Comprehensive Business and Environment Analysis of Skoda Auto Report

This report provides a comprehensive analysis of Skoda Auto, examining its business environment, organizational structure, and decision-making processes. The report begins by defining different types of organizations, including public, private, and voluntary sectors, and their legal structures. It then explores the size and scope of these organizations, with a specific focus on Skoda Auto's matrix organizational structure, linking it to its objectives, products, and services. The report also examines the interrelationships between organizational functions within Skoda Auto, discussing the advantages and disadvantages of these relationships. Furthermore, the report conducts a PESTLE analysis to assess the macro-environmental factors influencing the company, as well as a SWOT analysis to identify its strengths, weaknesses, opportunities, and threats. Finally, the report explores the impact of both internal and external factors on Skoda Auto's decision-making processes, providing a detailed overview of the company's business operations and strategic environment.

Business & Business
environment

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1:......................................................................................................................................................3
P1 Different types and purpose of organizations; public, private and voluntary sectors and legal
structures.................................................................................................................................................3
P2 : Size and scope of different types of organizations............................................................................4
M1Structure, size and scope of Skoda Auto linked to its organizational objectives, product and
services................................................................................................................................................4
P3 The relationship between different organizational functions within the Skoda...................................4
M2 The advantages and disadvantages of interrelationships between organizational functions and the
impact that can have upon organizational structure of Skoda Auto.........................................................5
D1 The complexities of different types of business structures and the interrelationships of the different
organizational functions in Skoda Auto...................................................................................................5
TASK 2:......................................................................................................................................................6
P4: PESTLE analysis..................................................................................................................................6
P5: SWOT of Skoda & Volkswagon..........................................................................................................7
P6 Effect of strength & weakness on external factors of Skoda Auto......................................................8
M3: PESTLE of Skoda Auto...................................................................................................................8
M4: Effect of external & internal analysis that affect decision making....................................................9
D2: Impact of Internal & External factor on decision making of Skoda Auto...........................................9
Conclusion:............................................................................................................................................10
REFERENCES..........................................................................................................................................11
Books and Journal.................................................................................................................................11

INTRODUCTION
In this report we will identify different types, size and scope of organizations. The study will
determine the relationship between various organizational functions and how they are linked o
organizational objectives and structure in context to the Skoda Auto. The report also consist analysis of
various environmental factors affecting an organization such as the Skoda Auto by using the PESTLE
analysis. A SWOT analysis in context to the Skoda Auto will also be conducted in the report to identify
their strengths and weaknesses. Furthermore, the study includes the internal as well as the external
analysis of the Skoda to identify the factors influencing the decision making process of the company. It
also identifies the positive and negative impact of the macro environment has on an organization(Kaplan
and Norton,2014).
TASK 1:
P1 Different types and purpose of organizations; public, private and voluntary sectors and legal
structures
An organization is a group of people working to achieve a specific objective or organizational
goal. There are various types and structures as described below –
Public sector Organization – The Public sector is generally consist of different organization which are
operated and owned by the government and to provide services to the public or citizens. The profit earned
by the public sector goes in the hand of the government to use for the welfare of the citizens and a
country(Rainey,2012).
 Private sector Organization – The Organizations under the private sector are owned and operated
by the citizens, an individual or group of individuals. These organizations are built to generate
profit for personal benefit of the owner. Private sector consist of various business started by the
people for achieving their personal goals.
Voluntary sector – Voluntary sector is also known as the Not -for-profit sector or social sector. The
Voluntary sector organizations are built for the welfare of the society and people. These organizations are
not based on profit earning and are contributing to the society as charity(Cornelissen,2013).
Legal structures
The public sector organizations are funded directly by the government. These organization and businesses
are completely accountable to the government. The Private sector organization can be funded or built by a
sole trader, partnership, cooperative or limited companies. The Board on directors controls these
organizations but need to follow the business laws and regulations imposed by the government. Voluntary
sector includes charity and is under control of the government as well as individuals. Government can

impose regulations on the operations of these organizations but can not impose tax on the
funds(Anheier,2014).
P2 : Size and scope of different types of organizations.
The various types of originations or business such as the public, private and voluntary organizations
have various size and scope.
 Public sector – The public sector organizations are generally build in large structure. The size of
public sector organization is bigger compared to the private and voluntary sector organizations.
The Public sector organizations have a great scope in terms of growth and development. These
organizations are controlled and owned by the government, the profit earned from these
organizations is used for the development and growth of the public sector organization itself
which leads to the growth of the economy of the country.
 Private sector organization – These organizations or businesses can be small as well big in size, a
private organization or business can be started with a group of 10 members on a small scale and
can also consist of 1000 members at a large scale. The Private sector organizations are started for
purposes of earning personal profit and goals. The owners of these organizations can use the
profit for development or growth of the organization or personal development.
Voluntary sector – The organizations in the voluntary sector can also at a small or large scale but these
organizations focus on the development and growth of the society and works in contributing to the
welfare of the society(Chelladurai,Radzi and Daud,2017).
M1Structure, size and scope of Skoda Auto linked to its organizational objectives, product and
services.
The Skoda Auto follows the matrix organizational structure that makes sure the optimal and
effective utilization of various resources such as the employees within the various departments of the
company. The various departments of the Skoda auto shares different functions and operations of the
organization. The employees in different areas are assigned various projects to accomplish in a team.
This division of employees and operations helps in developing effectiveness and efficiency within the
organization this leads to the achievement of organizational goals and objectives. The various teams
consist of different employees sharing different ideas and knowledge which helps the Skoda to bring
innovation and development in the operations, products and services of the organization. The efficiency
within an organization results in effective achievement of the goals and objectives set by the auto
company. Therefore, the structure, size and scope of the Skoda auto is completely connected to its
business goals, products and services.
P3 The relationship between different organizational functions within the Skoda.
Every organization has various functions and operations to perform such as production,
marketing etc. The organizational structure states the relationship between these various functions or
parts of the business organization.
Functional Structure – The Skoda adopt a functional structure which defines that various functions in
different departments of the organization should be reported to the department managers and then the
managers should report to someone at higher level. This organizational structure helps to clear the lines of

authority and allows each and every employee to focus on his or her specific task or
function(Charter,2017).
 Divisional Structure – This structure within the organization spread various functions among the
different department and branches. Each every division of product line has its own marketing,
sales and accounting department. This helps each and every department to carry out their
respective functions and task effectively.
 Matrix Structure – The organizational structure of the Skoda can be considered as the Matrix
structure, in this structure each and every employee works within task-based department, for
example finance or marketing and they may be assigned various projects under different
managers or department.
Each and every structure or functions of an organization such as the Skoda are interdependent,
such as without production there will be no marketing and without marketing the product made
can not be sold. Therefore, if the organization need sell their products and services they must
perform all the functions effectively as they are connected and linked with the goals and
objectives.
M2 The advantages and disadvantages of interrelationships between organizational functions and
the impact that can have upon organizational structure of Skoda Auto.
The relationship among the various organizational functions within an organization often
provides benefit to the business but sometimes it can also leads to some disadvantages or loss to the
organization .
Advantages
 Efficiency and productivity – The connection between the different functions of Skoda can help
them to increase the efficiency and productivity within the organization. Employees within their
specific department performs their assigned roles with efficiency and effectiveness, it helps in
each every function and operation of the organization to be carried smoothly. Therefore, it helps
in improving the overall functioning of the Skoda and increases its productivity.
 Specialization – While performing the specific task or function in their respective department the
employees gets specialized in their roles and functions, it helps in the development and growth of
the employees.
Disadvantages
 Lack of team-work - As the employees concentrate on their individual task and functions they
lack in team work. The various functions of the Skoda are interrelated so if the employees
concentrate on their individual task or function they can lack team work.
Difficulty in management control – As the functions of the Skoda are interrelated the management can
face difficulty to control all the functions at the same time(Crane and Matten,2016).
D1 The complexities of different types of business structures and the interrelationships of the
different organizational functions in Skoda Auto.

The Skoda Auto has different business structures and various organizational functions
which are interrelated. These structures such as functional structure, divisional structure and
matrix structure may lead to problems and complexities within the organization. For example if a
new product is needed to be launched by the organization they need to consider each and every
structure and functions of the organization equally and effectively, and if there is a issue or error
in any of the organizational structure or function then the launch of the product will lead to a
failure for the Skoda auto. Due to various organizational structures, departments and their
functions affect the launch of a product gets complicated as the management of the organization
need to focus on each and every function very carefully and any error in any of the operation
may be harmful for the organization and the new product (Sekaraz and Bougie,2016).
TASK 2:
P4: PESTLE analysis
The PESTLE analysis is done to analyze the Macro & micro factors prevailing internally
as well as externally of a company or organization to get the knowledge about the major points
that can affect the productivity of the company (Charter, 2017). Analyzing these factors helps the
managers and leaders at an organization to make plans, take decisions & develop a better work
environment. These factors are:
 Political factor: Any sort of change in any political factors of the nation or locality
which will not only affect company policy but its development too. Skoda Auto has to
look after any sort of political changes that can affect its functionality.
 Economic factor: Economy plays a crucial role in the better business environment of the
company. One can easily notice that any sort of change in nation’s economy will have an
adverse effect on the organization. Skoda Auto has to see through all the economic
changes that occur in a business environment.
 Social factor: The social factor’s plays a deep role in the functioning of an organization
as it will give it a better environment of the functionality. Skoda also can get affected by
the social factors which govern its business environment.
 Technical factor: with the regular advancement of the technology, an organization has
to come up with the technical advancement which on the other hand will help the
company to increase its market share (Chelladurai, Radzi and Daud, 2017). Skoda Auto
can work on the better innovation in technical aspects of the company.
 Legal factor: The Company is also deeply influenced by the legal factors which governs
it & is in bided by the law for the betterment of the employees & the improvement in the
trade practices. Skoda has to look after that no legal issue can hinder the growth of the
company.
 Environmental factor: Environment is also a major factor which can affect the business
of the company & cause an effect in the productivity of a company (Morschett,

Schramm-Klein and Zentes, 2015.). For an organization like Skoda Auto, environment is
a crucial factor to run the business.
P5: SWOT of Skoda & Volkswagon
SWOT of Skoda:
Strengths Weaknesses
 Available in a very wide range of
variants to its customers.
 Excellent designs & better interiors as
compared to its competitors.
 Excellent productivity & output
capacity.
 Very good market strategy & better
brand image.
 Not widely available in smaller
countries & economies.
 No cheaper variant available.
Opportunities Threats
 It has enormous opportunities by
improving its manufacturing capacity.
 Besides this, Skoda has tied up with
many smaller companies to improve its
productivity.
 Apart from this, they can also launch
smaller & cheaper variants
 Adopting the globalization strategy to
improve its market position..
 Introduction of hybrid cars &
automobiles.
 Stiff competition in Automobile
industry.
 Rising price of fuels & other parts on
global level.
SWOT of Volkswagon
Strength Weaknesses
 It is a market leader with many big
brand names under its name.
 Loyal customers & very good brand
image in market.
 Well managed manufacturing &
production in automobile.
 Also provide heavy vehicles, bikes &
other machineries.
 Badly known for high emissions & fuel
consumption.
 High maintenance cost of the variants.
Opportunities Threats
 Adopting the globalization strategy to
improve its market position.
 Working on hybrid automobiles &
increasing fuel efficiency of cars.
 Checking the emission & try reducing
it.
 Stiff competition worldwide in
automobile sector.
 Strict environmental norms in certain
countries for emissions.
 Price hike & increased consumption of
global fuel.

P6 Effect of strength & weakness on external factors of Skoda Auto
The external & internal weaknesses play an important role in along with the external
factors of the Skoda Auto. Whether it is environmental or the legal or technical aspect, external
factors can have a deep effect on the productivity of the Skoda Auto. Besides this, the
weaknesses & strength of the company will also contribute in the effect. An efficient
management of the resources & effective planning to meet this change in the external factors will
help a lot to the Skoda Auto to sustain its growth as well as to improve its market share &
productivity (Sekaran and Bougie, 2016). Apart from this, the assessment of company’s strength
& weaknesses by its experts, managers & leaders will help the company to run its functionalities
in a better way & improve its business environment.
The effect of the strengths & weaknesses along with the external factors on Skoda Auto can
be analyzed & managed as follows:
 Availability of different types of variants not only helps the company to improve its
economic revenue in the market but also helps to provide automobile options to wider
customers in society. Although, the stiff competition on global level due to loyalty of
people towards certain brand can affect its sales, but company can provide better &
cheaper alternatives to tackle this situation.
 Besides this, Skoda Auto can adopt latest technologies & innovations to improve its
product quality as well as market share (Rainey, 2014). The social media marketing,
innovating fuel efficient engines & better services will not only help the Skoda Auto to
build an efficient work environment but to also meet the customer’s demand &
satisfaction level.
 Looking at the growth in environmental concerns & fuel prices globally which may
have economic effects, Skoda Auto can opt for the hybrid vehicle option & can acquire
some start up working on the technology to better its chances in the automobile market
to sustain its profitability.
 Apart from this, Skoda Auto can expand in new market or country, by in biding the
trade laws & business policies decided by the government of the company to promote
its business. It will help government to grow its economy & get foreign investments &
job opportunities (Anheier, 2014). On other hand it will give increase in the economic
growth & revenue generation of Skoda Auto.
M3: PESTLE of Skoda Auto
The PESTLE analysis of Skoda Auto will give it a better understanding to the company not
only about the ongoing market trends but also its customer’s demand & other factors which may
affect its profitability & market share as well its business environment. The PESTLE analysis of
Skoda Auto is as follows:
 Political factors: Skoda is in bided by the political factors to run its business. Any
change in political conditions may affect its sales & business environment.

 Economic factor: A countries economic condition also plays an important role in
business of Skoda Auto. Dull & slow economic growth can have an adverse effect on the
growth of company.
 Social factor: the social condition of a place will decide whether the company’s
business will be successful or not in the give context. Also it will do the better allotment
of responsibilities to local employees from various social backgrounds (Charter, 2017).
Besides this, any sort of social difference can affect the profitability.
 Technological factor: Skoda has to adopt latest technologies to keep the pace with
advance market trends & customers feedback.
 Legal factors: Skoda Auto has to follow all the legal terms & conditions which govern
its business for its smooth functioning. Besides this, it will also help the company to
build better work policies.
 Environmental factor: Skoda Auto, being an automobile company will be affected by
the growing concern towards emission & fuel consumption (Coccia, 2014).
M4: Effect of external & internal analysis that affect decision making
The analysis of external & internal assessment of the Skoda Auto will give the company
a better opportunity to decide policies & take appropriate steps to maintain the business
environment of the company. These external & internal assessments will not only help the Skoda
Auto to improve its productivity & revenue generation, but also to expand its business & sustain
its market share.
The external & internal analysis will help the company’s management & manager’s or
leaders to decide better employee policy & distribution of resources in an efficient manner to
maintain the productivity. Besides this, launching of new product & services or making a new
innovation to improve sales & revenue will also be decided easily (Crane and Matten, 2016).
Likewise, it will help stakeholders & investors to make investments precisely to get better return
of investments.
D2: Impact of Internal & External factor on decision making of Skoda Auto
The internal & the external factors will have a deep impact on the decision making
process at Skoda Auto. The Internal factors like strength & weaknesses of Skoda Auto will give
the company a better understanding about the customer demands, its capabilities & scope of
improvements. Besides this, it will also motivate the managers or leaders & the employees of the
company to develop better work environment. Also, it will give the company an idea to when &
how to invest or enter in a market to achieve maximum profitability & plan accordingly to
sustain its business growth & build a better business environment (Charter, 2017). Better
business planning will not only improve the work efficiency & productivity of the employees but
also help the company to get better customer satisfaction & increased profitability.

Conclusion:
Thus, from the research we conducted above we can conclude that Business & Business
Environment of Skoda Auto is greatly dependent on the internal as well as the external factors of
the company which not only helps the company to achieve better productivity & profitability but
also a better customer satisfaction level. We assessed various factors that can affect the business
environment of an organization & also how it impact the decision making process of the
employees & the organization.

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