Business & the Business Environment.

Business & the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations.............................6
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is define as the entities which is involved into commercial, professional as well
as industrial practices. It can be profitability or non profitability entities that is performing to
accomplish the requirements of societal and individuals. Likewise, the business environment is
considered as the integration of external and internal factors which influences enterprise
(Abdullahi and Zainol, 2016). As per the scenario, the undertaken organisation for this report is
FORD which is an American leading auto-mobile entities. It is established in year 1903 having
headquarters is in Dearborn, Michigan, U.S. It is specialises in selling luxury and electric
vehicles. This report covers various kinds of organisation, its size, scope, structures, product and
services and many others, several functions in business and its interrelationships are also also
discussed in this report.
TASK1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
Mainly, there are three types of organisation that are private, public and voluntary which
is named as Crown Prosecution Service, FORD and British Heart Foundation. The explanation
of its background, product & services, vision, mission, objectives, legal structure and their
stakeholders are discussed below:
Private organisation: It is regarded as agency, person, partnership, corporation and
others that are not governed by public bodies. This involves enterprises that are for profitability
but do not owned or run through government (Aithal and Aithal, 2016). For operating the private
company, one or above that individuals are needed for its establishment.
 Company Backgrounds: The chosen private entity is FORD, It is a large Multinational
auto-mobile firm which is established in year 1903 through Henry Ford and having
headquarters is in Dearborn, Michigan, U.S. They concentrate upon selling auto-mobile
and commercial vehicle into their own brand name as well as luxury cars in Lincoln
Brand. They have joint venture with Taiwan, China, Turkey, Thailand, Russia and many
others.
 Vision: The FORD vision statement is to be a international leading customers firm for
facilitating standards auto-mobile product or services.
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 Mission: The FORD mission statement is to be global family with heritage which is
passionately involved towards facilitating auto-mobile to person across foreign
marketplace.
 Objectives: The vital objectives of respective organisation are development of matched
pairs system, sharing common objectives of cost & developing base of supply that
interface as well as boost suppliers profit.
 Purpose: The main purpose of FORD is to bring individuals together as well as
facilitating them standard quality of goods and services.
 Product and services: FORD sells variety of products as well as render unique services.
Its products involves automotive parts, commercial vehicles, auto-mobiles, luxury cars,
SUV's and others. Moreover, its services involves vehicle services, leasing and auto -
motive finance.
 Structure: The organisational structure of FORD is depends upon the requirement to
control operations as per regional market condition. Its structure have some main
characteristics that are corporate hierarchy, regional geographic divisions and Global
functional group. It have Matrix organisational structure. Moreover, it comply joint
structure which is managed through its Chief executives, Board of Directors, managers
and many more. This possess limited liability as well as higher risk. Types: This organisation is divided into various types which are:
◦ Sole proprietorship: This is define as entities that is run, performed and operated
through individuals who is accountable for overall profitability and loss (Alsaad,
Mohamad and Ismail, 2015). Moreover, it is considered as the easiest types in which
person is owner, risk taker and manager.
◦ Partnership: This is regarded as an agreement among tow or above that individuals
who share equal profitability, risk, losses and management. Moreover, they are
accountable in managing the practice as well as operations of enterprises in equality
manner.
◦ Joint stock company: This is regarded as an entities that have both private and public
company for operating the operations as well as practices of business. Moreover, it is
also managed and controlled by Board of Directors and Chief executives. They have
to bear higher risk and limited liability.
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 Stakeholders: The FORD stakeholders are addressed by social accountability as well as
programs. This involves investors, staff, communities, clients,, and many more. Among
all these consumers are considered as at priority basis as well as community at low.
Public organisation: It is regarded as the entities which is governed as well as owned through
country's government. They are developed basically to facilitate products or services for the
beneficial of community as well as society (Amran and et. al, 2015). Herein, an ownership is
distributed within public shareholders with the assistance of free share trading at stock exchange.
In this, above 50% shares are owned through public bodies.
 Company Background: The chosen public organisation is Crown Prosecution
Service(CPS) which is established in year 1986 having headquarters is in Petty France,
London. The Respective entities is principal agency for conducting the criminal
prosecution at England and Wales. It is headed by the Direction of Public Prosecution
(DPP). They are liable for several accountabilities like facilitating legal advice for
research agency, deciding charges for criminal and others.
 Vision: The Crown Prosecution Service(CPS) vision is to bring equality among
communities as well as society for punishing criminals so that country's individuals may
live independently, happily as well as securely.
 Mission: The Crown Prosecution Service(CPS) mission is to deliver justice with
assistance of efficacious and independent prosecution to foster excellence culture as well
as crime for inspiring and supporting one another in most effective way.
 Objectives: The objective of Crown Prosecution Service(CPS) is to punish the right
person who are involved in crime for facilitating justice to offenders.
 Purpose: The main purpose of Crown Prosecution Service(CPS) is to perform to
promote awareness among communities as well as societies for making them feel secure
and safe at places.
 Product and services: As Crown Prosecution Service(CPS) is a legal agency entities
which facilitates advice in context of legal aspects for investigation agencies for example,
police so that they may decided the criminal charges for suspects.
 Structure: The Crown Prosecution Service(CPS) follows departmental undertaking legal
structure as this is a part of government in which legal criminal practices are handled as
well as managed through organisation.
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 Types: There are various kinds of public organisation that are discussed below:
◦ Departmental Undertakings: This is considered as the oldest types of public
organisation and is a part of government department (Belás, Sipko and Bilan, 2015).
They do not have any separate existence from government in which there is a control
of one ministry or department. Such as Telephone, railways and others.
◦ Government Company: This is considered as the entities where paid capital of 51% is
held through central or state government. These entities performed, ruled as well as
regulated through the act of companies that is used into existent country.
◦ Public Corporation/ Statutory corporation: This is considered as the corporate bodies
which is developed through special parliament act or by state or central legislation.
Moreover, it is financed through countries government in which powers, limitations
as well as objects are decided by legislation act. Such as corporation, life insurance,
oil & natural gas corporation and others.
 Stakeholders: The Crown Prosecution Service(CPS) stakeholders categorised into three
part like internal which is directly impacted as well as indirectly effected that involves
trade unions, employees, offenders, partnerships, suppliers, probation board, central
government, local authority and many others.
Voluntary Organisation: This is also considered as the common interest association,
union that is a group of individuals who enters into an agreement like volunteers for developing
body for attaining the targeted business objectives (Chekh and Vinnyk, 2017). The Voluntary
organisation examples involves professional association, environmental groups and trade unions.
 Company Backgrounds: The chosen voluntary organisation is British Heart Foundation
(BHF) is a Charity entities which is developed in year 1961 at UK. British heart
foundation (bhf) chief executives named as Simon Gillespie as well as chairman Doug
Gurr. It was established through medical professionals group who are concentrated upon
enhancing death rate from the disease of cardiovascular. It needs funds to do
investigation regarding treatment, cause as well as prevention of heart disease and
circulatory.
 Vision: The British Heart Foundation (BHF) vision statement is to develop world where
person must not die because of heart disease.
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 Mission: The British Heart Foundation (BHF) mission statement is to plays role into
fighting against heart disease as well circulation so that no one will die prematurely
because of heart disease.
 Objectives: The objectives of British Heart Foundation (BHF) is to minimise death rate
which is occurs due to heart problems.
 Purpose: British Heart Foundation (BHF) performs upon a purpose to decline death rate
of premature person caused because of cardiovascular disease as well as developing
internationally for protecting person themselves form heart diseases.
 Product and services: The product or services provided through British Heart
Foundation (BHF) are health services in respect of recovering people from heart diseases.
This was developed to aids individuals whoa re suffering from heart disease as well as
minimise death rate.
 Structure: The British Heart Foundation (BHF)follows legal structure such as
unincorporated association as this performs with an aim to facilitate help to individuals
who suffer from the heart diseases. Moreover, they performs for an intent of services
instead of gaining profitability. Types: The several kinds of voluntary organisation performing at market areas are
discussed below:
◦ Trust: It is regarded as entities which includes trustees as well as beneficiaries who
are totally liable to manage and control overall business practices in most effective
way. It is owned by the banks, independents partnership and many more (Civelek and
et. al, 2016).
◦ Unincorporated Association: This is regarded as an entities where individuals comes
collaboratively with an aim of offering and developing societal conditions. The main
intent of it is to facilitates services instead of gaining profitability. Moreover,
volunteers are accountable for carrying practices as well as operations as per the
signed agreement.
 Stakeholders: The British Heart Foundation (BHF) stakeholders involves government
parties, volunteers, public, patients and many others.
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P2 Explain the size and scope of a range of different types of organisations.
As there are various types of organisation such as private, public and voluntary which
have different size as well as scope (Hart, Sharma and Halme, 2016). So, it size and scope are
discussed underneath:
BASIS Private Organisation Public Organisation Voluntary
Organisation
Size Within FORD around 199,
000 are performing.
Moreover, it has certain
division such as Motor
Crafts, Ford and Linclon
and serving its services into
above 200 countries in all
over the world as well as
operates about 77 offices as
well as plant locations.
The public company
such as Crown
prosecution service
performs in all over
Wales and England
along with their regional
teams of about 14 who
are prosecuting the cases
regionally. In addition to
this, their services
employees around 6000
persons who are working
within this particular
entities.
The voluntary
organisation such as
British Heart
Foundation have about
3000 employees who
perform within this
entities. They has
approx 730 shops in
across UK. In addition
to this, they have more
than 185 Electric as well
as furniture stores into
United Kingdom and
sells pre loved beds,
dining sets and others at
marvellous cost.
Scope It is extending their
practices as well as
operations within others
emerging marketplace so it
has the scope top expand
its enterprises within India
and China. Moreover, they
produce Hybrid as well as
The vital scope for
Crown prosecution
service is developing
country free from the
unethical practices as
well as charges penalty,
fine, and punishment
who are engaged into
The effective scope of
British Heart
Foundation is
performing funding for
the research of
cardiovascular, it spent
about £ 100 million
annually. At present
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electric cars so they also
have the scope to enter in
any nation their
government will support
them as it is offering fuel
free vehicles.
some illegal task. It is
basically perform to
facilitates equal as well
as justice to person in
most effective way.
scenario, this is funded
above 1000 projects of
research. Moreover, it
are planning to start
funding into another
countries for performing
the investigation of
cardiovascular for
maximisation of
services in appropriate
as well as efficacious
way.
TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
This is essential for entities to maintain relation with various organisational function in
order to attain objectives. Every one have to perform collaboratively for optimal utilisation of
resources. It aids to perform overall functions for gainful outcomes. In addition to this, there are
several kinds of department like marketing, human resource management, research &
development and others. In case if they perform collectively then issues will not raise within
enterprises (Lewandowski, 2016). In respect of FORD, This is a renowned multinational auto-
mobile enterprise have several departments as well as performing for accomplishment of goals.
As these interrelate have both benefits and drawbacks within organisational function and
affecting business structure. Few interrelationship within several organisational functions are
described underneath:
 Finance with production department: Both finance and production department are
considered as the part of entities in which production section assure that firm do not run
out of stock as well as finance department assures regarding resources needs and funds
for producing goods. In respect of ford, its production function have to perform effective
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approximation related to inventory so that customers can obtain goods whenever there is
need as well as app[roach to finance so that they may facilitate budget for performing the
operation of the business. By interrelation among production and finance section, FORD
have a benefits like it can perform based on the provide budget through finance
department. It will aids to reduce resource wastage as well as funds. Likewise, these
interrelation have pessimistic affects to respective organisation, if they fail to formulate
effective budget as well as coordinate with one another for attainment of objectives. As
per its structure, production function have to be performed in for accomplishing
organisational goals.
 Marketing and Research & Development: Both marketing as well as Research &
Development organisational function are very essential for entities as it aids them to
accomplish the objectives of business for understanding about its needs, utilisation of
technology through another rivals as well as facilitates information to marketing so that it
utilises new and creative technology, promotion for selling goods or services (Prendeville
and Bocken, 2017). There are various competitors of respective organisation that needs
active, efficacious as well as great investigation and research & development team to
perform as well as examine marketplace. With efficacious interrelation among marketing
department that concentrate upon grabbing attention of huge number of clients. If
inefficient relation among one another develop issues for optimistic outcomes. The
organisational structure of FORD is large geographical division which needs relationship
of marketing and research & development to accomplish firm's goals efficaciously.
 Human resource department and operations: Human resource function perform to
identify, screen, hire as well as train job applicants and managing staff developing
programmes that are formed through organisation. On another side, operational function
perform task collectively to maintain standard quality of work so that its firm may
accomplish their targeted objectives in effectual and efficacious way (Salleh, Yang and
Wang, 2015). In context of FORD, through maintaining as well as improving
interrelation among both division it obtain benefits such as when operational function
need to recruit candidates, it directly contact to human resource division that assists them
to hire proficient candidates at appropriate position. On another side, if they can not bale
to recruit skilled candidates so this will have affects upon operational task. Therefore, this
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is vital for FORD to manage its entities structure as this will drives towards
accomplishment of objectives efficaciously.
Organisational structure:
This is regarded as the system which is utilised to describe a hierarchy into entities. This
structure is formed for establishing how a firm performs as well as aids company to obtain their
objectives to permit for futuristics development. The FORD organisational structure is depends
upon the requirement to control operations based on regional market situation. The company
FORD utilises the Matrix organisational structure is accumulation of two or more different
structures. Moreover, this allows them to simply coordinate as well as operational their vast
practices (Tchamyou, 2017). The respective firm have a vertical management structure from
President, Chairperson, executive vice presidents then obeyed through horizontal model that
includes departmental heads which is called vice presidents. Also, their organisational structure
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Illustration 1: Organisational structure
(Source: Organisational structure. 2019)

is categorised into three regional geographical divisions which covers whole their marketplace
across world. The main regional geographical divisions are Europe, Middle East and Africa,
Americas as well as Aisa Pacific Ocean. In addition to this, FORD organisational structure have
functional groups all of them shows a particular functions of business (Ford Motors Company:
Organizational Structure Report, 2019).
The private company organisational structure is different from another two entities as it
formed their structure through their own which an intent to gain more profitability. Where as
another two serves service for the welfare of society so they developed its organisational
structure as per that. As they do not concern for earning the profit.
CONCLUSION
As per the above report it have been concluded that all entities have to perform its
practices as well as performing through considering the environment of the business so that it
may achieve their goals effectively and efficiently. Moreover, it will drives to develop effective
plans as well as strategies for optimistic results. Also, there are three kinds of organisation lie
private, public and voluntary. All of these have its own objectives, size, scope, structure,
products, services and many others. As per this, it has to perform as well as attain outcomes.
Whole organisational function have to perform collectively so they has to maintain efficacious
interrelation among one another in order to perform profitably.
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REFERENCES
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conceptual framework. Sustainability. 8(1). p.43.
Prendeville, S. and Bocken, N., 2017. Sustainable business models through service
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Salleh, N. H. M., Yang, R. R. Z. and Wang, J., 2015. Business environment-based risk model for
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Online
Ford Motors Company: Organizational Structure Report. 2019. [Online]. Available
through:<http://panmore.com/ford-motor-company-organizational-structure-analysis>
Organisational structure. 2019. [Online]. Available
through:<http://keywordsuggests.funstitch.ru/jlV0snwwL6RGX7VJfObkWHGLizVVK
um6Y9OKV4LEamr4k43CrOGBsDrXPIf7fieNqMdAC4XlEakdD27jl6YRVA/>
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