Business and the Business Environment

This presentation explores the interrelationship of various functions in an organization, the impact of macro environment on business operations, and the strengths and weaknesses of General Motors.

BUSINESS AND THE BUSINESS
ENVIRONMENT

 This report will also lay emphasis on interrelationship of various functions
and how they are linked to organizational objective and structure, using
general motors as an example both positive and negative impact of macro
environment (PESTLE) has on business operations, at last internal strength
and weakness of General Motors and their interrelationship with external
macro factors will be explained.
INTRODUCTION

 PESTLE analysis is an acronym for political, economic, social, technological, legal and
environmental factors. It is a way of explaining how to outside forces impact of General
motors company(Adar and et.al., 2016). Here PESTLE analysis of General motors will be
explained.
 Political Factors: This factors tells us the effect of political conditions and trends on the
company. General Motor being a public company it has a major effect of political factors on
itself. Like Political stability in major market provide an opportunity for them in macro
environment.
 Economic Factors: This factor tells us about the economic conditions of the company where it
operates. Growing growth rate is an opportunity for general motors to grow and expand.
Pestle analysis

 Social Factors: This factor shows social trend and condition effect on remote environment
condition. For General Motors electric vehicles and self-driven cars increasing demand is a
major opportunity.
 Technological factors: This factors tells that how use to technology and its use can affect a
business of the company. Increasing demand of self-driven cars has created an opportunity for
General Motors
 Legal Factors: This factor includes how legal factors affects the company’s business.
Automobile safety regulations are expanding which is an opportunity for General Motors.
 Environmental Factors: this factor includes how natural environmental affect the business.
General Motors has a huge opportunity of developing solutions for transportation problems of
people due to changing climatic condition.
Cont..

 Strengths: This aspect of SWOT analysis explains the internal strategic
factor that supports the company. Strong brand name is the strength of
General Motors in terms of competitiveness and loyalty of customers who
gets attracted towards their brand.
 Weaknesses: As it is well known that General Motors is a public
organization, So bureaucracy is its major weakness because it is
responsible for less flexibility in responding to external factors
SWOT Analysis

 all the positive and negative impact of macro environment which an
organization will have on its business operations had been explained
through PESTLE analysis, all the internal and external factors of general
motors had been explained through SWOT analysis to identify all the
strength and weakness of the organization and at last all the strength and
weakness with respect to external macro factors had been explained
through Porter’s five force model of General Motors.
CONCLUSION

 Scott, W.R., 2015. Organizations and organizing: Rational, natural and
open systems perspectives. Routledge.
 Hair Jr and et.al., 2015. Essentials of business research methods.
Routledge.
REFERENCES