Analysis of Business Environment for General Motors Company

This report provides an analysis of the business environment for General Motors, a multinational auto-mobile manufacturer. It begins with an introduction to the business environment, highlighting internal and external factors affecting a company's performance. The report then delves into the positive and negative impacts of the macro environment, including political, economic, social, technological, legal, and environmental factors. A SWOT analysis of General Motors is presented, exploring its strengths, weaknesses, opportunities, and threats. The interrelationship between these factors is discussed, along with strategies for leveraging strengths, mitigating weaknesses, and capitalizing on opportunities. The report also includes an internal and external analysis, focusing on key findings and decision-making processes, including the application of PESTLE analysis. The conclusion emphasizes the crucial role of the business environment in organizational effectiveness. The report concludes with a list of references.

Business and Business
Environment
TASK 2

Content Covered
 Introduction
 Positive and Negative impact of Macro environment
 SWOT Analysis
 Interrelationship
 Internal And External Analysis for Decision Making
 Conclusion
 References

Introduction
 Internal and external factors that affects overall performance of a company is
known as business environment. Factors that are mainly included in business
environment are suppliers, competitors, owners, employees, government laws
and other market and economic trends. In this report, company chosen here is
General Motors which is UK based Multinational auto-mobile manufacturer
industry.

Positive and negative impact of macro
environment
Macro environment is a name given to a broader and wider business environment within
which a company conducts its business operations. It is a fundamental factor that
studies overall market conditions like nature and kind of people, society, culture,
lifestyle, role of government, economic condition using new and innovative
technology.
 Political factors: This factor of PESTLE analysis shows effects of different political
trends and conditions on overall performance of General Motors in external market
 Economic Factors: Business performance or growth of General Motors depends
upon various economic factors that are present in auto-mobile markets.

Cont.….
 Social factors: Effect of social and cultural factors that affect macro environment
of General Motors are explained under this factor. Socio cultural situations help
to identify how consumers and employees will react and affect the automotive
sector.
 Technological factors: General Motors uses new and innovative techniques for
conducting its operations and developing efficient competitive benefits in
external automobile market.

Cont.….
 Legal factors: These forces of PESTLE analysis determines as to how legal
systems will influence working environment of General Motors and its respective
industry.
 Environmental factors: These are factors that are related to nature and
ecological environment. Natural environment affect supply chains, product usage
and availability of resources for General Motors

Swot analysis of General Motors
 SWOT analysis is a broad framework that is used to analyse or evaluate an
organisation's competitive position. SWOT analysis is a abbreviated word used
for Strength, Weakness, Opportunity and Threat.
 Strengths: This aspect of SWOT analysis is used to understand various internal
strategic factors which help in growth and development of General Motors
 Weaknesses: Weaknesses refers to factors that lower growth and development of
General Motors.
 Opportunities: This is basically an identification stage where managers evaluate
various factors that help and support in growth and development of business.
 Threats: External factors that are used in strategy formulation and that tend to
lessen business performance fall under this aspect

Interrelationship
The SWOT analysis indicates capabilities of General Motors and explains various
aspects of it like strengths, weaknesses, opportunities and threats For this,
managers of General Motors can apply following strategies:
 Increase investment on research and development department so that product
development can be done efficiently.
 Expansion in network of General Motors to gain high growth at multinational
level.
 Improve and develop new programme for increasing sustainability and help to
create a balance between internal and external environment.
 A good combination of PESTLE and SWOT helps in improving corporate and
brand image of General Motors at market level.

Internal and external analysis of key
findings and decision making
 For this analysis, managers of General Motors get a PEST analysis conducted
on a timely basis. PEST analysis of a business firm includes political factors,
economic factors, social factors and technological factors.
 Political factors: This factor of PESTLE analysis shows effects of
different political trends and conditions on overall performance of General
Motors in external market.
 Positive impact: It helps to analyse current situation of political environment
at a given period of time. It provides a stable market position to a company.
 Negative impact: Promotion of public transport at cheap prices by
government. Also, sometimes government adopts strict taxation policies and
rules which affect a business concern.

Cont.….
 Economic Factors: Business performance or growth of General Motors
depends upon various economic factors that are present in auto-mobile
markets. This factor of environment helps to identify various threats and
opportunities.
 Positive impact: Stable economic situation of General Motors in external
markets. High or increasing rate of growth of a business concern.
 Negative impact: Rising competition in developing markets which is out
of reach of company many times.

Cont.….
 Social factors: Effect of social and cultural factors that affect macro
environment of General Motors are explained under this factor. Socio cultural
situations help to identify how consumers and employees will react and affect
the automotive sector.
 Positive impact: Increase in demand for electronic and innovative
vehicles.
 Negative impact: If managers of General Motors do not use new
techniques, they will loose their market share.

Cont.….
 Technological factors: General Motors uses new and innovative techniques for
conducting its operations and developing efficient competitive benefits in
external automobile market. Positive impact: Rise in of fuel efficiency
in vehicles and ,increase in developing features of electronic vehicles.
 Negative impact: Lack of innovation will make a company loose its
market share.
 This analysis and evaluation of internal and external markets help
General Motors in effective decision making.