Ford Company Report: Business Environment, Functions, and Analysis

This report provides a comprehensive analysis of the Ford Motor Company, examining its business environment, organizational structures, and the interrelationships between various business functions. It begins by defining different types of organizations, including private, public, and voluntary sectors, and uses Ford, the Crown Prosecution Service, and the British Heart Foundation as examples. The report then explores how organizational size, scope, and structure are interconnected with business functions, followed by an examination of the interrelationship between different functions such as marketing, sales, IT, and finance, highlighting their benefits and drawbacks. The report also includes a PESTLE analysis to determine the factors of the macro-environment impacting the company and a critical analysis of both macro and micro factors that influence business decision-making. Finally, it discusses how organizational strengths and weaknesses relate to external environmental factors, concluding with an overall assessment of Ford's business operations and strategic positioning.

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.

 State : In comparison to the Central, such legal structure is bound for the specific
area or zone who is responsible to plan out the significant policies and
implement it for the welfare of particular region. Further, on the basis of the
functioning the regulation and monitoring are taken place
 Local: It involve the role of municipal party or local authority that cover the small
geographical region like villages. On the basis of the functioning the regulation
and monitoring are taken place with the objective to grow and develop the region
wisely.
Legal structure of Crown Prosecution Service (CPS) is non ministerial government
department.
Voluntary organisation
Voluntary organisation can be describe as the organisation which is performing
and conducting business activities in such as manner that it will lead to provide benefits
to society and its citizens. Voluntarily organisation includes employees or voluntary
members that are working through their own wills in order to provide benefit to society.
The British Heart Foundation is the example of voluntarily organisation.
Type of voluntary organisation Trust: Such legal structure are more prone to manage the property as well as
fund used to fulfil the particular objective significantly. Unincorporated Association : Under this organisation structure people voluntarily
come together and spread the awareness by overcoming the suitable issue.
 Charity : It includes all those organisation that are conducting business operation
by collecting or gather charity. People who will to give charity or any useable item
are donating it to organisation.
Legal structure of The British Heart Foundation is charity based as in this number
of people are providing charity as per their own will or want.
P2. Define how organisational size, scope and structure interconnected with business
functions

Ford company
Ford is a multinational organisation that is conducting its business operations is
different part of the world. This company is providing its products and services in
automotive industry area and founder of this organisation is Henry Ford. Major products
or services of Ford company includes auto mobiles, commercial vehicles, SUVs, Pickup
trucks and so on.
 Size – Size of private sector company includes the number of employees or area
in which organisation is offering its products and services. This company has
large market size as it is providing its products and services to different market
area. Ford company have more then 200 employees that is performing business
activities in different market area.
 Scope – Scope includes growth or development of business in market in order to
gain competitive advantage over other rival companies. Scope of Ford
organisation is high as it has strong brand image in market area. This
organisation is focusing on creating and developing products and services which
is as per the need of customers.
Crown Prosecution Service (CPS)
This is a public agency that performing criminal prosecutions in England as well
as Wales. Crown Prosecution Service organisation was developed in 1986 and head
office of this organisation is Petty France London. This organisation is fully controlled
by government of London and Wales. Director of public prosecution is the head of this
organisation.
 Size - Public sector organisation size is limited to the area in which it is
performing organisational practices. In Crown Prosecution Service organisation
approx 6000 employees are working in order to attain the goals of organisation.
 Scope – The scope of Crown Prosecution Service is to provide legal advice for
conducting investigative agencies or polices in order to resolve criminal cases.
The British Heart Foundation

This organisation was founded in year 1961 and motive of developing this
company to provide proper medical care and support to people in order to overcome
heart issues or disease. The major purpose of The British Heart Foundation company is
to support in overcoming heart and circulatory diseases as well as resolving risk factors.
 Size – Voluntary organisation is operating in comparatively less market size and
The British Heart Foundation company size is limited to United Kingdom market
area.
 Scope – Scope of respective company provide health and medical facilities to
citizen of UK market area. This organisation is conducting research on diagnosis,
treatment or prevention of circulatory or heart diseases.
P3. Determine the interrelationship between different functions of organisation
with its benefits and drawbacks.
A company comprises of different type of function as well as activities which are
interrelated to each other in order to make the impressive utilization of the available
resources. The purpose of the structure is to attain the particular objective by making
effectual usage of the available resources through cooperation or coordination.
Explantation of different type of functions along with their interrelationship are
demonstrated below:
Marketing and sales department: Both marketing and sales are the different
department where the role of marketing is to analyse external dynamics and plan out
the strategies related to the offerings of company (Tretyak and et.al., 2013). Whereas,
sales department directly communicate with the customer and gain the constructive
feedback which is further transmitted to the marketing department in order to plan out
the modification in the offerings of Ford company. Thus, these two different department
are interrelated with one other to fulfil the particular objective that is to maximise the
profitability and cater the possible changing need as well as demand of customer.
Further, it helps the divisional structure to land up into the particular objective and carry
out the different roles and responsibility effectively and linking up with the specific
objective.
Advantage

 Interrelationship between marketing and sales department helps to increase the
footfall of company because on the basis of customer behaviour significant
alterations are made to match the pace of changing preferences of customer.
Disadvantage
 If the firm is not able to meet the standard of customer then it may leads to the
possibility of dissonance. As Ford company fund in developed and developing
country where they can chance the confusion in context to significantly meet the
demand and requirement of customer.
IT and Finance department: Finance department look after the monetary
transaction and prepare the budget that signifies how much funds need to be allocated
in various technology so that it gain profit margin by carry out operation effectively. So
the IT department depends upon the finance in terms to upgrade the technology and
carry out the process significantly. Such interrelation effective help to allocation the
resources and syntagmatically attain the particular objective that is to launch the new
invention in order to overcome the competitive pressure. Along with that it effectively
satisfy the divisional structure by carry out distinct activities on the basis of interrelation
and information gained from subsequent department.
Advantage The main advantage associated with this interrelationship is that Ford can adopt
the latest technology under the preferable budget. This keep them competitive
and cost effective.
Disadvantage
 On the basis of IT technology there is a huge possibility to exceed the budget
which leads to the chances of deviation. Although there is a chances to undergo
unnecessary expenditure so all the pre budget need to be prepared by having
foresight vision.
Business structure
It encompasses the systematic flow of activities, communication, authority,
responsibilities and process decision taking at the different level of a company. This
promote the adequate functioning of different level of management without creating the
chaos and confusion as every one is aware to whom they have to address and perform

functioning (Meiners and et. al., 2014). Explanation of different type of business
structure is demonstrated below:
Divisional structure: Usually large organisation that require high autonomy or
control over the different departmental unit like transportation and manufacturing adopts
the divisional structure. This leads to the better management and operations as each
and every division of company are required to carry out its own processes. Along with
that resources are controlled properly with the objective to attain the specific objective.
Merit
This can allow the Ford company to gain the privilege of flexibility as each division are
responsible to carry out operations by considering it as a separate company.
Additionally, the external dynamic situation does not affect the internal processes.
Demerit
 The downside associated with this structure is that the employee of respected
company may not get the opportunity to communicate effectively with other
members of diverse divisions.
Functional structure: Within this business structure the organisation divide the
groups of the employee on the basis of their particular capabilities, skill task as well as
responsibilities. Like, the similar type of employee are grouped working in the marketing
or finance department. This can be followed by Ford company as it helps to gain the
better result because people get to work on the areas based on their specialisation that
leads to better performance.
Merit Application of this structure leads to the collective synergy as staff are group
together by their knowledge and skill set which finally leads to better
achievement of result.
Demerit
 This possibly restrict the dependency, coordination and discussion between the
diverse managerial level (Quinlan and et. al., 2019). Due to such differentiation it
difficult to maintain significant interrelation.
Conclusion: Therefore, amongst the different structure Ford company has
effectively adopted Divisional structure. As it is the global brand so the manger with the

help of this method can maintain the better administrations and overcome loopholes.
Significant the targets and resources are allocated to diverse department which they
plan out to attain within confined duration.
Interrelationship of different organisational functions
Organisation function is the core processes that involve diverse area and
activities of business which are carried out to attain the particular objective. Additionally,
the organisation comprises of different department like marketing, sales, human
resources, research and development that have their sole objective to attain the
particular goal of the organisation. But in the similar way they focuses to maintain
relationship with one other. Like, the marketing department identify the changing
preferences of customer and share all the essential information with the production
department in order to bring modification in existing style (Savrul and et.al., 2014).
Along with that financial department is overlooked by various departments like
marketing in order to gain the information about budget and systematically invest in the
promotion technique. This help the Ford company to cater the need of people
systematically and launch the appealing collection to gain edge over others.
P4. Analysis of PESTLE model for determining different factors of macro-environment
which impact company
There are different factors of macro surroundings that will have impact on
enterprise and its decision making. For Ford company it is essential to analyse and
measure all factors of external environment with the motive of improved enterprise
decision making. External business environment includes all those factor which can not
be controlled by organisation and have huge impact business operations (Apăvăloaie,
2014). For critically analysing the different factors of macro business environment this
organisation have to analyse PESTEL analysis in order to determine various factor and
take better business decisions. PESTEL analysis in respect to this organisation is given
below.
Political factor – This factor includes various elements that will lead to have influence
on respective business and its functions. Political factor consist of all rules and

regulation that is developed by government and political party of UK with the motive of
providing guidelines to organisations. Political factor consist of government policies,
stability and instability of political party, foreign trade, taxation policies, trade restrictions
and other factors. Political factor will have positive as well as negative impact over Ford
company.
 Positive impact: Government and political party of UK is developing different
policies for betterment of automotive sector (Belás and et. al. 2014). This will
help organisation to growth and enhance their business. So stability of political
party will lead to have positive impact over business as well help in development
of organisation.
 Negative impact: There are many rule policies developed by UK government
which can have negative impact over organisation. UK political party has
developed strict trade restrictions which will have direct influence over sales and
profits of Ford company.
Economic factor – This factor will have significant impact over the business as well as
its functions. Economical factor includes GDP, growth rate, inflation rate, disposable
income of customers, exchange rate and so on. UK country has one of the most
growing economical rate in the world. Positive and negative impact of economical factor
on respective company is mention below.
 Positive impact: UK market area has continuously growing and strong
economical rate which will help Ford company to performance business
operation and develop high quality in effective manner. High economic rate will
lead to increase in purchasing power of customers and lead to enhance its sales
Ford automotive products.
 Negative impact: Increase in interest rated charged by government will lead to
have negative impact over sales and profits of receptive company. UK country
has higher the interest rate which lead to increase in the prices of product
offered to customers (Cai and Yang, 2014).

Social factor – There are many social factors which will have great influences over
purchasing decision of customers. Social factor includes customer attitude, behaviour,
standards, customs, beliefs and various other social factors. It is very important that this
company is analysing positive and negative impact of social factor in order to develop
better business strategies.
 Positive impact: Ford organisation is develop unique and different products
which is as per need and requirement of customers. Respective company is
considering innovative technology in order to provide more comfort to customers.
This is very helpful in attracting large number of customers towards organisation.
 Negative impact: Customers need and requirement is continuously changes
which will lead to have negative impact over respective company. Changes in
market trends and customers preferences will affect business sales.
Technological factor – Technology factor includes different types of tool and
technology used by respective company in order to perform business operations. UK
nation has one of the most advance and innovative technology in the world which will
help organisation to perform activities in effective and efficient manner (Erasmus and
et.al., 2016). Influences of technology on Ford business in mention below.
 Positive impact: Respective company can take advantage of new and advance
technology of UK country. This will help in performing business task in effective
manner as well as gain comparative advantage over other rival companies. Ford
company will be able to create innovative products for customers.
 Negative impact: Ford company needs to training and develop its employees in
order to use new technology in correct manner. This will be very cost consuming
for respective company and have negative influences over organisation.
Consideration of innovation manufacturing of product will lead to increase the
cost of business
Environmental factor – This factor includes all rules and polices which are developed
by UK government in order to protect the environment (Gupta, 2013). It includes