Business Environment Report: Ford, NHS, Shelter - Sector Analysis

This report provides a comprehensive analysis of the business environment, focusing on three organizations: Ford Motor Company (private), the National Health Service (NHS) (public), and Shelter (voluntary). It begins by examining different types and purposes of organizations, including public, private, and voluntary sectors, along with their legal structures, size, and scope. The report delves into the relationships between organizational functions and how they link with business objectives, structure, and the advantages and disadvantages of interrelationships. It explores the positive and negative impacts of the macro-environment on business operations, utilizing PESTLE analysis to evaluate the macro environment. Furthermore, it presents SWOT analyses for Ford and Shelter, analyzing the interrelation of strengths and weaknesses with external macro factors and their impact on decision-making. The report concludes with an overview of the key findings and insights into the complexities of the business environment.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
P1 analysis of different types and purposes of an organization..................................................1
P2 Identify the size and scope of different type of an organization............................................5
M1 Evaluate how structure, size and scope of an organization link to the business objectives
and products or services..............................................................................................................7
TASK 2............................................................................................................................................7
P3 Explain the relationship between organizational functions and how they link with business
objectives and structure. .............................................................................................................7
M2 Analyse the advantages and disadvantages of interrelationship between organizational
function.....................................................................................................................................10
D1 Critically analyse the complexities of business structure and interrelationship of different
organizational functions............................................................................................................10
SECTION 2 (LO3 & LO4)............................................................................................................10
P4 Identify the positive and negative impacts of macro environment on business operations.10
M3 Apply PESTLE analysis to support a detailed evaluation of macro environment.............12
P5 Analyse the internal and external environment of an organization by using SWOT
analysis......................................................................................................................................13
P6. Interrelation of Strengths and Weaknesses with External Macro Factors..........................15
M4: analysis of SWOT and justify how it have an impact on decision making.......................16
CONCLUSION..............................................................................................................................18
.................................................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business environment refers to the collation of both internal and external factors of organisation.
These factors affect the function and decision making process of company and determine how
company can operates directly or indirectly. Business environment of organization explain, how
organization is working and how they make strategies according to the external factors which
influence an organization. In this report Ford motor company has been chosen, Ford is private
company, its American multinational auto maker which was found by Henry Ford. Ford is
multinational company and manufacture lager scale of cars. This report includes three
organization, Ford as an private company,(Eling, and Schaper, 2017) Shelter voluntary
company and National health services (NHS) as public organisation. In this report different types
and purpose of organisation; public, private, and voluntary sectors and legal structures is
explained, size and scope of different organisations, relationship between different organisation
and their functions. Furthermore, positive and negative impact of macro-environment, SWOT
analysis of two organisations; Ford and Shelter and internal and external analysis of specific
organisation. In this report interrelation between strength and weakness is also explained. How
structure, size and scope of different links to business objective and product and services offered
by the firm. Analysis of advantages and disadvantages of inter-connection of organisation is also
included in this report.
TASK 1
P1 analysis of different types and purposes of an organization.
An organisation refer to the set of people who work towards the same goal and
objectives. Organization can be profitable and non profitable. Profitable organisations work for
gain monetary benefits from the external world and non profitable organisations work for social
welfare and improvement of societies. Various types of organizations and there purpose is
explained below.
Public sector organization: These organisation are owned by the government of country. They
provide good and services for the benefits of local public and institutions. Public sector
organisations are run by the government and operates from the money earn by the taxes. These
organisation is not run for profit earning, they run for the welfare of public and their living

standard. Example of public organisation is National health service (NHS) which operates for the
benefits of population. They provide heath facilitates to all the citizen of UK.
 Purpose: The main purpose of national health service is to provide health care facilitates
to the UK's population. They provide services(Fabuš, 2017) on the basis of their needs
of Medicare rather then their ability to pay.
Legal structure:
1. Public corporations: This corporations refers to the companies created by the state
government for providing better services to the public. To carry out public mission and
services public corporation participates in various activities and provide services that are
also provided by the public corporations. This sector work for the better future of the
citizens by providing them services.
2. Manciple enterprises: This enterprises are the businesses that are owned by the
government. That provide services to the public and generate revenues. The main motive
of this entities is to provide more protection they force cities to provide better space to the
boundary. It helps the public to have better living standard and increase their residential
areas more perfectly.
 Central government: National health service works under fully governments controls and
all the activities are formed, mange and performed by the central government. Central
government collects funds from local (Gaganis, Pasiouras, and Voulgari, 2019) public in
the form of taxes.
 State government: These organisation are controlled and formed by the state
governments and the state public can use these companies goods and services.
 Local government: These kind of companies are regulates by the local authorities of city
and manges by the collection of council taxes. Local body and municipals are control
these organisations.
Private sector organization: These organisations are the part of economy that is run and
operates by the companies and individual that is not controlled by the government. These
organisation are run for purpose of profit sharing. It includes all profit firms that is not included
in government control. Ford Motor car, is private organization that design and manufacture cars
and operate on global level and this organisation is run for the purpose of profit maximization.

 Purpose: The main motive of these organisations is to earn maximum profit share and
increase the turn employee turn over in their firm. They run as money maker in the
market as compared to government organisations.
Legal structure: Sole proprietorship: This owned and operate by the individual that have small amount of
investment in their business. These individuals take all the risk by their own and dose not
depends on the others. The main purpose of sole proprietors is to make profit and have
stable growth in market. Partnership: This organisations are partnership firms where tow or more individuals
have contract to work together for the purpose of profit sharing and growth of their
organisation. All the partners of organisation are equally responsible of the profit and loss
of the company. Decision making process of the firm are taken under the consideration of
all the partners. Limited company: These organization are work as stock venture in an business
organisation. They have their individual identity from the organization. All the
organisation of UK is bounded to follow and rules and regulations from of company
act,2006.
Voluntary organization: It refers to the group of individuals who enters into an specific
agreement in order to achieve particular goal and objectives. Shelter is an voluntary organisation
that is largest tent manufacture in the world.
 Purpose: The main propose of voluntary organisations is to work for making social
wealth an identity instead of making profits. These organisation helps society and work
and provide them benefits.
Legal structure: Trust: The trust is important for voluntary (Hamilton, and Webster, 2017) organization,
gaining public trust for charity operations and governed by the trust deeds to mange the
financial orations. Unincorporated Association: This is the group of volunteers and association that
constituted by the article and memorandums. Charitable incorporated organization:This is the new type of charity organization, the
aim of this organizations is to afford the charity limited liabilities without having an

registration as limited company. This organizations are run for non-profitable reasons. It
is an voluntary organizations that works work the welfare of the local citizens.
 Community interest Company: This are the organizations which are non charitable
limited company. They main motive of this organization are to provide benefits to the
communities, fulfill the social purpose rather than make profit and revenues for the
stakeholders. This entities are for easy(Jevšenak, 2019) set up that could be beneficial for
the individual who wants to set up this organization.
Organisation can also be divided in following types on the basis of size:
 Micro: This includes small organisations and firms with small amount of investments and
have limited resources. This organizations usually operettas by less than 10 employees,
the business with less than $2 million revenues annually. This business are run within an
city by the group of individuals. SME: this includes small and medium organisation which are bigger than the micro
firms. It requires adequate amount of resources.
 Global: It operates large scale organisations which requires high level of financial and
other resources because they works in more than one communities.
Differentiation between Micro, small, medium, and large.
Micro Small Medium Large
This organization
works with the less
investment in their
firm, the investment
rate of the micro
business is up-to $2
million, they work
with less than 10
employees. This
organization work in
small scale and
operates in the local
areas of the country.
The small business
that run and operates
by the individuals for
the purpose of profit
maximization in the
industry. The annual
turnover of these
organizations(Khajeh
eian, Friedrichsen,
and Mödinger, 2018)
are under $10 million.
The company work
with less 50
This organizations are
invested medium
amount of money in
their businesses. The
aim of these
organizations are to
maximize profit and
increase the sale of
product and services.
The medium-size
organizations works
with less than 250
employees with
These organization
operates in national
and internal level on
large scale. The main
motive of these
organizations are to
increase the growth of
the company and build
brand image in the
industry. They work
with more than 5oo
employee, these
organizations operates

employees in small
scale.
turnover under 50
million.
in more than one
country with high level
of turnover.
Scope of different organizations:
 Local organizations: The role of local organisation is to bring all the people together with
the same needs, ideas and perceptions. The local organizations works under the medium-
size of businesses. The number of employees depends on the people who have same
interest and ideas. These organization work in local level with small amount of people.
 National organisation: An national organisation refers to the professional company that is
approved by the government, this organisation works under the national level that helps
the company to increase the turn over of the company. The company that run with high
investment and high level of employee turn over can be registrar under the national
organisations.
 International organisation: This organizations refers to the companies that operates in
international level with the high level of investment and profitability. This organisations
have high level of investment and high employee turnover around the world.
 Global organisation: This(Krajnakova, Navickas, and Kontautiene, 2018) orgnization are
registred in global level and operates in high level of revenue in the firm. They work in
multinational companies and various countries.
P2 Identify the size and scope of different type of an organization.
Ford: It is an private American company which operates and manufacture cars on large scale. It
was found in June 16, 1903. Background:It was founded by Henry Ford, and interoperated on June 16, 1903. the
company sales and operates in auto mobiles and commercial vehicles under the ford
brand. Company is second largest auto maker in US and firth largest in the world. Size: It is American based company, and employed around 213,000 employees at around
90 plants and facilities world wide. Scope: The Ford company is focused on introducing 40 non-gas cars by 2022, it is the
future strategy of the company to expand its business and increase the level of
sustainability in their business.

 Products and services: This company mainly deals in car manufacturing. Vision:Ford company's vision statement is concise, future oriented, and inspirational,
while describing the business as a developer of smart vehicles. Mission:The mission statement of company is, brief and a general discretion of business.
 Objectives:The main objective of Ford is to make maximum growth in auto mobile
industry and increase its profit shares.
National Health Service : It is public health organisation based in(Lee, 2019).
 Background:The national health service organisation is umbrella term for the public
healthcare system in UK. This services works independently and politicly accountant for
the government of country.
 Size: National health services have around 1.6 million employees turn over with
combined budget of 136.7 billion.
 Scope: The main criteria of this business entity is to provide better future to the citizens
and gain better trust in the future.
 Products and services:They offer social welfare services and health care to the citizen of
UK. They focus on the needs of people instead of how they can pay.
 Vision: National health service's vision is to provide quality of care to every person every
day.
 Mission:Their mission is to provide better care, better protection and better values.
 Objectives:The main objective of this organization is to provide better healthcare to the
people of the organization and help the citizen of UK to have healthy life style.
Shelter Group: It is large organization which is located in Doha. They offer various offerings
such as contracting, facility management, (Martins, and Nienaber, 2018) UK. Its works as heath
provider of all citizen of the country(.Eling, and Schaper, 2017)trading and
manufacturing(.Escaleras, M. and Chiang, E.P., 2017). Background: Shelter group is large premium real state constriction, development and
association. Shelter organization is located in Doha. They provide sales leads and
services. Size:Shelter group has around 600 employees and generates $42.74 million sales. Products and services: Organization offers sales leads and sales data to over 120 million
companies.

 Vision:They have vision of expand their market shares and global coverings to service
clients with right product and services needed. Mission:Shelter group have mission to ensure that they set standers of contraction
development and focusing on strategic values adding project to the community.
 Objectives:There objective make strategies partners database with latest trends and
technology .
M1 Evaluate how structure, size and scope of an organization link to the business objectives and
products or services.
Continuous development and technology innovation helps organization to increase size
and scope of business on both national and international level. This could help in better
communication and connect with the people from different country which is beneficial for
company to raise its customer base. It also helps organizations to have stable growth in the
market and build brand image of organization.(Mohammed, Gururajan, and Hafeez-Baig, 2017)
If company have large consumer base it could increase the revenues of the organization and help
them increase the sales of their product and services of firm. Also this will help organization to
increase the effectiveness of the product and services(Gandhi, L., 2017).
TASK 2
P3 Explain the relationship between organizational functions and how they link with business
objectives and structure.
There are several functions of organization which are interrelated with each other directly and
indirectly. Ford is private organization which requires proper coordination between all the
departments of organization. All the departments of organization have to work for the effective
arrangement of resources and management of these resources. Interrelationship between these
departments is following below:
Roles and responsibility of different marketing functions: Marketing: It is one of the most important function of the organization, marketing helps
the company by playing the role and responsibilities of selling the product and services of
in the market. Marketing also play the role of promoting the product in the market, it
helps the company to increase the sales volume of the company.

 Human resource: It refers to the workforce that works in the organisation for the growth
of the company and achievement of all organisational goals. The employees of the
company increase their sales by giving them better productivity in the market and
improving the sale of product. Finance: All the inflow and out floe of cash is monitor and handle by this department of
the company, they ensure that the organisation activities work properly with the funds
they required. They also ensure all the external activities also fulfil the needs of the fund
in the company.
 Inflammation technology: This department of company handle all the systems and
technological equipments in most effective manner so that company can gain advantages
from these technologies. This department (Montenegro, 2017) also provide proper
information about the various factors that effect the organisation.
 Marketing and HR department: Marketing department is very important function of
organization which helps organization in making proper strategies for the product and
services of the organization to attract more customers. Whereas, human resource
department includes group of skilled employees that help organization to increase its
productivity. With the help of skilled and talented workforce company can gain
competitive advantages and increase revenue. In the context of ford, with the proper
arrangement of human resource and marketing department company can achieve its
objectives effectively(Hamilton, and Webster, 2018) .
 Purchase and Research & development department: Buying raw materials in accurate
quantity and using them in effective manner is very important for the organization.
Whereas, research and development department helps organization to have eye on daily
market activities and new treads the could affect the business. It also helps company to
forecast future treads. Both department of Ford organization, helps company to analyse
future possibilities that can improve the productivity. Proper utilization of resources helps
organization to have stable growth in market.
 Finance and informational technology department: Finance department organize all the
finance and financial acuities in the organization. Whereas, information technology helps
in collecting right information on right time for organization. Finance and it departments

are interrelated because finance used in collation of all the resources on right time. Ford
organization can use both the department in proper utilization of market resources and
collection of information from the all over the world. It could help organization to
increase its profitability and growth in the market(RAO, 2020).
Organisational structure: This is framework which is design to define about the working
activities or having task allocation in compliance oriented way to better coordination in terms
aiming company objective as well as action provide better foundation that set of standard
operating procedure and routines. For example: Ford company is having their own structure that
allows to highlight that enables to delegate work in effective work.
The organisation structure works in organisation that allow effective and systematic work
that enhance more flexibility through which each department having their roles and
responsibility.
Illustration 1: Ford Organisation Structure, 2019
Source: Ford Organisation Structure, 2019

M2 Analyse the advantages and disadvantages of interrelationship between organizational
function.
Interrelationship between all the department of Ford motors, could help organization in
the improvement of productivity and increase their sales. It impact the productivity and
profitability of the organization. Proper arrangement of these department can increase the sells of
the firm and it could impact the market shares which is beneficial for the firm. Furthermore,
proper coordination between all the department can help the ford organization to develop loyal
customer base and attract the consumers to the (Rialp-Criado, and Komochkova, 2017) brand.
Thus, proper utilisation of all the departments can help the company to increase the profit share
of company.
D1 Critically analyse the complexities of business structure and interrelationship of different
organizational functions.
Business structure of every organization is different from other organizations, and
compilations between these department of organization can lead company into poor growth.
Complex arrangement of functions could lead organization into inflexibility which could cause
distribution in the organization. It could also can impact the performance of employees and can
decrease their moral towards the firm(Michael, Reisinger, and Hayes, 2019).