Interrelationship between Organisational Functions in Ford Company

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Determine different types of organisation .......................................................................3
P2. Define how organisational size, scope and structure interconnected with business
functions.................................................................................................................................5
P3. Determine the interrelationship between different functions of organisation with its
benefits and drawbacks. .........................................................................................................7
P4. Analysis of PESTLE model for determining different factors of macro-environment which
impact company....................................................................................................................10
P5. Critical analysis of both macro and micro factors which have an impact upon business
decision-making...................................................................................................................13
P6. How organisational strengths and weaknesses are interrelate with the factors of external
environment..........................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment is define as a sum of various internal or external element
that effect over organization (Aithal, 2016). For an organisation it is essential to
analysing and measure each and every factor of business environment in order to
perform organisational activities in effective manner. All factor internal and external
factor needs to be analysed with the motive of taking correct and accurate
organisational decisions. There major factors which have impact over organisation are
employees, customers, demand and supply, government authorities, trends of market
and many other factors. The company chosen for this report is Ford. This is a well
known American multinational organisation which is supply various types of
automotive products or services to its potential consumers. It is dealing in automotive
industry and it was founded in year 1903. Headquarter of this organisation is located in
Dearborn, Michigan, US. This report will includes various kind of business structures as
well as interrelation of various organizational role. This includes the structure, size,
scope of different organisation. This report includes analysis of advantages as well as
disadvantage of interrelation in between organizational activities and their consequence
over system or company structures. In this report macro environment of company is
evaluated in order to identify its optimistic and negative effect on organisation.
MAIN BODY
P1. Determine different types of organisation
Organisation can be describe as the group of people that are combine together
in order to perform different activities of organisation. There are different types of
organisation that are majorly classified into private public and voluntarily organisation.
All of these organisation are conducting different types of business activities in order to
meet with business goals and objectives.
Private organisational – This can be describe organisation that is majorly
controlled and managed by owner. Private organisation is conducting business activities
in order to earn more profits as well as increasing presence of company all over the
globe. Example of private organisation is Ford company.

Type of private organisation Sole proprietorship: Within this structure the whole processing of business is
carry out and planned by the single individual who carry forward the particular
operations (Shenkar, O and et.al., 2014). They have the unlimited limited but in
case of revenue they explicitly enjoy the immense amount of profitability. Partnership: Here the business is managed by the group of two or more
individual that signed together a partnership deed which contain all the essential
information regarding the business. The suitable amount of profitability is shared
on the basis of favourable ratio based on their contribution.
 Limited companies: It ensure that the liability of the members within company is
limited on the basis of their investment. Under public limited company the
organisation take the shares from the general public in order to expand the
operations. Whereas, in case of private limited company which is carried by the
small business protect the interest of their internal stakeholder by availing them
significant profit.
Legal structures of respective private organisation is limited company as this
organisation is providing its products and services in large market area. Liability of its
member is based in the their investment in organisation.
Public organisation – This type of organisation refer a business which is majorly
manage and control by government. This type of company is providing different types
of products and services to the citizens of particular nation or market area. Government
is responsible for taking all important decision for management or running of business.
Crown Prosecution Service (CPS) is example of public sector organisation.
Type of public organisation Central : Central is the apex body which look after the implication of major rules
and regulation within entire economy. For better administration liable authority is
translated to various departments for better imposition of plan and welfare of
member.