Business and the Business Environment: Ford, DWP, and Charity Report

This report provides a comprehensive analysis of the business environment, focusing on different types of organizations, including private, public, and voluntary entities, and their legal structures. It examines the size and scope of organizations like Ford, DWP, and the British Heart Foundation, evaluating their missions, visions, stakeholders, and employee structures. The report delves into organizational structures such as matrix, flat, and divisional structures, and their interrelationships. Furthermore, it explores the positive and negative impacts of the macro environment, conducting internal and external analyses to identify strengths, weaknesses, opportunities, and threats (SWOT). The report also analyzes how SWOT influences decision-making and critically evaluates the impact of both macro and micro environments on business operations. The report concludes by summarizing key findings and providing references for further study.

BUSINESS AND THE
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Different types and purpose of organisation and their legal structures................................4
P2. Size and scope of organisation..............................................................................................7
M1. Analysis of the structure, size and scope of different organisations...................................8
TASK 2 ...........................................................................................................................................9
P3. Relationship between different organisational functions and structures..............................9
M2. Analyse the advantages and disadvantages of interrelationships which put impact on
organisational structure.............................................................................................................10
D1. Critically analyse the complexities of different business structures and their
interrelationships.......................................................................................................................10
TASK 3 .........................................................................................................................................10
P4. Positive and negative impact of macro environment..........................................................10
M3. Analysis of external environment in the organisation.......................................................12
TASK 4 .........................................................................................................................................12
P5. Internal and external analysis in order to identify the strengths and weaknesses...............12
P6. Explanation of the strengths and weaknesses of the external factors.................................14
M4. Analysis of how SWOT influences the decision making..................................................15
D2. Critically evaluate the impact of both macro and micro environment...............................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
To operate a business it is very important to understand the environment as it help in successful
running of business at any place. The business environment is the combination of both the
internal and external factors and these component influence every aspect of it such as the nature,
location, price, products, distribution and many more. Therefore, it is important to learn about
the section of business surroundings. The term “business environment” implies the external
forces that are beyond control of the entity and affect its functioning (Aydiner and et. al., 2019).
It covers various elements such as customers, competitors, suppliers, government, culture and
many more. In the context of business, there are three types of organisations private, public and
voluntary, they all have to be conscious about the changes which are taking place in their
organisation and its environment. As this report is based on Ford, it is an American automotive
industry and a private company, headquarter in Michigan, US and incorporated in 1903. This
document is going to cover different types of business arrangements and also describe the
interrelationship among them. Furthermore, the positive and negative impact of the macro
environment is identified and internal and external analysis is conducted in order to determine
the strengths and weaknesses of macro environment.
TASK 1
P1.
A company is an entity, comprising multiple people in an association for the specific
purpose (Boone and et. al., 2019). Hence, there are variety of organisations which are mentioned
as under:
Private Organisation: These organisations are the part of economy which is run and owned by
individuals and also came into market with the aim of earning profit (Budhwar, Varma and
Kumar, 2019). These institutions raise funds by themselves and also contribute huge share in the
development of economy. Moreover, they follow different rules and regulations which need to
be followed as these are created by the government and set their internal guidelines accordingly
for smooth functioning of their business. For instance, Ford which is an American multinational
automotive company and founded in 1903, delivering and selling commercial vehicles.

Purpose: Their objective is to increase the profit, improve clarity and also choose
appropriate culture for organisation in order to operate business in an appropriate manner(Cehlár
and et. al., 2019).
Legal Structures: Sole Proprietorship: It is the one person entity and mainly founded in trades where only
small amount of capital is required for establishing their business as it has few advantages
for the existence of large organisations (Dwyer and Hopwood, 2019). Moreover, this kind
of business does not require complex paperwork and sole trader is only responsible for
profits and losses. They alone need to collect all the funds for the business and bear risk
for their business venture. In order to set up their business they does not need the
permission of government. Partnership: It is a form of association of individuals and it is formed by considering two
or maximum twenty partners and each of them are responsible for all the debts (Gaganis,
Pasiouras and Voulgari, 2019). For this they make an agreement for their responsibilities
and rights which is termed as partnership deed which is the legal document and describe
the power, authority, share ratio and many more of each partner. This structure is quite
complex as it involves huge paperwork and take time in its formation.
 Corporation: It is formed by individuals who create their own firm for effective
regulation of their commercial activities. As these firms are owned and operated by
stakeholders and they are elected by the Board of Directors in order to carry forward their
business actions. To form these businesses, various legal formalities are needed to be
consummated as it is an organisation which carry their own patent or copyright.
Public Organisation: These kind of enterprises are operated by the public bodies and
government for serving their offerings to general public (Hassanie and Dale, 2019). The state
government, local and central and also the sum total of both the public services and enterprises
are the owners and operators of public organisations. These enterprises are held on the grounds
of commercial basis and provide various services which is owned by the state government.
Funding of these set ups are raised by the government and public bodies. For instance,
Department of Work and Pensions (DWP) is the largest official body in the context of employees
and budget.

Purpose: Their aim is to make changes in the economy, development of nation and
people and spread awareness among general public.
Legal Structures: Central government: It include various business functions which are governed by them
as it help in controlling the services and actions of businesses. Furthermore, central
government has the power to make different laws and legislations (Kalitanyi, 2019). For
this, companies relies and need to take permission from them in order to run their
businesses and also, involvement of central government is there in decision making. State government: They share their powers and authorities with national government, as
many services which are performed by them are controlled and managed by the state
government because raw materials which are required to render those services are
delivered by state government.
 Local government: The role of local government is to collect funds with the name of
community charges which is known as council tax. They plays an important role in order
to determine the requirements of individuals.
Voluntary Organisation: This kind of business enterprises are developed for rendering social
welfare services. Voluntary organisations works in a very unique manner no membership is
necessary and its employees are either paid or unpaid (Klepac and Berg, 2019). In addition to
this, people join such entities to do welfare services for the poor and needy people. These
organisations are not developed with the motive of earning profits and therefore, does not
include formal legal structure. Moreover, these set ups are useful to those sections of society
who have limited amount of resources by providing them funds and fulfilling their other needs.
For example, The British Heart Foundation is charitable entity which collect funds for the
researches who made research for the heartbreak from heart and circulatory diseases and founded
in 1961.
Purpose: Their aim to join and gather people and enhance their services. These
organisations work for the social welfare services and also serve for the poor and needy people.
Legal Structures: Trust: It is the kind of generous trust which is runs and functioned by the grouping of
people who are advised as the trustees. These associations are managed by the trust title
which is limber and manageable. Trustees of these organisations are not appointed as

they are nominated by the board (Kwilinski and et. al., 2019)). In order to establish the
trust the group associates need to make a compatibility which is in written form and also
known as the trust deed and it depicts that an administration is lawfully charitable.
 Unincorporated association: It is the kind of charity which is establish by those
regulations and norms which are not even mentioned or certified under constitution. For
this, institution need to few features such as restrictions on the dispersion of funds and
many more. These are not unified as they cannot make sort of contract (Lopes and et. al.,
2019). Moreover, this structure also carries restriction of susceptibility hence, the
associates of the management would come in into any agreements on behalf of the
charity.
P2.
Basis Ford Department of Work
and Pensions (DWP)
The British Heart
Foundation
Vision Their vision is to point
out the values and set
the standards for their
rivals and also inspire
the emotions the
general public.
They want to provide
fair and affordable
services which help
them in order to
increase the chances of
children's life.
They want to create
better world for poor
and needy people in
order to inspire them
towards their work and
also create world in
which people does not
die prematurely.
Mission Their mission is to
inspire the quality of
products among their
respective customers
and make lives of
people better by
making mobility
affordable and
accessible.
The mission of DWP
is to deliver excellent
services to their
consumers and also
make changes in their
ways by which they
deliver their offerings
and services in order
to eliminate cost and
Their mission is to
fulfil basic needs of
poor and needy
individuals and also
achieve victory in the
fight against
cardiovascular disease.

also help in increasing
the efficiency.
Size and scope In Ford, they use flat
organisational
structure and also
inspire their
employees in decision
making process. For
this, company has
approximately
1,99,000 employees
(Number of Ford
employees from FY
1992 to FY 2018,
2018).
The employees in
DWP is around 84,718
and also include
flexible and
contractual basis staff
(DWP's headcount and
payroll data for
January, 2018).
It has around 3,000
employees working in
this foundation which
is a voluntary
organisation in UK. As
it has wide scope
because it works for
the civil society.
Stakeholders The stakeholders of
Ford are its owners
who work at the top
management and
spend their money in
business and if the
business losses the
they also lose their
money.
Its stakeholders are the
government bodies
which involve many
factors such as
customers, general
public and many more.
Moreover, it
represents that how the
company increases its
performance.
These type of
enterprises are directly
connected with factors
which include funders,
commission, investors
and many more.
Moreover, its
stakeholders are the
general public and
other voluntary
organisations.
M1.
By evaluating the above information, it is analysed that there are 3 kinds of enterprises
and all plays a crucial role in business environment but all have different kind of legal structures.

Moreover the intention of private is to earn net profit, public is to supply services to people and
voluntary is to help poor and needy people. In addition to this, size, scope and stakeholders are
also analysed which are based on the structure.
TASK 2
P3.
Organisational Structures Matrix: It is supported on the grids and matrix rather than focusing on the hierarchy
because it depicts that employees have various assignments and work and they have to
report to various types of people as they are delegated various assignments at the same
time under different managers (Lu, Wang and Xu, 2019). DWP follow this organisational
structure because it is the public body and the subordinates perform various functions at a
time. Flat: This structure manages the managerial activities and also promote participation of
employees in an organisation. Moreover, it is in the pyramid shape and depicts three
different phases such as top, mediate and lower (May, 2019). In the context of Ford, it
follows global organisational constitution because it deals its commodities and services in
the worldwide market.
 Divisional: This structure allows more liberty and exemption in an organisation and it is
seen in those enterprises where work is owned and done at the same time (Menéndez and
et. al., 2019). In this context, the British Heart Foundation follow this structure because
their mode of work is quite complex and different functions are owned and operated at
the same time. Furthermore, it use this structure as it provide powers and authority to
each and every individual.
Ford is the American automotive company which operates its business and need to be
managed because of its structure as it work at the large scale and hence, it is divided under
different types of functions which are mentioned as under: HR and Finance department: The role of HR department is to recruit candidates
whereas the finance department prepare budget and provide funds in order to carry out
the activities (Mickiewicz, Rebmann and Sauka, 2019). Both the sections of Ford are
interconnected with each other as the cooperation and coordination is required in order to

achieve profitability in the market. By the coordination of each department skilled
nominees are hired in the finance department and also achieve profitability for the
company. Because of this, the overall aim is to hire best and talented candidates in an
organisation.
 Sales and Marketing department: Here, both of these sections are interconnected with
each other as marketing department do investigation in bid to gather relevant data about
the various kinds of data such as taste, preferences, request and many more (Recica and
et. al., 2019). Moreover, sales department helpful in reaching products and services to
their potential customers and also develop different strategies and plans in order to
increase their overall sales. Through this, the goals and targets of the Ford becomes
achievable and also helpful in order to in improve the image of company.
M2.
By determining the structure of organisation, cooperation and coordination is necessary
as it is significant to achieve goals and objectives and also good from the view point of workers
because it helps in improving total presentation of employees. Furthermore, structures are
discussed which describes the operation of organisation and if the department does not
coordinate with each other then it effect the productiveness of entity.
D1.
From the above part, it is determined that it is essential to have group action and
coordination among the different departments of company as it help in improving the
sustainability of company. Furthermore, the structures which are adopted by company is based in
determination of perspective of company as it help in retaining the champion talent in structure.
If the constitution does not suit or matches with workers then they does not perform in the
appropriate way.
TASK 3
P4.
PESTLE analysis is a model used for examining the external factors and also depicts their
impact on the environment (Rosa and Pihkala, 2019). It put impact on the overall performance of
an organisation. It is useful at the time of entering in new market or starting a new business. Its
component are mentioned as under:

 Political: By viewing the political conditions of US it is determined that the stability of
the government over there can become both an opportunity and threats for company. The
political instability in European Union imposes negative effect on the execution of
company especially Brexit as it make downfall in the accessibility of the free trade
agreements with European Unions (Ford PESTLE Analysis, 2019). Moreover, its trade
agreements and government incentives put positive outcome on institution. By
considering the marketplace of South America and Asia the request of automotive
companies are increases as it bring innovation and growth in economy. Economical: Presently, company observes slump at the international market in terms of
its cars and sales. Moreover, Ford put itself at the big market share and accomplish
growing in order to develop its market in developing countries who sees the downfall in
the amount of vehicles and put affirmative effect on the work of company in market
(Ford PESTLE Analysis, 2019). Furthermore, the dollar is getting high and the opened
trade contract between the rising economies and commitment about immense sales in the
market. Social: By analysing the current situation of the world, customised have assortment of
prime when its about the automotive industry. Because of this, Ford can face many
problems in bid to attract their customers which place negative effect on the overall
performance of company. As company introduces electric and hybrid cars which can
become opportunity for company as the demand of hybrid cars are increases in the
market. Technological: By over viewing this factor it depicts that technology shows an essential
function in the choice of people as the eco-friendly people is getting increases and by this
the demand of these cars are also getting high as it put positive influences on organisation
(Ford PESTLE Analysis, 2019). Moreover, company launch its technological devices
like automatic windows etc. and some other innovation which is done by company is the
driverless cars and by this it hopes to become the mortal of market. Legal: It include various factors such as environmental protection act, safety and
property legislations as these can become possibility for the institution. Moreover, it
increases the property which helps in addressing the impact of environmental activity
(Ford PESTLE Analysis, 2019). For this, company improves its enterprise in order to

match the effect of these rules as it helps in ensuring the better productivity, design and
safe employed surroundings which put positive effect on the presentation of organisation.
 Environmental: It include different factors such as weather conditions, carbon trend, oil
reserves and many more and all these can become opportunity for company in order to
operate its business in the dynamic environment and also help in growing and
conservation of environment (Ford PESTLE Analysis, 2019). Moreover, the demand of
cars move towards the eco-friendly context and it put positive impact on company as
Ford launches electric and hybrid cars to its respective customers.
M3.
It is determined that the analysis of macro environment is essential because it help in
order to reduce the risk factor which can become opportunity for company. Moreover, it depicts
that political factor which identify the stability of government as it become both strength and
weakness for the company in order to expand its business. Furthermore, its technological part is
its strength in order to launch its products and also help in the expansion of company as Ford
adopt advanced technology in order to provide good offerings to its customers.
TASK 4
P5.
SWOT analysis : Swot stands for strengths, weakness, opportunities and threats analysis, it is a
strategic panning techniques used by manager to make use of available resource and see
opportunities present in the environment (Stanković and Novaković, 2019). Ford motor is an
American international auto-mobiles company, manufacture luxuries car and commercial
vehicles under Ford brand name. This company make use of SWOT analysis to identify and
analysis the internal as well as external factors that can impact the viability of a projects.
Internal factors : This factors are found within the organisation such as strengths and
weakness. Strengths: This part presents the main characteristics about the company which make its
presents feel in the global market. Ford is a well-know company in the auto-mobile
industry for providing comfortable products and services. As a good player in the
industry, it has a strong image in the market that attract more customer by fulfilling the
needs and wants of its customer on time (Trigkas and et. al., 2019).