Business and the Business Environment Analysis: General Motors

This report provides a comprehensive analysis of General Motors, examining its operational management and business environment. It begins with an introduction to the company, followed by an explanation of organizational types and purposes, including public, private, and voluntary sectors, and their respective sizes and scopes. The report then details the different organizational functions within General Motors, such as HR, marketing, production, and finance, highlighting their interrelationships and impact on the company's competitive advantage. A PESTLE analysis is used to assess the positive and negative impacts of the macro environment on General Motors, considering political, economic, social, technological, legal, and environmental factors. Furthermore, the report includes an internal and external analysis using SWOT and VRIO analysis to identify the company's strengths, weaknesses, and opportunities, and it explores the interrelation of strengths and weaknesses with the external macro factors, leading to a conclusion that summarizes the key findings and recommendations. References are provided to support the analysis.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1- Explanation of type and purpose of organization .................................................................3
P2- Explain the size and scope of diffident type of organization................................................4
P3- different organizational function and how they are interlinked with each other...................5
P4 Positive and negative impacts the macro environment ..........................................................6
P5- Internal and external analysis of the company to identify strength and weakness. ..............8
P6- Interrelation of strength and weakness with the external Macro Factors..............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operational management is the administration of the business practices that helps to
make a highest level of efficiency possible within the company. It is concerned with the covering
companies raw material and resources intro the final goods and services that company sell to
their customers to satisfy their needs and demand.
This report will cover case study of General Motors which is an multinational company
who are manufacturing, selling and designing a versicle and also selling their parts directly to the
customers (Ruan and et.al., 2019). This c companies headquarter is in Detroit, Michigan ,
America. There are more than 200000 employees are working for this company.
This report will explain operational management and how all the function within the
workplace of General Motors work and help this company to take competitive advantages. This
report will explain style of organization and demonstrate interrelationship of the various function
within the organization. In the end of this report will explain how strength and weakness are
interrelated with the micro functions.
MAIN BODY
P1- Explanation of type and purpose of organization
Three are different different types of organization who are different rules and way of
doing their work. Public, private, Voluntary sectors are the type of organization that can be
adopted by the entrepreneurs to start their business.
Each and every organization have their clear mission and purpose and that is manage,
understand and earn profit by selling the goods and services to the customers. The common
purpose unifies employees and helps them understand the organizational directions.
Types of organization
Public organizations
Public sector and organization include the all kind of governmental services and public
goods such as Law enforcement, infrastructure (Roads, public transport), public schools and it
can also conclude the health care sectors where people can buy their medicines and take
treatment in the affordable prices and sometimes, they don't event take money from the public
(Ali, Kaur and Jaramillo., 2018.). All the government bodies who are working under the
government are listed in the public companies. General Motors is also an public company, and
they are also working according to the rules within the public sector.

Private organizations
` Private secretor of the type of structure is an part of the economy but it runs by the
individual business man or the companies and their motive is to sell their product to the
customers and earn profitability. This kind of business structure does not control by the states,
therefore. Business within this listed only focus to grow their business and earn profitability and
that are owned and control by the government of the country. Corporations that are not governed
by the government are known as private sector. Bentley which is luxury car manufacturer within
the united kingdom is also a private listed company.
Voluntary sector
The voluntary sector is refers to the companions who are working for the primary
purpose, and they want to create a social impact rather than earning profit from the people. They
does not work to earn profit, but they help people who need help and facing problems in their
personal life. This kind of organization are engage with the various issues within the society
from the Youth clubs top the specialist medical research. There are many organizational within
the UK who are listed under the voluntary sector an done of them is Cancer Research UK.
Legal structure
The most common forms of business are the sole proprietorship, partnership, corporation,
and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state
statute. Legal and tax considerations enter into selecting a business structure.
P2- Explain the size and scope of diffident type of organization
Each and every type of organization s structure or the sector and different rules and way
of doing their business. Similarly, type of organization also have different size and scope in their
businesses which they need to follow.
Public sector size and scope- The public sector companies greatly in their size and the
scope of their work. From the large profit orientated state owned enterprise top the cemetery trust
and the small business where local children and complete their eduction properly in the lower
prices. General motors is also Public company who are selling cars, motors designs and auto-
mobile parts in all over the world (Fettermann And et.al., 2018). This company operates 158
facilities globally and around 207000 are working under the company, and they are in different
difference continents.

Private sector size and scope- The private sector companies work to achieve higher
growth within the business and it is owned by the individual and this kind of companies are
having good scope because they get support from the government. Bentley is an luxury car
manufacturing company who are operating their business in all around the world and there are
around 3600 employees are working under this company.
Voluntary organization size and scope- This sector is very hard to defile properly but
the registered charities firms are the part of this sector and helping this sector to grow within the
economy and helping people who are suffering from the financial problems. The Cancer
Researches UK is also an Voluntary Firm within United kingdom. There are more around 4000
employees are working under this reinstitute, and they rise fund for the people who are suffering
from the cancer and on the purpose to provide help top those people.
Legal organizations size and scope- the legal entity or the organizations are those
companies who has the legal rights and responsibility and it also include the tax filling. There are
many organization within the UK who are legal owned by the government and work to provide
justice to the people. The Supreme Court of UK is also an Legal organization or body where
around 12 positioned are owned by people including the judge and the judiciaries.
P3- different organizational function and how they are interlinked with each other
Organizational is consist of different different function that create within the workplace.
On the workplace of General motors functions such as HR, marketing, Production, finance etc.
help company to create final product and services and run the activities successful. This all
function are interlinked with each other, and they take help from each other when they needed.
Here are functions within the workplace of General motors.
Human resource
Hr department plays most important role for the General motors to create working
environment and their function is to recruit, select, organize and implement employment polices
for the organization (Hitka and et.al., 2018). This operational function create a strong workforce
for their business that help them to take competitive advantages within the market where they are
operating their businesses. HR department is interlinked with all other function because each and
every function required employees who can work under the department.
Marketing

Marketing is a necessary department within the General motors. It helps to aware people
are companies product and services to the customers. Marketer research the market and identify
the needs and demand of the customers and provide this information to the production
department where they use this information to develop and innovate new product and services
that can satisfy the needs and demand of the customers. This show that Marketing function is
also interlinked with the other function of General motors departments.
Production
production department is the function, who is a responsible for the product designed and
product development (Szinai And et.al., 2020). They take necessary information from the
marketing team and Hr provide skill full employees who can work under the production
department and Finance function who provide necessary fund for the production of the goods
and demand. It means that this function is also interlinked with the other functions of the
General motors and helping this company to take competitive advantages within the market
where they are operating their business.
Finance function
Finance department is an essential are of the General motors and finance management
who is accountable to provide funds to the each and every department of the company. Within
having the finance function company cannot maintain their fund resources and run their other
operational function. Each and every function such as HR, marketing, production Etc. need
finance to run their day to day activities. Finance manger ensure that every function within the
workplace of company is using the proper financial resources or not.
P4 Positive and negative impacts the macro environment
In order to understand positive and negative impact of macro environment Pestle
Analysis can be applied. Pestle analysis is as follows-
Political
As a multinational organisation General Motors gets affected by political conditions of
several countries where it operates. But mainly it gets affected by American political conditions
and its political stability (Shtal and et.al., 2018). Positive influence of American economy on
other countries’ economy has positive influence on GM however trade wars create and make
negative influence on GM and increasing custom duties also have negative impact on General
Motors.

Economical
This involves cost of operations, interest rates, and economical conditions of country
where General Motors operates. Increasing cost of raw material have negative influence on
General Motors but increasing income of middle class and developing countries also has positive
influence and impact on General Motors. This also is an opportunity for General Motors to
expand their operations.
Social
This involves perception and opinion and trends of customers that have impact on
General Motors. People are getting sensitive towards environment and its safety and because of
this General Motors require to work on its impact on environment. Electronic vehicle is an
opportunity for General Motors because this has significantly changed buying behaviours of
customers (James Story, 2020). This also one of the reasons that majority of the brands in
automotive industry are moving towards creating electric vehicles.
Technological
Technology has become centre of success for the businesses and General Motors also
become subject to this environment (). Automobile sector is facing rapid changes in technology
and speed for technological development has also increased significantly. General Motors gets
affected because of emerging technology but this is also an opportunity and positive element for
General Motors as through technological development it can attract customers with effective
quality.
Legal
This environment involves regulations and laws that affect operations of the General
Motors (James Story, 2020). Several laws and regulations of USA like safety laws, custom laws
and further laws and regulations of the countries in which General Motors operates is also
involved in this environment.
Environment
This is concerned with safety and sustainability of environment and what impact does
General Motors have on environment. General Motors requires conforming to laws and
regulations of different countries in which it operates. This mainly involves reducing and
working on carbon emission and also sustainable and optimum use of resources of General

Motors. Sustainability of organisation is positive impact of this factor whereas sometimes it also
increase cost of operations and this is negative impact of this factor.
P5- Internal and external analysis of the company to identify strength and weakness.
Internal and external environment has huge impact on the General motors. It is necessary
for the leaders and managers of the General motors to be aware of those factors. Strategic tools
such as SWOT and Vrio Analysis can help to identify the strength and weakness of the company
so General motors can identify the strength and weakness of their business and convert it into
the opportunities, and they can take competitive advantages within the market.
SWOT analysis
Strength
 General motors is one of the most successful and biggest car manufacturing
company within the Auto mobile industry (Tomé., 2017). Of United states. This
company is making huge reputation and progress within the field of transportation
and technology.
 This company is having a Diversified portfolio that is helping them to success and
explore the various markets.
Weakness
 General motors is mostly depended on the US and Chinese market because they are
making their profits form both and mostly from the Chinese market. Conflicts on the
basis of trades between the US and China is creating problems for General motors.
 Employees within the company are not properly trained which is their weakness and
other companies are giving competition to them.
Opportunities
 New markets can create opportunities for the General motors. They can expand their
business within the countries such as India, Indonesian, Brazil etc. because they are
developing countries and ability of the resources is high.
 Skill based training can help this company to create a strong workforce, and they can take
competitive advantages.;
Threat

 Composition within the country where General motors is operating their business is very
high, there are many competitors Such as BMW. TESLA, Ford who are creating threat
upon them.
Vrio Analysis of General motors
Valuable
Cars manufactured by the General motors are most valuable for the company and
customers both because technology used within the General motors cars are high and helping
this company to take competitive advantages.
Rare
Finance resource of the General motors are rare because, there are very rare companies
who are having strong financial resource and they are also having good support from the state
government (Zhang, Wang and Lin., 2019).
Imitable
Employees who are working under the General motors are not costly to imitate because
they are not well-trained, and they need proper training and skills.
Organisation
The distribution network of the General motors is properly organized as find out by the
VRIO Analysis of GM. General motors uses this network to reach out to their valuable buyers
by ensuring that products are available on all of its outlets.
P6- Interrelation of strength and weakness with the external Macro Factors.
Macro environment factors has huge impact on the General motors as explained above
and they've are also strength and weakness are also interlinked with the Factors because Pestle
analysis help to find the negative and positive impact of environmental factors (Liu and et.al.,
2018).
Strength- Economic factor such as increasing the income of the Middle class family
which can be become strength for the company because middle class family will able top afford
cars from General motors. Similarly, Technological factor can become strength for the company
if they implement new technology within their workplace, It will help them to take competitive
advantages.
Weakness- Increase in the costume duties will become weakness for the General
motors because they have to pay more taxes to the US government for every trade (Nimmagadda

and et.al., 2019). It means that political factor can create weakness for the company. On the other
side Increasing the Raw material prices is also weakness because it is increasing the prices of
product and services sell by General motors.
CONCLUSION
On the basis of above discussion, it can be concluded that public, private and voluntary
sector organisations significantly differentiate on the basis of their purpose and also on the basis
of size and scope. Report also discussed relationship between organisational functions and their
link with organisational objectives and structure of organisation. Report further discussed about
impact of macro environment on General Motors and also involved internal and external analysis
of General Motors to identify its strength and weaknesses. Later strengths and weaknesses were
discussed relating to macro factors.

REFERENCES
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Online
James Story. 2020. Using the PESTLE analysis model. [Online]. Available Through: <
https://www.smartinsights.com/marketing-planning/marketing-models/pestle-analysis-
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