Business Environment Analysis: Volkswagen AG, HND Business L4

This report provides an analysis of the business environment of Volkswagen AG, covering various aspects such as organizational structure, functions, and external factors influencing its operations. It examines different types of organizations, including public, private, and voluntary sectors, and their legal structures. The report also delves into the interrelationship between various divisions within Volkswagen AG and performs a PESTLE analysis to determine the impact of political, economic, social, technological, environmental, and legal factors on the business. Furthermore, it identifies the strengths and weaknesses of the firm through external analysis, offering a comprehensive overview of the company's position within its operating environment. The analysis includes discussion of Volkswagen's functions such as production, human resource management and finance and controlling.

Unit 1
BUSINESS AND BUSINESS ENVIRONMENT

INTRODUCTION
Business and business environment will play an important role in the organisations to
bring the corrective measure and deal with various aspect of the business. The report consist of
Volkswagen AG is an auto mobile industry deals in the various products such as Automotive,
commercial vehicles engines, motorcycles machinery. The various kind and function of
organisation unrestricted, private and wilful sectors and judicial structures. The function of the
cited firm and interrelationship between the various divisions. The Political, Economic, Social,
Technological, Environment and legal factor to determine the impact on the business operation.
Strength and weaknesses of the firm will be important to know which can be done with the
external analysis of the organisations.
P1 Various types of organisations and the growth of the international business environment.
Covered in PPT.
P2Background details of the various organisation with its size and scope of a range.
Covered in PPT.
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 It’s worked by the legislature and exist to give administration to its subjects. The
deliberate segment association in people in general division don't try to produce make
benefit
 The administration is monopolistic in nature the administration is influenced with an
open intrigue and in this manner incorporate transport and correspondence, supply of
water, power and so on. Managing an account, Credit and protection office is additionally
national bank business bank and life, protection and so forth. They have multi-reason
improvement ventures. For example, age of energy, stream valley ventures, nuclear
vitality and so on. To supplement Private ventures different businesses set ups in people
in general area. They social and exercises to advance expressions, science, culture,
broadcasting and TV and so on.
 At the point when numerous individuals consider open segment work about workplaces
and bursaries.
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 The private segment incorporates anything that isn't a piece of the general population
segment. For a case, individuals who buy a thing in a store buy in to magazine or rent an
auto just the once qualified to get those merchandise and ventures.
 An organization is a business that keep running by two to twenty individuals., and it
characterized by association act 1890. There are two kind of Partnership they are
normally organization and restricted association. In normally association incorporates
sole proprietorship and the constrained organization incorporates the loan bosses to pay
their misfortunes as per their offer and contribute
 The portion of the economy control of the administration is known as the general
population area.
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 The deliberate part is separate from people in general area, numerous associations are
frequently firmly incorporated with the administration on all levels to help it in the
conveyance of projects and administrations.
The Voluntary area is now and then known for third segment since its lives neither in
people in general or private division yet satisfies fundamental parts in a free market
economy.
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Explain
Size
Size and scope of each organization is different from others. British Airways is
the big size firm which has earned profit of €2.3bn in the year 2011. Statistical records
show that entity has carried 100 million passengers in 2016. Profit of the company is
increasing with the rapid speed. On other hand Tesco is another firm which works to
satisfy consumers and expanding its business operations across the world. In the year
2014 cited firm has earned profit of 29.293 billion.
Scope
British Airways is private firm which has huge scope to grow well in the
international market. On other hand Tesco is the public firm which gets full support from
government thus, it has scope to expand its business across the world.
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NHS is giving protected, secure and inspected access to all the record of patients and just
approved well-being experts can have the entrance on these records.
The work and activities of NHS is completely in view of trust and administer to their
patients as the staff working are all around qualified and dependable.
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Explain
Volkswagen is the international firm which works to earn more profit and to gain
competitive advantage. It is conducting its operations across the world and has mass
number of consumers worldwide. It offers wide range of auto mobile products that helps
the firm in satisfying needs of consumers.
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Explain
Oxfam is working as trust which works for the welfare of the people. There are
many volunteers work those who put their hard efforts so that company can gain success.
Mission, vision of Oxfam is different from Volkswagen.
P3 Function for the Volkswagen AG and interrelationship with the organisation objective and
structure.
Volkswagen AG is the nurture organisation of the Volkswagen gathering. The
organization makes cars and section for the gathering brands, specifically light business vehicles
and specific auto traveller it will be deliver and offers vehicles. The Volkswagen assemble is one
of the main different brand bunches in the car in the business. Car and Financial Service division
trade off the organization business exercises. The item arrangement of the traveller auto business
and the zone scope of bikes to fuel effective little auto and extravagance vehicles. The business
vehicles' portfolio goes pickups from pickups to substantial transports and trucks.
Function of Volkswagen Group:
At certain level, the administration structure will be construct much more reliably in light of the
measured toolbox framework:
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Production: It is extremely complex process comprising in well-ordered making of another
auto. The Vehicle body development identifies with present day paint shape and gathering room.
As indicated by Body Shape, the abnormal state of exactness, safe process and strict quality
control help produce a steady and safe auto. Identifies with paint shop the work of art process are
performing generally particular types of gear and robots. The most ideal material for every client
necessity vehicle plan, and segment (Pulver and Simone, 2012). The capacity of the material.
Streamline segments execution client wellbeing and plan accommodation. They ensured the most
elevated standard and enhance the creation lines, think about their wellbeing. They approach the
natural assurance issues with duty and takes all accessible measure to limit the effect on the
earth.
Human resource Management: The organization will be considered that using the learning,
knowledge, quality and inspiration of representatives such that the capability of each individual
can be created to the full. It makes an indispensable commitment towards the esteem creation
and the accomplishment of the organization and offer workers a satisfying and effective
profession in Volkswagen.
They require a top of the line group described by commitment, wellness and skill. The
Volkswagen Company emerge from the opposition as a business and spur them to give their best
towards demonstrate the reinforces the faithfulness of representatives to the organization. They
bolster 850 people groups who works for the Volkswagen Group and organizations learning, and
improvement, task benefits and association outlines, prizes and correspondence.
Finance and Controlling Division: The Volkswagen Group is separated into three sections:
Accounting, tax collection, customs and Treasury. These all are discussing such as follows:
Accounting: The arrangement and examination of the month to month of budgetary explanations
for the Volkswagen Group or backups. The backups overall help by the focal bookkeeping office
in Wolfs burg, the announcement is set up as per the International Financial Reporting Standards
(IFRS). They are undertaking incorporate the money related distribution, the planning of the
yearly and quarterly organization reports for Volkswagen AG and consistently answering to the
supervisory board.
Tax collection and customs: The division goes about as the inside expense and custom counsel
for the agreement and for the pertinent experts. The office agreeable related exercises including
getting ready government form and supporting the examining procedure (Bryman, Alan and
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Emma). Consider helping venture with a duty related issue and giving an imminent examination
of authoritative alterations.
Treasury: this office interface between the money related market and the Volkswagen gathering.
It finishes up supervisor’s outer budgetary exchanges. Financing, liquidity administration,
handling instalment exchange and ware value hazard will be incorporated.
Volkswagen has various function such as human resource management, finance,
marketing etc. All these function are helpful in fulfilling objective of the business unit. HR
department hires skilled employees those who can perform well in the firm. They put their hard
efforts so that they deal with consumers well. It assists business unit in satisfying consumers and
accomplishing its objective of raising profit. Finance department of cited firm allocate resources
to each department that supports in investing accurate amount in sales and marketing and other
business functions so that each activity can be completed effectively and quality products can be
manufactured by Volkswagen. This helps in satisfying consumers well. If finance department do
not perform well then entity will fail to provide quality products to clients which will decrease
their satisfaction level.
P4 PESTLE analysis and various macro environment factor that impact on the business
operations,highlight the positive and negative impact.
The different macro environment factor that impact on the business operation discuss such as
follows:
Political Factors: In the macroeconomics condition which impact the essential authority
technique of the association. It needs to stand up to various political inconveniences being
created as it is association which is missing in just a couple of countries, however more than 50
countries. All countries have unmistakable political situation they are not same it needs to make
its frameworks like the political condition in Europe is differing outline Asian countries. The
auto business is solidly related to the system made by the council of a nation (Wetherly and Paul,
2014). In a cash related division accept a basic part in the offers of auto they give vehicle
premium advance are chosen by the administration approaches. It contains some specific
focuses:
 lawful system for contract implementation
 Licensed innovation insurance
 Value Regulation
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