Business Environment and Organizational Analysis: Volkswagen Report

This report delves into the business environment, exploring different organizational types such as public, private, and voluntary sectors, along with their legal structures and purposes. It examines the size and scope of various organizations, including the National Health Service (NHS), Volkswagen, and Oxfam. A significant portion of the report focuses on Volkswagen, conducting a PESTLE and SWOT analysis to assess its internal and external environment, including its strengths, weaknesses, and the impact of macro-environmental factors. The interrelationship between organizational functions is also explained. The report provides a comprehensive overview of the business environment and strategic analysis of a private sector firm. The analysis includes an explanation of how strengths and weaknesses relate to external macro factors.

Business & Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explaining all types of organisations their purpose and legal structures..............................1
P2 Explaining the size and scope of a range of different type of organisations.........................3
TASK 2............................................................................................................................................4
P3. Explaining the interrelationship between organisational functions and how do they are
inter linked to organisations functions and structures.................................................................4
TASK 3............................................................................................................................................5
P4.Identifying PESTLE analysis and the positive and negative impact of macro environment.5
TASK 4............................................................................................................................................7
P5.Using SWOT and conducting internal and external analysis of Volkswagen.......................7
P6. Explaining how strength and weaknesses interrelate to external macro factors...................8
CONCLUSIONS............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
There exist different organisational sectors that work in the market with varied size,
scope and purposes. In the present report, public, private and voluntary sector firms along
with their legal structure will be explained. The report is focused on the business environment
of a private sector firm, Volkswagen, For the cited organisation roles and responsibilities of
different departments are analysed. Also, internal and external environment of the company is
assessed.
TASK 1
P1. Explaining all types of organisations their purpose and legal structures
Public, Private and Voluntary Organization :
Public Sector:
Public sector is take part in economy of country those are control and supported their
financial condition through government. This type of sector give help in government services
like take part in eduction of public,transportation, medial many more.The legislation that
governed that state self organizations, basically it focused on providing proper services that
can be give benefited the all society. Non profit organization and the public sector work
towards the provisional of health related commodities. Its operated by the government and
exist to provide service for its citizens (Bryman and Bell, 2015). The voluntary sector
organization in the public sector do not seek to gnerate make profit.
Legal structure of the Public organisations: The control of the public organisation in the
hands of government and their legal bodies.
Types of Public Sector : Public utilities are those enterprises which supply an indispensable
public service under monopoly condition with government regulation of prices, profits and
service quality.
The service is monopolistic in nature., the service is affected with a public interest and thus
include transport and communication, supply of water, electricity etc. Banking, Credit and
insurance facility is also central bank commercial bank and life, insurance etc. They have
multi-purpose development projects (Cavusgil, Knight and et.al, 2014) , such as generation of
power, river valley projects, atomic energy etc. To supplement Private industries various
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industries set ups in the public sector. They cultural and activities to promote arts, science,
culture, broadcasting and television etc.
Legal structure of the Private organisations: Memorandum, of association and Article
of association are the certification which is important to issues for the private
organisations.
Purpose of Public Sector: Most of public sector entities give services on individual level
and do deals with laws and regulation (Storey, 2016). It is major components of economic
and they do work like private sector and earn money. But in other hand many persons think
public sector work only office and bursaries.
Private Sector
Term of private sector give those segment of economic who not do directly impact on control
of government agencies and business. It is made for operating profit and give contribution in
economic. The private sector include anything that is not a part of the public sector. For an
example, people who purchase a item in a store subscribe to magazine or lease a car only the
once eligible to receive those specific goods and services.
Types of Private Sector: In private sector including various type such as proprietorship .
Ltd. Companies, franchise many more. In partner ship business they do work with lots of
people started from two and maximize twenty person, By partnership act 1890.. There are
two type of Partnership they are ordinarily partnership and limited partnership. In ordinarily
partnership includes sole proprietorship and the limited partnership includes the creditors to
pay their losses according to their share and invest.
Purpose of Private Sector: This type of sector sector have a part of a increase economy of
country and they do work on septically level. This type of sector have most purpose to
generate profit and run in good condition. Those segment who control; on the government
known as private sector (Drucker, 2017)..
Voluntary Sector
Voluntary Sector: The Voluntary Sector are usually compromised for organization
those have main purpose to give benefit and enriched society, if they not give profit as a
motivate an little or no government intervention. public sector not including The voluntary
sector. It is do work according to separate from the, many organisations are often tightly
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combine with the government and support to all level. it in the delivery of programs and
services. It have the duty related to social activity those work under business those not
related to profit and government.
Types of Voluntary: It includes the Charities: world vision, Americans Red cross etc. the
social welfare organization includes the human rights watch, Environmental Protection
Agency etc.
The Voluntary sector come to something know about third sector because its related to
either in the public nor private sector but play most important roles in economy market.
Purpose of Voluntary Sector: purpose of this sector to improve enrich society.
Its is try to developed wealth of society through material of product. It is refer to something
for civil society, third sector non profit , voluntary and community social, not for charity and
around profit sector,.
Legal structure of the voluntary organisations: ir can be unincorporated organisation and Non
profti organisation which is set up with special Act. Control of these organisation in the hands
of government.
Profit Non profit Non governmental
This is that type of organisation
who is working only to earn profit,
develop and sustain in market.
They are the most profit earner for
the economy and also providing a
great source of employment in the
country. The purpose of the profit
organisation is to invest the money
in the operation and sales of the
firm and then earn profits.
This is that type of
organisation that is not
working to earn simple profit
but to act fro the social
welfare. They help the poor
and weaker section of society
to uplift them by providing
monetary and emotional
support. All the kind of profit
they earn are invested to help
the society.
This is that type of
organisation which is
working to make the
society a better place to
live in. They are also
known as the NGO and
are mainly operating in
the local places. But
they sometime also
work for international
organisations like
schools or hospital
working to educate and
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serve the poor.
Sole trader Limited Cooperative
The organisation or the
company which is operated
by only one or single person
is known as the sole traded
firm. The sole trader wholly
owns all the profits and loss
of firm and working to meet
his daily requirement.
This is a group of people
working together with each
other and sharing profits they
are generally known as the
shareholders of the firm.
This is the collective group of
people who are working
together to earn profit for
themselves.
Conclusion: from the above section it has been concluded that there are number of
organisations which are working in the economy. They all are different with each other in
some or the other way.
P2 Explaining the size and scope of a range of different type of organisations.
Every organization size and scope are connected with development or growth of
these sectors and organisation. Whether the company is of private sector, public sector or of
voluntary sector the size and scope must be wide so that they can work and perform in the
market place. The size and scope of the organisation depend upon the quality and amount of
products and services that they provide to public. More the services are given wider the scope
of the organisation is there. On the bases of size of the organisation it is divided into three
basic structures small, medium and large which contribute in their own way in developing the
economy (Bøllingtoft, 2012). Small enterprise are those which are generally owned and runes
by one or two people and having a limited scope which is till their own locality. Medium
enterprise are those which are slightly bigger than small enterprise and working in more area
than small enterprise.
National Health Service (NHS) which is an agency in health care sector was a part of
Department of Health and was formed in 2005. NHS is an England based centre which is
centrally mandated electronic care record for all patients and connected to 30000 general
practitioners in about 300 hospitals. NHS is providing safe, secure and audited access to all
the record of patients and only authorised health professionals can have the access on these
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record (Popescu, 2013). The work and operations of NHS is totally based on trust and care
for their patients as the staff working are well qualified and responsible. NHS are having their
service centre in England, Scotland and Wales and was established together by labour party
after the second world war. The service for the ordinary resident of UK are almost free in
NHS and the charges are made only for dental and optical care treatment. There are 1.6
million people and employed in 2015-16 and with the budget of £136.7 billion and the UK
residents are no The Volkswagen group is leading multiple brand groups in the automotive in
the industrt been charged for the medical treatments
Volkswagen is the private German based multinational company of auto mobiles and
is operating in about whole of the world with having 626715 employees. In the year 2016 it
was the largest auto maker company in the teams of sale (Jiménez, Ongena and Saurina,
2014). The size and scope of the company is defined by the number of models and brands
which are covered under its name and operating worldwide. Volkswagen is the large
international corporation which own numerous cars and lorry as well as Audi, Skoda,
Lamborghini, Bentley, Bugatti etc., and Volkswagen is having market share over 20% in
2016. It is having worldwide presence with many factories, manufacturing and assembling
vehicles.
Oxfam is a voluntary UK based charitable trust which has focused on eradication of
global poverty and allowing the food relief in the affected area of world. The area Oxfam is
serving is worldwide and is a type of international non governmental organisation. There are
many local committees which are formed to support National Famine Relief committee (Sena
Ferreira, Shamsuzzoha, Toscano, Cunha and et.al., 2012). The size and scope of Oxfam can
be defined by the mission of the organisation which is working with number of local workers
and volunteers partners and with the people living in poverty striving to exercise their human
rights. Oxfam was initial set up to provide food and medicines to the famine hit areas of
world and now it is providing tool and helping poor peoples to become self supporting and
opening supermarket for international trade of crafted goods.
Micro- they are that type of organisation which are mainly run by a single owner who
employee very less number of employees in their organisation like 1 or 2. Micro organisation
are the one which run only to earn profit for their sole proprietor only.
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Small- they are slightly big in term of number of employee or profit earning from micro
organisation they are also run by a single owner where he like to employee only their family
members. For example Pure Gym.
Medium- they are even bigger than small organisation employing about 20 employees in the
organisation. They are running to make a larger number of profit for the firm. For example
Unicorn grocery.
Large- they are bigger in both employees term and in term of profits as well. They are the
main profit earners in economy and helping in greater employment and profitable terms to the
country. For example Volkswagen.
Difference between their objectives.
Micro Small Medium Large
Their objective is to
earn profit for their
owner.
Their objective is also
to earn profit and that
too for their owner.
Their objective is to
earn profit and also to
give employment to
people.
Their main motive is
to earn profit, sustain
in market, give
employment and to
help in development
of country.
Transnational companies- when the foreign companies invest in a particular country and that
too by opening a factory or office in that country this is known as inward investments. They
are generally known as transnational or multinational companies. Like Marks and Spencer.
Licensing- this is an agreement between one company which is giving permission to some
other company to produce or manufacture goods for a specified period. This is basically done
for intangible property for specified period and licensor in tern give receive a royalty fee
from licensee.
Franchising- this is a practice to use the brand name of one company or their business model
for a prescribed period. Franchising is the agreement where one party who is franchiser is
granting franchisee the right to use its trademark or brand name for certain business process.
Joint Venture- this is a business enterprise that undertake their resources for the purpose of
accomplishing a specific task.
Demand- a desire or want to purchase any product which is available in market with having
that purchasing power by the purchaser.
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Supply- the availability of the product in the market of demand is known as supply.
Their relation- both market demand and supple are interrelated to each other as if the product
is not having the demand and supply then only that would be made able to be there in market.
The point where market demand and supply interact is known as point of equilibrium as there
supply and demand of that product is equal.
The Volkswagen group is leading multiple brand groups in the automotive in the industry
The Volkswagen group is leading multiple brand groups in the automotive in the industry
Conclusion- from the above section is has been concluded that there are many types of
organisation working in an economy which is providing them growth and development like
large organisation which is providing them employment as well. Demand and supply of
product and services are the main element in economy as they decide what and how much to
be produced.
TASK 2
P3. Explaining the interrelationship between organisational functions and how do they are
inter linked to organisations functions and structures
Volkswagen group have is the parent company of the Volkswagen AG. This
organization produce vehicle and components for lots of brand. company develops vehicles
and components for the group brands, in particular light commercial vehicles and particular
car passenger it will be produce and sells vehicles (Griffin and Pustay, 2012). The
Volkswagen group is leading multiple brand groups in the automotive in the industry.
Automotive and Financial Service division compromise the company business activities. The
product portfolio of the passenger car business and the area range of motorcycles to fuel
efficient small cars and luxury vehicles. The commercial The Volkswagen group is leading
multiple brand groups in the automotive in the industr vehicles' portfolio range pickups from
pickups to heavy buses and trucks.
Organizational Function of Volkswagen Group:
At Group level, the management structure will be based even more consistently on the
modular toolkit system:
Finance: for accomplishing the authoritative target the fund office assume the significant part
in an association. As they take the choice in regards to fund and other cost sparing. To
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apportion the financial plan for the distinctive capacity in an association back office utilize
legitimate techniques. To keep up the correct records of association accounts and to
demonstrate the benefits and misfortune. For each capacity fund is the most imperative
aspects in association development and advancement. They are interconnected with other
office to raise the assets for operational work or whatever other costs which can be useful for
accomplishing hierarchical targets and mission.
Human Resources: They have significant part in an association to accomplish the mission
and destinations. They set association polices to control the labour and bring successful result
for the association. Enlistment and determination of the worker In association is additionally
done by the human asset office. In the event that any contentions have been emerge between
the representatives and association then it is their duty to tackle that contentions with viable
choices. Additionally they assume significant part to inspire the representatives and they
satisfy the requirements of association to bring the correct labour at the perfect place.
Marketing: For Volkswagen AG showcasing will assume the significant part in association
to elevate and pull in to the clients with various methodologies of promoting. They are the
income producing division for the Volkswagen AG. As they manage the client. They
additionally set the financial plan for showcasing for various ways. Their fundamental
concentrate on relationship working with clients by associating via web-based networking
media and other method of correspondence with client can be conceivable. To change the
patterns and acquire creative items front of the client is obligation of the promoting divisions.
OPERATIONS: for the Volkswagen AG creation division have the duty to effortlessly get
the item to the client on time. With better creation group they would products be able to as
indicated by the requests from the client. These division will concentrate on quality
generation with the goal that less protests will originated from the customers side. Likewise
they utilize the association assets in a viable way for better generation should be possible in
association.
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In this manner it is vital for Volkswagen AG to interface showrooms the division with each
other to accomplish the authoritative mission and target. In the event that the human asset
will employ the better labour in association the viable creation can happens. On the off
chance that the generation will be better the advertising office can concentrate on the
Customer to deal most extreme items. In such fund office will concentrate on other cost of all
office.
Function -based in this type of organisational structures the whole company is divided into
different functions like that of HR, finance, marketing and production. This is the most
common structures of an organisation according to which operations of the firm are
distinguished.
Geography-based in this type of organisation structures the company is divided into the
locality in which they are situated. Like Volkswagen is divided into North, South, East and
West geography.
Product-based if the organisation is very big and is producing many types of product then it
will be divided into all type of product or service like that of Samsung group.
Customer-based in this type the organisation it is divided into different type of customer and
is offering all types of goods and service to all type of customer on the basis of gender,
income or preferences.
TASK 3
P4.Identifying PESTLE analysis and the positive and negative impact of macro environment.
PESTLE OF Volkswagen Company:
Political factors: In the macroeconomics environment those affect processes of decision
making of organization. This company is face lots of political issues when this is develop.
Like this organization not present their product in 2 or 3 countries but r in current era , they
can sale 50 countries. All countries have different political situation they are not same so
this is need to make different strategy for according to Europe political situation from Asian
country. This company car industry is tally depend on those policy who make government of
UK (Healy and Palepu, 2012). In a financial sector plays an important role in the selling of
car , they take vehicle loan from Govt. and also take interest loan those are decided
according to the government policies. It contains some certain points:
 the legal framework for contract enforcement
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 Intellectual property protection
 Price Regulation
 Mandatory employee benefits
 Product labelling requirement.
 Trade Regulation and tariffs.
For an example: Chinese government have a different policy than the Brazilian.
Positive: Volkswagen is headquarter in a country that has stable political condition.
Negative: The global presence of the entity may have to face alterations in business
strategies.
Economic Factors: Automation industry is also help to develop other business like steel
glass industries. Such type of industries give contribution in develop of country like give
contribution in national income of company. in this industry is the key industry in the
development of the country as it contributes in the national income of the nation. Their
economy system is not suit for Volkswagen operations so they can only focusses on car those
come under segment. The development industries are important for emerging economic like
India, china etc, has a Volkswagen great advantage of it.
In Volkswagen to deals with high difficulties with have image of brands those has
higher segment further more, the lower segment. Its regards are as follows: To keep
government intervention in the free market, competitive advantage of host country. It can
through the maintain infrastructure and efficiency of finical market. They should signifies
business cycle stage e.g. prosperity, recession and recovery etc. It will be includes growth
rate, unemployment rate, and inflection and interest rate etc. For an example: European debt
crisis is a big problem for the car manufacturing companies, if people have not enough
money they will not purchase the car and it will affect to sales decline in the Volkswagen.
Example; UK's effective economical situations allows entities to function well.
Positive: The country in which the country operates, have economical stable conditions.
Negative: In order to sustain in the competitive era, much expenses are required.
Social Factors: The corporate social responsibility priorities include future oriented,
education mad social projects, primarily in the location where the group operates. In consider,
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