Analysis of the Business Environment for General Motors (GM) Company

This report offers a comprehensive analysis of the business environment for General Motors (GM), a multinational automotive company. It begins with an introduction to the business environment and its impact on business functions. The report then delves into a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors affecting GM's operations globally. It highlights the positive and negative impacts of these macro-environmental factors, such as government regulations, economic fluctuations, changing consumer preferences, and technological advancements. Furthermore, the report conducts an internal and external analysis, including a SWOT analysis to identify GM's strengths, weaknesses, opportunities, and threats. The strengths include strategic partnerships and strong market position, while weaknesses include market dependency and limited brand awareness. Opportunities include the demand for fuel-efficient cars and autonomous vehicles, and threats involve increased competition and rising costs. The report concludes by summarizing the crucial role of the business environment in shaping effective business strategies and expanding operations.

Business and Business
Environment

Cover Content
 Introduction
 Positive and negative impact of macro environment
 Internal and external analysis
 Interrelation of strength and weakness
 Conclusion
 References

Introduction
Business environment comprises several internal as well as external factors such as customers,
employees, demand, supply and many more that affect the business functions in an efficient
manner (Agwu, 2018). The report considers General Motors that is a multinational auto mobile
company based on US. It offers a range of vehicles, parts of vehicle and financial services across
the globe. The PPT is based on positive negative impact of business environment, internal and
external analysis and interrelation of strength and weakness.

Discuss the positive and negative impact of macro environment over business operations
 PESTLE analysis refers to a framework that is used to monitor the impact of external factors
upon business operations. Macro environmental factors in context of General Motors are
mentioned below:
 Political Factors-General motors is working at global level thus it is affected with the
rules and regulations of government of different countries
 Economic Factors- The company is highly affected with this factor. As company is working in
different countries thus any change in the price of crude oil, condition of present economy will
affect the demand of products

Cont.…..
 Social Factors-It is analysed that now people are concern for environment. So, it is essential for
General Motors to monitor the buying behaviour of people and focus on development of
electronic cars. It will help to enhance sales and revenue of organization. On the another side,
change in market trend, attitude of people may influence the present sales of entity.
 Technological Factors- There are rapid technological changes have been introduced in
auto mobile sector. Due to this General Motors are focusing on advancements to provide
electronic cars to minimize the usages of fuel based vehicles

Cont.…..
 Legal Factors- There are ample of trade regulation, consumers protection laws, business laws
are applicable on General Motors. It has been sued by customers to not obey the predefined
compliances. Thus it is abide by ample of rules and regulations that need to be follow in
prescribed manner. Otherwise, it may cause legal disputes to company.
 Environmental Factors- To maintain a positive brand image at market place General
Motors takes initiatives for environmental protection. It is developing electronic cars to reduce
down pollution. It will create brand value of company at global level. On the another side, it
will incurred high expenses for organization.

Execute internal and external analysis of selected company
Strengths Weaknesses
 General motors is joining hands with some Chinese
automotive companies that is a great strength for the
company.
 The position of company in the automotive market of
United States is very strong.
 They are creating eco-friendly and safe vehicles that is
beneficial for the environment and one of major
strength of company.
 The company is highly dependent on the U.S market
for its revenue that is one of the losses for company.
 The company required to spread its brand awareness
as people are not much aware about the brand now.
 They are also highly dependent upon just a few
models for sales growth such as trucks and SUVs
which is a weakness.

Opportunities Threats
 Demand of fuel efficient cars can prove to be a great
opportunity for company to increase their revenues.
 The new models that company comes up with from time
to time is a great opportunity it has over its competitors
in the market.
 The demand for autonomous vehicles is rising. General
Motors can focus on it which will help them to increase
their revenues.
 Increase in competition in automotive sector is a great
threat for company.
 The rise in exchange rate of US dollars is also
increasing risks for company.
 The increase in costs due to changes in U.S.
Regulations may also lead to increase in threats for the
company.

Basis Strengths Weaknesses
Political Company is highly benefited from the
US market as they have high market
share in country due to flexible
regulations (Zhao, Fan and Yan,
2016).
Entering Chinese market is a difficult deal for
company due to its complex policies and
regulations.
Economic GDP of countries like China and US
are a great opportunity for General
Motors as they have a strong foothold
there.
Economic fluctuations have direct impact on
sales and profit of the company leading to a
decline in with.

Social Bringing in fuel efficient cars as per
changing social values is a great
strength for company that will increase
its profits.
The trends in society are continuously
changing that are weaknesses for General
Motors.
Technological Bringing in continuously new
technological development helps
General Motors to face competition in
market.
Automotive sector requires continuous
technological development that requires huge
investment.

Legal Following all the legal rules and
regulations help General Motors to
effectively enhance the reputation of
organisation in the market.
Company have faced legal proceedings due to a
number of cases such as defective ignition
switches and so on.
Environmental They are developing efficient and
effective electric cars for
environmental benefits.
There are a number or regulations regarding the
use of resources from environment which limits
the company.

Conclusion
 From the above mentioned PPT it has been concluded that business environment is crucial
aspect and has significant impact upon business performance. It is analyses that business
environment is significant and helps make effective strategies to enlarge operations at wide
level. Besides this, there are various types of organization that has been initiated for
different purpose and own different legal structure, scope and size.