Advantages and Disadvantages of Interrelationships between Organisational Functions

This article discusses the advantages and disadvantages of interrelationships between organisational functions and their impact on the organisation structure. It explores how different departments in an organisation, such as marketing and research and development, work together to achieve common goals. The article also highlights the importance of effective communication and collaboration among departments for the success of the organisation.

Business and
Business
Environment

Table of Contents
INTRODUCTION ..............................................................................................................1
MAIN BODY ......................................................................................................................1
Different types of business structures, size and scope of public, private and voluntary
sector.............................................................................................................................1
Analysis of advantages and disadvantages of interrelationships between
organisational functions and their impact on the organisation structure.......................7
Application of PESTLE model to support a detailed analysis of the macro-
environment to demonstrate negative and positive impacts on business operations...9
Evaluation of impacts that both macro and micro factors have upon business
objectives and decision-making..................................................................................11
CONCLUSION.................................................................................................................14
REFERENCES................................................................................................................15

INTRODUCTION
Business is defined as activities or practices that are conducted for making one's
living or creating money by manufacturing or buying as well as selling products and
services. Along with this, Business environment is considered as the sum total of whole
internal as well as external factors which impact on the business operations and
functions (Aithal, 2015). So it is essential for every organisation to always keep eye on
the internals and external factors, which help in decision making process. Through this
firm able to gain various benefits such as enhance in profit, development of strategic
plan and many more. There are three organisation taken for this assignment Ford which
is a private, The British Heart Foundation as a voluntary and Crown Prosecution Service
that is public. The aim of conducting this report is to analyse business environment in
respect of different companies for this different topics are under taken like several types
of organizations along with its scope and size. Interrelation among the different
organisational functions as well as application of PESTEL analysis with its positive and
negative aspects. Furthermore, it will also include evaluation of SWOT analysis of two
companies that justifies process of decision making as well as it will include interrelation
among strength and weakness with macro factors.
MAIN BODY
Different types of business structures, size and scope of public, private and voluntary
sector
According to the scene given at brief, there are three companies are taken i.e.
public, voluntary and private and those companies are Crown Prosecution Service, The
British Heart Foundation and Ford respectively. Below evaluation of their business
structure, size, cope are given:-
Private Organisation:
This is consider as those firm who conduct their business operations under the
private ownership (Bocken, Rana and Short, 2015). They may issue their stock as well
as have shareholders, but they can not trade their shares on public exchanges and they
also not issued it through an initial public offering (IPO).
 Background of the company
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Ford is conducting its business at Automotive industry. It is founded by Henry
Ford in year 1903 and its head office is located at Michigan, United State. They offer
number of automotive products such as luxury vehicle, commercial vehicle, pickup
trucks and so on. There are approx 1,99,000 employees are working at respective
company.
 Structure
The respective company follow Joint Stock Company as their legal organisational
structure (Burns, 2016). Through this they able to conduct their business operations and
functions in effective manner.
 Size
Size of respective company determine by their numbers of employees and at
respective company there are near by 1,99,000 employees are working at worldwide
level.
 Scope
In respect of Ford, they can expand their business operations and function to
those market where they are not operating. Along with this they can also manufacture
some more innovative vehicles that include electric cars, hybrid cars and so on.
 Vision
Ford's vision is to become world's leading consumer organization who offer
quality automotive products and services to society.
 Mission
The mission of Ford is that they want to become global family with a proud
attribute passionately attached to providing individual mobility for society around the
world according to their requirement.
 Objectives
Objective of Ford is to be stabilising the environmental condition by considering
minimising long term emission (Demil and et. al., 2015). Along with this they also want
to develop infrastructure which expand the use of bio fuels as well as minimise
dependency on oil.
 Purpose
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The purpose of Ford is to bring all peoples together by providing them quality
automotive services as well as products.
 Products & Services
Products offer by Ford are Automotive, luxury vehicles, commercial vehicles,
pickup trucks, automotive parts, SUV's and many more. On the other hand they also
offer several services related to automotive finance, vehicle leasing and vehicle
services. Types of private organisation
◦ Sole Proprietorship: It is that type of business in which ownership belongs to
owner of a company. It is consider as one of the most easiest as well as
convenient form of business. In this owner of a company is total responsible
for their losses and profit.
◦ Partnership: It is a type of formal arrangement which is conduced among the
two or more parties in order to manage as well as operate a business unit
(Deng and Wang, 2016). In this all parties are responsible for losses and
profit, they also have equal partnership in shares.
◦ Joint Stock Company: It is a type of business entity in which shares of a firm
can be sold as well as bought by shareholders. In this each and every
shareholders owns organisation's stock in proportion that is evidenced by its
shares.
 Stakeholders
Stakeholders of Ford are customers, employees, investors and communities.
From these customers are at the top of priority stakeholders and communities are at the
low priority stakeholder list.
Public Organisation:
It is consider as corporation whose ownership are distributed among general
public shareholders through free trade of shares of stock on conducting exchanges or
over the counter markets. In this there are generally 50 percent are owned by public.
 Background of the company
Crown Prosecution Service is founded in 1986. It is a non ministerial government
department company whose head office is located at Petty France, London. For this
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minister responsible are Geoffrey Cox and Attorney General (Dyllick and Muff, 2016). It
is headed by Director of Public Prosecutions (DPP) and it is consider as principal public
agency.
 Structure
Crown Prosecution Service company follows Departmental Undertakings legal
organisational structure for conducting their work in most appropriate manner which
lead to attainment of goal.
 Size
Here size of the firm will be denoted by the numbers of employees working at a
company. In respect of Crown Prosecution Service there ate near by 6000 staffs are
working at worldwide level.
 Scope
The scope of respective company is to conduct effective activities which help in
making country better that will be free from any type of illegal activities. For this they
may take fine, punishment, penalty from responsible person or criminal.
 Vision
Vision of Crown Prosecution Service is to provide equality at the society as well
as punish criminals (Evans and et. al., 2017). So that peoples of country can spend their
life easily as well as freely, without any fear of any illegal activities.
 Mission
Mission statement of Crown Prosecution Service is to offer justice by the
independent as well as effectual prosecution of crime, encouragement culture of quality
through supporting and exalting society to be the best.
 Objectives
The main objective of Crown Prosecution Service is to punish criminal or
responsible person in order to provide justice to innocent one.
 Purpose
Main purpose of Crown Prosecution Service is to make work a safe place so that
each and every person leave their life freely.
 Products & Services
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Crown Prosecution Service generally provide services related to legal advice to
different investigate agencies as well as police (Gorla, Chiravuri and Chinta, 2017). So
that they can punish responsible person successfully and impressively. Types of Public organisation
◦ Departmental Undertakings: These companies generally have existence of
government. It is one of the oldest form of public sector enterprises and they
have didn't have separate existence which government have with them. Such
as broadcasting, telephone services, railways etc..
◦ Government Company: These companies are incorporated under the
Companies Act, 1956. At this each and every provisions of respective
legislation are applicable to government firm. In this ownership belongs to
government wholly or partly.
◦ Public Corporation: This is consider as statutory corporation which is
specially formed through special act of parliaments or central or state
legislature. Power, limitation and objective of this corporation are defined on
act only (Hallward and Pritchett, 2015). Such as national banks, life
insurance company and so on.
 Stakeholders
There are numbers of stakeholders of Crown Prosecution Service such as local
authority, general public, victims, central government, police, courts, local solicitors,
partnership, crown, staffs, trade unions and many more.
Voluntary Corporation:
It is consider as that corporation at which action is consider as that action at
which shareholders are elect in order to participate at the action. It is consider as group
of persons who voluntarily enter in to an agreement. It is also known as Voluntary
association or union, unincorporated association, common interest association and so
on.
 Background of the company
The British Heart Foundation is charity firm of United Kingdom. Their Motto is to
provide quality services so that they can beat heartbreak forever. It is formed in year
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1961 and their legal status is registered charity (Hillary, 2017). The Chief Executive is
Simon Gillespie and chairman is Doug Gurr.
 Structure
Unincorporated Association legal organisational structure is followed by The
British Heart Foundation for conducting their business operations and functions
properly.
 Size
Size of a company is defined through numbers of employees working at
particular workplace. In respect of The British Heart Foundation there are 3000
employees are working. Scope
The respective company is concern about the funding cardiovascular
investigation, so that according to that they must spend near about £ 100 million
annually. Currently, they are conducting funding of near by 1000 projects of researches.
Through this activities respective company can expand their business globally as well
as it will also in conducting welfare.
 Vision
The vision of The British Heart Foundation is to create world in which peoples will
not die prematurely due to heart disease (Jenkins and Williamson, 2015).
 Mission
The British Heart Foundation mission is to be a leader in the fight against heart
disease. Provide quality services to society so that no one will cause major heart
diseases or die prematurely due to respective type of disease.
 Objectives
Objective of The British Heart Foundation is to originate research in field related
to heart disease and how that can be improved. They also want to minimise ratio of
peoples who die due to heart disease prematurely.
 Purpose
Purpose of The British Heart Foundation is to minimise premature death rate of
peoples who are suffering from heart disease. They also want to provide quality health
care services in order to treat respective area patients.
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 Products & Services
The British Heart Foundation is providing quality health care services and
products in order to treat heart disease patient so that they can leave their life happily. Types of Voluntary organisation
◦ Trust: This type of organisation are generally setup to manage land and
property as well as to gain money for a specific purpose in order to provide
benefits to wide community (Kozubíková, Homolka and Kristalas, 2017). Trust
mainly develop formal relationship along with the donors of property as well
as money.
◦ Unincorporated Association: In this type of company people generally
assemble jointly with the motto of serving as well as improving conditions of
society. There main motive is not earn profit, they generally focus on
providing services to society in order to improve their condition.
 Stakeholders
The British Heart Foundation have numbers of stakeholders such as public,
government agencies, non government agencies, investors, researcher, volunteers,
staffs and many more.
Analysis of advantages and disadvantages of interrelationships between organisational
functions and their impact on the organisation structure
In an organisation there are numbers of different department and it is essential
for them to develop as well as maintain proper relationship among them because
through it they can attain desire goal and objective in effective manner. At an
organisation there are numbers of departments such as marketing, research and
development, production, financing, human resource, operational, accounting and many
more (Löfsten, 2016). In respect of Ford which is operating as a multinational
automotive company, they have various departments who are conducting their work
together. This will also help them in enhancing their quality of work as well as
minimising conflict situation which may impact on business operations. Some of the
main interrelationship among the Ford's different department are given below:-
 Marketing and Research and development: In an organisation marketing
department conduct promotional activities in order to promote business as well
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as drive sales of their products or services. They conduct all the necessary
research about the targeted customers and audiences. On the other hand
research and development help in directing the future of business unit because
they gather and provide all the essential information as well as ideas which help
in developing strategic decision. In respect of Ford both the departments are
interrelated which lead to several advantages for the organisation structure
because by effective relationship both the departments conduct work effectively
that lead to attainment of desire goal in effective manner. Along with this,
respective firm may also face some disadvantages which impact on the
organisation structure because that will lead to situation of conflict.
 Finance and production: It consider as one of the most essential department of
a company because they include several activities such as planning, organizing,
auditing, accounting and so on (Madhavaram and Hunt, 2017). They generally
develop the company's financial statement according expenses of other
departments. Whereas production department conduct their activities which are
related to the manufacturing of goods or products. This will directly help in a firm
in enhancing their profitability. In context of Ford company, through interrelation
among both departments they able to gain various advantages such as they able
to conduct proper production according to budget and requirement. This will also
help in minimising wastage of resources as well as funds during manufacturing
process. On the other hand, if they not maintain relationship they may go through
some disadvantages such as production quality will affect because they not get
proper budget for hiring resources (May, 2019). This both function also impact on
the organisation structure because through it everyone can conduct their work
effectively for attaining desire goal and objectives.
 Human resource and operations: The function of human resource department
is to find, screen, recruit and train job applicants as well as managing employees
benefits programmes which are developed by a company. On the other hand
operational department conduct work related to maintaining high quality of work
so that their organisation can attain desire goal as well as objective effectively. In
respect of Ford, by developing and maintaining interrelationship between both
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departments they gain advantages like when operational department required to
hire candidates they directly contact to HR department which help them in hiring
right person at the right job. Whereas if it may also lead to disadvantage when
their will no relationship among production and operation such as company will
not able to hire right candidates as well as it will also impact on the operational
work and production. It is essential for respective company to manage their
organisation structure because it will lead to attainment of goal effectively.
Application of PESTLE model to support a detailed analysis of the macro-environment
to demonstrate negative and positive impacts on business operations.
For a company it is essential to conduct analysis of macro environmental factors
so that they can develop more effective strategies according to external factors. For this
an organisation can adopt PESTEL analysis which include factors such as political,
social, environmental, economical, technological, legal (Prajogo, 2016). Evaluation of
PESTEL analysis in respect of Ford is given below along with its positive and negative
impact:- Political factors: This will include factors like government policy, corruption,
foreign trade policy, trade restriction and many more. In respect of Ford they are
conducting their business at global level so it is essential for them to conduct
proper evaluation of political factors in order to gain opportunities and avoid
threat.
◦ Positive impact: By adopting this factor respective company able to conduct
as well as expand their business effectively such as Asia, South America and
so on.
◦ Negative impact: Due to Brexit implication, market performance get reduced
because market demand also get minimise. Economical factors: It will include factors like disposable income, exchange
rate, interest rate, employment rate, growth rate and many more (Quinlan and et.
al., 2019). The respective company conducted its business operations and
functions at international level so it is essential for them to develop automotive
product according to customer, nation and company economy.
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◦ Positive Impact: Their is free international trades due to which Ford able to
sell their automotive products at the international market that lead to
attainment of high profit.
◦ Negative Impact: Open international sales also impact on the minimising
respective company sales as well as market shares due to low customer
buying power. Social factors: This will include factors like population growth, age, lifestyle
attitude, cultural barriers and many more. It is essential for a Ford to always
consider social perspective while take decision as it will help in develop effective
decision.
◦ Positive Impact: Due to this factors, respective company able to launch their
hybrid cars in effective manner which help them in gaining high profitability as
well as market shares.
◦ Negative Impact: There are number of players at marketplace due to which
respective company not able to attract high range of customers which
minimise sales. Technological factors: This will include factors like technology advancement,
knowledge about technology, research and development and so on. In respect of
respective company to adopt technology because through it they can develop
most effective product.
◦ Positive Impact: By adopting new and advance technology respective
company able to develop effective product like wireless cars which help them
in more and more customers (Ford Pestle Analysis, 2019).
◦ Negative Impact: Investment in technology required huge budget which may
impact on the other operations of company. Along with this their will be also
not full change of succession of technology. Legal factors: This will consider factors like safety regulation, discrimination law,
consumer protection law, copyright and patent law, health and safety law and
many more (Sodeyfi2016). In respect of Ford they are operating their business at
international level so it is necessary for them to consider legislation of all nation
while developing decision.
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◦ Positive Impact: Through this respective company able to conduct their work
in effective as well as legal manner which help in avoiding any type of legal
issues. This will also help them in protecting their designs and model from
being copied.
◦ Negative Impact: Sometime due to strict legal policies respective firm face
legal issues due to their automotive parts or vehicles such as fuel system,
airbags and so on. Environmental factors: This will include factors like wealth, climate, climate
change, environmental law and many more. In respect of respective company it
is essential for them to consider environmental factor while developing products.
◦ Positive Impact: This will help Ford in developing electric car which help in
minimising use of fuel as well as it will reduce pollution from environment.
◦ Negative Impact: Respective company not develop eco friendly vehicles due
to which they are losing customers attraction in respect of competitors.
Evaluation of impacts that both macro and micro factors have upon business objectives
and decision-making.
In order to identify the strengths and weakness of firm, it is significant for them to
conduct SWOT analysis. In this respect, the framework of enterprises that leads
towards identifying and analyse external and internal that has impact on the operations,
activities and products of company (Stott, Stone and Fae, 2016). SWOT analysis is
regarded as the framework that is applied fro evaluating a competitive position of firm as
well as create strategic planning. So, the FORD and British Heart Foundation SWOT
analysis are described underneath:
SWOT analysis of FORD
Strengths Weaknesses Global recognition: The FORD is a
famous brand into auto-mobile
sector as well as is also renowned
within foreign marketplace due to
 Poor reputation: FORD have a poor
image as compared to their
competitors of Japanese as well as
European. Such as Lincoln, in this
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their effectiveness and success into
advertisement and marketing. As an
outcomes its brand value is around
£ 12.74 billion based on 2018
statistics report. Diverse offerings: FORD facilitates
to whole types of demographics
groups with its diversified brands as
well as models of cars. Moreover, it
concern about requirements of their
audiences through rendering them
with more variety commercial
vehicles as well as cars.
is regarded as an inferior brand in
comparison to Luxury car brands of
Germany as well as English.
 Weak Foothold: As respective
organisation diversified their
operation in various geographical
places, it loose its concentration
upon their productivity and
performance in that areas.
Moreover, it does not has a
stronghold into emerging market
such as India (SWOT Analysis of
Ford, 2019).
Opportunities Threats Enhance consumer base: FORD is
performing into the penetrating
auto-mobile market in India as well
as China so it has huge opportunity
to tap within another small countries
into world as well as develop its
consumer base. Digital marketing: As digital
marketing is predominating across
the world at current scenario so
respective organisation have an
opportunity to perform on its skills
related to digital marketing for
developing their audiences as well
as suppliers involvement.
 Higher competition: The Ford is
already facing the competition
related to cut throat from their
competitors firms such as Tesla,
Toyota and many more. So, this
keeps on struggling for maintaining
their innovative position within
respective sector.
 Enhanced Raw materials price: This
is considered as the vital threat as
enhancing prices of raw material
such as steel coil and steel may
directly effects the profitability
margin and cost of organisation.
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SWOT analysis of British Heart Foundation
Strengths Weaknesses
The respective organisation has great
values and belief which support its
continuous growth as well as innovation.
This has talented BOD in comparison to
another rivals within United Kingdom (The
British Heart Foundation SWOT
ANALYSIS, 2017).
The basic weaknesses of British Heart
Foundations is that its issues related to
budget is few times to limited ability for
paying salaries to its workers. This do not
allows them to attract more capable and
experienced staff in United Kingdom.
Opportunities Threats
British Heart Foundations may increase its
differentiation as they have few direct
competition. Along with this they may also
focus on the CSR activities because it will
help in facilitating more B2B operations at
worldwide level.
In order to generate The British Heart
Foundations have to consider high
standard impact on their operations and
functions. There are various other
competitive companies which operate on
same industry.
Along with this it is also necessary for Ford to conduct macro environment
analysis because through it they can develop effective decision making. Below
evaluation of macro environment through strengths and weaknesses of PESTEL factors
are given:
External Macro Factors Interrelation
Political Factors Strengths: They can expand their business effectively at the
emerging markets like South America, Asia and so on.
Weaknesses: The respective company is developing luxury
cars due to which they not able to conduct business at small
nations.
Economic Factors Strengths: Through this respective company able conduct
trading at foreign market which lead to gaining high
profitability.
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Weaknesses: Due to some low economic nation Ford may
face decrease in profitability as well as market shares.
Social Factors Strengths: By considering this factor Ford able to introduce
hybrid cars which help in attracting high market shares.
Weaknesses: For Ford it is not possible to consider every
customers requirement while developing cars.
Technological Factors Strengths: Through this respective company able to
manufacture highly technology based cars which help in
attracting more and more customers.
Weaknesses: If they adopt high technology then they
required huge funds.
Environmental Factors Strengths: It will help in minimising consumption of fuel
which improve environment condition (Yang and
Gabrielsson, 2017).
Weaknesses: Business operations and function get impact
due to demand of electric and hybrid cars.
Legal Factors Strengths: This will help firm in conducting business in legal
manner at global level.
Weaknesses: Faulty parts lead to legal issues which impact
on Ford image and name.
CONCLUSION
From analysing above discussed point it can be summarise that, for every
organisation it is essential to conduct evaluation of business environment because that
will help them in planning strategies and conducting things accordingly. Along with this
there are different types of companies i.e. public, private and voluntary and each
company have different size, scope and structure on which business decision is based
on. At every organisation there are numbers of departments that are interrelated with
each other for attaining their desire goal as well as objectives. Moreover, interrelation
among the departments are directly or indirectly impact on their company culture as well
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as structure. In addition to this, evaluation of business environment can also be done
through analysis and method, but that must be depend on the environment type. Like
PESTEL analysis can be applied for macro environment analysis whereas SWOT
analysis is effective for micro environment evaluation.
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Online
Ford Pestle Analysis. 2019. [Online]. Available
through:<https://www.marketingtutor.net/ford-pestle-analysis/>.
SWOT Analysis of Ford. 2019. [Online]. Available through:
<https://bstrategyhub.com/swot-analysis-of-ford-2019-ford-swot-analysis/>.
The British Heart Foundation SWOT ANALYSIS. 2017. [Online]. Available
through:<https://www.bhf.org.uk/about-us/what-we-do.aspx>.
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