Business Environment Report: Analysis of X, Y, and Z Sectors

This report provides a comprehensive analysis of the business environment, focusing on the characteristics and legal structures of public, private, and voluntary organizations. It examines the interrelationships between various organizational functions within GM Motors, including marketing, HR, purchasing, R&D, IT, and finance, and their impact on achieving organizational objectives. The report also includes a PESTLE analysis to assess the positive and negative impacts of political, economic, social, technological, and legal factors on business operations. Furthermore, it presents a SWOT analysis of GM Motors, identifying its strengths, weaknesses, opportunities, and threats. The report concludes with a discussion on the significance of these analyses for strategic decision-making and business success.

Business Environment

Contents
INTRODUCTION...........................................................................................................................................3
LO1 & LO2 ...................................................................................................................................................3
(I) Different types of organisations with their Purposes and Legal Structures.........................................3
(II) Interrelationship between different Organisational Functions and Their Linkage with Organisational
Objectives and Structure.........................................................................................................................5
Significance of interrelationships between these departments:.............................................................6
LO3 & LO4....................................................................................................................................................6
Covered in PPT.........................................................................................................................................6
CONCLUSION...............................................................................................................................................6
REFERENCES................................................................................................................................................8

INTRODUCTION
Business environment consists of various factors including internal as well as external
factors. Internal factors include customers, suppliers, technological advancement etc. whereas
externalities factors include political stability, social factors, legal factors etc. Thus, it is
important for every kind of business organisation such as private, public or voluntary to analyze
these factors and deal with them effectively (Bocken Rana and Short, 2015) (What Is Business
Environment? - Definition & Factors. 2019). The present assignment report is based on X, Y and
Z which is taken as private, public and voluntary sector respectively. The report discusses the
different kinds of sector along with their legal structure, interrelationship between various
departments and other important aspects.
LO1 & LO2
(I) Different types of organisations with their Purposes and Legal Structures
Organisations the combination of number of operations and practices that are developed
with focus on certain activities performed in respective manner to attain the organisational goals
and ultimate objectives for which the business was established at the initial level. Every
organisation is unique and separate from one another and there are numerous factors which
makes them indifferent (Shirodkar, Strange and McGuire, 2020). There are commonly 3 types of
organisations on the businesses are divided in three segments that are public private and
voluntary. The all the three types of organisational structures and types are elaborated below in
the table.
Public:
The public sector organisation those businesses that are operating and conducting
operations with the motive of not for profit government owned enterprises. This type of business
organisations provides social services to the customers with the ultimate aim of supporting the
society and fulfilling the social purpose.
The key purpose of a public sector enterprise is to deliver goods and services to public
which also involves governmental services like military, police, public infrastructure and many
other for betterment of the society (Yarimoglu and Gunay, 2020).
Legal structure-

 Central- These types of public organisations are managed and controlled by the central
government. State- These organisations are managed and controlled by central government only. Local authorities- These are controlled, owned and managed by the local councils.
(Globocnik, Faullant and Parastuty, 2020)
Private:
The second type of business organisation is a private entity that is developed for and
concerns with the profits they will be earning by making sales and purchase transactions. The
private business entities are developed with a main motive of earning money and profits and they
are both government owned or private owned (Deasy and et. al., 2016).
The private owned businesses are an integral part of economic development and a
country’s success as an individual operational unit. As well as the privately owned business
organisations also plays a vital role in growth, development and generation of per capita income
of a country. Thus, its purpose is specifically reflects upon widening GDP of the area or the
country.
Legal structure- Sole proprietorship- These consist of the single owner who manages and controls the
daily operations of the business. Partnership- These are owned and controlled by two or more person who mutually work
for achieving the objectives of the company. Companies- These are artificial personality who are distinct from its owners. They have
their common seal as they are separate legal entity.
Voluntary
Third form of business organisation that are operating in the business environment and
provide their specific services to the customers are voluntary organisations. This type of business
includes those bodies that carries out social activities that are specifically performed by special
not for profit business owners and enterprises that are all non governmental in nature.
The third form of business entity is voluntary organisation that is comprised of various
organisations and established with sole purpose of serving the society and providing them all the
required benefits for enriching their lives and social status. Also the voluntary organisations
create social wealth and help the society to improve as well as develop.

Legal structure- Trust- These are the non profit organisation which are formed to serve the pre determined
purpose.
 Unincorporated associations- These are the organisations which are ideal for the small
groups with the membership who have short term goals and low income.
(II) Explain the size and scope of different types of organization
According to size, the organisations are classified into four categories which includes the
following- Micro- These consists of the employees which are 0-9 in number and are evry small in
size. Small- These consists of employees who are 9-49 in number. Medium- These are the organisations which have 50- 250 employees working within the
enterprise.
 Large- These organisation include more than 250 workers who mutually hard to achieve
the organizational goals of the company.
Scope of different organisations
GM Motors
Overview- It is an American company which manufactures, designs, distribute and
market the vehicles and its parts and also sell the financial service.
Vision- Its vision statement states to specify the industry position and the relative market
for the company.
Mission- Its mission statement is to establish the approach which is needed to push the
company towards the future position in the automotive industry.
Product- Auto mobile parts, commercial vehicle and the auto mobiles.
Number of employees- 164000
National Health Service
Overview- It is a publically funded system of health care in England. It is second largest
payer in healthcare system worldwide. It is funded from government taxes and is overseen by the
department of Health an social care.
Vision- Its vision statement is to improve the well being and health of the people.

Mission- Its mission statement states to value excellence and the professionalism in
everyday things so that live of people can be made better in clinical practice, innovation and the
service improvement.
Product/ service- It offers it offers emergency and urgent care service, dentist, opticians,
sexual health service and many other so that it can service better health to people.
Number of employees- 1.4 million
(III) Interrelationship between different Organisational Functions and Their Linkage with
Organisational Objectives and Structure
Contribution of departments decides the growth and success of an organisation thus it is
important for the management of GM motors to bring all managers of every division together
and coordinate each other in order to achieve organisational goals and objectives within specified
time period. Here are such coordination and interrelationships between different departments:
1. Marketing and Human Resource Department: Marketing division is responsible to
advertise company’s offerings with features so as to attract buying interest of targeted
customers whereas HR division is responsible to recruit skilled and knowledgeable
employees so as to increase profitability of company. In the context of GM Motors,
marketing can support HR manager in bringing skilled applicants to an organisation for
vacant job position whereas HR division also supports marketing department to recruit
skilled candidates who have adequate knowledge about marketing techniques. Thus,
supporting each other by both departments helps GM Motors to achieve its desired goals
and objectives (Hillary, 2017).
2. Purchasing Department and R & D Department: Purchasing division acquire raw
materials at lowest prices so as to increase profitability of company whereas R&D
division conducts research to bring out new and innovative ideas that can be profitably
converted into products and services. Both departments can help each other by giving
useful information that reduces cost in their execution and encourage profitability and
productivity (Kolk 2016).
3. IT Department and Finance Department: IT division manages records of every
transaction made by GM Motors on daily or monthly basis so as to forecast the sales and
profit whereas finance division raises funds from different sources such as bank loan.
Both these departments support each other by determining actual financial position of an

organisation so that corrective actions can be taken for further improvement by the
management.
Significance of interrelationships between these departments:
Every departments including marketing, HR, Finance etc. contributes maximum support to
the achievement of organisational goals and objectives within pre-determined time period. It
builds healthy relationship among managers of different departments which directly makes
positive impact on working environment within an organisation. It motivates employees to
increase their performance level and contributes equally so that productivity and profitability of
GM Motors can be maximised (Prajogo, 2016).
TASK 3
P4) Discuss the positive and negative impact of macro environment over business operations
PESTLE Analysis: It is a framework in which external environment factor (political,
economic, social, legal, environmental) is evaluated and calculated. It offers people to oversee
the external factor, which are impacting the environment also will help in developing strategies.
POLITICAL ENVIRONMENT: The political environment is all about how and what
the government is regulating the economy and includes environmental laws, labour law,
government policy, political stability, foreign trade policy and tax policy. Organisation needs to
adjust in the existing environment and implement the marketing strategies accordingly.
Positive impact: UK has a stable government, there is no quick change in legal polices and
government regulation, which makes easy flow of operations.
Negative impact: In India, Government is not stable, policies changes as the government
changes, this leads to fall in the effectiveness of company's current policies.
ECONOMICAL ENVIRONMENT: These factors (economic growth, interest rates, inflation,
exchange rate) strongly affect the organisation in terms of profitability and productivity that how
an organisation does the business and government use taxation policy and rate control as their
main core of action.
Positive impact: There are expertise employee in the organisation with good pay scale and of
that standard of living increases and company contributes to economy.
Negative impact: If there is a inflation in the market the company needs to invest more in their

business and if the government increases the tax on product then sales and profitability of the
organisation may get affected.
SOCIAL ENVIRONMENT: These are the shared belief, culture, rituals and attitude of the
population and these factors are career attitude, health consciousness, age distribution and
population growth.
Positive impact: Demand for electric vehicle is increasing as it is nominal in price and eco-
friendly and General Motors contributes in social welfare.
Negative impact: Increasing demand of vehicle sharing and rental car service apps affects the
sale of the product and directly affect the profitability of the organisation.
TECHNOLOGICAL ENVIRONMENT: This is the environment in which explains the use
of advance technology to increase the customer base and retain the loyal customer by keep
updating of new technology.
Positive impact : General Motors uses the updated technology to maintain the potential
customer and retain the loyal customer with advancement of technology.
Negative impact : If the company uses the outdated technology in their product, then
organisation will lose their loyal customer and decrease their sale.
LEGAL ENVIRONMENT: Company should need to know what is legal and what is not, In
order to run business effectively. Legal environment includes product safety, equal
opportunities, advertising standards and customer rights.
Positive impact: If the company is working within the rules and laws of government then it
increases their brand value and reputation of company into the market.
Negative impact: If the company is not following the rules and regulation of the government
then organisation gets penalties or suspension from the market.
TASK 4
P5) Execute internal and external analysis of selected company
General Motors is one of the famous motor company which is one top in the world. It is
generally known as GM Motors. Thus, it is important for management to conduct SWOT
Analysis so as to identify its own strengths and weaknesses along with opportunities and threats:

Strength
 Company have Joint Ventures with the
local china company which is the
greatest advantage to reach the local
market.
 It is the only company who has signed
the Environmental Policy which is
bound to lower its emission effects and
pollutions in the environment.
 It has the record of Rare Recall Product
among the competitors which makes
the brand more trustable among all.
 Due to having the environmental policy
they make Eco-friendly product for
their valuable customers.
 They have also a unique features that is
Onstar All-in-one Assistant which is
generally provides some security
features during the emergency, if stolen
by someone, etc. which will be
discussing further in detail.
Weakness
 It is totally dependent on the U.S. For
its revenue growth because 60% of the
revenue comes from the U.S.
 Due to joint ventures, people says that
they are selling their products by others
brand name instead of their Brand name
which creates less awareness of their
brand?
 Due to high sell of Pickup trucks, they
are getting a high market share for the
SUV products and pickups.
Opportunities
 In current time due to impact of
COVID the price of oil is decreasing
day-per-day. Which leads to high
demand of Pickup trucks and SUV's in
the market.
 In this technical time, when everyone is
shifting to the new technologies, the
demand of Automated vehicles is
Threat
 Due to increase in competition, the
sales may be decreased due to the
introduction of similar or substitute
product in the market at lower price.
 In current time exchange rate of U.S.
Doller is changing day-per-day Which
decreases the profit due to large gap in

increasing day-per-day which keep
them updated with the technology.
 Timing and Frequency of new model
releases due to high demand and some
new update in new models can help in
accelerating the demand exponentially.
exchange rate.
 Due to over on peak demand of
automated vehicles in few years the
demand may show the decline graph
due to product life cycle concept.
P6) Discuss the interrelation of strengths and weaknesses with macro environment
It is important for the management of GM Motors to link its strength and weaknesses
with external factors so that relevant changes can be done in existing plans and policies in order
to achieve competitive advantage.
External factor Link with strength and weakness
Political GM motors mainly operates its functions in UK where political situation is
stable thus bring positive outcome to company in return. On the other
hand, it operates in nation as well where political are in stable such as
India.
Economic Strength: The standard of living of people in UK are much higher due to
economic growth thus the sales of GM Motors doesn’t much affect.
Weakness: GM gets affected by the fuel price fluctuation and relative
demand of the customers.
Social Strength: GM Motors provides them with high-end vehicles according to
their preferences.
Weakness: Employees having different culture may create conflicts that
may bring company into unknown loss.
Technological Strength: GM motors uses advanced technology in their vehicles which

makes strong their presence into market.
Weakness: Outdated technology brings company backwards from their
rivals.
CONCLUSION
It can be concluded from the above report that business environment contains lots of
complexities which can affect every kind of organisation such as private, public and voluntary
thus it is important for management to analyse the factors of business environment such as
political, social, technological, employees’ behaviour, suppliers changing prices etc. For this,
PESTLE and SWOT analysis are required to conduct so that corrective actions can be taken to
deal with them more effectively and efficiently.

REFERENCES
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imperatives. Routledge.
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environment to CSR and sustainable development. Journal of World Business. 51(1).
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Content Repository Only!.
Shirodkar, V., Strange, R. and McGuire, S. eds., 2020. Non-market Strategies in Intercountryal
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