Analysis of Business and Business Environment for Three Companies

This report provides a comprehensive analysis of the business and business environment, focusing on three organizations: the National Health Service (NHS), Ford, and Shelter. It begins by defining different types of organizations, including public, private, and voluntary sectors, and their legal str...Read More

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Types and purpose of organisations - public, private and voluntary sectors and legal structures
................................................................................................................................................3
Size and scope of different types of organisation...................................................................5
TASK 2............................................................................................................................................7
Relationship between Different organizational objectives and structure...............................7
Advantage and disadvantage of interrelationship between organizational functions............8
Different kinds of business structure and the interrelationship of the different organizational
functions.................................................................................................................................9
Identify the positive and negative impact of macro-environment on NHS............................9
TASK 4..........................................................................................................................................11
Conduct internal and external analysis of organisation in order to identify strengths and
weaknesses...........................................................................................................................11
Apply appropriately SWOT/TOWS analysis.......................................................................13
Strengths and weaknesses interrelate with external macro factors......................................14
Impact of both macro and micro factors...............................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business is considered as an ongoing activity which generate profit with the help of
manufacturing, production, promoting, selling activities. Business may be a legal entity which
run by the individual or group of people. Every business has a purpose. Some organisations have
profit motive but others exist to serve society. Every company requires an environment that
promotes better performance. There are different types of organisations such as public, private
and voluntary companies. For this report three companies are chosen like National Health
Services is a public company, Ford is a private company and Shelter is a voluntary company.
Every company purpose is different for the society. This report identify size, scope, vision,
mission and legal structure of these companies and also discuss about the interrelationship
among all organisational functions and identify the structure of the company. This report also
determines the external factors through PESTLE analysis and explain the strength, weaknesses,
opportunities and threats of the company through SWOT analysis.
TASK1
Types and purpose of organisations - public, private and voluntary sectors and legal structures
The organisation refers to the group of people coming together for achieving common
goal. There are various forms of organisations and they have their own motive and structure. The
different forms of organisation are as follows:
Public Organization
The public sector are the organisations which are owned and operated by the
government. They are composed to provide the goods and services to public for economic
welfare by government owned and controlled organisations (Alexandersen,et.al, 2016).
Example: National Health Service(NHS)
Purpose -The purpose of the public organisations is to serve the public by bridging
optimum development of all regions. The main motive is welfare of the public at large.
Legal Structure -The legal structure refers to the form of ownership and control of the public
sector enterprises. The public sector is managed by the government on three levels they are: Public Corporation : The public corporation refers to the government owned business. It
is controlled by the central and local governments and other public corporations.

 Municipal enterprise : The Municipal enterprise refers to the act of UK which
restructured the incorporated boroughs of England and Wales. It is governed by the
Municipal Corporations Act, 1938.
Private Organisation
Private organisations are managed by the individuals or group of individuals for profit
motive. The government have no ownership control in this structure (Alford and Greve, 2017).
Example -Ford
Purpose -The main purpose of the private sector organisations is earning profit. As they
are majorly the contributors of taxes that helps in development of economy.
Legal Structure -the legal structure of the private sector is divided as:
Sole proprietorship: The sole proprietorship is structure in which one man manages the
operations and it is unincorporated from of structure. Partnership - The partnership is a form in which two or more group of individuals
manages the operations. The partnership is registered and governed by the concerned law.
 Companies -The group of individuals come to run business with profit. The company has
separate legal entity other than its registered members. They are governed by the
companies law ( Arefieva, Miahkykh and Shkoda, 2019).
Voluntary Organisations
The voluntary organisations refer to the pooling of members with sharing common goal.
These members form the association and enter into agreement. The goods and services are
provided with aim of the welfare of public.
Example -Shelter
Purpose
The main purpose is to serve the community the motive is welfare of public rather than
profit.
Legal Structure -The legal structure is as follows: Trust -The Trust is form of charity based on the trust and good motive to let another
party use the resources and property of latter.
 Unincorporated associations -The unincorporated association are formed by the people
who share common goal and the owners are solely liable for the actions.

Size and scope of different types of organisation
Micro enterprise
The micro enterprise is categorised on 0-9 employee size and £2 million turnover.
Small enterprise
The small enterprises are defined with having 10-50 employees and turnover of £10 million.
Medium enterprise
The workforce size is 50-250 employees with turnover less than £500 million.
Large Enterprise
The workforce extends to more than 250 employees and turnover results in more than £50
million (Balashova et.al., 2016).
Various types of organisations
National Health Service (NHS)
The NHS is government owned organisation which is created to provide healthcare
services to public. This organisation is majorly catered to provide free healthcare services to
public. Sector - Public organisation Scope -The NHS is large sized company with offering so much services. Size - The NHS is largest public healthcare company in UK. The 1.1 million is total full
time workforce apart from this the 19000 is local and 130000 is engaged in primary
healthcare.
 Purpose- The main purpose is to serve public with access to healthcare facilities to every
corner of UK.
 Objective - The main purpose of NHS is to serve with quality and treating everyone with
respect with aim of saving every life.
 Product/Service -The main products and services comprises of the primary health
treatment, treating mental and dental problem and providing social care and hospital
services (Bull, et.al., 2016).
Shelter

The Shelter is a registered voluntary association which serves the problem of housing of
the people need in time. The shelter takes the support of government and local authorities
wherever the worst situation is appearing in region to take the step at large level.
 Sector -Voluntary organisation Scope -The Shelter is large organisation as revenue is above 50 million. Size - The shelter has revenue of £ 60.9 million pound and employs workforce of more than
200 employees and many volunteers are also there. Purpose - The main aim of shelter is to do good to the homeless people by giving proper
and secured shelter. For them, main purpose is to provide home facilities to the needy
people (Cacciolatti and Lee, 2016). Objective - The objective lies in 'homeless to housed' and 'remain housed'. To provide
shelter to homeless and abandoned individuals.
 Product/Service - The strategies focus on providing subsidies, rental allowances and
social care to people in need.
Ford
The Ford is an American company with is one of the largest auto mobile and vehicles
company which sells premium and luxury cars. The Ford is largest manufacturer and retailer in
the automotive industry (Crowder and Wills, 2019). Sector - Privately owned organisation Scope - The Ford is one of the large companies. with 190000 employees and $155.9
billion turnover. Size - The Ford is having 190000 employees and $155.9 billion turnover. Purpose -The main purpose of ford is to create a sustainable planet by redesigning its
designs and offerings. The progress of company with progress of planet is main aim. Objective - The main objective is to provide satisfaction to all stakeholders with being
leader in the automotive industry.
 Product/Service: -The main products of Ford contains commercial and luxury vehicles.
The automotive parts, trucks and SUV's are its main product offerings.

TASK 2
Relationship between Different organizational objectives and structure
Every organization have a different objective and purpose. With a specific objective
organization can accomplish their goal easily. Organizational functions are responsible to
maintain each and every activity smoothly and through effective organizational structure
companies effectively give direction to their employees and other staff members. National
Health Service follow a Hierarchical organizational structure. Hierarchical organizational
structure helps in more effective functioning of the company (Eldor and Harpaz, 2016).
Organizations consider many functions which helps company to full fill their day to day
work. Different functions within NHS support the activities within the organisation.
Organizational functions are very useful in department functioning so that company comfortably
deal with all the activities. National Health Service is most famous public company in UK which
provide health care facilities. There are many departments in NHS including the following:
Human Resource & IT Functions
HR department of the NHS is a very crucial function of the company. With the help of
human resource function company easily appoint and select good employees who have strong
knowledge to work for the organisation. HR department of NHS company work very efficiently
and recruit right employees for the right job task. Information Technology department helps the
HP department to provide access of advance techniques and software so that HR department
easily conduct their work. With the help of IT department company can provide online job
application on online platforms and recruit employees. Through IT department, NHS easily
conduct advanced training and development sessions to their staff members so that they can
increase their skills and update the latest knowledge which require for the health care purpose.
Both functions HR and IT interrelated and work together for the welfare of the company and
people (Fozer, et,aL., 2017).
Financial & Sales Functions
Financial function of the NHS is responsible for preparing budgets for the organisation.
Finance department of the NHS company consider all cost and margin and analyse all the
expenses of all department. Sales department of the NHS provide all the information about the
sales to finance department and then finance department maintain all the sales record and

calculate revenues and create a convenient budget. Financial and sales functions are work with
each other and both are interrelated.
Operational & Research and development functions
with the help of Operational functions, NHS company easily manage all the operational
activities and maintain all the customer’s operations details. In operational activities, company
easily monitor the health status of the customers. Through research and development function,
company investigate and diagnose the health issues of the customers find out what is the reason
which affect the customers. Both functions are correlated and work together in the organization
(Hvidman and Andersen, 2016).
Advantage and disadvantage of interrelationship between organizational functions
There are many advantages and disadvantage of the interrelation between organizational
functions of the company. National Health Service is a publicly funded company which offer
health care services.
NHS company also facing few advantages and disadvantage of the interrelationship of the
functions with each other.
When every organizational functions are work with each other then it makes easily for the
other functions to perform activities effectively. It became easy and comfortable for all the
departments to conduct and accomplish task on time. For example – HR department help IT
department through appoint a good skills employee in IT team and IT department help in
functioning of HR department through provide advance technologies so that like that finance
department help in sales department and operational department help in functioning of research
and development department so this is the useful advantage of interrelation with organization
function. There is only disadvantage which includes that all the department become dependent
with each other so the dependency on each other department affect the functioning of the
departments so that it gives bad impact on organizational structure (Jambotkar and AnjanaRaju
2018).
Different kinds of business structure and the interrelationship of the different organizational
functions.
Organizational structure is necessary and useful for the companies. A proper and well
organized structure is required for the organization. NHS is following Hierarchical
organizational structure because NHS is a large organization and there are various layers.

Hierarchical structure follows from top to bottom and it is a well disciplines structure which help
in each and every functions of the company. Top level employees have a high authority and
responsibilities. This business structure work in an order and series and flow of information
going high authority to middle level and then lower level and this structure help to maintain the
all records of each staff members.
Identify the positive and negative impact of macro-environment on NHS
To analyse the positive and negative impact of macro environment on company it is
necessary to use PESTLE model. With the help of PESTLE model company analyse all the
external factors like political, economic, technological, social, legal and in the last environmental
factors. NHS is a most famous public health care company based on United Kingdom. To sustain
in market and maintain position company time to time use PESTLE model which help company
to identify what and how outside factors give positive and negative impact. All the factors
positive and negative impact discussed below -
Political Factors
In political factors, all the government rules and regulations, polities, stabilities,
taxations. Trade and its restrictions are included. These factors influenced the external
environment of the NHS company (Jelassi and Martínez-López, 2020). Positive Impact – NHS company is a publicly funded company which provide healthcare
facilities so company maintain all the rules and regulations which is formed by the
Government of UK. When Brexit take place then the trade of medicines and other
medical equipment from UK to EU could be restricted especially if there is no trade deal
in place.
 Negative Impact - It is a public company so separation from the EU give deep impact on
the functioning of the company. Covid-19 and Brexit gave back to back bad negative
impact on the company. s
Economic Factors
These factors consider economic growth rate of the country, interest rate, unemployment
rate, exchange rate and inflation rate of the country. NHS is a public healthcare company so
company growth and development affect the country growth (Joslin and Müller, 2016).
 Positive Impact – NHS is a national company so its growth gives the positive impact on
the country economy it helps to boost the country economic growth.

 Negative Impact - Financial economic crash of 2008 affect the NHS negatively and
company experienced many ups and downs and difficulties so that company reduce the
salary of many staff members. Now due to Covid and Brexit company again facing many
difficulties.
Social Factors
Social factors consider many facts like culture, cast, age, religion, population, health and
safety. NHS company deals with all types of people in their organization and maintain all the
socio-culture factors. Positive Impact – NHS providing services and facilities to each and every customer
without any discrimination and charge low cost for services so that it makes convenient
for the customers.
 Negative Impact – Average age of population of the UK increasing rapidly so it leads to
increase the health problem and Covid and Brexit also responsible to give negative
impact on the health of the people (Kim, Eisenberger and Baik, 2016).
Technological Factors
These factors lead the technological engagement and help in production, operations
activities. NHS is a big company which operate their business with the health of technologies. Positive Impact – NHS is using many advance technologies so that company provide
latest techniques facilities of health care to their customers. Customers can book their
points with the help of online and digital platforms.
 Negative Impact – The uncertainty of Brexit affect a lot the online trade between United
Kingdom and EU.
Legal Factors
In this factors, all the law, rules, policies, acts come which are formed by the UK
Government. NHS is a public company so company pay more attention to follow all the legal
procedures (Malek, Sarin and Jaworski, 2018). Positive Impact – Company providing all the facilities as per the Government guidelines
and proper maintain all the legal activities so it give positive impact.

 Negative Impact – Unhappy customers file grievances and take legal actions it gives
negative impact von the company. NHS facing lots of litigation cases so it affects
negatively.
Environmental Factors
These factors consider all the natural and environmental activities, population, pollution
and other resources. NHS is a health care company so it properly focusses on the environmental
activities. Positive Impact – Company proper maintain all the environmental aspects. Company
provide environmental friendly environment to their customers which give positive
impact on the company.
 Negative Impact – Due to Covid, the environment become really worst and it give
negative impact on the health of the people (Malek, Sarin and Jaworski, 2018).
TASK 4
Conduct internal and external analysis of organisation in order to identify strengths and
weaknesses.
With the help of SWOT analysis, company can identify strengths, weaknesses,
opportunities and threats. Strength and weakness comes under internal analysis and opportunity
and threats comes under external analysis of the company. This report evaluates the internal and
external analysis of two companies Ford and NHS. The internal and external analysis of Ford
and NHS are given below-
SWOT analysis of Ford
Strength
The main strength of Ford company is that its research and development is very strong
and Company also invested in engineering and research department a lot. Ford comp[any also
provide convenient offers like low interest, low payment and many discounts (Mishra,
et.al.,2019). Ford maintain strong position in the home country. Ford market expand all over the
world.
Weaknesses
The main weakness of Ford company is that it maintain high price structure and the cost
that more expensive than other auto mobile companies that affect the company selling and the

production capacity of the Ford company is very limited that give adverse impact on the
company performance.
Opportunities
Company have a opportunity to Ford about to possible sale increase in green vehicle. Ford
company expand their market globally. Ford also emerge all the demand for the small and
medium cost vehicles in the Asian market. Cost also increase the base of the company and
provide the eco- friendly vehicles.
Threats
Company need to maintain the protocol the restrictions to reduce the Carbon emission.
Due to Brexit, company faced many changes in pricing. Reduce market share due to competitive
pressure.
SWOT Analysis of National Health Service
Strength
The main Strength of the NHS is continuously expanding market all over the world and
NHS also managing strong relation with shareholders. NHS Provide good CQC report to their
customers so that NHS position is really strong clinical and operational performance. NHS has
strong research and development system.
Weaknesses
The average age of UK people increasing frequently so NHS find difficulty to maintain
the demand and requirements customers considered the main weakness of NHS. Negative
behave and attitude of employees give and impact on the customers. High staffing cost also
affect the performance of NHS. Financial deficit increase that need to resolve.
Opportunities
NHS can do business with private and voluntary companies in partnership that can be a
big opportunity for NHS and also develop good health policies and provide high quality services
to customers which increase the market value. NHS also has opportunities in research and
development (Phadermrod et. al., 2016).
Threat
Uncertainty of Covid and Brexit affect the NHS performance and new ownership systems
and structure affect the NHS.

There are various factors which affects the Ford and NHS company and give impact on
the macro environment of the both company. Ford maintain high price structure so after Covid
and Brexit it effected a lot and due to increasing the population rate NHS also facing many
difficulties.
Apply appropriately SWOT/TOWS analysis
SWOT analysis is required to understand the strength and weaknesses of the company
sop that company can create good opportunities and remove all the threats. Ford is a private
company which operate their business all over the world. Main strength of Ford is that company
has a strong brand image in whole world and sometimes and occasionally company also give
many pocket friendly offers and discounts to their customers. Apart from this Ford maintain high
cost structure and company production capacity is limited these are coming under Ford weakens.
Few opportunities are company is about to increase the green vehicle and also increase the fuel
price. Company also facing some threats these are pressure to reduce the carbon emission and
reduce market share because of Brexit.
The SWOT analysis of NHS shows that company spread market across the world and
company manage strong relation with shareholders and strong research and development
department is the main strength of the NHS. Some weaknesses included negative behaviour of
the employees with customs and population growth affect the NHS. Develop good health
policies, partnership with private and voluntary accompany are the opportunities of the NHS.
Few threats are uncertainty of Covid and Brexit affects company a lot.
Strengths and weaknesses interrelate with external macro factors
Strength band weaknesses are considered two main components which help to maintain
the performance of the company. There are some positive and negative impact on NHS which
shows that how strength and weaknesses are interrelated with the macro factors are discussed
below-
Political Factors – In political factors, all the Government rules, regulation, policies and
procedure need to follow some time political factors are uncontrollable and company feel
political pressure. The main strength of the company in context of political factor is that NHS is
a public organization which deal with healthcare industry so company always maintain a good
and strong relation with other industry and other people and company expand their business all
over the world. The main weakness about the political factors in context of the NHS is that

company expand their business all over the world so it become difficult to maintain all the
foreign countries government policies (Shackelford, Russell and Kuehn, 2016).
Economic Factors - In this factor, company economic condition take place. NHS is a big UK
based company so company growth matter for the country and NHS also give their best
contribution in the development of economy of the country this is consider strength of the
company. Increase the price of the products and exchange rate of products and services lead to
become the weaknesses of the country.
Social Factors – In this factor, all the socio-culture activities are coming. All people belief,
behaviour, values, attitudes, culture are coming under the social factors. NHS providing services
to their customers without any social restrictions and discrimination and also treat every
customer equally these are the main strength of the company. But sometimes it is very difficult
to follow cultural things which affect the customers. After covid company experiencing many
issues in the society this is consider in the weakness of the company (Sheehan and Powers,
2018).
Technological Factors – In technological factors, all the technological advancement and
changes take place. The main strength of the company is the company using high and advanced
technologies and good quality machinery and equipments which help the company to operate
well and the main weakness of the company is that sometimes company faced some
technological changesets and crises so it affects the performance of the company.
Legal Factors – In this factors, company need maintain all the policies and procedure which
made by Government. The main strength of the company is that it follows all the legal procedure
because this is a public company and also maintain all the records of their customer and do not
work illegally. The weakness of the company is that sometimes is hard to maintain the all other
countries legal policies so that time company face problem (Yeung, 2018).
Environmental Factors – In this factors, all the environmental activities like pollution,
populations come. NHS is a healthcare company so its mandatory make environment clean and
safe. Company providing all the natural environment and resources to their customers this is the
plus point of the company. Population growth rate and average age of the people is increasing
day by day so company is facing difficulty in this.

Impact of both macro and micro factors
PESTLE analysis is really helpful to analyse the external environments situations and
with the help of Swot analysis, it makes easy to recognize the micro environmental factors. NHS
analysed both micro and macro environmental factors with the help of these two models. In this
report, NHS company applied PESTLE model and recognized that technological factors are
given positive impact as compared to the other factors of the macro environment and also help in
decision making process. SWOT analysis of the NHS shows company strength and weakness as
per the market scenario. NHS expand their businesses on other are and maintain strong relation
with shareh9olders are the main strength of the company. NHS is a public company so its growth
affects the country growth and this company give positive impact on country economy.
CONCLUSION
As per this report it is concluded that comfortable and productive business environment is
require for all companies. This report discussed about size, scope, vision, objective and mission
of the different three companies. With the help of this report, interrelationship between various
organizational functions discussed and also determine that organizational structure of the
company A good organizational structure lead to all the activities in companies in a systematic
way. Every company need to know about that how much outsider factors affect them so this
report conduct PESTLE analysis and identify the effect of external factors on company. With the
help of this report company recognize about the strength and weakness and also analyse the
opportunities and consider that threats of the company.

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