Business Environment Report: General Motors Analysis (LO1-LO4)

This report provides a comprehensive analysis of the business environment surrounding General Motors, a leading US manufacturing company. It explores the various types and objectives of organizations, differentiating between public, private, and voluntary sectors, and examining their legal structures like sole trader, partnership, and limited liability firms. The report delves into the size and scope of different firms, comparing public companies like General Motors with private and voluntary organizations. Furthermore, it investigates the interrelationship between various organizational functions, such as marketing, operations, human resources, and finance, and how these functions link to the objectives and structure of General Motors, specifically highlighting the benefits and drawbacks of these interrelationships. The analysis also covers the application of divisional organizational structure and its impact on the company's performance.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION.....................................................................................................................................3
LO 1............................................................................................................................................................3
P1- Explaining varied forms and purpose of companies like public, private & voluntary sectors and
legal structures.........................................................................................................................................3
P2- Describing size & scope of a range of varied forms of firms............................................................5
LO 2............................................................................................................................................................6
P3- Explaining relationship between varied organizational functions and how they link to objectives
and structure of General Motors..............................................................................................................6
LO 3..........................................................................................................................................................10
Covered in PPT.....................................................................................................................................10
LO 4..........................................................................................................................................................10
Covered in PPT.....................................................................................................................................10
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................11

INTRODUCTION
Business environment described as aggregate of all events, circumstances and influences
of external and internal factors that surround a company and put impact on their business
activities. The current assignment will be based on General Motors, which falls under the
category of leading manufacturing companies in the US. The study will explain types and aims
of organizations and their legal structure. It will justify size, scope of each firm and interrelation
between organizational functions that link to infrastructure and objectives of company.
LO 1
P1- Explaining varied forms and purpose of companies like public, private & voluntary sectors
and legal structures
Within the world of business, there are several types and size of organizations operated
their venture and efforts to manage their businesses growth (Farah and et.al., 2020). Each type of
companies and their purposes along with organizational legal structure discuss below;
Types of enterprises and their objectives-
Public companies-
In public sector, a company may operate its venture which may publicly controlled or
funded business that totally accountable to offer quality products or services to local people
(Cavalcanti and Santos, 2021). For example, General motors is one of those public firms that
operate in US and efforts to satisfy its customers.
Aim- The purpose of manufacturing vehicles and running business into goods manufacturing
sector is to be Carbon neutral and be sustainable.
Private sector-
It may consider as key part of economy that is run by brands and successful entrepreneurs
who attempts to generate a lot of revenue and earn profits. For instance, IKEA as a private
company while operating business and managing its function to private sector may increase its
profitability.

Purpose- its aim is to sell quality products through which management may earn profits and
retain potential customers with brand forever.
Voluntary sectors-
This industry and its organizations may consider as part of economic growth that
encompasses of non-profit making companies as opposed to private and public industries. British
Red Cross is one of those voluntary sector firms.
Motive- To help individual person in crisis whether it is economic or environmental and to
enhance their standards of living.
Legal structures-
Sole trader-
It is one of the easiest and beneficial forms of business legal structure where, a company
may hold power to take decision and enjoy its positive outcomes continually. With this kind of
legal structure, an organization and their owner may manage everything individual without
taking support from other. It allows them to take decision without any suggestion from others
side and enjoy the independence, which is not possible to obtain with any other legal structures
that accessible in this world.
Partnership-
IKEA is the best example of those companies that work with partnership as legal
structure which drive its attention towards conducting collaborative practice with Lego Adidas,
etc. In term of partnership, organization may perform with other brands that are also popular and
sell quality items to target market according to their choices and needs as well as expectations.
Its collaboration and coordination with other companies may bring several benefits for its
venture in term of increasing sales.
Limited liability firm-
This legal structure may consist those firms that may experience reduction of their
personal exposure to financial risk. General motors may include in this category as its financial
co provides financial service to its venture. This format is especially accessible for private

companies who may take accountable of managing their business functions and obtain desire
outcomes by selling quality products through which they may earn a lot of profit, and enhance
satisfactory level of customers that is also essential to do so.
P2- Describing size & scope of a range of varied forms of firms
The extent and scope of each company may contribute to increase their performance and
affect in the future venture practices.
Basis Public company Private company Voluntary
organization
Scope As public firm,
General motors may
attempt to enhance its
customer satisfaction
by performing with
155000 people that
work with brand and
efforts to achieve its
set goals.
The scope of this
company may define
in term of its existing
workforce as it may
have 22,000 workers
who perform
effectively and
productively at
workplace to achieve
strategic aims of its
venture and that is to
earn a lot of profit.
British Red cross as
voluntary company
may efforts to help
people to overcome
their health issues,
etc. In term of scope,
it may perform with
17,299 skilled
volunteers that work
efficiently.
Size General motors may
have 118 facilities
across national
boundaries including
11 assembly plants,
19 parts distribution
sources, 25 stamping,
component,
propulsion and batter
plants.
As private firm,
IKEA venture size is
quite wide because it
managed 27 stores
performance in UK.
It may also efforts to
manage many more
in 51 countries.
Excluding 27, it may
have 445 stores.
Organization conduct
its practices and
contribute to enhance
living standard of
individual person
within more than 191
countries, where
people may need its
help in varied terms.

LO 2
P3- Explaining relationship between varied organizational functions and how they link to
objectives and structure of General Motors
An organization function considered as set of practices and activities that individual or
group of people carried out to achieve key objectives and aims of ventures. There are several
business functions may exist in the context of General Motors that perform together that are;
Marketing and operation department-
The connection between these two departments may provide a lot of benefits to
organization. They perform together in term of collaboration and communication to provide
satisfactory product to customers by manufacturing top vehicles (Suárez and et.al., 2020). For
instance, marketing department work with operation to provide useful data about market trend
which other section employee may use to take each step accordingly.
Their link with structure and objective-
Interrelation between both sections may link to company structure and objective in term
of achieving aim and increasing brand productivity and flow of work.
Human resource interrelation with operation department-
Just like above, these two departments also perform or work together in term of
exchanging information about skilled workforce requirement which may contribute to increase
General Motors productivity and performance level. For instance, HR manager coordinate with
operation section to know info about employees needs which they may hire.
Connection with aim and organizational structure-
Their relationship may affect organizational structure in term of continuing flow of work
and contribute in aim achievement.
Marketing relation with finance section-

Finance and marketing departments also collaborate with each and their relationship is as
important as above two because for purpose of advertising fund is require and for this reason,
both work together and coordinate with each other. Just like above functions interrelationship,
finance and marketing may also perform together for purpose of achieving set goals of company
which is quite important and beneficial for its growth and continuous success within market
place. They both are two different functions which efforts to play separate role but effective, in
varied terms. Without their interconnection, marketing section is unable to promote venture as it
may need money for this and only finance department may do so in term of providing amount
according to requirement that other sections may use in firm to make everything possible such as
increasing sales, advertising products, etc.
Linage with objective and structure of General Motors-
Marketing and finance department relation help company to gain attention of new
customers that may wider up its consumer base, which is the main objective of this brand. It may
allow workers to perform effectively by having each resource they want to do so as it boost
productivity in organizational structure of chosen firm.

Figure 1: General Motors ‘Organizational Structure
(Source: General Motors’ Organizational Structure for Flexibility in Regional Markets, 2018)
Organization in order to grow its business and rapidly increase its profitability may
utilize specific form of organizational structure that accessible in the world of business, which is
divisional. The interrelationship of each function may put positive impact on it in term of
increasing organizational productivity and performance level even better than its rivals that has
managed their business growth within similar industry from longer time.
Benefits and drawbacks of interrelationship between functions and their impact upon
organizational structure of company-
Interrelationship between marketing, finance, human resource management and
operations may provide several benefits to General Motors as it contributes to maximize

productivity as everyone at workplace support each other and understand their needs. It may
outcome in increasing performance level and aim achievement practices of individual person
(DeSimone, D’Onza and Sarens, 2020). On the other hand, interrelation between each function
may put negative impact on organizational structure in term of creating conflict at workplace due
to differences between perspectives and point of view of each employee. It may lead to decrease
performance and organization productivity, which drive attention of management towards
formation of effective tactics or plans.
Complexities of several types of venture structures and connects of organizational
functions in organization-
Hierarchical, flat, functional and divisional are the most commonly utilized
organizational structures by the many companies. Each structure is complex when a company
may use it, for example, with hierarchical infrastructure, firm may deal with certain challenges
like lack of collaboration (Potochnik and McGill, 2019). It can be said that with this format
specific lines of communication may establish for each candidate, which people may unable to
follow as they communicate with each other for several reasons and due to this it is impossible to
follow the limitations. With hierarchical organizational structure, workers may seek to stay
within their described areas as they are unable to collaborate with each other regarding anything
not more than given time schedule, which is not good because there are many situations arise at
workplace which drive the attention of individual to collaborate and coordinate with other. Just
like this, with flat structure, management may unable to create clarity of roles at workplace. It
may do not facilitate progress in regard to business. Workers in this kind of format may do
advantages from being capable to approach c-suite with their thoughts, it may lead to waste their
time and efforts. Furthermore, divisional structure may put negative impact on continuous
growth of venture due to their complexity and that is time consuming in term of duplicity of
functions that also consumes a lot of efforts. Lack of coordination is the main issue with
functional organizational structure that company and candidates may face and management may
efforts to deal with it (Licari and et.al., 2020).

LO 3
Covered in PPT
LO 4
Covered in PPT
CONCLUSION
From above analysis, it has been concluded that by setting effective aims and objectives
companies whether it is private or public, has taken appropriate decisions and driven their steps
towards success. By using key strengths, organizations have performed according to their size
which in return has provided benefits to each in term of increased profitability. Furthermore, by
summing up above discussion it has been summarized that interrelationship between each
functions have maximized the performance and productivity of brand. It has been determined
from above study is that by choosing divisional organizational structure, organization has
increased its productivity level and gain a lot of success just because of using their benefits.

REFERENCES
Book and Journals
Cavalcanti, T. and Santos, M., 2021. (Mis) allocation effects of an overpaid public sector.
Journal of the European Economic Association. 19(2). pp.953-999.
DeSimone, S., D’Onza, G. and Sarens, G., 2020. Correlates of internal audit function
involvement in sustainability audits. Journal of Management and Governance. pp.1-31.
Farah, B. and et.al., 2020. Leadership succession in different types of organizations: What
business and political successions may learn from each other. The Leadership Quarterly.
31(1). p.101289.
Licari, M.K. and et.al., 2020. Prevalence of motor difficulties in autism spectrum disorder:
analysis of a population‐based cohort. Autism Research. 13(2). pp.298-306.
Potochnik, A. and McGill, B., 2019. The limitations of hierarchical organization. Philosophy of
Science. 79(1). pp.120-140.
Suárez, L.E. and et.al., 2020. Linking structure and function in macroscale brain networks.
Trends in Cognitive Sciences. 24(4). pp.302-315.
Online
General Motors’ Organizational Structure for Flexibility in Regional Markets. 2018. [Online].
Available Through: < http://panmore.com/general-motors-organizational-structure-
flexibility-regional-markets>