Introduction to Business

LEGEL The way in which legislation in society affects the business. As most of the equity of PROTON is owned by the government it enjoys much flexibility of the laws and gets advantage from the taxes and tariff. On the other hand there are restrictions on the import of car in Malaysia as a result they get competitive advantage from here. As Malaysia is a member of ASEAN proton cars also get some advantage on the intra-regional tariffs and non-tariff barriers, and also get easy access to larger market as having the Government organization of Malaysia.So, Proton cars either locally or overseas have certain legal advantages, such advantages can to Proton car development to pave the way.In the legal aspects of the Proton car,it already has many advantages, these advantages can also affect some of the major decisions of the company, Proton cars have been established for 29 years, with strong government support and a good reputation in people's reckoning, have the most of the market share in Malaysia,these legal advantages, will make the company's decision-making has become more radical, to try to occupy more and more market.
ENVIRONMENTAL
The environmental system is the natural system in which life takes place. Increasingly businesses have become aware of the relationship between their economic activity. It includes natural resources, weather, climatic conditions, port facilities, topographical factors such as soil, sea, rivers, rainfall etc. Car company Proton, rising gasoline prices of resources, so that more people realize that buying a car must be fuel-efficient the Proton car needs to be adjusted in terms of car design, making the design of the car in the era of rising oil prices have a good cost-effective. In Malaysia, a year during the dry season and the rainy season, weather factors, which will affect the Proton car in the design and manufacture of the product according to local conditions, making the car manufacturing enough to withstand the year-round high temperatures and rain infringement.In the terrain factors,Malaysia, the vast majority of the road is highway, so the performance of the car on the highway is particularly important, the design of the product should pay more attention to the stability and security of the car in a high speed.Thus, we can see that, in different resource factors, weather factors, terrain factors, these environmental factors are more or less affected Proton car company decisions affect the future direction of the company.
COMPETITION
Competitors actions affect the ability of the business to make profits, because competitors will continually seek to gain an advantage over each other, by differentiating their product and service, and by seeking to provide better value for money. PROTON is the first Malaysia national car. The big competitor in Malaysia in term of automobile companies and affordable car is PERODUA. The competitive environment as we can see roughly in Malaysia is affordable car where all citizens in Malaysia can buy it and the car maintenances also cheap. As we see the environment in Malaysia, 1 family will have more than 1 car,for sure, the first car they will choose the cheaper car and affordable car.Substitutes also will be a big threat for PROTON. Malaysia has to national car. The First automobile is PROTON and secondly PERODUA. The substitutes will high in term of car model,some of car model looks similar, and car spare part.So the PROTON must do better than PERODUA in all aspects. Now the PERODUA is neck and neck to PROTON. This fact makes PROTON more and more pressure. So, if the PROTON would like to continue to lead the car market, It is bound to make some decisions to adjust decision-making to become more targeted, with lower fuel consumption and more cost-effective to get people’s recognition. Thus, we can know in the competition environment of the PROTON,also effects the decision-making of the company.