Business and the Business Environment Report: Organization Analysis

This report delves into the complexities of the business environment, examining the interplay of macro and micro factors that influence organizational operations. It provides an in-depth analysis of public, private, and voluntary organizations, including the Crown Prosecution Service, Ford Motor Company, and the British Heart Foundation, respectively. The report covers the purposes, types, sizes, and scopes of these organizations, as well as their legal structures, stakeholders, and interrelationships of different organizational functions. Furthermore, it conducts PESTEL and SWOT analyses to identify areas for improvement and enhance business performance. The report also explores the positive and negative impacts of the macro environment, and internal and external analysis of organizations to assess their strengths, weaknesses, opportunities, and threats.

Business
and the
Business Environment

Table of Contents
1576732285INTRODUCTION.......................................................................................................3
TASK 1............................................................................................................................................3
P1 Various purposes and types of different organizations .........................................................3
P2 scope & size of organisation.................................................................................................5
TASK 2............................................................................................................................................7
P3 Relationship between various organizational functions........................................................7
TASK 3............................................................................................................................................9
P4 Positive and negative impacts of the macro environment.....................................................9
TASK 4..........................................................................................................................................11
P5 Internal and external analysis of organization.....................................................................11
P6. Interrelationship of strength & weakness with macro environmental factors...................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
Books & Journals......................................................................................................................15

INTRODUCTION
Business environment is a composition of macro and micro factors which affect the
operations of the organisations. The factors have impact on the businesses irrespective of the
industry or size which the entities are operating in. These include customers, employees,
suppliers, and many more. In addition to this, UK government has enacted different types of laws
which are required to be followed in order to avoid any legal consequences and these govern the
activities of business organisations (McDowell, Harris and Geho, 2016). This report covers
private, public and voluntary organisations. The public organisation chosen in this report is
Crown Prosecution Service which is a public agency organisation that provides the services of
investigating police evidence, making decisions in criminal cases and many such similar kinds of
activities. On the other hand, Ford Motor has been taken as a private organisation which is a
multinational company of American origin and engaged in in manufacturing cars. And, the
voluntary organisation which has been chosen is British Heart Foundation which undertakes the
activities with the objective to take care of heart of the people living in United Kingdom. It has a
motto which says Beat Heartbreak Forever. Furthermore, this report covers purposes and types
of organisations along with their respective size and score and forming and inter relationship
with different organisational functions. In addition to this, PESTEL and SWOT analysis have
been conducted for determining the areas that can be improved in order to increase the
performance of business organisations.
TASK 1
P1 Various purposes and types of different organizations
Public Organization: It means the business organization in which all the shares are held
by the government as well as the ownership and control is also with the government. Their aim is
to provide the services to general public for making their lives better by taking various
initiatives. For this part, Crown Prosecution Service has been selected which provides legal
advisors to do the agencies conducting investigation in criminal incidents. It is known as public
organization incorporated in 1896 and having its headquarter in Petty France London
(Benmamoun and et. al., 2016). Purpose: The main objective of Crown Prosecution Service is to who give legal advisors
to investigating agencies and police in criminal proceedings. Search advisers are useful

for deciding the case needs to be taken for the or not in order to prove the criminal
charges. Types of organisational structure:
State Government: The organisations which deliver their services with respect to this
structure are either partially or wholly owned and controlled via state government authorities.
Local Government: With respect to this structure the organisations who are carrying out
their services in this context are managed as well as administered by the local government.
Central Government: This implies firm in which major shares of authority are controlled
and managed via central authorities of government.
 Legal structure: The legal structure of any public organisation provides that all the
decisions are made by the government of the particular nation which it is operating in.
The decisions for CPS are made by the supreme authority in the government of UK so
that they can bring the desired outcomes which are for the benefit of the country as well
as the people living in there. The firm has opted for central government legal structure as
this aids CPS within rendering effectual quality services to the people who need it.
 Stakeholders: Public organisation focus on their stakeholders who can impact the
business in a significant manner. The funds to carry activities are arranged or procured
from such stakeholders as the decisions taken by the business affect the stakeholders to a
significant extent. As well as, they also impact the business operations in a substantial
manner (Shelton and Shopley, 2017).
Private organisation: It is defined to be an organisation which comprises of sole
proprietorship, partnership, limited liability company and many such types of organisations. The
primary goal is to make profit rather than focus on the society. Ford Motor company has been
taken as a private organisation which is an American multinational company incorporated in the
year 1903. It is engaged in in manufacturing of automobiles which are sold in different areas of
the globe. Purpose: Ford is an international company that is operating in different countries of the
world and make commercial vehicles with a view to sell them to the customers. It was
founded by Henry Ford and the headquarter is situated in Dearborn, Michigan, USA. The
cars that are manufactured by it includes commercial as well as luxurious vehicles. It

conducts various analysis and make strategies for meeting the demands of the customers
and remain competitive by following the trends going on. Types of organisational structures:
◦ Sole Proprietorship: Organisations those carrying out their operations within this
sector are completely managed, controlled and owned by sole individuals. With
respect to this, as such there are no legal as well as formal distinction among
government authority and owner.
◦ Partnership: When more than two or two people work in collaboration then it is
referred to as partnership. This implies formal written agreement which prevails
among two parties in which they make agreement with respect to accountabilities for
loss or profit attained by the organisation. When partners work together then they
have a identical motive and that is to have more profit along with accomplishment of
needs of the people.
◦ Company: This implies kind of firm where shares are not offered to public by making
use of initial public offering. Firms who carry out their functions within this sector
execute their activities for attaining huge profit.
 Legal structure: The company is a private organisation which focus on the functions
having the objective to maximize the profit. The legal structure of Ford states that
decisions are taken by the top management authorities. This comprises of CEO,
shareholders and all the directors of the organisation (Quinlan and et. al., 2019). They are
the ultimate decision makers who make choices which can benefit the organisation to
grow and increase the profit. However, such decisions are made by considering the macro
and micro environmental factors. The structure that is being opted by Ford is partnership
like in 1967 they partnered with Hyundai then in 2007 they had partnership with SCE
(Southern California Edison).
 Stakeholders: Private organizations treat their stakeholders valuable because of their
capacity to influence the profitability of the company. Efforts and initiatives are taken to
make stakeholders act and behave in a positive way which can create desirable result for
the company as their actions affect the operations of the enterprises. some of the
stakeholders of private organisation includes employees, investors, customers, suppliers
and many more.

Voluntary Organization: It refers to the organisation which is beyond the control of
government. In other words, there is no intervention or administration by the government.
Alternative name for the same is non profit organisation because their motive is to help the
society and not to make profit (Stefanović and et. al., 2015). British Heart Foundation has been
chosen voluntary organisation for this report which was incorporated in the year 1961. It
comprises of group of members belonging to the medical backgrounds and having good
knowledge with the cardiovascular systems in order to reduce the death rates. Purpose: The main purpose of the organisation is to mitigate death cases because of the
reason of cardiovascular issues. Main motive of Heart Foundation is to make the world
free from any problems related to the heart. Types of organisational structures: Unincorporated Association: Within this kind of voluntary firms, an agreement takes
place among group as well as set of individuals who are looking forward to work for
attainment of identical purpose and goals. Trust: It denotes kind of voluntary firm there occurs a formal agreement among three
different parties and there is a trustee who holds right for property.
 Company limited by guarantee: Within such kind of voluntary firm, there exist restricted
number of members who have shares within the organisation.
 Legal Structure: In voluntary organisation the members are responsible for taking the
decisions in the interest of the entity. With reference to British Heart Foundation, major
decisions are taken by the professionals engaged with the organisation for providing their
services in order to fulfil their motive. British Heart Foundation has opted for trust legal
structure in which agreement takes place among them.
 Stakeholders: The stakeholders includes founder, staff, beneficiaries, trustees and all
those individuals or parties who can affect the business in a substantial way and are
engaged with the activities of the organisation.
P2 scope & size of organisation
Every organisation is made of one particular size and the scope according to the
operations it carry in the business organisation (Schaltegger, Lüdeke-Freund and Hansen, 2016).
The scope and size of the above-mentioned organisations have been discussed below:
Private Organisation:Ford

It is a multinational company that manufactures automobiles which are luxurious as well
as for commercial purposes. The inception was done in the year 1903 and the owner was Henry
Ford. Furthermore, the headquarter is located in Michigan, United States.
Product and service: The main services of the company manufacturing of cars
according to the demands of the customers. It comprises of luxury vehicles, SUVs, trucks and
many such kinds of automobile. Along with this there are many other services such as providing
finance for automobiles, vehicle leasing (Graham and Kaye, 2015).
Size and scope : The company has wide scope because it provides the cars manufactured
by two different countries. There are total number of 66 plans operating currently add global
level. In addition to this, the total number of employees are about 1,77,000.
Vision and mission : The company mission is to offer outstanding vehicles to customers
which develop their standard and class in societies whereas the Vision statement of company is “
to become the leading company in these sector by offering smart and design vehicles in the
market”.
Public organisation: Crown prosecution service
CPS is a public agencies engaged in providing legal advisors in the criminal matters in
the regions of Wales, England and other European countries. Max Hill incorporated this
organisation in the year 1986.
Product and services : The main service of the organisation is to investigate evidence
available to the police and in criminal matters so as to determine the wrong doer for giving the
punishment.
Size and scope : CPS is a large organisation which comprises of more than 6000 staff
appointed by the government for the departments owned by the government. This is are provided
in areas located in England and Wales (Beatty, Samuelson and Abril, 2018).
Vision and mission : Mission the organisation is to make the society free from any
criminal incidence by bringing equality. Furthermore, long term vision of the organisation is to
provide punishment to the wrong to us in order to increase safety for rest of the people.
Voluntary organisation : BHF
British Heart Foundation is a voluntary organisation which is based on charity and having
the motive of making the world free from any heart diseases. It is funded by variety of people

which includes government as well as the trustees. This association was incorporated in the year
1961 by individuals engaged in medical professions.
Product and service: The Company provides services which can reduce the
cardiovascular diseases. It is made possible by taking initiatives by the members in the
association.
Size and scope : The organisation has undertaken projects exceeding 1050 in numbers.
As well as, the members engaged in providing the services in this organisation amounts to 5500.
Vision and mission : Mission statement of the above mentioned organisation provides
that “To reduce premature death rate and protect the life of people.” Furthermore, the vision
statement of the organisation states “To educate and aware people about heart diseases in order
to fight with them positively.”
TASK 2
P3 Relationship between various organizational functions
An organisation has various kinds of structures as well as functions which are somehow
interconnected with each other. Organisational structure refers to task and activities, different
types of job positions and many more. There is a direct relationship between the organisational
performance with its employees efforts. Ford follows vertical organisational structure for
carrying the operations (Hamilton and Webster, 2018). In simple terms, it focuses on the areas in
order to have better control in operations so that desired results can be obtained. The primary and
main characteristics of the current structure of word comprises of Corporate hierarchy, functional
groups having activities in different countries of the world and geographical division in various
regions. Such features are beneficial for the company in managing the activities efficiently and
smoothly by attaining the ultimate goals and objectives.
It comprises of different departments having their individual role and responsibilities.
There is internal relations between them and the activity of one department affects the results of.
Therefore, there should be coordination and synchronisation between all the departments in order
to achieve desired outcomes. Interrelationship between various departments in Ford along with
their Nexus have been described below:
 Marketing and Finance Departments – Marketing department of Ford is associated
with implementing strategies and conducting activities which can accelerate sales

(Oriesek and Schwarz, 2016). For this purpose, several kinds of programs and campaigns
are conducted together with advertisements in order to promote the goods and services
provided by the company. The advertisement can be done through television, social,
newspapers magazines and many other modes. Different types of strategies are
formulated for helping the company promote its products across different countries. It
takes analysis for evaluating the trends in the market in order to develop alternative
which can be used for achieving customer loyalty and retain them for a long time. It also
conducts surveys by searching various sources in order to extract information about the
expectations of customers. This data are provided to the other departments in order to
understand them and work accordingly (Teece, 2016). On the other hand, finance
department it is associated with the procurement and allocation of financial resources
and carry all other activities which are connected to this department. the interconnection
between these two departments can be understood that marketing department needs
funds for carrying out activities in order to reach customers and create the awareness
about the brand. Therefore, it is the responsibility of the finance department to analyse
the viability of the initiative and sanction the funds required for carrying out all the
activities of the marketing department in a smooth manner.
 Operations and HR Departments – The operations department of Ford undertakes the
role for managing the operations that are highly profitable for the organisation. It ensures
that all the operational activities are coordinated and being conducted in a right manner
for making the company run effectively. Ford's operational department put the focus on
improving the quality of the existing models of the vehicles to meet the demands of the
customers. It take initiatives to introduce environmental friendly vehicles for reducing
the harmful emission. It also ensure to to track all the vehicles that are produced in a
particular period of time along with this raw material is also tracked for manufacturing
the vehicles (Huang-Horowitz, 2015). On the contrary, HR department undertakes the
activities such as recruitment, selection, training, development and many such activities
which are connected with the management of employees in the organisation. it maintains
a close relationship with other departments in the company for helping it carrying its
activities in an efficient manner. Both the department viz. Operational and HR work in a
synchronisation where in the HR department recruits the employees who are skilled and

have talent to carry the activities of operations department. In this way both organisation
attain their individual as well as overall objectives of the company by having talented
professionals.
TASK 3
P4 Positive and negative impacts of the macro environment
Ford motor company is a leading multinational company of American origin which
operates in automobile industry. It is one of the exemplary organizations which sets of
benchmark for existing as well as new organizations engaged in manufacturing of cars and other
vehicles. The main objective is to provide high quality by capturing nude market share. The
management the company believes that the operations or functions of the organisation can be
impacted due to the factors present in the business environment. Therefore, it is imperative to
conduct and analysis which is as follows: ot analysis should be carried out in detail. Bullet
points are not allowed.
Political factor: It related to the intervention of government in various aspects of
business environment. It includes trade policies, government policies, labor laws, foreign trade
policies and many more (Sinay, 2014). Such factors can have positive as well as negative impact
hence, management should make strategies which can increase the favorable impact and avoid
the unfavorable. In the context of Ford Motor, political conditions in various Asian countries and
regions have been stable from quite a long time. This has been made possible because of lower
restrictions on the trade in such countries as their aim is to have hair growth. also the developing
markets of Asia provides greater opportunities for business organisations. In this way, many
companies are attracted to such market in order to make investment at international level. Positive impact: Due to the Brexit there has been certain uncertainties which might
hamper their possibilities but firm have opportunities as they are rendering their products
within other countries that have stability. It is important that management of Ford must
adhere to laws that are being made by different countries in which they are delivering
their services. This implies that by opting for expansion, Ford can have relevant growth. Negative impact: There are a number of undesirable activities such as terrorist attacks
and trade wars between different countries can have major effect on the business and
impacted adversely. With change in rules, policies, laws and regulation is different

countries, Ford needs to make adequate alterations within their strategies that will lead
them to have positive impact.
Economical factor: It is about the factors that are responsible for impacting the economy
of a country. Some of these are inflation rate, exchange rate, employment rate, interest rate and
so on (Fernández-Olmos and Ramírez-Alesón, 2017). With reference to Ford motor, it has been
analyzed that customers hold greater bargaining power which may affect the profits of the
company in a positive manner. It also helps it to remain competitive in the marketplace. The
overall impact can be seen as increase in the profit of the company and obtaining desired results. Positive impact: The good and stable economic conditions of United Kingdom is
beneficial for creating number of opportunities for the organizations investing in the
country. Ford motor can tap to number of opportunities at the UK marketplace by
focusing on the purchasing power of individuals in order to generate more profit. This
will aid them within development of their businesses in relevant manner and carry out
their functionalities in an adequate manner. Negative impact: There a number of issues such as financial crisis, enhance labour cost,
impact of brexit, etc. May influences business operations in an adverse manner. There are
different factors which prevails within unstable market such as cost of raw material,
transportation expenses and many more that will further lead to problem.
Social factor: This factor is connected with the social and cultural elements of a society.
It comprises of norms, customs, beliefs of the people living in a society which may impact
business in a significant manner (Shi and Wu, 2017). concept of Corporate social responsibility
has also introduced in order to make the companies become more ethical so that it can be
socially accepted. Number of strategies and initiatives are taken by the companies to become
friends with the customers in order to retain them for a long time. it adds to the competitive
advantage of the company which helps it surviving the odds that are occurring in the
marketplace. In relation to Ford motor, it has been analyzed that company have strong brand
image in front of customers as they satisfy the needs and wants of individuals. Positive impact : Social factors of UK are helpful in creating positive image. Ford motor
can enhance the quality of its products in order to become highly preferred by the
customers and create a positive brand image which can help it lead in the industry. By
carrying out relevant study of distinct factors, Ford can have relevant details related with

trends which prevails among customers in context of their needs. Thus, they can make
alterations accordingly. This will further lead them to captivate huge number of
customers. Negative impact: There a number of entities who are carrying initiatives for the society.
This increases the competition and customers can find substitute due to which Ford may
lose the customers. Alterations within trends along with demands of customers will lead
Ford to suffer loss as the old products will get obsolete and consumers will not opt for
such kind of products & services.
Technological factor: Technology is important for the growth of a business as well as the
economy in which it is operating. every organisation required certain types of technologies for
achieving high profits and revenue. Ford motor is a car manufacturing company that should
include latest technology in order to fulfill the demands and requirements of customers based on
the advanced technology (Li and et. al., 2019). it is beneficial in creating a competitive
advantage and being in the industry for a long time. Ford should understand the importance of
Technology and to use the latest one in achieving the goals and objectives of the. Furthermore,
new technology in a product makes it attractive which can attract large number of customers.
Ford management should take the note of latest technology and make all the upgradation in order
to sustain in the marketplace for a long run. Positive impact: With the advancement in the technologies and higher investment in this
aspect by the government as well as foreign nationals increase the opportunities forot
analysis should be carried out in detail. Bullet points are not allowed. companies to
sustain in the market with the use of latest technology. Ford can assess the technology
which can be beneficial for the company in fulfilling the requirements of the customers.
This will further enable them to minimize the cost associated with maintaining functions
along with operations carried out by them. It will also lead them to enhance their
operations in an adequate manner and ensure that they are completed within timely
manner. Negative impact: Whereas, adopting new and innovative technologies requires more
amount of funds which affect the whole profitability of the company. This will further
lead to enhancement within cost related with maintenance along with this, employees
must be provided with training which will again amplify their cost.