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Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explanation if different types and purposes of organisations...........................................1
P2 Explanation of the size and scope of range of different types of organisations................2
TASK 2............................................................................................................................................4
P3 Explanation of relationship between different organisational functions and their link with
organisational objectives and structure..................................................................................4
TASK 3............................................................................................................................................5
P4 Identification of positive and negative impacts of macro environment upon business
operations, supported by specific examples...........................................................................5
TASK 4............................................................................................................................................7
P5 Internal and external analysis of organisation in order to identify strengths and
weaknesses.............................................................................................................................7
P6 Explanation of interrelation of strengths and weaknesses with external macro factors....8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment of any company is made of various elements and is further
impacted by factors. Some of these factors are controllable by the firm, while the others are non-
controllable. As the environment is changing rapidly all across the industries, it is more
important for the firms to develop strategies and make decisions in rapid manner and implement
them as quick as possible (Amankwah-Amoah and Adomako, 2019). The organization selected
for this report is General Motors company which is largest American auto-mobile manufacturer.
This report mainly focuses on different types, sizes and scope of the company, it demonstrates
the interrelations of various functions and the link with organisational structure. Apart from this
the report has examples of both the positive and negative influence and the internal strengths and
weaknesses of the businesses.
TASK 1
P1 Explanation if different types and purposes of organisations.
The structural framework of duties and responsibilities which requires personnel’s for
performing various functions with a view point of business activities for accomplishment of
predetermined goals is known as organisation. The following are different types of organisations:
Private sector organisations- The company segmented in national economy that is
owned, controlled and managed by individuals or owners (Andersson and Wikström, 2017). For
example Dyson Ltd is private company which was found by James Dyson which as profitability
market with sale of hair dryers, hand dryers etc.
 Purpose- Dyson Ltd has a purpose to inspire new generation of the engineers. By this it
wants to reduce harmful emissions it provides opportunities to young engineers so that
they can solve problems and learn the working.
 Legal Structure- As private sector companies mainly has sole traders or partnership
association of two or more individuals, Dyson Ltd falls in such legal structure with all
such elements.
Public sector organisations- This sector is considered as the part of economy which is
effectively controlled by government and provides goods for benefit of general public. For
example General Motors company which is an American multinational corporation that designs,
manufactures, markets and distributes vehicles and its parts.
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 Purpose- General motors wants to earn customers on life time bases by building brand
that inspires passion and loyalty by not only technologies but by serving and improving
communities.
 Legal Structure- Public sector has two types of legal structure which are public
corporations and general government that includes central, state and local government
(Androniceanu, 2017) .General motors falls in public corporation legal structure.
Voluntary sector organisations- The motive of such kind of organisation is to have
social impact of any issue rather than to focus on earning profits. The example of such
organisation can be Oxfam founded in Oxford, England which mainly works for human rights.
 Purpose- Oxfam works on the aim to fight against the rights of humans. It also
acknowledges indivisibility of human rights and express them in practical manner.
 Legal Structure- Voluntary sector companies have legal structure as a trust which is set
upped for managing money for defined purpose for small group of people with
membership and limited companies. Oxfam has legal structure of charitable incorporated
organisation.
P2 Explanation of the size and scope of range of different types of organisations.
Basis General Motors Dyson Ltd Oxfam
Size General motors
company has approx 2,
12,000 people
employed for carrying
out the work of
company in more than
140 countries
(Batocchio, Ghezzi
and Rangone, 2016).
The company has
Dyson machines in
around 65 countries
which has been grown
because of one man
and one idea to well
known technological
company with
approximately 1000
engineers worldwide.
This organisation as
massive reach of over
10,000 employee's and
20,000 people who
work as volunteers to
fight for the rights of
humans
Scope The company provides
various parts and uses
information
Dyson Ltd as wide
scope in its
competitive market as
Oxfam has global
presence as it
motivates people to
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technological
transformation
techniques that are
why it has wider scope
in its competitive
market.
the products are used
by people all over the
world.
fight for their own
rights that are how the
scope of company is
quite wide.
Objectives General motors has
objective of leading
the market with
effective and
innovation designs of
auto-mobiles and its
part making their
availability in market.
Company has
objective of inspiring
new generation of
engineers and makes
products which can
help in solving
problems of pollution
(Borodai, 2017).
The objective of
Oxfam is to create
easy solutions for
injustice happening
with people for
example injustice for
the poor people.
Company is globally
present to ensure that
future of people is safe
and secure.
Products and services General motors
manufactures vehicles
in various countries
with its core auto
mobile brands which
involves Chevrolet,
Buick, GMC and
Cadillac as also holds
stake of foreign brands
like Holden.
Dyson Ltd provides
products like vacuum
cleaners, desk fans,
hand dryers, hair
dryers and air purifies
to its customers.
Oxfam serves its
services which provide
help to people to gain
the rights beings
humans which are
faced by people in
different parts of
globe.
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TASK 2
P3 Explanation of relationship between different organisational functions and their link with
organisational objectives and structure.
General Motors envisions future with zero crashes, zero emissions and zero congestion
and has committed to lead the way towards its future. With this objective it has pushed the limits
of transportation and technology for years (Dekoulou and Trivellas, 2017). It has midst of
transportation revolution. It has ambition, talent and technology to realize the safer, better and
more sustainable world they want.
Organisational structure- It can be defined as culture of a company which influences
productivity, relation of employee's and marketing strategies in organisation. There are various
types of organisational structure from which some of them are as follows:
 Functional structure- It is most common structure which can be implemented by any
organisation and also known as bureaucratic organisational structure in which work
divided according to specialization of working staff of company. With such structure
company is divided in different departments like marketing, sales and operations. The
companies with functional structure focus on one area of work have clear lines of
management.
 Divisional structure- This structure is mainly used by large companies which have
various business units. Such organisations have leadership teams which are based on
projects, products or subsidiaries (Buckley and Casson, 2019). Organisations having
divisional structure in organisation have specialization and efficiency in work processed
by its employees.
General motors follows divisional structure because company wants its employees to be
effective and specialized with their work and increase the productivity level of company.
Organisational function- Apart from adopting a proper organisational structure, every
company also have functions which are required to perform the activities which would
accomplish the goals and objectives of organisation. The following are some organisational
functions that help General motors accomplish its goals:
 Finance function- The division is most important part of enterprise as the inflows and
outflows of cash are recorded and maintained by this function only. The interrelation of
finance function is important as it allocates the funds for the marketing plans of company
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and keeps the record of returns of such activities. Apart from this it interrelates with the
divisional structure if company as monetary resources are only hands of the top managers
and their decisions are taken for allocation of funds (Elbeltagi, Hamad, Moizer and
Abou-Shouk, 2016). In short the allocation of funds is necessary in equal segments to
meet the objectives of General Motors.
 Marketing function- The marketing strategies and plans helps companies to sustain in
market because those activities helps the company in promoting the products and services
in which it deals. With such things customers can get the knowledge about the updates of
company. Marketing function of General Motors interrelates with function division to get
the knowledge of funds which can be spent and according to that strategies can be
formulated. While the interrelation with divisional structure of company depends on the
situation of market of enterprise as the taste and preference of customer change with
change in time. For General Motors marketing function accomplishes objectives by
formulating correct method for the promotion of company and captures huge customer
base for organisation.
Advantages of interrelation between functions- With such interrelation employee’s
relationship amongst different functions of organisation assistances any company to maintain
cooperation. It also upsurge association amongst employees which increased effectiveness in
business. With such advantages profit level increases as every employee at various functional
departments’ shares the information within each department.
Disadvantages of interrelation between functions- Every employee in company knows
the job responsibilities and operations of other departments that is how the information can be
linked amongst different departments can cause dispute amongst functioning of activities in
company (Ershova, 2017). Apart from this, competition among different functional divisions also
makes imbalances between different functions and their activities.
TASK 3
P4 Identification of positive and negative impacts of macro environment upon business
operations, supported by specific examples.
Macro environment is collection of factors which influence working of company in
positive and negative manner. The analysis of external factors of General Motors, Pestle analysis
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can be implemented by mangers which would show positive and negative impacts on business of
company:
Pestle Analysis is a technique which is used by companies for analysis of macro-
environmental factors which may directly impact working of organisation. From the following
Pestle analysis of General Motors can be discussed with its positive and negative impact in
business:
Political Factors- These tell the extent of government and its policy which may impact
the company and the industry in which is falls (Groza and Groza, 2018). The impacts are:
 The positive impact of this factor on working of General Motors is seen as the UK
market has very less restrictions for the industry, so the company is nor impacted much.
 While negative impact is that the company operates in many countries that is why it
needs to pay high exchange rates.
Economical Factors- Such factors determine economy’s performance as a whole. It
includes economic growth, exchange rates, interest rates, disposable income of consumers and
all such things. The positive and negative impacts are as follows:
 The positive impact of General Motors can be the high economic growth rate in UK by
which the company can easily expand its market and increase its sales.
 Negative impact can be the increase in inflation rates of some countries which effects the
sales as buyers have reduce power to purchase the cars of company.
Socio-cultural Factors- With this dimension general environment represents
demographic characteristics, values of people, norms and customs of organization (Kitsios and
Kamariotou, 2016). The impact of socio- cultural factors on General Motors are:
 It impacts positively for company as now day’s people tend to buy designed cars which
show their class of living.
 While the negative impact is that some people do not find auto mobiles of company are
safe enough and making them understand is difficult for company.
Technological Factors- These factors helps companies know the innovations in
technology which may affect operations in organisation. The impacts of such factors are as
under:
 The positive impact is that company can be strong in its competitive market as it deals
with innovative ways and the change would not impact as must on working process.
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 While negative impact of this factor can be the prices of machines and the skilled staff
which makes the process easy and adoptable for General Motors.
Legal Factors- These factors do somehow overlap with political factors, but legal factors
more specifically has laws like antitrust law (Kitsios and Kamariotou, 2019). Companies need to
know what is legal and what not in order to trade successfully and ethically. The impacts are as
follows:
 This factor give positive impact to company as it makes clear for it to supply its products
by fulfilling standards which are stated by laws of each country.
 The negative impact of such factor can be hampering of brand image if company gets
into any illegal activities and law finds it.
Environmental Factors- They are important factors because of increase in scarcity of
raw materials, pollution targets and all such things (Lozano, 2018). These factors involve
environmental aspects like weather, climate and climate change. The impact of such factors of
General motors is:
 The positive impact is that General Motors gets recognition for such activities which
increase its awareness in market.
 With such factor company gets negative impact in its work process as it needs the use of
some products which can harm the nature.
TASK 4
P5 Internal and external analysis of organisation in order to identify strengths and weaknesses.
The company can run successfully at all levels because of its high recognition of brand or
quality of products it provides to its customers. All such activities comprises of many
objectives for which General Motors apply SWOT analysis (Nkebukwa, 2016). The
managers consider SWOT analysis which ensures the proper fit of business strategies and
actual business conditions of company. The following show the essentials organisation
addresses for internal and external factors faced by business:
STRENGTHS WEAKNESSES
 General motors have leading position in
global market and high brand image in
automotive industry.
 Instances of product recall due to
defective parts have affected the brand
image of the company.
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 Comprises of diversified product
portfolio and strong distribution
network (Pang, Wang, Li and Duan,
2019).
 General motors needs to invest more on
'research and development' in this
fastest growing dynamic global
environment.
OPPORTUNITIES THREATS
 Growing demand for HEV (Hybrid
Electric Vehicles) provides expansion
opportunity to General Motors.
 There is increase in the demand of
automotive in Asian market and it is
still untapped, by focusing on this
aspect company can improve its market
presence.
 Increasing competition from various
cars brand serves as a threat to market
share of firm (Ricciardi, Zardini and
Rossignoli, 2016).
 As General Motors is operating
globally, hence, fluctuating exchange
rates directly or indirectly affects the
profitability of business.
P6 Explanation of interrelation of strengths and weaknesses with external macro factors.
With the above discussed factors strengths can be prevailed with macro environmental
factor for company. The change in any of the factor can cause effect in the strategies of
company and may impact as positive or negative manner (Wirtz and Daiser, 2017). The
interrelation of macro environmental factors and strengths and weakness of General Motors
is as follows:
Economic Factors- The pricing and marketing strategies of company can be affected by
the change in interest rates, inflation rates with prevail in economy. With such changes
General Motors may face the challenges and can make the strategies weaken the work in
company.
Technological Factors- As the company comprises of diversified product portfolio, the
changes in technology may not affect the production strategies of General Motors. This is
because it believes in providing innovative designs and quality products. The managers are
used to the up gradations and can adopt the changes easily.
CONCLUSION
The above project report concludes that business environment of every company
comprises of many activities which can impact the working of organisation. There are three
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types of organisation which can be described as private, public and voluntary which have
different size, scope and objectives. The macro environment of organisation has positive and
negative impact over the business activities of company which also interrelates with strength's
and weakness of enterprise.
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REFERENCES
Books and Journals
Amankwah-Amoah, J. and Adomako, S., 2019. Big data analytics and business failures in data-
Rich environments: An organizing framework. Computers in Industry. 105. pp.204-212.
Andersson, S. and Wikström, N., 2017. Why and how are social media used in a B2B context,
and which stakeholders are involved?. Journal of Business & Industrial Marketing.
Androniceanu, A., 2017. The three-dimensional approach of Total Quality Management, an
essential strategic option for business excellence. Amfiteatru Economic. 19(44). pp.61-78.
Batocchio, A., Ghezzi, A. and Rangone, A., 2016. A method for evaluating business models
implementation process. Business Process Management Journal.
Borodai, V. A., 2017. Innovative technology-a strategic approach to corporate business travel.
In International conference on modern researches in science and technology (pp. 207-
212).
Buckley, P. and Casson, M., 2019. Decision-making in international business. Journal of
International Business Studies. 50(8). pp.1424-1439.
Dekoulou, P. and Trivellas, P., 2017. Organizational structure, innovation performance and
customer relationship value in the Greek advertising and media industry. Journal of
Business & Industrial Marketing.
Elbeltagi, I., Hamad, H., Moizer, J. and Abou-Shouk, M. A., 2016. Levels of business to
business e-commerce adoption and competitive advantage in small and medium-sized
enterprises: a comparison study between Egypt and the United States. Journal of Global
Information Technology Management. 19(1). pp.6-25.
Ershova, N., 2017. Investment climate in Russia and challenges for foreign business: The case of
Japanese companies. Journal of Eurasian studies. 8(2). pp.151-160.
Groza, M. D. and Groza, M. P., 2018. Salesperson regulatory knowledge and sales
performance. Journal of Business Research. 89. pp.37-46.
Kitsios, F. and Kamariotou, M., 2016, September. Decision support systems and business
strategy: a conceptual framework for strategic information systems planning. In 2016 6th
International Conference on IT Convergence and Security (ICITCS) (pp. 1-5). IEEE.
Kitsios, F. and Kamariotou, M., 2019. Business strategy modelling based on enterprise
architecture: a state of the art review. Business Process Management Journal.
Lozano, R., 2018. Sustainable business models: Providing a more holistic perspective. Business
Strategy and the Environment. 27(8). pp.1159-1166.
Nkebukwa, L. L., 2016. Status on usage of Electronic-Resources by Students at the College of
Business Education. Business Education Journal. 1(2).
Pang, C., Wang, Q., Li, Y. and Duan, G., 2019. Integrative capability, business model innovation
and performance. European Journal of Innovation Management.
Ricciardi, F., Zardini, A. and Rossignoli, C., 2016. Organizational dynamism and adaptive
business model innovation: The triple paradox configuration. Journal of Business
Research. 69(11). pp.5487-5493.
Wirtz, B. and Daiser, P., 2017. Business model innovation: An integrative conceptual
framework. Journal of Business Models. 5(1).
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