Report: Business Environment Analysis of General Motors Company

This report provides a comprehensive analysis of General Motors' business environment. It begins with an introduction to the business environment and then delves into a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors affecting GM. Following this, a SWOT analysis is presented, outlining the company's strengths, weaknesses, opportunities, and threats. The report then explores the interrelation between these factors and external macro factors, highlighting the significance of understanding the external environment for business success. The conclusion emphasizes the need for GM to adapt to market demands through innovation. The report is supported by references to academic sources, providing a solid foundation for the analysis.

BUSINESS AND THE
BUSINESS
ENVIRONMENT

Contents
INTRODUCTION
P 4 Pestle Analysis
P 5 SWOT Analysis of GM
P 6 Strength and weakness interrelate with external macro factors
CONCLUSION
REFERENCES

INTRODUCTION
Business is the process of buying and selling of products so that the producer can earn money and
satisfy the needs and wants of the consumers. Business Environment consists of all the internal
elements as well as the external factors which includes factors such as employees, needs and
expectations of customers, demand and supply, their management, suppliers, clients, owners of
the company, interference by the government of different nations, technological innovation, trends
in market and social life, changes in economy etc.

P 4 Pestle Analysis
Political Factors-
Due to their operations in different countries they have to comply with the work and
rules decided by government of each country.
Economic Factors-
This factor has a direct impact on the business of company. For instance, if there is
increase in the price of steel or other materials then it will decrease their margin. If the rate of
interest tends to be high, then even financial schemes introduced by them will fail.
Social Factors-
In order to achieve growth and take out the positive factors with this analysis it is
important for business to offer products as per the beliefs, values and change in market.

Continued..
Technological Factors-
With the help of advancements in areas of technological aspects General Motors is
investing more in that area so that they can come up with something advance which helps them to
reduce their dependency on fuel and help them to come up with something which is beneficial for
environment such as electric, or hydrogen fuel cell technology.
Legal Factors-
It is necessary for them to operate under the legal guidelines so that they are allowed to
work with support of people and government.
Environmental Factors-
In order to serve under this measures a lot of initiatives are being taken by the brand in
order to be environment conscious so that they can help reduce the impact of greenhouse gases.

P 5 SWOT Analysis of GM
Strength-
They have attained the position of being one of the largest auto manufacturer which is
considered one of the most important deals. Company is known for their investments in the area
of R & D which has helped them to work with innovative measures.
Weakness-
The market of company relies on SUVs and pickup trucks as they are mostly known for
that and due to slowdown in economy they have not been getting many orders which has reduced
their revenue.

Continued..
Opportunities-
Demand for electric cars has been rising constantly due to rise in prices of fuel and
environment consciousness of people. Also with the help of their innovative and long lasting
batteries they can make this opportunity a viable venture for them.
Threats-
Due to pandemic condition of economy has been observed worse than it was analysed or
predicted. They had to remove many people from the job and many of the economies are in
recession due to that which has left no disposable income with consumers and hence the downfall
in their sales.

P 6 Strength and weakness interrelate with external macro
factors
Interrelation between macro factors is similar as in most of the areas approaches assessed
by SWOT and Pestle are a lot similar. One major difference between both of them is that
Pestle takes out external analysis whereas SWOT assesses both internal and external
analysis. With the help of Pestle analysis company is able to get the insight on decisions
that are going to be taken up by government laws of employment, political issues,
decision on taxes which have impact on business.

CONCLUSION
From the above studies it can be critically analyzed that in order to keep surviving their
market and sustaining their operations management of company needs to come up with
new and innovative measures that are as per the current demand of market as that will
help the company to satisfy the needs and wants of people.

REFERENCES
Rao, S., 2021. International business environment. Himalaya Publishing House.
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and
changing business environment. Available at SSRN 3192207.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice, 17(1), pp.96-107.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.