Assessment

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1. Distinct organisations and their purposes..............................................................................1
P2. Size addition to scope of distinct organisational types..........................................................3
M1. Analysis regarding linkage of structure, size along with scope of organisations with
objectives and products................................................................................................................6
TASK 2............................................................................................................................................6
P3. Relationship among various organisational functions as well as linkage with objective and
structure........................................................................................................................................6
M2. Advantages and disadvantages about interrelationships within organisational functions.. .7
D1. Critical analysis about complexities of various business structure types together with
interrelationships of distinct functions.........................................................................................8
TASK 3............................................................................................................................................8
P4. Impacts that macro environment has on operations of company..........................................8
M3. Application of PESTLE model in appropriate manner......................................................10
TASK 4..........................................................................................................................................11
P5. Internal together with external analysis about particular entities for identifying strengths
with weaknesses.........................................................................................................................11
P6. Ways through which strengths and weaknesses are interrelated to external macro factors.
....................................................................................................................................................13
M4. Application of SWOT analysis...........................................................................................15
D2. Critical evaluation of various impacts that macro together with micro factors have on
objectives and decision making of company.............................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is one of the term that indicates collection of diverse internal and
external elements that impacts each function, operation and activities of institutions positively or
negatively (Baron, 2012). Some elements are customer expectations and requirements, economic
changes, activities of political system, demand and supply, social trends, clients, innovation
within technology, trends of market, management workings and employees that influences
situations, practices and environment of an enterprise. To understand concept of business
environment, Ford is chosen which is one of leading multinational auto-maker which was
established by Henry Ford in the year 1903 and works as private sector enterprise. Within the
report topics like explanation of various size, scope and kinds of organisations, interrelationships
of few functions in an entity and their linkage with business structure. It also demonstrates
impacts that factors of macro environment have on company's operations and determines
strengths and weaknesses of particular business.
TASK 1
P1. Distinct organisations and their purposes.
Organisation is characterised to units or groups of citizenry which are properly structured
addition to meet needs and works for pursing collective objectives. Within the competing world,
public, private together with voluntary organisations exists with objective of accomplishing set
vision. Through the vision, managers sets guidelines for distinct actional plans that are required
to be undertaken by people of organisation. Following are some categorisation of distinct
organisational types with size and scope:
Public sector organisations: Entities which are owned, controlled, managed, operated as
well as accountable to government authorities and exists for offering services to citizens of
country are public sector organisations (Beatty, Samuelson and Abril, 2018). Crown Prosecution
service, British Army, BBC and NICE are some public sector organisations that works to provide
diverse services to citizens of UK and its surrounding nations. Among all, Crown Prosecution
Service is selected as public sector organisation that is one of principal public agency that
executes operations to demeanor criminal prosecutions in cities of Wales along with England.
Purpose: Purpose that public sector organisations have are to redistribute income, deliver
capital formation sources, achieving planned resource allocation and developing infrastructure
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facilities for general public. In context to Crown Prosecution Service, the company have purpose
to properly execute workings to conduct criminal prosecutions together with providing assistance
for legal advices to criminal investigation agencies.
Legal structure: The legal structure that public sector companies adopts generally
comprises of central government, public corporation addition to local government. In context to
Crown Prosecution, managers proceeds workings with central government owned structure.
Private sector organisations: Entities which are established, managed and run by sole
individual as well as majority of individuals. In these companies, all the operations are properly
managed and commodities are provided to customers at reasonable prices together with better
quality so that more profits are attained (Bernstein, 2015). Ford is the company that is
considered as private sector organisation which was established and managed by Henry Ford and
its team.
Purpose: Private sector organisations works with purpose of achieving sustainable
growth and maximising profits than competitors. Core purpose of Ford is associated with bring
people together for achieving profits and increasing market domination by offering trendy cars
and other automotive commodities to potential clients.
Legal structure: Private sector organisation posses legal structure of unincorporated
structure, private limited company as well as corporate structure. In context to Ford, private
limited company structure is followed as it is established and regulated under companies act.
Voluntary sector organisation: Non governmental businesses as well as not for profit
companies falls under voluntary sector organisation (Bocken, Weissbrod and Tennant, 2016).
These involves diverse range of institutions like educational, recreational, charitable, healthcare,
satellite and religious companies. British Heart Foundation, Oxfam and National Trust are key
voluntary sector organisation that creates huge social impacts despite of revenues. Among all,
British Heart Foundation is chosen as voluntary sector organisation that is one of charity
institution in UK and funds to research activities for beating heartbreaks from circulatory as well
as hart diseases and associated risk factor.
Purpose: Voluntary sector organisational works with purpose to deliver services for
social welfare as well as social development. Main purpose of chosen institution is to improve
treatments and methods for prevention, diagnosis along with treatment. It also have purpose of
conducting pioneer research to find causes of heart and other diseases.
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Legal structure: Legal structures involved in voluntary sector organisations are
charitable incorporated, limited by guarantee, unincorporated association and trust. At British
Heart Foundation, administrative authorities precede with limited by guarantee structure.
P2. Size addition to scope of distinct organisational types.
Within competing world, huge organisations works with motive to gain great heights in
business (Boshyk, 2016). Different organisations comprises contrary size and set procedures or
activities accordingly to reach towards vision and mission. For the present report, scope and size
in context to three organisation are as explained:
Public organisation (Crown Prosecution Service)
Mission and vision: The vision of Crown Prosecution service is to become one of
independent prosecution service which is respected and trusted by people. The mission of the
same entity is to conduct fair prosecution, impartial charge assessment and promote justice with
respect for various rule of laws.
Objectives: The main objective that Crown Prosecution service has is to deliver all types
of advisory services to investigative agencies in timely, principled and accurate manner.
Size and Scope: At Crown prosecution service, around 6000 people are employed for
providing legal advices about investigation practices to police as well as other investigation
agencies. It has huge scope to expand operations through using digitalisation techniques for
providing assistance services to agencies residing within as well as outside UK's boundaries.
Organisational structure: Management of Crown Prosecution Service precede activities
by following divisional organisational structure in which all functions are grouped into various
divisions such as specialist Fraud Division, CPS proceeds for Criminal Units, Special Crime as
well as Counter Terrorism Divisions and others.
Private organisation (Ford)
Mission and Vision: The mission statement of Ford emphasis towards making livings of
general public better by providing mobility accessibility addition to affordability. The vision of
the private entity is to become most trusted brand that designs and manufactures smart vehicles
for shrewd world.
Objectives: Objectives of Ford are to enhance sales volume, sustainability and safety as
well as innovation. The financial objectives comprises of increasing global sales together with
achieving balanced geographical profitability.
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Size and Scope: In Ford, around 199000 people are employed for working as well as
contributing for successfully running operations of entity (Number of Ford employees from FY
1992 to FY 2018, 2018). The operations are performed in wide nations like North Korea, Sudan,
India, UK, Cuba and others having wide number of stores. The scope of the company is vast as it
runs business through diverse products such as luxury vehicles, automotive parts and many
more. It designs and manufactures vehicles after considering trends in market and customer
requirements which enhances its scope for competitive sustainability.
Organisational structure: To implement decision making as well as efforts, functional
organisational structure is opted by Ford company (Organisational structure of Ford, 2019). In
this, the hierarchy to make decisions as well as authority flows within strategic management,
tactical management, operational management and non management manpower.
Illustration 1: Organisational structure of Ford. 2019
(Source: Organisational structure of Ford. 2019)
Voluntary organisation (British Heart Foundation)
Mission and Vision: British heart Foundation have vision of making a world in which
individuals do not die untimely of heart and other diseases (Crane and Et. Al., 2019). The same
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entity has mission of playing leading role within the fight against diseases related to heart and
circulation such that it restrictions can be made for disability together with premature death.
Objectives: The objective associated with British Heart Foundation is to deliver more
treatments and precautions so to beat diseases that causes premature death (British Heart
Foundation, 2019).
Size and scope: There are around 4514 employees in which 14 are Board members, 500
are part time staff, 2000 are volunteers and 2000 are full time staff that provides wide types of
services such as assistance and advisory services. The organisation renders humanitarian services
to reduce premature death and achieving fight from cardiovascular diseases, it has wide scope to
expand its operations to provide services that results in society welfare.
Organisational structure: The management authorities of British Heart Foundation
works in the flat structure wherein each committee is generally placed within one of governance,
advisory as well as operational stream.
Illustration 2: British Heart Foundation. 2019
(Source: British Heart Foundation. 2019)
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M1. Analysis regarding linkage of structure, size along with scope of organisations with
objectives and products.
As Crown Prosecution Service is one of public organisation that has objective of
providing advisory services and help in achieving sustainable responses so to contribute in
thriving investigative industry. After emphasising towards employee size that was diverse and
organisational structure all the activities are set and performed for gaining set objectives
effectively (Divanbeigi and Ramalho, 2015). In relevance with private organisation, Ford being
leading private company with huge number of employees, products and scope that works with
functional structure to communicate information so that all the customers are properly served,
objects are set accordingly. In regards to voluntary organisation, British Heart Foundation has
objective for delivering treatments along with precautions for beating various disease. The
company employs huge people so deliver the activities and have vast scope, proper
organisational structure which helps in formulating all objectives and plans to achieve them.
Hence, structure, size of employees and organisational scope are directly link with business
objectives and commodities.
TASK 2
P3. Relationship among various organisational functions as well as linkage with objective and
structure.
Organisational structure is aforementioned to hierarchical levels that are followed within
entity as well as explains the ways roles and responsibilities are allocated for achieving
objectives. Different organisations works with different organisational structure which includes
matrix, flat, bureaucratic, divisional and functional structure (Falkner, 2017). Managers designs
and implement organisational structure so that all functions are properly carry forward to achieve
objectives. Moreover, it assists in the ways how growth aspects can be achieved and set targets
are determined for achievements.
In context to Ford company, administration team follows functional organisational
structure so to organise its workers. In this, all the people are grouped into distinct functional
units such as marketing, human resources, operational and many more. The entity has distinct
functional departments which executes workings as per their own objectives addition to achieve
overall aims and goals that business have to attain.
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Interrelationship within organisational functions as well as the ways they are link to
organisational structure together with objectives are the followings:
Finance and operational function: Functions of finance department are based on
monitoring addition to controlling cash flows at workplace. It also assist other departments
through setting budget of each and providing valuable guidances required optimally utilising
funds. At Ford, financial department transforms raw accounting transactions into usable
statements which help managers to understand financial conditions so that suitable and effective
decisions are made. At same time operational function involves distribution, warehouses,
manufacturing and packaging (Hair Jr, Page and Brunsveld, 2019). The operational department
of Ford works to manufacture high quality cars so that the objective of company to fulfil
expectations of clients is achieved. Both functional units work in sync to each other and
coordinate activities within organisational structure as finance department arranges funds for the
operational department so that all the production and distribution activities are carried out
without any fund shortage. The operational department provide all the information about
requirement of funds to financial department. Thus, both these functions works to share
organisational resources by working within set structure so to achieve objective effectively.
Marketing and human resource functions: Functions of marketing function are related
to framing strategies addition to plans so to promote image of brand along with its products in
the global market. The department analyses pertaining situations about customer demands and
emerging trends and further communicates information to distinct departments. In context to
Ford, marketing function organises activities by contacting with human resource function
regarding the requirements of manpower to execute activities. Human resources collects detailed
information about customer expectations and accordingly plans all the workings which are
required to be executed. All the activities are perfectly coordinated among marketing as well as
human resource department which leads the entity to achieve objectives in prompt ways. All the
workings of marketing function and human resource functions are executed within set
organisational structure addition to objectives through providing directions to each other for
performing actions.
M2. Advantages and disadvantages about interrelationships within organisational functions.
Organisational structure plays unique significant and unique character within businesses
as it assist in framing critical decisions by exchanging view points, information together with
7

thoughts among distinct functions (Hamilton and Webster, 2018). Functional interrelationships
provides advantages to management of Ford by assisting activities, escalating profit level,
maintaining internal cooperation and enhancing business effectiveness which shows positive
impacts in structure of business. In contrary, the disadvantage associated with functional
relationship is concerned with increasing chances of sharing confidential information by one of
functional member to rival companies. At organisation, there are some people who build trusted
and loyal relationships with the distinct functions for own benefit and shares information by
using informal communication mode which impacts negatively on the business structure.
D1. Critical analysis about complexities of various business structure types together with
interrelationships of distinct functions.
Administration of Ford have embraced distinct structures at their different work premises.
For example, within functional structure, functional groups generally faces complexities at the
time they communicate, interact addition to grabbing attention of population of international
market that reduces performance flexibility due to which complexities like miscommunication
together with misconduct of dealings arises among functions of human resource along with
marketing. In context to divisional structure, manpower faces complexities that are related to
operational inefficiency between specific functions of marketing and human resource wherein
manpower do not succeed in communicating particular information about emerging expectations
and demand to marketing function due to which inappropriate plans are framed and it influences
marketing practices negatively.
TASK 3
P4. Impacts that macro environment has on operations of company.
Business environment is a accumulation of internal and external factors that directly
influence the decision making process of an organisation in a positive and negative way. Some of
the external elements are competitors, government, suppliers, consumer and many more (Hillary,
2017). In order to manage these macro components in an effective way, PESTLE analysis is
regarded as one of the important strategic management approach that an enable an organisation
to identify its external environment and also empower them to make corrective course of action
in a better way. In context of Ford, it takes an initiative to imply the PESTLE analysis within its
business function which is explained below:
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Political factor: Under this, it encompasses government rules, regulation, policies,
procedures which impact establishment profit margin ratio.
Positive: Recently, UK government come up the system of Brexit that influenced
negatively over Ford's productivity ratio. However, organisation make an effort to modify or
alter its all employment policies and procedure as per the requirement of Brexit. Due to this, it
enable Ford to improve its ability to attain sustainable growth and development in an effective
mode.
Negative: On the other hand, if Ford fails to apply such alteration into its business
function them it may lead to face the difficulty in enhancing the market share among
competitors.
Economical factors: In this, it comprises economic growth, inflation, deflation, interest
rate and GDP that effect firm's overall performance (Huang-Horowitz, 2015).
Positive: In UK, Ford undergoes with a huge recession period which negatively effected
its potentiality in enlarging the market division and also to strengthen profit margin ratio.
However, Ford make an attempt to reduce the price of its product that aid them to retain its
existing consumer towards the brand and also to attract the new customer in an impressive style.
Negative: Whereas, if Ford does not maintain the product price as per the economic
situation, then there is a possibility of reducing the sales volume.
Social Factors: This component is link with population income, demographic elements,
age, customer taste and preference and so on.
Positive: As per the analysis, there is a huge demand among UK population regarding
electric or hybrid vehicle which impose great challenge within Ford volume of sales. IN order to
overcome this challenge, Ford make an attempt to introduce hybrid cars or vehicles that drive
them to capture the attention of large number of consumer towards the company, Due to this
contribution, it help Ford to place its brand in an aggressive position among competitors.
Negative: While, if Ford denies to implement decisions in regard of satisfying the
customer demand or need then it decreases its customer base and also reduces the proficiency
ratio inside marketplace.
Technological factors: It is relate with innovation, automation or latest technologies in
order to gain competitive advantage.
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Positive: Ford faced intense level of demand fro UK population regarding innovative
gadgets inside vehicles that negatively influenced company's profit maximisation ratio. Hence,
for overcoming the same, Ford takes an initiative in introducing novel and advanced gadgets into
its vehicles like route map, driverless cars and many more. With the help of this, it strengthen the
potentiality of company in gaining competitive advantage among rivalries in a innovative or
productive style.
Negative:On the contrary, if Ford does not makes an effort to develop any technological
advancement then it reduces the ability of establishment to acquire best position within industry
in a stipulated time duration.
Legal factors
Positive: In this, Ford take an attempt to adhere to all government legislation, laws,
policies, regulation in an effective mode. Hence, it aid them to minimise the intervention of
government into its functional unit and also lead them to place the brand in a batter position
without nay hindrances (Hunter, Saunders and Constance, 2016).
Negative: On the other hand, if Ford denies to follow government laws and regulation
them it negatively impact over its goodwill and brand value among rivalries.
Environmental factors
Positive: Under this, Ford fulfils the requirements of UK consumer by introducing
environment friendly cars i.e. electric and hybrid vehicles which has less emission of fuel and
also aid company to decrease the pollution from environment. With the help of this, it lead Ford
to enrich its proficiency ratio and also to improve overall productivity ratio in an improved
mode.
Negative: While, if Ford fails to take appropriate actions to control the emission of
pollution then there is a possibility of impose negative impression inside UK market.
M3. Application of PESTLE model in appropriate manner.
Ford is manufacture of vehicles that executes activities for offering automobile
commodities to customers. The administrative team of Ford applies PESTLE analysis for
monitoring macro environmental dimensions for framing policies, plans and strategies as well as
implementing them promptly (Hunter, 2015). Working in dynamic environment and managing
the business properly by considering dimensions governed by political system impacts positively
on the company. When business fails to work as per legislations then huge penalties are paid by
10

them that impacts negatively on its reserves of profits. Adopting technology related to search
engine optimisation can help in communicating essential information such that strong
relationships are build can impact in positive ways on firm and its image. Thus, working with
acts of political systems, technological advancements, social beliefs, legal systems and economic
business cycle assists in building good image together with making more profits.
TASK 4
P5. Internal together with external analysis about particular entities for identifying strengths with
weaknesses.
SWOT analysis is mentioned as strategic planning technique with the help of which all
the strengths, weaknesses, threats along with opportunities are identified in prompt manner. It is
majorly used by organisational managers so to get proper essence regarding their position in
determined time and within industry they works. While conducting internal analysis, strength
and weaknesses are identified where as while conducting external analysis, opportunities and
threats are ascertained which influences business operations and helps in growth.
SWOT Analysis of private entity that is Ford:
Strength Weaknesses
 Ford company has diverse product
portfolio through which it satisfies large
size customers (SWOT framework of
Ford, 2019).
 The company has strong brand image in
global market.
 It is well established entity in automobile
industry as well as have effective
marketing and advertising plans.
 The institution faced immense loss as
it has to recall its vehicles back due to
safety failures due to which its brand
image was affected to great extent.
 Ford fails to make stronghold in
various emerging market such as
India.
 The entity is majorly dependent on
European as well as US market that
limits its revenue margin.
Opportunities Threats
 As Ford is adapted towards technology,
the entity has opportunity for
 Ford is struggling to maintain
innovative position within the industry
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manufacturing fuel efficient vehicles
along with commercial cars.
 It is working for penetrating within
automobile sector that provides
opportunities to tap smaller nations
along with growing customer base.
 The institution has opportunity for
working for digital marketing skills so to
enhance suppliers engagements to
deliver vehicles to distant locations.
due to ferocious competition from
competing companies such as Tata,
Toyota and so on (Lehmann, 2016).
 Rising prices of raw materials related
to steel addition to steel coin affects
Ford's cost together with margins of
profits.
SWOT analysis of company such as British Heart Foundation
Strengths Weaknesses
 British Heart Foundation is powerful
together with trustworthy brand within
public sector.
 The entity has recently launched one of
multi media campaign with the name of
“Connections” so to increase awareness
about treatments for cardiovascular
diseases.
 Various professionals works at the
institution that have high calibre together
with strong knowledge base.
 It has low staff turnover due to lack
of fresh thoughts as well as
perspectives which restricts
development of entity.
 British Heart Foundation provide
few generic commodities which are
not customer friendly.
 The website of the organisation is
generally hard to navigate as huge
information is available out of which
some are buried under links.
Opportunities Threats
 The company has potentiality to engaging
targetted market directly along with
building relationships is one of the
opportunity with British Heart Foundation
 Within public sector, various
organisations provides health
together with medicine charities that
creates threats of competition for
12

to increase customer base (Malik and
Rowley, 2015).
 I8nvolving in the government campaign of
“Chage4Life” can help the entity in
achieving exposure.
British Heart Foundation.
 The initiative took by political
authorities of Digital Britain can
leave the company to look obsolete
or out of date.
P6. Ways through which strengths and weaknesses are interrelated to external macro factors.
Interrelations between strengths and weakness of Ford in context to macro environmental
factors follows below:
Interrelations basis Strengths Weaknesses
Political factors Performing activities in the
nation that has powerful and
stable political system acts as
strength for Ford for knowing
addition to implementing
policies, regulations and
provisions of legislations for
functioning effectively without
complications (Morecroft,
2015).
The time political system
changes amendments in
legislation and policies it acts
as weaknesses for Ford as
various complexities are faced
by the entity and adds risks
factors in executing workings
that limits the expansion in
other locations.
Economic factors Various investors makes
investment at huge quantity.
Ford grabs attention of huge
investors through determining
assumed investment values
that is strength for the entity as
it influences investors and
gains expected values that
impacts positively on the
The changing scenario of
business cycle results in
changes with savings, taxation
rates along with international
exchange rate which hinders
Ford to attain its strategic
goals and is one of biggest
weakness.
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brand image.
Social factors In present era, population have
expectations of fuel efficient
cars together with commercial
vehicles. Ford has skilled
manpower that understands
market expectations and
accordingly offers them
automobile products which is
its strength for attracting as
well as retaining targeted
customer base.
Preferences of population
changes rapidly and it
becomes unpredictable by
Ford and acts as weakness as it
is difficult to modify designs
of vehicle in short span as per
view points and expectations
of the customers (Mrkajic,
2017).
Technological factors The automobile sector is
generally achieving success
through implementing
techniques such as search
engine optimisation addition to
artificial intelligence. Ford
works with the new updated
technologies which acts as key
strength for it to provide
innovations in market.
Working in competitive nation
wherein technological changes
occurs rapidly. Periodical
technological changes hampers
Ford's operational capabilities
and efficiency that diminishes
it profits and is weakness for
it.
Legal factors Political authorities works to
promote equality,
empowerment and reducing
discrimination and for it
various legislations are
imposed. As Ford also works
to strengthen equality,
diversity and empowerment
When unethical practices are
performed by Ford then its
licence is cancelled by
political administrations that
becomes hurdles in effectively
executing activities and
becomes weakness to sustain
in market.
14

which acts positively on it
(Oriesek and Schwarz, 2016).
Environmental factors By following all
environmental legislations
such as pollution act and
carbon emission act, Ford
designs and manufactures
vehicles that secure the
environment and it acts as
strength to gain recognition in
market.
In all nations, workings of a
company are based on
sustainable manner. But
various factors resides in
distinct nations which limits
Ford's practices to achieve
position in automobile market
that acts as weakness.
M4. Application of SWOT analysis.
Organisational administrators applies SWOT analysis to determine internal strength with
weakness and external threats and opportunities. In context to Ford, the strength are strong brand
image and offering diverse vehicles. Weaknesses of the entity are failures for stronghold in new
markets and only dependent on some nations (Pearson, 2017). Opportunities with Ford are
manufacturing fuel efficient vehicle and working to improve skills of manpower. Threats are
rising cost of materials, hurdles in maintaining innovation position and fierce competition level.
D2. Critical evaluation of various impacts that macro together with micro factors have on
objectives and decision making of company.
As per the above discussion, it has been evaluated that dimensions of micro factors
includes internal business elements like new entrants, competitors, management and suppliers. In
contrary, macro factors includes political, technological, environmental, social, economical and
legal factors (Songini and Vola, 2015). Ford has objective of maximising revenues and for this,
managers have made decisions to employ huge workforce addition to expand work premises but
when one of the factor changes, for example, changes in political system in which new
government imposes new regulations regarding standards of vehicles and number of premises
then Ford can face complexities of misbalancing operations, changing population expectations
and increased taxations can influence workings of company within set structure and objectives.
15

CONCLUSION
The above report concludes that business environment is mentioned as aggregation of
events, circumstances and impacts the firm and its surroundings. It provides assistances to
managers for analysing and grabbing opportunities that are accessible within business
environment. Public, private along with private organisations works with different size, scope
and objective. The external factors are monitored through adopting PESTLE analysis and
internal factors are analysed through adopting SWOT analysis so that proper prediction about
upcoming trends and market expectation are understood and properly actions and strategies are
framed to achieve gaols.
16

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<https://technicallyspeakingweb.wordpress.com/ford/>
SWOT framework of Ford. 2019. [Online]. Available through: <https://bstrategyhub.com/swot-
analysis-of-ford-2019-ford-swot-analysis/>
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