Analysis of Ford's Business and Business Environment Report

This report provides a comprehensive analysis of Ford Motor Company's business environment. It begins with an introduction to the business environment, emphasizing the impact of both internal and external factors on an organization's operations. The report delves into different types of organizations, including public, private, and voluntary sectors, along with their legal structures, using examples like the Crown Prosecution Service, Ford, and the British Heart Foundation. It then examines the size, scope, and structure of these organizations, with a specific focus on Ford, and their respective visions and missions. Furthermore, the report explores the interrelation of different departments within an organization, such as Finance and Operations, and how they contribute to achieving the company's goals. The report also includes PESTEL and SWOT analyses of Ford, examining the external market and internal factors influencing the company's performance. The organizational structure of Ford is also described in detail.

Business & Business
Environment

INTRODUCTION
Business environment indicates to the aggregation of several intrinsic and extrinsic
components which make concentration on the impact of each company's operations. These kind
of factors are most essential for the organisation and at similar period of time very important also
as they are influencing firm's intrinsic administration and overall running (Banica and Hagiu,
2015). Some of these elements avialble in macro environs are political, societal, economic, legal,
rivals, consumers etc. all the shareholders which are affiliated to organisation instantly and
indirectly and play a crucial role in devising several determination for regular and smooth
running of the organisation.
This assignment covers the legal framework of various functions of an administration,
the external analysis of the market, PESTEL and SWOT analysis. The assignment also explains
the size, scope, structure of Ford and their impact on a firm both in an affirmative as well as
destructive manner. Also, the organisation considered in the assignment is Ford which is an
American multinational auto-maker, established by Henry Ford and established in the year 1903.
TASK 1
P1. Different types of Organisations and their legal structure
There are various kinds of enterprises depending upon their size, organisational and
legitimate structure etc. The companies are categorized majorly into 3 groups namely, public
sector, private sector and voluntary organisations. All these organisations have their own goals
and objectives. While private sector firms mainly focus on generating profits, public sector
organisations are primarily focussed towards providing services to the public and are usually
funded by the government. On the other hand, voluntary organisation are not focussed towards
generating profits, but providing services to people who cannot afford the basic services like
healthcare, education etc. Various kind of companies are described beneath -
Public sector- Organisations that fall under this category are regulated and funded by the
government with the main purpose of offering services to the citizens of the nation at affordable
prices (Clarke, Li and Xu, 2016). Public firms are not make concentration on earning profit, they
are work for providing different services to the individual and fulfilling their requirements. There
are several kind of difficulties which are suffered by individual and for for resolution these issues
a business derivative is recovered out and then an enterprise formed. The Crown Prosecution
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Service is the Principle public authorisation which is work for conducting criminal prosecutions
in England and Wales. This firm was formed in 1986 and headquartered in Petty France London.
There are approx 6,000 employees are making the contribution in performing the business
activities and operations of the organisation (Deasy and et. al., 2016). The major objective of the
organisation is to provide lawful proposal to the police and other inquiring authority at the
duration of criminal inquiry. They operations and activities which are executed by it all are
controlled by the legal authority of the country. BBC, AWE, British Army are some examples of
national organisations.
Purpose- The major intention of the public companies are to supply their employment to general
public by utilising their origins effectively. The respective organisation works for conducting
criminal defense and provide legal proposal to the investigation agencies at the time of criminal
enquiry.
Legal structure- Crown Prosecution Service is a central authorities closely-held public sector
company.
Private sector- Organisations falling under this category are owned by either a person or a unit
of people. These are the companies which belong to a country's economic system and assist in
growing and developing of industrial sector. The government does not play any role in running
the operations of the firm. Ford is a private organisation which is considered within the public
limited organisation artefact of private sector. Ford Motor Company is an American
transnational auto creators and headquartered in Dearborn, Michigan. The organisation was
established by Henry Ford in the year 1903 and has operations worldwide including countries
like Cuba, North Korea, Iran, Sudan, Japan and others. Some examples of private firms are
General motors, Toyota, Tesla Motors, Daimler, Spartan Motors.
Purpose- The primary objective of private industry organisations is to earn more profitability
and to provide satisfactory rivalry to the public aspect companies (Fabuš, 2017). As it will direct
them to intensify efficiency and effectualness. These are companies which offers latest and
voguish goods and services to their reference audiences.
Legal Structures– Ford Motor company consists under the limited organisation which is
regulated and organized by organisation laws.
Voluntary organisation- This kind of company consists group of individual who willingly
come into an statement to devise a company in state to accomplish a impersonal (Grigore and
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Drăgan, 2015). These organisations do not have the primary motive of earning profits and
generating huge amounts of revenue but work for the betterment of the society, serving people
who cannot afford even the basic services like education and healthcare. British Heart
Foundation is one of such kind of company which is primarily focussed on providing social
services and not to earn profits. The respective company is a charity organisation which
monetary fund to investigation to beat grief from heart and circulative difficulty and their risk
components. The company is headquartered in Birmingham, England was founded in the year
1961. The estimated employees of the company are 3,000 and estimated annual revenue is
$10M. The organisation works for the betterment and improvement of the society by providing
effective health care services to them so that they can afford to cure various diseases relating to
the heart. They also work for improving the living standard of local people by creating job
options to them. Save the Children, Wellcome Trust, Oxfam etc. are some examples of volunteer
sector organisations.
Purpose- The major objective of voluntary sector firm is work for the improvement of the
societal benefit. There are those enterprises which are work to devise development and
betterment in living standard of the individuals who are living in community.
Legal structure-
Trust- It is not a legitimate company which effectuation they can not come into any grasp
or written documents it their own name.
Unincorporated association- There is no limitation of financial obligation as they come
in the statement on the post of charity and are impersonally susceptible. British Heart
Foundation comes under unincorporated association.
As stated above, it can be said that there are various kinds of organisations that function
under the three broad categories- public, private sector and voluntary organisations that have
their legal and well as structural framework. As the enterprises have diverse legal structure so
they have diversification in their impersonal as well.
P2. Explanation of the size and scope of different types of organisations
There are three important collection in which organisations are segmented that is public,
private and voluntary (Huang-Horowitz, 2015). There are other diversifications also on which
enterprises are imposed, supported on organisation's productivity and their turnover rate.
Crown Prosecution Service
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Vision and Mission- Crown Prosecution Service has a vision of prosecuting people who
have been charged with a criminal office in England and Wales.
Size and Scope- The organisation organised its business concern activities with the assist
of approx 6,000 employees and work for providing lawful proposal to the police and other
investigative authority at the time of deplorable investigation (Khan and Quaddus, 2015). The
company has large scope of development as they are working a sector to provide security to the
public from criminal activities.
Organisation structure- The particular company follow divisional organisational
structure which consist diverse divisions like Specialist fraud section, Special Crime and Counter
terrorism Division, CPS proceeds of Crime unit and others.
Ford
Vision & Mission- Fiord indicates to its missionary station argument as its imagination,
which is omnipotent in its simpleness. It is as “People working together as lean, worldwide
organisation to word people's live better by auto-motive and mobility leadership.”
Size and Scope- There are 199,000 people who running and contribution in operating the
business concern actions and operation of Ford. It direct its business concern in the number of
countries across the world like Sudan, japan, India, Cuba, North Korea and others with large
number of stores. It run its business with its different products like Auto-mobiles, Luxury
Vehicles, commercial vesical, Automotive parts etc. the business of the company as large scope
because it manufacture products according to the trend and customers needs and requirements.
Organisation structure - The organisational framework of Ford is categorized into three
geographical divisions namely- corporal hierarchy, regional geographic divisions and
international utility groups that cover all the organisation's marketing all over the world (Kolk,
2016). This structure is supported on several business concern requirements in varying
merchandising situations all over the world.
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Source:Ford organisation structure,(2019).
British heart foundation
Vision & Mission- They have the vision to beat heart and circulatory diseases and their
hazard factors. So that they can assist the individual to get over theses types of problems and
diseases.
Size and scope- The company has nearly 3000 employees who contribute to the total
accomplishment of the goals and impersonals of the company (Moroni, Arruda and Araujo,
2015). The administration has large scope because it supply its service to goodness to the
community.
Organisational structure- They have a council of associators which have trustees who
regulate actions, utility and dealings of the organisation.
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Illustration:Ford organisation structure

Scope: British Heart Foundation. (2019).
Micro enterprise- It refers to those firms which are are needed less than 5 individuals and
$250,000 per annum for operating the business actions and operations of the organisation. For
instant, Cobbler, Barber are some suitable examples of these type of companies.
Small company- these kind of business concern are basically closely-held organization,
partnership, partnership that have less workers approx less than 10 and minimum amount of
finance (Otache and Mahmood, 2015). Prime people, Innovate UK, BrightStar, financial are
some example of small business organisations.
Medium organisation- These form of business concern companies are defined within the
Company Act 2006 as a firm whose business have requirement up to 250 workers to operate its
business operations. For example, Captify, Verdant Leisure are some effective example of these
type enterprises.
Global organisation- A global alliance involving many diverse nations are known as
international company. H&M is the best example of global organisation.
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Illustration 1: British Heart Foundation

Multinational company- It refer to a company which is an enterprise that owns different units
of production in various units of manufacturing in diverse nations (Prajogo, 2016). Tesla,
General Motors, Ford are some suitable examples of these kind of companies.
TASK 2
P3. Interrelation of different departments of an organisation
Organisational structure is referred to the levels of hierarchy within an organization and
also explains the allocation of various roles and responsibilities to the employees in order to
achieve goals and objectives. Different organizations can have different organizational structures
like functional, pre-bureaucratic, bureaucratic, post-bureaucratic structures, matrix etc. An
organisational structure is designed for a smooth functioning of all the operations of a company.
This not only helps in the growth of the organization but also attain the targets that it has set to
achieve.
Every organization has various functions or departments that have their own specified
goals and objectives and as a whole towards achieving the company's set aims and goals. The
relationship between the various departments within an organisation and the way in which are
linked with the structure of the organization and objectives is explained below -
Finance and Operations Departments– Finance division has the obligation of
monitoring and dominating the inflow and outflow of cash flows in an organization. The
department also helps other departments when they are in a financial need. The finance
department in Ford transforms the raw accounting entries into useable financial statements that
help the organisation to understand its financial condition and make decisions accordingly. Past
records are analysed and used for making budget and to forecast any kind of challenge that might
come up in the future. Operations division on the other hand primarily develops and adminstrates
the designs of the goods and services of an organization. The main objective of the operations
department at Ford is to produce high quality cars that fulfil the customers' expectations and
making them satisfied (Sodeyfi, 2016). Both the departments work in sync with each other as the
finance department provides necessary funds that are required for the purchase and for carrying
out the process of production on a day to day basis. The finance department acts as the backbone
of the trading operations division in any organization. Both the departments work towards using
the company's origins effectively and efficiently.
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Marketing and HR Departments– Every organization has a marketing team whose sole
purpose is to carry out various activities to promote the company's products through various
activities like advertising, promotional campaigns, branding etc. The department is responsible
for analysing the recent trends in the market and then applying them to improve the ways in
which the company communicates with its customers (Virglerová, Dobeš and Vojtovič, 2016).
The marketing department at Ford manages the social media platforms and updating the
company pages with the latest offers and information regarding any new product that the
company might be coming up with etc. The department understands the needs and wants of the
target market and hence opts for ways of promotion that are relevant to the target audience.
On the other hand, the Human Resource department has the responsibility of hiring,
selecting and recruiting the right candidates for the right job in Ford. The department actively
conducts interviews, carries out the screening process and therefore hires the ones that are
qualified enough for the open positions. Proper training is provided to them for their overall
development and in order to learn new skills that will be needed in their job. The HR department
maintains a contract with the training providers and also monitors the budget that is set for
carrying out training programs. Both marketing as well as the human resource departments at
Ford are inter connected as the latter encourages the former to publish any vacant positions in the
company through newspapers, magazines and social media. The marketing department does this
through carefully analysing the needs and expectations of the customers and thereby opting for
different marketing ways that will help Ford attract new customers as well as reach out to new
segments of customers.
TASK 3
P4. Positive and negative impacts of macro environment has upon business operations
PESTEL analysis is a strategic tool that is used by various companies in order to
understand the positive as well as negative impacts of macro environment factors upon business
concern operations. PESTEL analysis of Ford is explained as under:
Political- This component contains several elements like government policy, foreign trade
policy, taxation policy, trade restrictions, labour law and others these all elements create effect
upon the business concern of ford in various manners (Banica and Hagiu, 2015).
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Positive-In UK, Free trade agreements and national authorities incentives in the emerging
markets offer ample growth options for development (Clarke, Li and Xu, 2016). The legal
authorities in markets of South America and Asia, where supply for auto-mobiles is proposed to
maximise, are actively supporting Ford in term of bring technological creation and economic
development.
Negative- Political instability in the European Union, due to Brexit, can negatively affect
the performance of Ford in the specific sector. Due to which the company loss access to free
trade agreements with other European nations.
Economical- This factor include several components like interest rate, currency rate, exchange
rate, inflation, economic growth, disposal income of customers etc. These all element affect the
business and economic system of Ford in diverse manners.
Positive- In current era, a global slump are occurred in the number of auto-mobile
products like car sales all over the world. Along with it, US is the nation which is know for the
largest market share in case of Ford. So when the sales of vehicles of Ford are increase in this
nation then its positively affect the economy of the company.
Negative- The key factors that influence Ford are oil prices, unemployment, inflation and
interest rates. The prices of fuel are maximised in China,. India and South-east Asia so the
changes are occurred in the consumers demands regarding vehicles due to increment in the oil
prices so it negatively affect the company.
Social- Social factors comprise of different components like culture, values, needs, taste
& preferences, population growth and others. If there are any kind of changes generate in these
elements then it also affect the business of Ford favourably and unfavourably.
Positive- The management of Ford effectively consider the needs and demands of its
target audiences and the changes which are occurred in trend in its production process (Deasy
and et. al., 2016). By considering these elements, the company manufactured an Electric and
Hybrid vehicle category which affected company in a positive manner and also helped it increase
its customer base worldwide.
Negative-The administration of the company target high income or upper class people to
its auto-mobile products so it create negative impact upon the customer base of the firm due to
not manufacture or targeted middle class individuals.
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Technological- It is other component of PESTEL synthesis which include different components
like new ways of manufacturing goods and services, new manners of allocating products and
services and new styles of introducing with target markets.
Positive- The administration of the respective company use high level of technology in its
auto-mobile products like driverless cars and integrated the latest gadgets in their vehicles
(Fabuš, 2017).
Negative- This component also negatively affect the organisation when the management
of the firm will not form innovation and adopt the new technologies which are risen in the
market.
Economical- This factor of Pestle analysis consist raw material, pollution, targets, environmental
laws, carbon emission etc. which create favourable and unfavourable impact upon the business
activities and operations.
Positive- In Ford, the administration of the company manufacture eco-friendly vehicles
especially electric and hybrid which have little to no emissions and environmental effect. The
respective organisation already made effective headway in this context which focus on electric
and fusion hybrid models.
Negative- Ford has operations all over the world and if it does not follow environment
ethics and keeps on manufacturing products that cause harm to the environment, it will lead to a
decline in its brand image and will thus negatively affect its overall performance in the market.
Legal- This component consider the laws and legislations which are form and frame by the
national authorities of different nations to operate the business of the different organisations
adequately and appropriately.
Positive- The administration of Ford effectively follow Global environmental and safety
law, lobar law and intellectual property rights in term of increase it business and assure better
product designs and a safe or secure work place (Grigore and Drăgan, 2015).
Negative- If the company does not f9ollow laws of equality and discriminates among its
employees, there can be cases where the functioning of the company is legally affected thus
making it hard for he company to function in a highly competitive market.
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