Business and the Business Environment

This report discusses the impact of the business environment on different types of organizations, including public, private, and voluntary organizations. It explores the size, scope, and organizational structure of Ford Motor Company, Crown Prosecution Service, and British Heart Foundation. The report also includes an analysis of the interrelationship between different organizational functions and the effect of PESTLE and SWOT analysis on business performance.

Business and the
business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1...........................................................................................................................................3
P2...........................................................................................................................................5
TASK 2............................................................................................................................................7
P3...........................................................................................................................................7
TASK 3............................................................................................................................................9
P4...........................................................................................................................................9
TASK 4..........................................................................................................................................12
P5.........................................................................................................................................12
P6.........................................................................................................................................13
CONCLUSION.............................................................................................................................14
REFERENCES............................................................................................................................16
Books & Journals...............................................................................................................16

INTRODUCTION
Business environment defines as the surroundings and both inner & outer
elements which might affect the overall business functions. Some of these factors
includes customers, suppliers, owners, supply & demand, requirements of customers
and many more. Furthermore, it has also been identified that there are various
legislation implemented by government which might affect the whole working of an
organization. In this report, three different types of business entities are chosen which
includes private, public and voluntary organization. In the current case of public
company, Crown Prosecution Service is selected as the basic institution which is a
public agency responsible for examining police evidence, deciding in advance whether
to take for further criminal proceedings (McDowell, Harris and Geho, 2016). Whereas, in
case of private organization Ford Motor company is chosen which is an American
multinational automaker founded in 1903. At last, in case of voluntary organization
British Heart Foundation is a charity company mainly works with a motto of Beat
Heartbreak Forever. In this report, various sections are discussed which includes
analysis of size and scope of different kinds of business entities along with inter-
relationship with different organizational functions. Furthermore, it includes both
PESTLE & SWOT analysis which help in identifying the effect of such analysis on the
performance of business organization.
TASK 1
P1.
Public Organization: It refers to the kind of business entity fully owned,
managed and controlled by the higher authority & government of a nation. These are
the organizations which provide services to the public in order to increase their living
standards (Benmamoun and et. al., 2016). In the current scenario, Crown Prosecution
Services is chosen as the base organization, where main responsibility is to provide
legal proposal to inquiry agencies while criminal investigation. It refers to a Public
institution which was established in 1896 & the headquarter is based in Petty France
London.

 Purpose: CPS doing their services with a aim which is to duly offer different form of
legal advices to police and other investigative agencies during the time of criminal
proceedings. Most important aim that has been hold by entity is to offer well defined and
effective services which is also true and fair.
 Legal structure: In the segment of public, organisations are duly governed by
governmental institutions and entities. In relation with Crown Persecution Services
formative decisions has been undertaken by entity higher authority of nation with an aim
to offer appropriate as well as positive results. The attorney journey for England &
Wales is responsible for CPS's work and for all answers relate to it. Attorney
general posses no influence over conducting of prosecutions. There is influence
inly in cases where the issue is related to national security and there are some
samll number of offences that need Attorney general permission for prosecuting
it.
 Stakeholders: This has been duly determined that a structure within an
organisation play key essential role. In context with stakeholders this has been
evaluated that they invested their money within entity with some certain motive.
Thus, they are included in the key individuals those who get duly affected by
business decisions that has been undertaken by company.
Private organisation: It refers to the organisation consist of individual person,
partner and agencies which mainly operates for the motive of earning profit. In
reference with present organization which is Ford Motor Company is an American
Multinational business corporation founded in 1903. It is an organisation deals in
automobiles across the whole wide world (Quinlan and et. al., 2019).
 Purpose: Ford Motor Company is a global organisation deals in automobile
sector. It is said that company provide commercial vehicles to the customers
across the whole wide world. Ford is an organisation established by Henry ford
whereas its headquarter is located in Dearborn, Michigan, US. It has also been
said that company mainly provide luxury as well as commercial vehicles to their
customers. Apart from this, in order to fulfil the needs of customers, examination
of demands and trends are done by the management team on a regular basis
(Stefanović and et. al., 2015).

 Legal structure: In this view, overall legal structure of the company mainly
depends upon the business functions of an organisation. If talking about Ford,
legal structure is decided by the top management authority of the company which
includes CEO, BOD as well as owners of the business organisation. In such
organisations they are the one who take all the final decisions. All these
decisions highly influenced by both internal as well as external environmental
factors. The legal structure is vertical and there are top three offices that consist
of president, chairman & executive vice president. These are the functional
heads who have equal authority & are working directly under the control of
executive vice president of Ford.
 Stakeholders: In the present context of private organization, they are the one
connected with the revenue of every business organization. Performance of
business organization are mainly influenced by the behavior of stakeholders
(Schaltegger,Lüdeke-Freund and Hansen, 2016). Some such type of
stakeholders in context with various types of private organization includes
customers , staff members, investors,and so on.
There are different types of private organizations like
sole proprietorship:
This is a type of business where a single individual sole trader is starting a business
venture based on a certain business idea.
Legal structure: In these type of business sole proprietor is responsible for all business
functions and also is responsible for all liabilities & transactions that are taking place in
the course of business functioning. Example: Columbus photographers is a organization
where the owned by a single individual and is solely responsible for all the transactions
that are part of functioning of business.
Partnership: It is a type of business that is formed by two or more than two partners
coming together to achieve a set of objectives.
Legal structure: Partnership form of business organization is always governed by a
partnership deed that is formed initially before the commencement of partnership. It has
been made compulsory by new modifications that all the partners are responsible for al

business transactions that are governing a partnership firm according to their type which
may be sleeping partner or active partner.
Example: solicitor doctor is a example of partnership organization that is having a
partnership firm where all the transactions & activities
Voluntary Organization: It includes all those functions as well as activities
which can not be managed and controlled by legal government of a country In the
present context, British Heart Foundation is chosen as a organization founded in the
year 1961. It is a voluntary organization established by large number of people belong
to medical professions mainly concerned about increased death rates due to
cardiovascular disease.
 Purpose: Main goal of this business entity is to reduce the death cases which
are arising because of heart problems. Their primary aim is to create a healthy
and free world where there is no kind of heart diseases (Graham and Kaye,
2015).
 Legal Structure: It is a voluntary organisation mainly based on the decisions
and legal structure developed by the governmental and top management
authorities. In the present view of British Heart Foundation, it is said that major
decisions are made by the professionals working within the organization so that
positive working environment will be created.
The board is made of 14 trustees who are medically qualified and they posses full
responsibility for all cations that are taking place in the organization. Members are
appointed according to a specific time period that is three years and directors are
governing it according to provision mentioned in companies act 2006.
 Stakeholders: These are the individuals generally interested within the
functionality of business organization (Beatty, Samuelson and Abril, 2018). It
consist of founder, employees, beneficiary and many other people associated
with the voluntary organization.
P2
The companies perform operations as per the size and its scope. Below is the
scope & size of the chosen system:

Private Organisation:Ford
A multinational organization which deals in manufacturing and production of auto
mobiles and commercial vehicles. The company starts operations from year 1903 and
was originated by Henry Ford. The company head office in Michigan, United States.
Product & service: Services in a company involves automotive finance, vehicle
leasing & vehicle service whereas its products includes Luxury vehicles, SUVs, trucks,
commercial vehicles and so on (Hamilton and Webster, 2018).
Size and scope : The company provides quality vehicles for their customer in for
a wide scope. There are 66 plants which are operating globally and are operated by
approx. 1,77,000 talented workforce.
Vision & mission : The mission statement of this company is to provide
spectacular vehicles to the individuals which are according to their class in the societies
and overall the Vision of institution is “ to become the leading company in these sector
by offering smart and design vehicles in the market”.
Public organisation: Crown prosecution service
CPS is a public agency which conducting the criminal investigation in Wales,
England and other countries. The company is formulated in year 1986 by Max Hill.
Product and services : The company which is examining police evidence to
punish right culprit.
Size & scope : Cps has more than 6000 people who are recruited by agency of
government (Oriesek and Schwarz, 2016). It is operating its investigation in England &
Wales.
Vision & mission : The mission is to develop freedom in societies and bring
equality. The company long term vision is to punish the right verdict and make people
feel secure at every place.
Voluntary organisation : BHF
British Heart Foundation is a charity structure which main aim is to reduce fear of
people from heart disease, the company was funded by government and by the
trustees. It was proposed in year 1961 by medical professionals.

Product & service: The organisation is focussing on reduction of death number
which are done because of cardiovascular disease. For this, they take assistance from
various professionals who belong to the medical sector (Teece, 2016).
Size & scope : Presently, the company funded in greater than 1050 task.
Structure has approx 5500 skilled and talented staff members who are performing
various functions more effectively.
Vision and mission : The mission statement of BHF is “ To minimize premature
death numbers as well as secure lives of individuals. Whereas long term vision, which is
“ To educate and aware people about heart disease so that they cannot feel fear with
these disease and fight with it strongly”.
TASK 2
P3
Different organizations are having organizational structures namely- functional,
divisional, matrix, strategic business units etc. An organizational structure comprises of
various jobs, tasks and activities that are allocated to employees at various hierarchy
levels (Huang-Horowitz, 2015). It also defines the relationship that the employees within
an organization share with each other. The organizational structure of Ford is vertical.
The company has an organisational structure that is based on the company's need to
control its operations in various markets of different regions. The main features of the
organisational structure of Ford include corporate hierarchy, functional groups spread
across the globe and geographic divisions in various regions. These features help in
running the company's operations in a smooth manner which in turn assists Ford in
attaining their organisational goals as well as objectives.
There are different sections in a company which have some roles &
responsibilities which have been allotted to them and if even one is not able to function
properly, then it leads to a situation of functioning of all the departments getting
disrupted. Also, all the departments are linked to each other and work in coordination
(Sinay, 2014). The relationship among various functions in Ford and how do they link
themselves with organizational objectives and structure is described below-
 Marketing & Finance Departments – The marketing department at Ford plays
a aprt in the overall development and management of the sales (Fernández-

Olmos and Ramírez-Alesón, 2017). It sets up various campaigns and programs
in order to boost the company's sales by advertising and promotions through
television, radio, newspapers and magazines etc. The department also develops
various strategies that help the management in choosing the best way to
promote the company's products. The department after carefully analysing the
trends in the market, develops ways in which the company can lure new
segments of customers and gain their loyalty. Surveys of various kinds are
conducted to get information regarding the needs and requirements of the
customers and hence communicates the same to other departments (Shi and
Wu, 2017). The finance department on the other hand, controls and manages
the various financial transactions that take place within the organization and
supports other departments whenever they need funds to carry out various
activities. Since the marketing department needs funds from time to time in order
to carry out various tasks and activities relating to creating brand awareness and
promoting products of the company, the finance department takes care of all this
and provides funds whenever there is a need.
 Operations and HR Departments – The operational department in Ford plays a
major role in carrying out a production that generates profits for the company
and operations that are highly effective for the firm. Hence, if a company's
operations are being carried out properly, means that the business is running
effectively and efficiently (Li and et. al., 2019). The operations department in
Ford primarily focuses on producing highly efficient vehicles whose designs are
environment friendly and cause as less harm possible to the environment. The
department keeps a track of all vehicles which are made in particular time period
and the raw material like steel that goes into the manufacturing of the vehicles.
The HR department on the other hand is considered among the pillars of the
organization. The department forms activities under five major functions namely
– compensation, staffing, health and safety, employee and labour relations and
development. The departments work in coordination with each other like the
human resource department recruits and selects people after proper screening
that are well qualified for various open positions of the company (de Loë and

Patterson, 2018). Similarly, the operations department commun8icates the need
of the skilled professional that might be needed in the team and therefore, the
human resource department acts accordingly. This helps in proper functioning of
both the departments.
TASK 3
P4
Ford motor company is the biggest leading multinational business corporations
deals in automobile sectors (McDowell, Harris and Geho, 2016). It refers to an
American multinational company perform their business operations at international
marketplace so that they can capture huge market share. It has been analyzed that
there are various factors which highly influenced the business functions. Therefore, it is
very important for the management team of Ford motors to conduct an examination of
all the micro factors which are discussed as follows:
Political factor: It is related to various elements which are governmental
policies, tax laws, foreign trade policy & many other factors highly modify the
performance of a company. This influence can be both positive and negative depends
on the situation and the way management team adopt that situation (Benmamoun and
et. al., 2016). In the current business organization Ford motor, it has been identified that
the regions which are related with Asia Pacific are quite politically stable. It has also
been identified that due to free commercialism contracts as well as authorities
incentives at the emerging marketplace develop various growth opportunities to the
organization. This will help companies in different manner which encourage them in
order to perform their business functions at international marketplace. Positive impact: Positive influence of political factors is that condition of UK is
quite stable and all the governmental policies provide support to the
management team of Ford motor company. Negative impact: Whereas, due to international wars as well as terrorist attacks
might influence the business functions in a negative way (Shelton and Shopley,
2017).
Economical factor: It refers to those elements which influence the overall
economic system of a nation. Some of such factors are exchange, inflation, employment

rate & so on which mainly affect the economic system of a country. In the present
context of Ford motor organization, purchasing power of customers are strong which
increase the profitability of the company in external marketplace. This will increase the
overall profitability of the business entity and help them in attaining positive result
(Quinlan and et. al., 2019). Positive impact: With the help of strong and positive economic condition of
United Kingdom, Ford motors will increase various opportunities at the
marketplace. Due to high purchasing power of individuals, company will be able
to create more revenue. Negative impact: Whereas negative impact is to increase in labor cost might
influence the business operations in a more negative way.
Social factor: It has been analyzed that both social & cultural factors highly
affect the overall business functions of the organization (Stefanović and et. al., 2015).
Difference in social factors might influence the effectiveness of business as well as
sales of the company. From past few years, it is said that maintaining positive social
image of the company in front of business organization influence sales of the company.
It has also been analyses that companies who have provide customer service and
become friendly with customers will be able to generate more revenue at the
competitive marketplace. In the current context of Ford motor organization, it has been
identified that the organization have very strong brand name for their individuals as they
are able to successfully satisfy their overall needs & requirements of individuals. Positive impact : With the help of this factor, ample number of individuals will
attracted towards the company which as a result increase the brand image and
revenue of the establishment at the competitive marketplace
(Schaltegger,Lüdeke-Freund and Hansen, 2016). Negative impact: Due to accessibility of many player at the marketplace, Ford
motor company find it difficult for the staff members to pull customers towards
them.
Technological factor: In the external environment, technology plays a big role in
order to attain goals of the business organization. It has been identified that customer
requires high tech and advanced technology cars with automatic windows as well as

rear-view cameras. This will help them in order to grab attraction of ample number of
individuals towards Ford motor company. of very important role in the achievement of
objectives in every company (Graham and Kaye, 2015). Apart from this, it is also
identified that there is a technology which attract attention of numerous companies such
as Driverless cars. For this, managers of Ford motor company need to upgrade their
technologies so that they can gain opportunities at the competitive marketplace. Positive impact: With the assistance of conducting regular up gradation of
techniques, company will be able to gain various opportunities at the
marketplace. Along with this, innovative new products and services satisfy the
requirements of customers which generate more profitability (Beatty, Samuelson
and Abril, 2018). Negative impact: Whereas, adoption of some innovative techniques needed
sufficient more amount of funds which will surely have a impact on the whole
profitability of the company.
Legal factor: It has been analyzed that different legal elements which might
impacted the profitability of the organization operates in a specific marketplace. The
legal factors involve discrimination law, health & safety law and so on. With reference to
Ford, the manager of the company follows all these legislation in order to make
employees feel protected and secured in the organization. This will increase
performance as well as productivity of the company.
Positive impact: It builds positive atmosphere in the company which further raises the
overall productivity of employees. Negative impact: The company faces hurdles because of changing in the laws
as it takes cost as well as time period of the company.
Environmental factor: The company manufacture did not ham the surroundings
as it activities should improve the environmental conditions of the country. With
reference to Ford, the company uses environmental friendly raw materials in the
production of commercial vehicles and automobiles (Hamilton and Webster, 2018). Positive impact: It build positive image in the market and attracts large audience
to purchase its services and products.

 Negative impact: Using environment friendly products as well as technologies
increase the cost of the company leads to decrease the level of net income of
company.
TASK 4
P5
The framework which is designed to help individuals, organizations and groups to
identify and address their strengths and weaknesses as well as analyse the influence of
various internal as well as external factors on the functioning of the company is known
as SWOT analysis (Oriesek and Schwarz, 2016). The external factors include
opportunities and threats whereas strengths and weaknesses are counted among
internal factors. The SWOT analysis are explained below -
 Strengths – Ford is a globally recognized brand that has operations across the
world and high brand image. The customer segment of the company is also
strong with a large number of customers that have been loyal to the brand for a
very long time. The company constantly tries to come up with new and unique
innovations from time to time. The company is highly focussed in its research
and development aspect and invests a considerable amount in the same.
 Weaknesses – Majority of the company's sales come through the US market
alone which in turn limits the brand's ability to earn profits and its overall share in
the market (Teece, 2016). The company does not have a stand in the new
emerging markets like China. The production costs of the company's products
are high. Also, the brand has got limited network of production facilities in the
world when compared to its competitors.
 Opportunities – The company has got a major opportunity to expand itself in the
regions it is not present yet. Ford should pay attention on developing vehicles
that are environment friendly and work on renewable energy. It can also focus on
partnering up with big brands that will in turn help Ford improve its overall
performance and productivity (Huang-Horowitz, 2015).
 Threats – The company has been facing a lot of competition from competitors
like Toyota, Tesla etc. Therefore, the company should be ready to face such
competition in order to sustain itself. Constant fluctuations in the prices of raw

materials like steel can affect the company's profit margins and overall share in
the market too. There is threat of new entrants who are entering into the
marketoffering various different category of products and offering various
different category of products with new and improved features and technology
(Sinay, 2014).
P6.
Dimensions Political Social Economical
Strength To perform
effectively and
remove the conflicts,
the upper level
authorities in Ford
follow various
legislations and
policies which are
formed by
government.
The company is
focussing on
improving the class
of people living in
society by producing
of affordable
segment vehicles as
per need and
demands of
customers
(Fernández-Olmos
and Ramírez-
Alesón, 2017).
The higher
authorities
manufacture the
products according
to expectations of
customer & overall
demand. They paid
to labour a amount
which can help them
in fulfilment of their
basic necessity
which leads to
enhance the
productivity of staff
members.
Weakness Changes in the plan
of action & laws of
government because
of BREXIT directly
gain overall
expenditure of Ford.
In addition to this, it
Present, the people
of social group
prefer to use electric
vehicles or use low
usage of oil vehicles
which immediately
impact on overall
The company has to
develop Bio fuel
and electric vehicles
which modifying
whole process of a
company &
automatically

also has a impact on
the environment of
company.
profitability of Ford
(Shi and Wu, 2017).
increases whole
system of cost of
Ford.
Dimensions Technological Environmental Legal
Strength Advanced
application, the
manager in the
company can offer
innovative cars to
their customers
which increases Ford
market share and
revenue.
The institution has a
major subjective is
to decline the
utilization of oil and
to increase the
consumption of Bio-
fuel which is good
for the environment
(Li and et. al., 2019).
Ford fulfils all the
legal act which are
related to its
business concern so
that institution can
work in an more
effective as well as
appropriate manner.
Weakness Nowadays, the
technology is
changing daily. To
match with
technology & to
compete at the
market, the revenue
of company &
profitability is
decline.
The high authorities
of company is not
able to work in an
effective manner
because of some
environmental laws.
which will pose a
impact on sales of
Ford in a adverse
manner.
For following all the
legal laws and
formality, it
consumes the
duration and
expenditure of the
company which
directly impact on all
functions in an
organisation
negatively (de Loë
and Patterson,
2018).
CONCLUSION
From the overall discussion made in the project, it is comprehended that
business environment of the company is consist of the both the internal as well as

external environment. It has been determined that there are numerous activities
adopted by business associations for enahnc8inhg their sustainability at marketplace
that directly supports them out in gaining competitive edge in quicker manner. Usage of
SWOT analysis have supported business association in developing their knowledge
over the internal environment. As a result, it is easier for business manager to
formulate effective strategy towards the same. Along with this, usage of PESTLE
analysis have supported the respective company in knowing about their external
environment deeper manner that aware them about the threat as well as opportunities
available for them in the external area.

REFERENCES
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