Business and Business Environment

This report evaluates public, private and voluntary organizations, their legal structure, size and scope, interrelationship between organizational functions, and the impact of macro environment on business operations.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 different types and purpose of public, private and voluntary sectors and legal structure......3
P2 Size and scope of different types of organization..................................................................4
P3 The interrelationship between different organizational functions..........................................5
P4 The positive and negative impacts that macro environment has upon business operation....6
P5 Differentiation done on basis of internal and external of organizational...............................8
P6 The strengths and weakness interrelate with external macro factor.......................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refers to collection of external and internal factors such as employees,
demand and supply, management, suppliers, owners, market and social trends economic changes,
advancement in technology, government activities etc. These factors affect the companies
function and also how company works directly or indirectly. Further, some of these factor also
influence organization environment or company and challenges (Alderete, 2020). General motors
company is multinational corporation with headquartered in Detroit which designs manufactures,
distributes and market vehicles and their parts. It has various number of joint venture with many
more company. This report evaluates private, public and voluntary organization with their size
and scope and also states different interrelationship between with organizational structures. This
report identifies positive and negative impact of macro environment and analysis the strengths
and weakness and how they are interrelated with external macro factor.
P1 different types and purpose of public, private and voluntary sectors and legal structure
Public company- It is part of economy which is also known as state sector. As they have ability
of selling stocks in financial market and also free traded on stock exchange
legal structure of public company as this owned by government including all countries, city and
state agencies. It also desires to present goods and services related to public sector such as public
infrastructure, military and so on, these are such for betterment for society.
For example, HSBC is public bank which deals in financial services for customer satisfaction
and also have main focused ion credit, debit cards and life insurance. The bank also hold up
financial services such as investment, loans and insurance.
Private company- These companies for profit organization which includes both private bodies
or owned by government. As, the private company have entire division with economic system of
country which is basically owned by private groups and individuals for making profit
(Ghobakhloo, Azar and Tang, 2019). There can be also essentials source of expansion and
developing the income for country and make more profit.
Legal structure of private company owned by sole proprietorship or partnership and also owned
by co-operation which allow following up the all legal tax that enter into business structure. In
these legal structure many more employees can work for private company and some of their
directors have to manage the work in organization structure.

For example. General motor's company- It is sole proprietorship company which owned by its
company and allow to follow all government rules and legal regulation. It manufactures, designs
and marketing for vehicle and vehicle parts.
Voluntary company- This company includes the social activity company which are not
specifically for earning profit and also non-governmental in society (Le, Govindaraj and
Bredenkamp,2020). Voluntary company purpose for building up benefits at individuals level and
enriching the society without any profit on return. These companies help in social welfare and
make more improvement for society.
legal structure for voluntary company it is charity company which is basically owned by
government and not having purpose for earning profit, just for satisfaction for social welfare.
For example, International child care- It is charity organization which helps poor people and
neddy children for their education and provide them shelter, food on regular basis.
P2 Size and scope of different types of organization
Basis Micro company Small company Large and medium
company
Meaning It refers to small
business with small
finance microcredit
and also have balance
sheet or ratio is less
than definite amount.
Its company has wide
margin level with
many more employee
and have large number
of share than in
developing countries.
This company have
sufficient number of
employee and fund at
workplace (Matovic,
2020). Their
performance can be
developed at domestic
or at international area.
Size In this company
investment capital is
low along with
employee level for
business.
They are independent
bodies which include
small number of
worker for enhancing
their business and for
long run they have
These companies
include multinational
bodies and employee
working with members
of voluntary. They
have some possibility

increase their sales
volume.
in increasing their
growth at accelerated
rate.
Scope In developing
countries large number
of requirement are
compelled by micro
entrepreneur (Nunes
and et.al.). They have
high value for
economy and better
scope for possibility
and expansion and
having low business
cost. For example
international child care
UK.
These are private
bodies which are
owned at sole
proprietorship or by
partnerships and have
chance in developing
their business size and
revenue their structure,
the best suitable
example can General
motors company.
This includes
multinational company
which work for
government sector and
earn huge amount of
profit. The margin
profits which the
company have earned
keep aside for future
development and
involve in developing
internal aspects of
company like HSBC
bank.
The micro company like International child care have not only large but also involve in growth
opportunities and compound of income for developed countries. General motor company that
seek to enhance their business and increases their sales volume in holding their partnership with
some companies or individual for developing business in meeting their goals or objective (Peda
and Vinnari, 2020). The large company such as HSBC which is government bank and
individuals working for non-profit company and helps their customer by providing loans and
advances hence this bank is working for benefits of all.
P3 The interrelationship between different organizational functions
Increment in business can lead to increase competition and risk for business, here are some
departmental function which play roles for business developed within to maintain their situation:
Marketing and human resource- They both have interrelationship in organization as when the
company advertise for their product in market and vacancy for hiring the employee that could be

more beneficial for company and the advantage for human resource for recruiting more
candidates for company which are beneficial for achieving task.
If organization marketing have some issues than company have to pay huge amount of losses, as
they have to freeze hiring, and they do not get fresher to make their developed.
Operational and finance- The finance department work for managing budget for company
where they have set up some budget for operation department for making proper use of resource
and which helps their company for developing more and achieving the goals and target.
Due to some reason company finance department have not set up their budget in operational
department for that reason company have bear more profit from market and from other business
competition.
Human resource and finance- There is interrelationship between this both department as HR
process is to recruit the candidate for company profits at that time finance department work is to
prepare the budget of that recruitment and also helps finance department to run smoothly.
If company have some conflicts in finance department than there can be directly effect in human
resource department as they cannot make the proper use of resource, and they have to stop hiring
for company and it may lead to decrease the productivity of company.
Marketing and finance- Finance department set the budget for marketing department that how
much they have to use in promoting their business and for advertising about their company
(Sartor and Beamish, 2019). Mainly in organization every budget is set up by finance department
as they have prepared the balance sheet for each department.
If they are problems in finance department than the budget for marketing could not help them in
promoting their products and company have to face many critical issue regarding publicity.
Planning for marketing plan is time-consuming and costly for organization.
P4 The positive and negative impacts that macro environment has upon business operation
PESTLE model have been analysed for impacts on positive and negative in macro environment
within an organization are-
Political- HSBC international bank which has many branches in all over world range and
follows various regulation, laws and policies that company needs to acknowledge the following

laws and adopt the regulations which helps them to be successfully as it can be had positive
impact on their business (Schweisfurth, 2017). While they have negative impact in having many
laws and regulation bank have to face many conflicts in many countries and have to make some
strategies against government laws and restrictions.
Economic- According to government laws if currency notes rates or taxes are decrease than it
could be negative impact for HSBC bank. The HSBC chairman says the bank is extant and doing
well in revenue growth in many countries, particularly in global banking and commercial banks
and in market in this region they are growing faster and their economic outlets have positive
impacts.
Social- HSBC bank have some social conflicts like climate changes and guilty wealth laundering
currently the bank is dealing with this issue which have negative impact in their organizations
(Teer and Drawe, 2019). The bank is moving towards supporting carbon economy which results
in providing finance climate such credit, debit cards, insurance and investment which has
positive impact on organization.
Technological- In HSBC various technology advancements have taken place for customer
satisfaction and for cyber security for bank. Further, HSBC has taken steps for protecting
customer data it is positive impact for organization. While there can be negative impact for bank
during online transaction customer faced many issues, not having updating in online bank app,
due to having busy scheduled they prefer less for walking in banks (Pellettiere). Having more
advance technology it could help them in customer satisfaction.
Legal- Government has made many laws and regulation for banking sector. Therefore,
increasing banking regulations HSBC required higher capital to deal with some legal compliance
that is time-consuming and costly which can cause negative impact (Alderete, 2020). While if
bank follow-up banking regulation they can encourage more customer for opening bank accounts
in many countries with providing more data security., that can positive impact for organizations.
Environmental- In actual way climate changes and government demanding organization to
change its carbon emission, which have negative impact for bank. If bank reduces it owns carbon
indication by recycling waste as well improve their force ratio for organization that would be
positive impact for customer and banks to achieve the target goals or objectives.

P5 Differentiation done on basis of internal and external of organizational
SWOT analysis of General motors' with its competitors company British motors. This analysis
helps in determining their strengths, weakness, opportunities and threat of organization are as
follows-
Strengths of General motors- While designing and developing new cars company many have
focus on producing the safest cars in the industry and also producing some eco-friendly vehicles
(Damanpour, Sanchez and Chiu,2018). General motors have committed for clean and sustainable
environment in low costs and attracts more public and have strengths in brand image. It has joint
venture with Chinese automotive companies and also have strong position in many countries.
GM has strong brand portfolio, which currently motors sell its vehicles under different brands.
Strengths of British motors- These company manufacture in trucks, bus and many parts for
vehicle and which helps company in introducing products and services to sell fast in market and
without wasting advertise expenditure. They rival in many luxury cars and develop their cars
with advance technology, exclusive luxury, comfortable and have brand image.
Weakness of General motors- In past decades GM sold some defect parts and also have
negative impacts on brand image and customer satisfaction (Ghobakhloo, Azar and Tang, 2019).
Currently, the company is increasing its financial position which is affected by pension
obligations. Pickup trucks and SUVs have higher profit margin than cars, and they are more
popular. In past years these motor company have the fastest growing segments in whole
automotive market due to lower price of petrol, and they make huge amount of profit margins.
GM company generally based on fuel price, which are changes frequently very.
Weakness of BMC- Their main aim to focused on cars that can be small or medium luxury cars.
This company generally do not offer pickups trucks or any other commercial vehicles (Le,
Govindaraj and Bredenkamp,2020). The company do not targeted lower income or higher
income people consumer or who cannot afford luxury cars.
Opportunities of GM- Currently many people are facing challenges of high fuel prices, by this
GM encourages consumer to purchase SUVs and truck that are big efficient fuels vehicles. This
is big opportunities for GM to grow and develop their market and make company profitability.
The company has purchase new updated technology self started car and excepts to launch at the
end of the year.

Opportunities of BMC- The market share for automotive company have very important on time
and frequency model of launching new vehicles (Matovic, 2020). Due to rising consumer
demand or expectations BMC has started new technology car launching and releasing more
upgraded vehicles.
Threats of GM- The motor company is facing many challenges in increasing competition from
traditional automotive company, new players of its main market. Company cannot have control
over currency rates changes, therefore it is more risk in exchange rates for currency would
commence to rise.
Threats of BMC- There is more competitor in automotive industry due to launching new
upgraded vehicle, new entrants in large market. The company like Tesla have developed electric
car and it is very hard for BMC to compete with electric car (Nunes and et.al.). Growing
government laws or regulation in dropping greenhouse gas and also encouraging fuel efficiency.
P6 The strengths and weakness interrelate with external macro factor
Strengths and weakness of the General motors company are linked with the external factors
because some conflicts may be affected by outside factor in organization. Some time
organization is fail for identifying various factors that directly or indirectly affect the
management decision-making, so this macro factor helps in organization for identifying external
macro factor (Peda and Vinnari, 2020). Both strengths and weakness are opposite one give
power and other weakness to GM company. If organization identify both factor than they give
different types of achievement for business and both these factor have interrelationship with each
other or also helps in growth of risk for external macro factor for organization. If enterprise is
unable in identifying these factor they it will be some serious problems for business.
Outside boundaries of organization can be affected by macro factor and also affect the business
negative or positive way for reducing profits and goals. The macro factor is also analyzed by
PESTLE such as political factor affect the organization through government laws and regulation
which increases the business weakness (Sartor and Beamish, 2019). Social factor affects the
negative of organization that will liable to do social activities. Social responsibility comes
weakness in terms of financial activities for organization. PESTLE analysis of GM company is
being suitable for handle over the situation and challenges within their organization. Hence,

market changes, competitors policy, legal rules and regulations and government laws or norms
are being observed as external factors.
CONCLUSION
These report concluded about private, public and voluntary legal structure in different
organization and their purpose and also understand the developed of General motors company,
also study about various different enterprise. Examined about inter relationship between
organizational function with connection in various industry and impact of macro environment
with positive and negative aspects. Further, the report analysed that internal and external
influences with their competitors and also study strengths and weakness are interrelated with
exteriors macro factors and also observed the practice with strong and weak point of
organization.

REFERENCES
Books and journals
Alderete, M.V., 2020. Exploring the Smart City Indexes and the Role of Macro Factors for
Measuring Cities Smartness. Social Indicators Research. 147(2). pp.567-589.
Damanpour, F., Sanchez‐Henriquez, F. and Chiu, H.H., 2018. Internal and external sources and
the adoption of innovations in organizations. British Journal of Management. 29(4).
pp.712-730.
Ghobakhloo, M., Azar, A. and Tang, S.H., 2019. Business value of enterprise resource planning
spending and scope. Kybernetes.
Le, S.M., Govindaraj, R. and Bredenkamp, C., 2020. Public-Private Partnerships for Health in
Vietnam: Issues and Options.
Matovic, I.M., 2020. PESTEL Analysis of External Environment as a Success Factor of Startup
Business. ConScienS. p.96.
Meirovich, G., 2017. External and internal organizational distance: Distinction and
relationship. American Journal of Management.17(5). pp.67-80.
Nunes, G.P., Coutinho, G.A., and et.al. Business Logistics: Interrelationship between managerial
and financial accounting–a strategy generating competitive advantage.
Peda, P. and Vinnari, E., 2020. The discursive legitimation of profit in public-private service
delivery. Critical Perspectives on Accounting. 69.p.102088.
Pellettiere, V., Organizational Analysis: What, How, Why.
Sartor, M.A. and Beamish, P.W., 2019. Private sector corruption, public sector corruption and
the organizational structure of foreign subsidiaries. Journal of Business Ethics.pp.1-20.
Schweisfurth, T.G., 2017. Comparing internal and external lead users as sources of
innovation. Research Policy. 46(1). pp.238-248.
Shtal, T., Buriak, M., and et.al., 2018. Methods of analysis of the external environment of
business activities.
Teer, J.G. and Drawe, D.L., 2019. Size and Scope of the Market. Sheep And Goat
Handbook. 4.p.27.
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