Business Environment Analysis Report - Impact of Business Environment

This report analyzes the business environment by examining different types of organizations, including public, private, and voluntary sectors, and their purposes. It explores the size and scope of organizations like Ford, the Crown Prosecution Service, and Shelter. The report details the relationships between organizational functions (marketing, HR, purchase, R&D, finance, and IT) and how they link to organizational objectives and structure. It identifies the positive and negative impacts of the macro environment on business operations and analyzes the internal and external environments using SWOT analysis, explaining the interrelation of strengths, weaknesses, and external factors. The report concludes with a summary of the key findings and insights into the business environment.

Businesses and
Business Environment

Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types of organisation: public, private and voluntary sectors and their
purposes.......................................................................................................................................3
P2 Explain the size and scope of a range of different types of organisations..............................5
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................7
TASK 3............................................................................................................................................9
P4 Identify the positive and negative impacts of macro environment on business operations....9
TASK 4..........................................................................................................................................10
P5 Analyse the internal and external environment of the organisation using SWOT analysis. 10
P6 Explain how strengths and weaknesses interrelated with external macro factors. ..............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is defined as the organisation that is engaged in the commercial, industrial or
professional activity or this term also refers to the all operational activities that is engaged in the
production of goods (Athique, 2017). Earning a profitability of the company is affected by the
operational activities of the organisation. These activities lead to a development of good
customer relationship. Through the various internal and external factor these operational
activities are affected and the factors include suppliers, competitors and the management. The
role of analyst is selected in this report and this includes to analyse as well as understand types of
business environment. Ford, Crown prosecution service and shelter which are example of
private, public and charity business is selected for this report. Moreover, this report highlights on
size, scope, structure and legal aspects of the organisation. PESTLE and SWOT perspective will
also be included in this report to understand positive and negative impacts of human.
TASK 1
P1 Explain different types of organisation: public, private and voluntary sectors and their
purposes.
Organisations are defined as the group of people working together for the achievement of
common goal. These are generally of two types one is profit oriented organisation, which is
concern with the motive of profit maximization and another is non-profit organisation, which
aims is to serve the society. Various types of organisation are as follows:
Public sector organisation: These are the organisation, which is owned by the
government and provide services to the citizens. The main objective of organisation is to do the
welfare of the society. Profitability is the second concern for the company. Crown prosecution
service is an example of public sector organisation (Deasy and et al., 2016).
Purpose: The main purpose of public sector organisation is to benefit the society with the
associated goods and services of the company.
Legal structure:
 Central government: These business organisation is controlled by the government and
all the functionality is managed by the central government. This is responsible for
acquiring of funds and allocate these funds in the growth of the organisation.

 State government: this structure permits the organisation to reach within the state only
and controlled by central government.
 Local government: These type of organisation is executed by the local communities like
municipal corporation.
Private sector organisation: These are organisation which is owned and controlled by
the group of people or by individual having the goal of profit maximization. There is no as such
regulation of the government. Ford is selected as a private organisation and it is a well-known
automotive business in the world (Eisend, Evanschitzky and Gilliland, 2016).
Purpose: The purpose of the organisation is to earn profit with fuller utilization of their
resources and skilled workforce.
Legal structure:
 Sole proprietorship- The type of business that is owned and functioned by the single
authority with the motive of profitability.
 Partnership- The business is established by the mutual collaboration of two or more
partner in order to run the organisation with a bounded agreement.
 Limited company- The company which have limited liability for their shareholders. All
the UK companies are bound to follow the company act in order to smooth running of
organisation.
Voluntary organisation: This the organisation which is formed by the group of people with
common aim and purpose. Shelter is a registered charity organisation and it offer the service that
is related with bad housing through identifying root cause of bad housing and than change them
with engaging local authorities for improving housing about organisation (Evans and et al.,
2017).
Purpose: The main purpose of this organisation is to benefits the society and solving the social
issues. They are not profit oriented organisation.
Legal structure:
 Trust- This is the traditional approach of the people to do charity and providing
maximum support to the society.
 Unincorporated Association- These organisation is managed by the group of people but
not to use the structure that is followed by the companies.
Organisation classification on the basis of size:

 Micro: These are the organisation which is have limited resources and are bound to work
with them only. These organisations do not have high market share.
 SME: These are defined as the small medium enterprise, which is larger than micro
organisation. This require sufficient amount of investment. In the business.
 Global: These organisations have the global with the good market share and capabilities
of extending their market in new areas (Fernandes, 2017).
P2 Explain the size and scope of a range of different types of organisations.
FORD Motor company- private organisation
This is recognise as one of an American multi-national auto-maker organisation that deals
in commercial vehicle under brand name of Ford. Background- Ford was founded in the year 1903 by Henry Ford to start dealing in auto-
mobiles vehicles. It's headquarter is situated in Dearborn, Michigan, US from and this is
one of the first manufacturing organisation which start to deal in automotive sector. Size-Ford is the second-largest US based auto-manufacture and in present scenario,
respective organisation offer and deliver their products at a world-wide level with
engaging 190,000 workforce in operation and functions. Therefore, size of ford is large
and wide to manage business in international market. Scope- Organisation is enhancing their business size at a global level and it includes
different perspective such as understand of market and analysing customer trend. So
scope for Ford business is too large (Athique, 2017). Products- Commercial vehicles such as Truck, buses, tractors and also personal auto-
mobiles that undertakes cars are some type of products that is manufactured by Ford. Vision- The vision of Ford is to engage all individuals together as a lean and it helps
organisation for performing work as a leader. Mission- Ford mission is to enhance strength of communities for improving individual
life with the aim of human progress for performing freedom of movement.
 Objectives- The objective of Ford is to make individual life better through providing
mobility with aspect of affordability and accessibility.
Shelter- charity organisation

Shelter register itself as a charity organisation and it develop service that provide
campaign to end and homelessness individual within England. It give information and advice to
individuals for establishing better house system. Background- Shelter was established in the year 1966 on 1st December and it evolve out
the work from the behalf of homeless individual. With offering benefits to London
persons management of shelter provide home from month of November. Size- All the task which is performed by Shelter is to provide homes to individuals for
performing work with motive of managing work at a local level (Bull and et al., 2016). Scope- From perspective of scope person engage individuals to manage task that aids in
completion of performing charity work at international level. Product and services- Organisation manage services and products and it satisfy the basic
human need of individuals which is to provide shelter. Vision- The vision statement of individual life is to improve and develop overall area
that satisfy basic need of persons. Mission- The mission statement is to improve the life of individuals, children and youth
through providing support for improving life quality.
 Objective- One of the major objective of Sheltering is to perform and provide home with
first and foremost motive of comfort and safety.
Crown persecution services- Public sector
CPS (Crown prosecution service) pursue criminal case that is investigated by the police
and other organisation in England and Wales. The term CPS decide which is used to determine
changes with motive of investigation. Background- CPS is defined as a principle public agency and it was formed in the year
1986 with motive of providing legal advice to police and also other investigate agency. Size- In the context of Crown perspective management enhance and undertake
perspective and it is used to offer services in England only. So size of CPS is at
moderate level (Deasy and et al., 2016). Scope- Attorney General for England and Wales superintend CPS to answer in
parliament. So scope of managing work define all task for managing legal task that
provide large services to individuals.

 Product and service- Pre charge advice that offer confidential advice to investigator
and charging decisions and it offer authorities to police for managing and charging
suspect with less offence. Vision- CPS vision is to establish themselves as independent prosecution to offer trust
and respect in legal services of country. Mission- The mission statement of CPS is to make timely, principled and impartial
assertion which is used to promote public safety, respect and justice in country (Eisend,
Evanschitzky and Gilliland, 2016).
 Objective- Equality and inclusion generate commitment and this is used by organisation
for completion of task with motive of managing work as per offering better services to
individuals.
TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure
Various department of the organisation is dependent on each in different manner in order
to achieve their desire goal. Ford is a private organisation which need high coordination and
direction between the departments in order to meet the organisation objective. Departmental
interrelationships are explained below:
Marketing and HR department: Marketing is the activity of advertising their product to
the potential customers. From the perspective of FORD organisation, management adopt the
functional structure and it aids organisation to perform their work with more efficiency. This is
because Ford is performing operations at a large level so with coordinating between all functions
it is easy to complete work properly. It is the essential activity for the business for the growth of
the organisation (Evans and et al., 2017). Human resource department is responsible in recruiting
talented and skilled employees to whom marketing activities can be carried out in an effective
manner. These departments require proper coordination between them for the fuller utilization of
resource in order to achieve the organisational goal.
 Positive- Functional structure generate positive results through performing all work with
implement of performing operations and functions with a cooperative appraoch.

 Negative- With negative method some-times there is delay in performing of operations
because functional structure aids to manage work with step to step method.
Purchase and Research & development department: Purchase department involves
the purchasing of raw material for the different operations according to their requirement. Shelter
is selected as respective organisation and it manage work with use of divisional structure. So this
helps in completion of task by dividing organisation project into small manner. On other hand
research and development department is responsible for market research their aspects in the
relation of organisation and can take the right decision in purchasing raw material (Fernandes,
2017). This department need to be coordinate between them for the right choice of raw material
according to the market research. This will help in providing efficiency to the business in
operation management.
 Positive- Divisional structure define method to work and it helps in managing task with
control of company operations by delegating as per roles and skill of workforce.
 Negative- If delegation of work states with wrong perspective than it is complex in
managing task or project properly.
Finance and informational technology department: Information is to be interpreted at
the right time and place so that products and services will be deliver according to the market
needs and demand. CPS perform and follow their work with use of team-based structure and it
provide legal advice to ensure sanity for individuals. This helps for performing work by dividing
departments for managing coordination among persons to ensure safety rights for individuals at
all level. IT department finding new ways of acquiring information. Finance department is
responsible for fund raising for the company and their right allocation that can be used in
effective manner. These department needs to be coordinate in order to finding new areas of fund
raising with the help of IT department (Häuberer, 2014).
 Positive- From perspective of team-based structure motivation in workforce is increased.
It is necessary also because legal services include role of government, police and court
with CPS.
 Negative- The negative roles states with team-structure define diversify workforce
generates challenges for individuals.

TASK 3
P4 Identify the positive and negative impacts of macro environment on business operations.
External environment has a major impact on the businesses and their operation. These
factors are uncertain in the environment and need high attention on them. Sometime company
faces many challenges and disadvantages. PESTLE analysis is a framework of measuring the
various external factor with the help of various tools and techniques. PESTLE analysis of FORD
is explained under:
Political Factor: These are the factors which includes government stability, trade policy,
trader restrictions, tariffs and bureaucracy, which effects organisation at different stages. These
factor cannot be controlled by the organisation.
 Positive- Government support Ford's business because it helps individuals for performing
work with use of technology (Helm and Gritsch, 2014). It aids individuals for performing
work through considering technology perspective to undertake trade agreements.
 Negative- With increase among trade activities at global level individuals perform work
to complete task according to rules that supports international market.
Economical Factor: These are the factor which includes interest rate, taxation policy,
inflation, employment rate etc. these factor have direct and indirect impact on functioning of
Ford.
 Positive- With analyse of growth in economy of developing country Ford undertake
aspects that offer opportunity among market to manage work at global level.
 Negative- The negative aspects defines due to Brexit market of developed countries is
impacted to perform work in auto-motive sector.
Social Factor: These are the factors which includes culture, values, taste and preferences of
the individual. Sometimes this is tough to follow all the culture and values of the society. This
will impact the organisation in profit maximisation.
 Positive- With analysing social aspects trends relates with current factor helps to perform
work according to customer requirements (Jacquemin and De Jong, 2016). Hybrid and
electric auto-mobiles market is seen as opportunity with understand of social factor.
 Negative- Strategy of Ford is impacted due to change in society trends and it generates
problem for management to obtain more growth in

Technological Factor: These are the factors which includes innovation and development in
the existing product. To match the current trends of the society, organisation ned to develop their
technology to meet the demand of customers.
 Positive- Technology is an important factor and it aids organisation for performing work
with motive of managing task by developing competitive-edge in market.
 Negative- Technology is a dynamic in nature and also cost to engage technology is high.
So technology formed challenges for organisation to perform work in proper manner.
Legal Factor: these are the factor which includes laws and regulation of the government and
these are safety law, discrimination laws, import and export policies (Johnson, 2015). Sometimes
this is difficult to follow all the laws of government, when company is working on global bases.
If the company follows all the laws in the business then it can be helpful in building good brand
image in the market.
 Positive- Increase in safety regulations such as market of automotive sector is increased
by performing work with use of safe rules.
 Negative- Intellectual property rights that secure local auto-maker generates problems for
Ford to manage work in other country.
Environmental Factor: These factors includes the aspect of not harming the environment
by their operations and production but also provide corporate social responsibilities towards the
society in order to achieve the goal of the organisation (Mayadunne and Park, 2016). Ford is
adopting CRS activities to contribute in the society.
 Positive- With undertake environment aspects it is easy for management of Ford to
perform work according to engage perspective of low-carbon trend. This helps
management to include opportunity in market.
 Negative- Decline in the oil reserve generates problems for Ford because their products
on the respective reserve.
TASK 4
P5 Analyse the internal and external environment of the organisation using SWOT analysis.
SWOT analysis I the strategic planning of various strength, weaknesses, opportunities
and threats of the organisation in order to manage the organisation.
SWOT of Ford

Strength
 Strong brand image of Ford in the
international market is an effective
strength for business.
 Global supply chain is another strength
and this helps to deliver all products in
multi-national market.
Weakness
 Limited space for production creates a
weak point and it generates complexity
for organisation.
 Higher cost to work with current
technology create problems and it
enhance cost for business.
Opportunities
 With market penetration strategy
management improve and enhance
growth to expand their business size at
a large level.
 Cost reduction provide opportunity
through performing work with use of
innovation techniques.
Threats
 New entry of local organisation
generates problems for Ford to perform
work with positive aspects.
 Oil price fluctuations creates challenges
and change in customer trend create
problems for respective organisation to
manage work properly.
SWOT analysis of Shelter
Strength
 Non-profit organisation is a major
advantage for Shelter and it helps to
gain support of local community
market.
 Support from small organisation aids to
improve goodwill of market.
Weakness
 Business owner identify less number of
volunteers to engage in shelter function.
It generates complexity to perform task.
Opportunities
 Ford is a business leader in domestic
market so other country provide
opportunities and this helps in
managing work with more efficiency.
Threats
 Laws, legislation and rules generate
complexity for shelter to perform work
in a accurate manner.
 Another threat related with shelter is
that decrease in number of volunteer

create problem for organisation to
complete operations in proper manner.
With comparison of both SWOT it is analysed that Ford is performing their work with
more efficiency. This is because strength of Ford such as goodwill helps to control and manage
operations in international market. On other side, supply chain strength aids Ford in performing
their task with motive of minimising production related weakness. Therefore, Ford is an effective
organisation and it aids to complete work with more efficiency.
P6 Explain how strengths and weaknesses interrelated with external macro factors.
The external macro environment is affected by many external factors. That major factors
are uncontrollable or affect the decision making of organisation and it influence the performance,
growth or profit of organisation. In this the external factor is political, economic, social,
technological, environmental, legal factors are included (Quinlan and et. al., 2019). These factor
are evaluated by pestle analysis. It is a tool by which evaluate the external environmental factor
that influence the performance or growth of organisation. In the relation of Ford the all factors
are showing important role in all departments of company. These external factors are directly
affect the consumer's capability and their ability of production or sales.
Political factors
Ford is a largest auto-maker organisation in the auto-mobiles industry and it is operating
business all over world. For the Ford their political environment is stable because the Ford is a
global auto-mobile organisation.
 Strength: the main strength of Ford is that the Ford is diversified in most of the countries
so its performance is influence by political condition of countries.
 Weakness: Ford has worldwide business so there is some government rules or factors
that make company weak. Due to political factor some stores of Ford are not performing
well.
Economical Factor
economic factor plays an important role in context of Ford. There is many factors that
affect the Ford like labour cost, price and profits. These factors affect a lot on economy of
company.

 Strength: Ford is one of most effective auto-manufacture organisation and company is
economically strong or has a good position in market of UK. And their one strength is
leading the market shares.
 Weakness: Ford leads few changes in delivery model so there is extra cost is associated.
it comes in the weakness of this factor.
Social Factor
the Ford promoting their product with the consideration of social factor Ford focus on
social or culture trends.
 strength: Ford’s strength is that it is focus on social or cultural need of different region
and fulfil their need smoothly their supplier chain. Like, electric vehicles factor is
analysed by management to work with current trends.
 Weakness: the company follow the social factor that weaken to company. Due to this the
company perform operation and production. It's also formulate changes in strategy for
small level.
Technological Factor
Ford using the advance technology for production or dealing with customers. The
advancement of technology develops the new opportunity for Ford.
 Strength: Ford using innovative technology and it has online access for customers.
 Weakness: sometime the advance technology is give the adverse effect. Due to network
problem the technological activities may slower.
CONCLUSION
This file explain about the organisation on the basis of size, scope and purpose. In this
study includes the type of organisation that is public, private, non-profit organisation. This file is
done in the relation of different type of business. in this file there is swot analysis, pestle analysis
is done in the context of Ford. Swot analysis is done for identify the strength, weakness,
opportunities, Threats of organisation. In pestle analysis is evaluate the external factor which
affect the business in both manners positive or negative. In the last, auto-mobile sector business
is recommended to the respective individual for invest their funds in the respective organisation.

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