Business and Business Environment Report: Skoda Auto - UK Operations

This report provides a comprehensive analysis of Skoda Auto's business operations and its surrounding environment. It begins with an introduction to the company, followed by an examination of different organizational types and their purposes, with a specific focus on Skoda Auto as a private limited company. The report then delves into the size and scope of various organizations, including Skoda Auto, NHS, and Age UK, highlighting their respective missions and objectives. A crucial section explores the relationship between organizational functions and their link to the company's structure, particularly focusing on Skoda Auto's divisional structure. Furthermore, the report assesses the positive and negative impacts of the macro environment on Skoda's business operations, alongside an internal and external analysis to identify the company's strengths and weaknesses. The report concludes with a summary of how these strengths and weaknesses relate to external macro factors, providing a holistic view of Skoda Auto's position within its business environment.

Business And Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P.1 Different types and purpose of organization.........................................................................1
P.2 Size and scope of different type of organizations.................................................................3
TASK 2............................................................................................................................................5
P3. Relationship between organisational functions and their link with structure of organisation
.....................................................................................................................................................5
TASK 3............................................................................................................................................8
P4 Positive and negative impact of Macro environment on Business operations.......................8
P.5 Internal and external analysis to identify strength and weakness.......................................10
TASK 4 .........................................................................................................................................12
P.6 Strengths and weakness are related with external macro factors .......................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business and business environment consists of different internal and external factors
which can affect the company in drastic manner (Andersson, Forsgren and Holm, 2015). Hence
company has to create strategies and policies so that firm can adopt these factors. This also helps
the organization to earn more revenues and enterprise can increase the market share. As a result
business can give competition to other firms and company can also expand their business.
Assignment describes about the Skoda Autos which is a auto mobile manufacturer firm. It was
established in U.K. in 1895. Report explains about the different types, size and scope of various
organizations. It also discusses about interrelationship of various functions in company and their
relation to organizational structure. It also describes about various contemporary examples to
demonstrate both positive and negative impact of business environment on the business
operations. It also explains about internal strength and weakness of specific business and their
relation with external macro factors.
TASK 1
P.1 Different types and purpose of organization
Business environment consists of different external and internal factors which impact the
company. Hence firm has to create effective strategies and policies so that company can adopt
these factors. This increases the efficiency and effectiveness level of organization. Hence
enterprise can increase their production and can earn huge profits (Business environment, 2012).
This also helps the organization to enhance the market share (Botha, Kourie and Snyman, 2014).
Various enterprises have different purpose and hence all create unique and distinct policies to
become the market leader. Types and purpose of different organizations are described below:
Type Overview Purpose Legal structure
Skoda Auto is a
private limited
company which
operate freely in
business environment.
These companies have
less power as
Skoda Auto is a
private auto mobile
manufacturer
company. It is limited
by liability company
and they do not have
proper directions to
Their main purpose is
to become market
leader and expert so
that firm can satisfy all
customers. It helps the
company to earn more
profits and to enhance
There is sole
proprietorship in
which a single person
performs all activities
and share the profits or
losses. Limited
company is limited by
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compared to public
companies. These firm
are limited by debt,
equity etc.
work and for
performing the
operations. It is crucial
that company is
registered in
companies Act. This
helps the organization
in maintaining positive
image in minds of all
users and in society.
the market share.
Hence organization
can easily accomplish
their short term targets
and objectives. This
help the company to
maintain competitive
edge on other firms.
shares or by guarantee.
It is of three types
public, pr8ivate
company limited by
shares, private
company limited by
guaranteed.
Partnership is a legal
entity between two or
more persons who
share profits and
losses. Skoda Autos
follows partnership
business and company
shares the profit and
losses with each other.
There are some parties
which can deal with
such kind of business
such as school, legal
authority etc.
NHS is a public
company which is
owned and controlled
by Govt. sector. It is
not a private company
and their main work is
to solve all issues
related to all people.
They have a single
motive that is to
NHS is public
company which is
controlled by Govt.
sector. It was
established in 1944 by
Henry Willink in U.K.
It provides effective
services to all people.
It selects
approximately 1.6
NHS main purpose is
to improve the quality
and productivity and
stop distracting the
clinical disciplines
with noncare
productive activities.
Company also wants
that proper
management,
Legal structure is
divided into 3 classes:
Central Govt.: Power
and authority of
central Govt. is
designated at different
grounds.
State Govt.: It helps in
effective functioning
or working of business
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provide effective
services to all people.
This helps the
company to earn more
revenues.
million and had budget
of £136.7 billion. Firm
charges standard
charges from all
customers and hence it
can earn more
revenues.
contractualism and
legalism to provide
care for sick people is
important.
Identification of
customer's needs are
important for the
company and hence it
tries to provide
effective services so
that any person do not
face any problem or
issue. Through this
firm can reach to many
people and can earn
huge revenues. This
also helps the
organization to
enhance the market
share.
activities towards state
agencies.
Local Govt.: It
manages all activities
and functions related
to administration of
public sector.
Age U.K. is a
voluntary firm which
is located in U.K. It
gives funds to many
charitable institutions
and thus it can
maintain huge
reputation in minds of
all people.
It is a voluntary
company which was
established in 2009. It
was operated as
separate charities
which are named age
concern and help the
aged. It was firmed
from merger of two
associations and has
income of
Main purpose of Age
U.K. is to make U.K. a
place to grow older
and to support the old
people. This helps the
company to maintain
positive image in
minds of all people.
Thus company can
increase their
reputation in society
Community benefit
society: It is
incorporated by a
single entity and is
controlled by financial
conduct authority.
Business run in
interests of
community.
Community interest
company: It is
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approximately £160
million.
and market. incorporated by
separate Govt. and
regulated by CIC
regulator. It was
created in 2007 as new
corporate structure for
non charitable
institution that want to
use their assets and
profits for public
good.
P.2 Size and scope of different type of organizations
Various types of organizations have different scope and purpose. Hence company has to
create policies and strategies so that company can increase their revenues and can enhance the
market share (Cascio, 2018). Thus company can expand their business and can enhance their
reputation. Size and scope of different organizations are explained below:
Skoda Auto
Background Product and
services
Mission and
Vision
Size and objectives
It is a private
company which is
an auto mobile
manufacturer
company which
was established in
U.K.
It is an auto
mobile
manufacturer firm
and it provides
Skoda Kodiaq,
Skoda Superb,
Skoda Rapid etc.
It also offers
maintenance
services to all
It wants to
increase the
customer
satisfaction and
wants to become
the market leader.
Hence firm has to
create effective
strategies to fulfil
demand and
It has objective to increase the
satisfaction of all user's. It has
operated in many countries and it has
approximately 37,924 billion of
revenues. The revenues had increased
from 2016 to 2017. Thus company is
in better position. Hence firm can
earn more profits and can enhance
market share.
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people. requirements of
all people.
It is a famous
auto mobile
company which
create plans and
poles to satisfy
the needs and
wants of all
people.
It gives different
auto mobiles
including car and
other auto
mobiles to satisfy
all customers.
It wants to earn
more revenues as
compared to
other
competitors.
Hence it can
create unique and
distinct ideas to
increase the
market share.
It has a unique objective that is to
win the hearts of all users through
providing of distinct and unique
services to all people.
NHS
Background Product and
services
Mission and
Vision
Size and objectives
NHS is a
company which is
a public company
and provides
treatment to all
people. Thus
company can earn
huge revenues
and firm can
enhance the
market share.
NHS provides
effective services
to all people so
that they can
increase the
satisfaction level
of all people.
Hence firm can
earn huge
revenues.
It has a mission to
provide efficient
services to all
families. It has a
vision to improve
the quality of life
of all people.
Through this
company creates
strategies to
accomplish their
objectives.
It has a objective to respect the
patients and to improve the quality of
life of all families.
It has a budget of 136.7 billion and
had around 1.6 million people which
awards for NHS. All staff members
work for NHS and they create
effective strategies to perform
distinct services to all people.
Age U.K.
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Background Product and
services
Mission and
Vision
Size and objectives
Age U.K. Is a
charitable
institution which
provides funds to
all poor people.
Hence it
indirectly helps
the poor people. It
was established in
U.K. and it is a
voluntary firm.
It provides funds
to many
charitable
institutions.
It has mission to
help the poor
people.
It has a vision to
develop the
society by
providing funds
to many
charitable
institutions.
It has a objective to increase the
satisfaction level of all people living
in society. It has revenues of
approximately 160 million.
TASK 2
P3. Relationship between organisational functions and their link with structure of organisation
Various number of functions are performed by each and every company so that the
objective and goal can be attained automatically (Cavusgil, and et. al., 2014). Effective
implementation of entire activities and functions are essential to Skoda to enhance their
operation successfully. The performance and profitability of the organisation is mainly
depending on its objectives as well as structure also. If the structure of firm is simple, then
business is capable in order to improve its effectiveness and efficiency level of operation. On the
other hand, if company has complex structure, then it is not easy for the administers to maximise
the performance of operations of company in cost effective way (Deasy, and et. al. 2016).
Organisation structure of the company are divided into two parts which are shown under this:
Organisational structure:
Divisional structure of Skoda: It includes formation of division related to specific
demands of customer, products and market. This structure basically emphasises on maximum
modification within its unites which is provided with whole required resources and functions
according to department’s needs.
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Illustration 1: Divisional Structure of organisation
(Source: Divisional Structure of organisation, 2018)
Functions structure of Skoda: This will consider regarding fixing of the business
structure as per the functional level which are performed in automobile sector. Here, Function
structure of Skoda is mainly related to different departments such as human resource, finance,
marketing etc.
Illustration 2: Functional Structure of the organisation
(Source: Functional Structure of the organisation, 2018)
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There are different functions of Skoda and its interrelation with business objectives and
structure are determined as under:
Marketing: One of the foremost function of marketing division is to help the organisation
to determine and source possibly successful goods from the market and then advertise them by
differentiating it from similar goods (Eling and Schaper, 2017). Another important function of
such department is market research which is essential for the company to analysis the actual
demand, challengers, current trends, strategies etc. All these data have directly related with
operational division of Skoda which has motive regarding organising operation regularly and
systematically. It supports in accomplishment of two way objectives or goals set by operational
and marketing department regarding grabbing the more attention of different people and
enhancement in sales and revenue of company.
Operation: This department of Skoda gives the functions regarding brining of better
cooperation among the functions which work on regular basis and beneficial to run business
operation smoothly. In this respect, operation manager of the company performs the various
activities linked to organising, planning, controlling and monitoring (Gilboy, 2016). These
activities are essential to the human resource division in performance of their activities about
retaining better level of performance via appraisal on daily basis.
Human resource department: One of the main department of Skoda which performs
certain functions about workforce planning as per the actual requirement to executing its
functions in an effective way (Goleman, 2017). There is different function which are used by the
HR manager of such company like determination of remuneration, performance appraisal,
appointment of workers, planning of training and development class etc. Functions of such
division is related with all other department like finance, operational and marketing. It supports
them via appointment of knowledgeable workers at these divisions which follows them it to
apply advanced technology to execute their functions in marketplace with more effective
manner. Main objective of such department is to hire knowledgeable and skilled workforce
easily which support the company to gain better results and accomplish their present objectives.
Finance: Main function of such department is to arrange sufficient amount of money
needed to carry out all activities effectively. This will cover the implementation of budgets for
various divisions to give guidelines is to make accurate plan or policy as per given budget
otherwise it outputs in maximise of cost which negatively effect on their profitability. This
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department support the organisation to increase their goals and targets within predetermined time
period (Hillary, 2017). This helps the company to earn huge profits and firm can deliver good
quality of car to all customer's. Hence company can expand their activities in minimum time.
TASK 3
P4 Positive and negative impact of Macro environment on Business operations
Macro environment includes elements which are not directly related with business
operations. As these factors are not in control of managers of Skoda, so it is essential to make
changes in working style (Hillary, 2017). Skoda is big brand in auto-mobile sector, so they get
affected because of macro external factors. There is positive as well as negative impact of macro
environment. PESTLE analysis is effective for knowing effect of macro environment. PESTLE
analysis of Skoda with its negative and positive impact are-
Factors Meaning Positive Negative
Political In this factor there is
involvement of
government bodies
which affects
organisational growth
and development.
There is continuous
involvement of
government bodies in
performing business
operations.
If company pay taxes
in proper time, then
company can survive
in the market. It helps
the firm to perform
activities in better
manner.
Due to excess political
control, there are
possibilities of effect
on working style. Due
to excess tax rate
managers of Skoda
may not able to coop-
up with it.
Environmental It includes less
wastage of resource,
less pollution to
environment.
Company can create
steps for protecting the
environment.
Company can create
cars which give less
pollution to
environment. This
helps the company to
maintain positive
image in minds of all
Firm creates wastage
of resources and thus it
cannot protect
environment.
Company has to create
plans for less wastage
of resources.
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people.
Social Social factors mean
impact of culture,
population, age, etc.
As per change in
culture, there is
difference in demand
of customers.
Skoda has to create
good quality of cars
and try to target the
upper class. This helps
company to generate
more revenues and can
increase the market
share.
Due to diversification,
there is no USP for
Skoda. Due to change
in demand there is
increment in cost.
Technological Technology plays vital
role in auto-mobile
sector. There are any
changes in techniques
to make working in
automation form.
There is profitability
in in performing
operations in effective
way. With the help of
technological up-
gradation there is
positive impact on
quality of products,
less possibilities of
defects, etc.
Due to change in
technology manager
has to alter business
operations, this
includes time as well
as cost. There is
requirement of training
to employees but
sometimes they are not
ready to learn.
Legal In legal factors rules,
regulations, legal
norms are included. As
per this concept,
Skoda has to make
policies according to
government norms.
With the help of legal
policies, employees
and customers are
aware of changes in
appropriate way.
When managers of
Skoda work in ethical
manner, then there is
less governmental
interference.
As Skoda operates in
various parts of
country and there is
difference in legal
norms so this affects
main motive of Skoda.
Sometimes there is
requirement of legal
advisor which cost
fees.
Economical Economical factor Financial component As Skoda operates in
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