Business Environment Report: Analysis of Ford, CPS, and BHF Sectors

This report provides a detailed analysis of the business environments of three organizations: Ford (private), Crown Prosecution Service (public), and British Heart Foundation (voluntary). It begins by explaining the different types and purposes of organizations within the public, private, and voluntary sectors, including their legal structures, with specific examples. The report then explores the size and scope of each organization. The analysis continues by examining the relationship between organizational functions and objectives, followed by an identification of the positive and negative impacts of the macro environment on business operations, supported by examples. Furthermore, the report conducts internal and external analyses using SWOT analysis to identify strengths and weaknesses, and it explains how these factors interrelate with external macro factors. The conclusion summarizes the key findings and provides overall insights into the business environments of the organizations studied.

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Environment

Table of Contents
INTRODUCTION...............................................................................................................1
TASK1................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures...........................................................................1
P2 Explain the size and scope of a range of different types of organisations..............4
TASK 2...............................................................................................................................5
P3 Explain the relationship between different organisational functions and how they
link to organisational objectives and structure..............................................................5
TASK 3...............................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon
business operations, supported by specific examples..................................................7
TASK 4...............................................................................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.. 11
CONCLUSION.................................................................................................................12
REFERENCES................................................................................................................14

INTRODUCTION
Business environment is regarded as the most essentials aspects of any
organisation. The forces that constitutes the atmosphere of enterprises are their
suppliers, government, clients, conditions, investors, competitors and many more. This
is defined as the accumulation of whole external as well as internal factors. It aids
organisation to identify opportunities, tapping helpful resources, aids in planning as well
as develops whole development and performance of business (Aithal, 2015). As per the
scenario, the undertaken private organisation in this report is Ford which is a renowned
American multinational auto-maker having headquarters is in Dearborn, Michigan, U.S.
It sells commercial as well as auto-mobiles of its own brand. Also, Crown prosecution
service as public organisation and The British Heart Foundation as Voluntary
organisation. The undertaken topics that is covered in this report are various kinds of
organisations, their scope and size, interrelationship between organisational functions,
application of PESTLE model and its positive as well as negative impact upon business
operations. Moreover, SWOT analysis of two organisation which justifies procedures of
decision making are explained. Apart from this, the interrelation of strengths and
weaknesses with external macro factors are also described in this report.
TASK1
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures
According to the scenario given in brief, the company which is chosen as public,
voluntary and private are Crown Prosecution service, British Heart Foundation and
Ford. Below is the description of purpose and legal structures of these companies which
are as follows:
Private Organisation: It is termed as an agency, corporation or an individual
which has their own resources and not functioned by government or any public body.
They operate with a motive to ear profit only (Bocken, Rana and Short, 2015).
Background of the company: The company which is considered as private
company is Ford. It is a multinational auto maker company and its head office in
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Michigan, Detroit. The company was proposed by Henry Ford in year 1903. The
company have more than 66 plants globally and have around 1,80,000 staff members.
Products & Services: Its products involves commercial vehicles, pickup trucks,
automotive parts, luxury vehicles, SUVs and many more. The services of Ford are
Vehicle leasing, Automotive finance and Vehicle service.
Objectives: The objective of the company is to develop those vehicles which
reduce the consumption of oil and to increase usage of Bio-fuels.
Vision: The vision statement of Ford is “ To become leading and trusted
company in the world which designs smart vehicles for smart customers” .
Mission- The mission is “To produce outstanding products which improves and
develops people's lives”.
Types of private organisation Sole Proprietorship: The business which is operated and function by a single
entity. It has been stated that it is the most easiest and convenient form of
business. The person is responsible for all the losses and debts (Burns, 2016).
 Joint Stock Company: This company can either be private as well as public. Joint
stock company is managed and controlled by chief executives and board of
directors. The company have limited liability and the risk of these companies is
high.
Purpose: The main purpose is to assemble people together. With this, to serve
better quality of products to customer in order to gain trust of people and become the
leading company in these sector.
Legal Structure of company: It is determine that the overall legal structure of
company is rely upon the functions as well as operations performed by an organisation.
In relation to Ford, it make use of private limited company structure, in addition to ths, all
the decisions are taken by the higher authorities of company that is CEO, BoD and
oeners of company. It is analysed that the decisions taken by company is depend on
the external and internal factors. In Private limited companies, there is one or more
owners and shareholders as well. In addition to this, in such legal structure the transfer
of share is prohibited. Moreover, owner of the company is enjoy greater capital and
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have limited liability. The company is following the legal structure of a private
organisation as it consist of more than 1,80,000 employees.
Stakeholders- The stakeholders of company is suppliers, groups, creditors,
customers, communities and may more.
Public Organisation: The company which is managed and controlled by
government. These are those company which have more than 50 percent share is
owned by public. This organisations are funded by government as well as public (Demil
and et. al, 2015).
Background of the company: Crown prosecution service is a public agency
which conducts prosecution in Wales as well as England. The company head office in
London and have around 6,000 subordinates. The CEO of company is Max Hill and it
was founded in year 1986.
Products & Services: The company serve legal advice to investigate agencies
and to police in order to decide criminal charges of a suspect.
Objectives: The main motive of the agency is to punish right person and provide
justice to offenders.
Vision: The vision is to bring equality in societies and to punish criminal so that
population of the country live independently and feel security in society.
Mission- The organisation mission is to provide justice by effective &
independent persecution. In addition to this, the company want to foster a culture by
inspiring and motivating people of society.
Types of Public organisation: Departmental Undertakings: This organisation have existence with government
and it is mainly act as a sector of government (Deng and Wang, 2016). For
example, Broadcasting, Telephone and railway services. Government Company: The company whose 51 percent shares or more than it
are owned by the state or central or partly by both. These are those organisation
which activities are managed and take place with the permission and order of
government.
 Public Corporation- It is formed through special act of central or state or
parliaments. Example, state banks, Airlines and so on.
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Purpose- The purpose is to promote awareness in societies and make them
people feel secure at there places.
Legal Structure- The company follows the legal structure of public organisation
as it is funded by the public or government body. In Public limited companies, there are
more then two owners and shareholders as well. In addition to this, can sell share to the
general public. Moreover, in public limited companies, there is ease of share transfer
and is gain benefit of greater continuity. It is analysed that set up of a public company is
expensive and is less flexible as well.
Stakeholders: The stakeholders of company is local authorities, non-police
prosecutors, police, legal agency, bulk users, HMPPS and many more.
Voluntary Organisation: It is refer as a group of people who came into an
agreement to attain a common purpose. Basically, these people are the volunteers who
assemble together for a particular period of time or for a specific project ( Dyllick and
Muff, 2016). For instance, environmental groups, trade associations, learned societies
and so on.
Background of the company: BHF is a registered charity organisation which is
founded by medical professionals in year 961. The company served in the region of
United Kingdom and was located in high street.
Services: The foundation were focused towards the increasing rate of people
due to cardiovascular disease. They mainly emphasise on the causes and prevention
of circulatory and heart disease.
Objectives- The objective of British Heart foundation is to reduce the rate of
death which is occurred due to heart problems.
Vision- The vision is to pioneering research, caring and supporting people who
have heart diseases. In addition to this, the organisation want to build awareness and
provide information to people about circulatory disease.
Mission- The mission statement of BHF is “ To make a world where premature
death does not occur due to heart disease”.
Types of voluntary organisation: It includes:
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 Trust- It consist of trustees as well as beneficiaries who manage and control all
the activities related to organisation. It is basically owned by independent
partnership, firms or bank as well (Evans and et. al, 2017).
 Unincorporated Association-: In these, the people assemble together with a
motive to serve and improve conditions of societies. Their main motive is not to
ear profit from public. The volunteers carry Out the activities as per mentioned on
the agreement.
Purpose- The main purpose is to decline rate of premature death of people
because of cardiovascular disease or to build awareness globally so that people can
protect themselves from heart diseases.
Legal Structure- BHF follows unincorporated associations as legal structure.
The agreement is made between the volunteers and organisation whose main objective
is to serve societies not to earn profit. The legal structure followed by British Heart
Foundation is partnership as it make partners such as volunteers and on basis of this,
organisation implement all the activities in an effective manner. In addition to this, the
partnership take place on the partnership deed that consist of all the terms and
conditions need to follow by partners. The partnership deed is signed mutually and on
this basis all the activities is implement. If any of the partners is not working as per the
deed then it leads to the braking of deed and in this case, the company or the person
have the right to file a case or sort it down mutually.
Stakeholders- The stakeholders of BHF is Volunteers, public, government and
so on.
P2 Explain the size and scope of a range of different types of organisations.
The size and scope of range of different kinds of organisation are explained
underneath:
Private Organisation: Size: The number of employees which are performing into Ford organisation are
about 199, 000 as well as its divisions are Ford, Lincoin and Motor carfts.
Moreover, they are operating their services in 200 countries across the world and
operates around 77 offices and plant locations. It has various subsidiaries like
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transportation, finance and so on such as Ford Australia, Europe, finance credit
and others.
 Scope: As they want to expand their operations into another emerging
market so they have the scope to spread their business into China as well as
India. Also, it manufacture electric and Hybrid cars so it may enter into any
countries no one stop them as they are serving fuel free vehicles.
Public Organisation: Size: Crown prosecution service operates across England as well as Wales with
14 regional teams who prosecuting the cases locally. Moreover, its service
employs about 6000 individuals who works for respective organisation.
 Scope: Its scope is to make the country free from illegal activities as well as who
are involved in it are liable for penalty, fine or punishment.
Voluntary Organisation: Size: British Heart Foundation has around 3000 staff members who are
performing in their organisation. It have around 730 stores in all over United
Kingdom. Along with this, it has above 185 Furniture and Electric shops within
UK and sells pre loved dining sets, beds and many more at incredible prices.
 Scope: As British Heart Foundation concern about funding cardiovascular
investigation so they it intent to spend about £ 100 million per year. Presently,
they are funding above 1000 projects of research. Also, they can initiate funding
to another countries research related to cardiovascular which enhance their
services effectively and efficiently.
TASK 2
P3 Explain the relationship between different organisational functions and how they link
to organisational objectives and structure.
The business operating its practices as well as activities at market areas have to
maintain relation with several organisational function for optimistic results. This is not
possible for one section to do its practices effectively (Gorla, Chiravuri and Chinta,
2017). So, all division required to perform together for profitable outcomes. The relation
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of various organisational functions and its link to objectives as wellas structure are
described below:
 Marketing and finance: Finance division are accountable for managing as well
as maintaining funds of entities that is performed through the finance manager. It
has to do many practices as well as works such as budgeting, allocation of funds
to all organisational functions. Marketing division have to examine as well as
assess marketplace and cost requirements in order to do many practices such as
advertisements, promotion and many others (Hallward-Driemeier and Pritchett,
2015). Thus, both the organisational function have to do the work collectively to
perform appropriate allocation of funds effectively and efficaciously. Moreover,
finance department is handled through proficient and talented individuals
properly. Ford must possess bot marketing and finance division into its enterprise
in order to perform all activities appropriately. Such as in case, marketing
manager is required capital for advertisements or promotional activity at Ford,
therefore they has to approach to finance manager as well as represent its
budgeting and as per that fund is provide to marketing department to do its
practices effectively and efficiently. Moreover, this is linked with respective
organisation objective and structure.
 Research & Development with marketing: The Research & Development with
marketing bot have to work together for accomplishing the organisational
objectives. The department of marketing accumulate information which aids
manager of Research & Development to do appropriate investigation for
attaining the profitable results. The Ford marketing manager have to do market
research for its goods or services that they are facilitating as well as inform to
Research & Development manager so they can able to perform investigation and
choose new and effective technology for producing products according to
customers requirements. Moreover, in case, decision are already developed then
they has to perform changes as well as improvement suitably and appropriately.
Organisational functions of Ford:
In respective organisation, there are various organisational functions some of
them are discussed below:
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 Research and Development: Within Ford, this organisational function plays vital
role into planning or executing new sessions with the intent of achieving grater
success at market area (Jenkins and Williamson, 2015). In respect of Ford,
research & development perform efficacious research with an intent of
examining the trends of market as ell as modify it for manufacturing its goods
consequently. It may appropriate for enterprise as this increase level of profit and
market share.
 Finance: This kind of organisational function plays vital role in implementing
business practices effectively. As all practices of organisation needs sufficient
funds so that overall project may be performed appropriately. In respect of Ford,
finance function aids in financial planning, reporting and others with intent to
accomplish long term objectives. Moreover, this support entities into risk
management which directly contribute towards increasing whole organisational
performance at market area.
Organisational structure of ford
Figure 1,Ford Motor Company Organizational Structure.
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(Source: Ford Motor Company Organizational Structure. 2017)
Fords organisational structure is based upon need to control practices as per regional
market condition. It performs into three different way that are:
Corporate hierarchy: The respective organisations have traditional corporate hierarchy
into their organisational structure. Such as Executive Vice presidents will report to Chief
Executive Officers. Middle person will report to executives VPs and so on. Organisational
structure supports traditional business management approaches which intent for effectual top to
down control.
Regional geographic structure: Ford has huge geographic divisions in their firm’s
structure. Mainly, international firm divide its operations into various regions. However, its
structure is categorised into three regional geographic divisions which undertake their entire
market across world. So its main geographical divisions are Europe, Africa, and others.
Global functional groups: Ford’s firm’s structures also have functional groups in which
all represents a particular business function. The VP heads all these groups. The main functional
group are international marketing, sales, HRM and may more.
Therefore, all these structure characteristics functions together harmoniously for
attaining their specific objective in effective and efficient way.
TASK 3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
It is crucial for companies to examine the macro factors in order to perform their
operations properly and in gainful manner. Macro environment is define as the set of
external situation that affects business development in optimistic as well as pessimistic
way. Basically, these components are not totally controllable and this have an impact
upon overall organisational performance and operations as well. In addition to this, this
aids in observing as well as examining surroundings with the assistance of PESTEL
Model which may have effect upon organisational growth (Johnson and Turner, 2015).
PESTLE analysis define is a framework which is applied for monitoring as well as
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