strategy to offer safer, simpler and more sustainable transportation
automobiles solutions for the customers so that in return can generate high selling
revenue over the proposed product line.
Voluntary company
These sector organizations are in the market so that there is welfare of the society
wherein anyone can donate investment to have better functioning of the business (Čepel and
et.al., 2018). The main work of the companies is to aware the people about lifestyle that they can
have with the support of these organizations which are non-profitable. Oxfam is the great
example of voluntary organization that is headquartered in UK which has goal to redeem the
condition of people better. This charity spreads across the world and there are more than 290
different charities which are operating under the company.
Purpose
 This company does not work for the private gain.
 Decline poverty level in the UK’s country and gives education to poor so that they
become aware about their basic rights.
P2 Scope and Size of the businesses
Bases Oxfam Nissan UK General Motors
Size It has more than 20
charities that offers
welfare services in
societies so that poverty
It is a subsidiary company
of Nissan Motor Co. Ltd.
It was founded in 1984
that is UK based
It operates more than 396
locations across the world
and offers it’s product
services across the world.
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