Business and the Business Environment

This document provides an overview of different types and purposes of organizations, including public, private, and voluntary organizations. It also discusses the size and scope of organizations like General Motors, and the interrelationship between organizational functions. Additionally, it explores the positive and negative impacts of macro environment factors such as political, economic, social, technological, legal, and environmental factors. Lastly, it conducts an internal and external analysis to identify the strengths and weaknesses of General Motors and how they interrelate with external macro factors.

Business and the Business
Environment

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1) Explain different types and purposes of organisations........................................................1
P2) Explain the size and scope of a range of different types of organisations............................2
TASK 2............................................................................................................................................3
P3) Relationship in between organizational functions................................................................3
TASK 3............................................................................................................................................4
P4) Identify positive and negative impacts of macro environment.............................................4
TASK 4............................................................................................................................................6
P5) Conduct internal and external analysis to identify strengths and weaknesses.....................6
P6) Explain how strengths and weaknesses interrelate with external macro factors..................7
External macro factor..................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is referring to the entity or organisation which is engaged in commercial, industrial
and professional activities. This is also defined as the organised efforts or activities of individual
in order to produce and sell goods and services for generating profit. Business environment is
sum combination of all internal and external factors that may or may not be under the control of
organisation (vom Brocke, J., Zelt, S. and Schmiedel, T., 2016). This is based on the general
motors which is a multinational organisation that designs, manufacture and sells vehicles and
their parts. This report includes type, size and scope of different organisation, size and scope of
range of organisation, relationship between different organisational function, impact of macro
environment and with its strength and weaknesses.
MAIN BODY
TASK 1
P1) Explain different types and purposes of organisations
The organizations have process their working in support of structure through which both
standardized goal and objective get achieved in balanced mode. There is different organization
with purpose and legal structure that is as explained below as:
Public organisation-
The organization is developed through government authority with this suitable products
and service are provided in marketplace. For instance, NHS that works to provide better
healthcare services with better affordability.
Legal structure of public organisation
Central government- For this government is responsible to take certain authority for that
adequate policy is designed that is followed in adequate manner (Ramanadham, V.V. ed., 2019).
State government- In this government design few policy with this different operation and
functions get managed and controlled with appropriateness.
Local government- The organisation worked as by following laws and legislation while
working at smaller region.
Private organisation- It is an organisation that worked to increase economic standards of
nation as the company worked to attain higher profit from their offered services. In this General
motors’ and its structure as defined as:
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Legal structure of private organisation
Sole proprietorship-The organisation is sustained by responsibility with this profit and
loss is attained with attainment of higher performance.
Partnership- It is manage with more than two person as with this operation function get
controlled as by sharing risk and profit equally.
Limited company- It is an organisation operate its business as with different individual as
if company suffer loss than it is paid by them only.
Voluntary organisation-In this organisation different individual worked collectively to advance
societal living standards and to resolve their issues (Ayios, A., 2018). For example, Oxfam as
they offered required services to advance living abilities.
Legal structure of voluntary organisation- The voluntary organisation having diverse
benefits that is attained from societal prospects.
Trust- The organisation worked as trustee and collect money through funding and get
spend that amount for societal welfare.
P2) Explain the size and scope of a range of different types of organisations.
Private organisation- General motors’ is a multinational organisation and grown its
business impeccably as the company design, sell and build cars, automobile parts and trucks all
across worldwide. Company having a headquartered in Detroit, Michigan and works with the
207,000 number of employee as in six continents and in count of total 140,000 are those that is
hourly employee and the rest 67,000 are employed on salary basis. The General Motors make
suitable innovation in order to reshape the manufacturing operations and functions and that is
named as GM agile machining fixture that enables to power train facilities and has significant
impact over reduction of setup and tooling cost during changeover of product (Arsić, and. et. al.,
2018). The scope of GM is wider as company having different car segment such as small,
medium, large as well as luxury brands that is usually facilitate flexible fuel and hybrid cars.
Public organisation- It is an organisation that offered various services for the beneficial
of society in this effectual delivery is processed in productive and balanced manner. The
company also offer different product and service at wider level and that is related to the
fulfilment of customer needs and requirement with better suitability. In this NHS care provide all
the required health care facilities to the patients so that they could have live happy and a
healthier life. For this organisation charges minimum amount to its customers and having one
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million workers that collectively provide and develop a strong and long healthcare system. The
company is having wider scope as with this ability to manage working capabilities and health
services both get processed as per likelihood of patients.
Voluntary organisation- These are the organisation that works for the welfare of
marketplace and in this largest charitable trust Oxfam has worked as a NGO in UK. The
company has worked to make better development and advancement in society through which
people could get over from poverty and other related difficulties with an ease. It was established
in 1942 and processes its working to empower the poverty rate and with this motive have
expanded its operations all across world (Halbert, T. and Ingulli, E., 2020). To manage and
control various working standards systematically Oxfam implement hierarchal structure under
which task is delegate into different manner and that is also be related to the attainment of
appropriate objectives and target with clarity. In addition, many of volunteering work is
processed that is related to advancement of societal working in this ability to build sustained trust
within society is enhanced.
TASK 2
P3) Relationship in between organizational functions
The organizational functions are related to certain taskforce that is completed as per
suitability and accomplishment of sustained goals and objectives. All the different functions and
operations that is performed within GM such as marketing, operations, human resource, finance,
information technology and many other have worked together to achieve standardized outcome
and some of its interrelationship is as explained below as:
 HR and marketing functions - the most important things of the organisation will be
helpful to make the best possible results, by the help of human resource management
employment branding as well as organisation can do the human resources planning to get
the effective results and well as this do focus within the recruitment and selection. The
marketing functions play a very important role for promoting the business and to better
accomplishment of the mission within the organisation (Quinlan, C. and et. al., 2019).
They collectively worked to attain attraction of marketplace through which skilled and
talented employees get hired so that working standards of business get enhanced.
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 Marketing and Finance functions- This will also helpful for doing the branding of the
specific organisation as well take proper participation within the public activities as well
as focused on doing advertising. And will collect the proper feedback of the product and
services. The purpose of the accounting functions is to bring the financial information of
the stakeholder of the business as well as management and the investors and the creditors.
Thus collectively it helps to measure the activities of the company that assist to
communicate the results to manage the functions equally.
TASK 3
P4) Identify positive and negative impacts of macro environment
This is referring to a framework which is used by the companies in order analyse external or
macro environment in which business operates (Thompson, J.D., 2017). There are various
factors prevailing in the environment and has the direct impact over company.
 Political factor: This is refers to the decision and rules made by the government. This
includes political stability, fiscal policy, trade tariffs, etc. government rules and
regulation have major impact over auto mobile companies such as general motors as they
have to compel by safety rules. The positive impact of political factor is its stability and
with this working tendency of company is processed with perfection. Along with this,
custom duties and trade regulation of one country to another impact the marketing of
vehicles and parts of GM. In addition, the negative impact is the government promote
public transportation and other alternatives along with that aggressive tax policies
induced negative impact over brand value.
 Economical factor: It is described as the country's economy performance that directly
influences performance and profitability of a firm. This includes inflation rate, foreign
exchanges rate, interest rate, disposable income of consumers etc. GM gets effected by
the fluctuation price of fuel and demand of customers as they look for economical
products. Along with this price of steel is also not stable though which manufacturing of
GM get effected and it is a negative impact (Trigkas, M. and et. al., 2020). For this firm
should conduct a research on a regular basis for middle options and high end cars. In
addition, the higher growth rate of developing market and economic stability assist to
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maintain suitable balanced in between market attentiveness and it is related to positive
aspect.
 Social factor: This factor involves shared beliefs and attitude of people towards
particular brand or company. In context to general motors they understand social need of
the customers and offer them with high-end vehicles as per their requirements along with
keeping in mind their social status. With this, the positive impact is that people now
getting sensitive for environment, for this emergence of electric vehicle will can change
behaviour and purchasing paten for GM (Teoli, D. and An, J., 2019). Moreover, the
negative aspect as increasing demand of vehicle sharing and a ride hailing programs with
this market share get affected.
 Technological factor: It is refers to the all externally generated changes in technology
and process that a company use for its operations. The auto-mobile sector is witnessing
rapid technological advancement. In this positive aspect is that technological advancenet
increases the implementation of self driving technology and a rising fuel efficiency
through which profit credibility also get improvised. Furthermore, negative impact is
about the reduction of electric vehicles and its development with this market share and its
value both get advanced. In concern of negative impact, the continuous change is
technology is challenging for business to make profitable growth and development.
 Legal factor: It is described as the laws and regulations made by the government.
Business has to operate under certain laws that are made for the specific industry and
violating will results in heavy penalty as well as bas reputation of firm. A general motor
has been follow safety laws, custom laws along with auto mobile recycling laws.
Through this has maintained its good image and reputation within the market place and it
is a favoured aspect or positive basis for company and its working (Su, Z., Chen, J. and
Wang, D., 2019). In addition, on other hand it is a time consuming activities as
management of GE need to more efforts to manage and control sustainability.
 Environmental factor: This includes food, water, light, pollutants and natural calamities
that have direct impact over living beings. A general motor has also followed various
environmental laws that have been made by governments. This has been working
successfully on reducing emission of its manufacturing factories. It has also abided by
environmental pledge of CERES principles that has been includes various factors about
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business environment guides. The change within climate patters and enhanced concern
within people about to maintain air quality through carbon emission is controlled that
induce positive impact over working of GM and its sustainability. In relation to negative
aspect that GE must have followed strict guidelines about expanding regulations of safety
on automobile and emission regulatory that requires a effectual management team.
TASK 4
P5) Conduct internal and external analysis to identify strengths and weaknesses
The internal analysis of business is used to measure the strength and weakness that has
direct and indirect impact over the working standards and with this ability to control working
proficiency is controlled in beneficial manner (Hamilton, L. and Webster, P., 2018). In this
SWOT analysis is performed and it is as explained as:
SWOT analysis: It is an analysis that provide adequate strategical framework within this
ability to control long term effectiveness under which working and its proficiency both get
developed in profitable manner. It is a strategic planing technique which is used to identify
strengths, weaknesses, opportunities and threats related to business competition or project
planning.
Strengths
 General Motors is consisting of the strong brand portfolio across the globe.
 This has been produce safe and eco-friendly vehicles.
 GM having strong position in US auto-mobile market.
 This is having sustainable and environmental policies which help in to attract more
customers.
Weaknesses
 It is highly dependent upon US to generate most of its revenue.
 This is having limited market presence in developing countries which restrict company
form rapid expansion.
Opportunities
 This is having a opportunity for acquisition in order to get rapid growth and expansion.
 This can increase time and frequency in to release new model.
 Demand for autonomous vehicle is increasing.
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Threats
 Increasing competition is the biggest threat for general motors.
 Increasing government regulation can raise the cost for general motors’ (Cui, J., Allan, A.
and Lin, D., 2019).
 Raw material cost is also increasing that can lead to rise in prices.
P6) Explain how strengths and weaknesses interrelate with external macro factors
The micro and macro environmental analysis is basically induced direct impact over
working operations as with this possibility to perceive higher competitive advancement is
developed in systematic manner. The internal and external basis has direct impact and have an
interrelation as well that is as explained below as:
External macro factor
 Political
Strength: Government also having a great interest in the emissions statistics of vehicles, this will
be favourable factor for general motors as it also working in same.
Weakness: Rules and regulations has a major impact over general motor as it have compel with
safety law this results in raising the cost of general motors.
 Economical
Strength: Economy of US has been marked by resilience, flexibility and innovation through
which general motor can enactive its productivity and profitability (Brennan, R., Canning, L.
and McDowell, R., 2020).
Weakness: There us fluctuation in price of fuel that impact sale of general motors vehicles and
fluctuation price of steel impact its manufacturing.
 Social
Strength: It has understood social need of customers while keeping in minds their status this
helps in getting strong customers base.
Weakness: People are now concerning about environment and seek for economical product for
this, general motors has to focus on eco-friendly vehicles along with cost effective.
 Technology
Strength: Technological advancement is the biggest strength of general motors through which it
can enhance it quality and make it cost effective.
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Weakness: Technology becomes obsolete easily because of the rapid advancement and
commencement of new technology need high-investment which increases cost of general
motors.
 Legal
Strength: A general motor already abides to safety and custom law along with auto-mobile
recycling law this help in to maintain good image at market place.
Weakness: Copyright issue also impact the company negatively, as if company use other's
trademarks and patent then it can face bad reputation along with high penalty.
 Environment
Strength: GM has been following sustainable and environmental policies which help in to attract
more customers.
Weakness: There are various rules and policies which has government made specifically for
auto-mobile sector, if company will not follow them then it could bear a heavy penalty.
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CONCLUSION
As per the discussion it has been concluded that, business environment is sum collection of
internal and external factor that has and directly impact over company's performance and
productivity. It assists the business to maintain lead towards profitability and as per managing of
different prospect under which systematic services are flowed in balanced mode. There are
different type of business and every business and its working is dependent on its nature, size and
scope. There are different functions that are performed by an organisation and with this ability to
achieve standards of objective in timely constrained are processed. In addition to this, PESTLE
and SWOT analysis has been utilised in order to identify firm's strengths and weaknesses with
this both internal and external working competency is controlled and processed with
adequateness that has positive impact over long term sustainability as well.
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