Analysis of Ford's Business Environment, Structure and Functions

This report offers a comprehensive analysis of Ford's business environment, organizational structure, and functional interrelationships. It begins by defining distinct organizational types—public, private, and voluntary—and their respective purposes, with a focus on Ford as a private sector entity. The report examines the size and scope of these organizations, highlighting the linkages between structure, size, and objectives. It then delves into the relationships among various organizational functions within Ford, such as finance and operations, and how these functions are linked to the overall organizational structure and objectives. The impact of the macro environment on Ford's operations is evaluated using a PESTLE analysis, followed by an internal and external analysis to identify strengths, weaknesses, and their interrelation with external factors, culminating in a SWOT analysis. The report provides a critical evaluation of the impact of macro and micro factors on Ford's objectives and decision-making processes. The report covers the business environment analysis of Ford company, its structure, functions and application of PESTLE and SWOT models.

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1. Distinct organisations and their purposes..............................................................................1
P2. Size addition to scope of distinct organisational types..........................................................3
M1. Analysis regarding linkage of structure, size along with scope of organisations with
objectives and products................................................................................................................6
TASK 2............................................................................................................................................6
P3. Relationship among various organisational functions as well as linkage with objective and
structure........................................................................................................................................6
M2. Advantages and disadvantages about interrelationships within organisational functions.. .7
D1. Critical analysis about complexities of various business structure types together with
interrelationships of distinct functions.........................................................................................8
TASK 3............................................................................................................................................8
P4. Impacts that macro environment has on operations of company..........................................8
M3. Application of PESTLE model in appropriate manner......................................................10
TASK 4..........................................................................................................................................11
P5. Internal together with external analysis about particular entities for identifying strengths
with weaknesses.........................................................................................................................11
P6. Ways through which strengths and weaknesses are interrelated to external macro factors.
....................................................................................................................................................13
M4. Application of SWOT analysis...........................................................................................15
D2. Critical evaluation of various impacts that macro together with micro factors have on
objectives and decision making of company.............................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is one of the term that indicates collection of diverse internal and
external elements that impacts each function, operation and activities of institutions positively or
negatively (Baron, 2012). Some elements are customer expectations and requirements, economic
changes, activities of political system, demand and supply, social trends, clients, innovation
within technology, trends of market, management workings and employees that influences
situations, practices and environment of an enterprise. To understand concept of business
environment, Ford is chosen which is one of leading multinational auto-maker which was
established by Henry Ford in the year 1903 and works as private sector enterprise. Within the
report topics like explanation of various size, scope and kinds of organisations, interrelationships
of few functions in an entity and their linkage with business structure. It also demonstrates
impacts that factors of macro environment have on company's operations and determines
strengths and weaknesses of particular business.
TASK 1
P1. Distinct organisations and their purposes.
Organisation is characterised to units or groups of citizenry which are properly structured
addition to meet needs and works for pursing collective objectives. Within the competing world,
public, private together with voluntary organisations exists with objective of accomplishing set
vision. Through the vision, managers sets guidelines for distinct actional plans that are required
to be undertaken by people of organisation. Following are some categorisation of distinct
organisational types with size and scope:
Public sector organisations: Entities which are owned, controlled, managed, operated as
well as accountable to government authorities and exists for offering services to citizens of
country are public sector organisations (Beatty, Samuelson and Abril, 2018). Crown Prosecution
service, British Army, BBC and NICE are some public sector organisations that works to provide
diverse services to citizens of UK and its surrounding nations. Among all, Crown Prosecution
Service is selected as public sector organisation that is one of principal public agency that
executes operations to demeanor criminal prosecutions in cities of Wales along with England.
Purpose: Purpose that public sector organisations have are to redistribute income, deliver
capital formation sources, achieving planned resource allocation and developing infrastructure
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facilities for general public. In context to Crown Prosecution Service, the company have purpose
to properly execute workings to conduct criminal prosecutions together with providing assistance
for legal advices to criminal investigation agencies.
Legal structure: The legal structure that public sector companies adopts generally
comprises of central government, public corporation addition to local government. In context to
Crown Prosecution, managers proceeds workings with central government owned structure.
Private sector organisations: Entities which are established, managed and run by sole
individual as well as majority of individuals. In these companies, all the operations are properly
managed and commodities are provided to customers at reasonable prices together with better
quality so that more profits are attained (Bernstein, 2015). Ford is the company that is
considered as private sector organisation which was established and managed by Henry Ford and
its team.
Purpose: Private sector organisations works with purpose of achieving sustainable
growth and maximising profits than competitors. Core purpose of Ford is associated with bring
people together for achieving profits and increasing market domination by offering trendy cars
and other automotive commodities to potential clients.
Legal structure: Private sector organisation posses legal structure of unincorporated
structure, private limited company as well as corporate structure. In context to Ford, private
limited company structure is followed as it is established and regulated under companies act.
Voluntary sector organisation: Non governmental businesses as well as not for profit
companies falls under voluntary sector organisation (Bocken, Weissbrod and Tennant, 2016).
These involves diverse range of institutions like educational, recreational, charitable, healthcare,
satellite and religious companies. British Heart Foundation, Oxfam and National Trust are key
voluntary sector organisation that creates huge social impacts despite of revenues. Among all,
British Heart Foundation is chosen as voluntary sector organisation that is one of charity
institution in UK and funds to research activities for beating heartbreaks from circulatory as well
as hart diseases and associated risk factor.
Purpose: Voluntary sector organisational works with purpose to deliver services for
social welfare as well as social development. Main purpose of chosen institution is to improve
treatments and methods for prevention, diagnosis along with treatment. It also have purpose of
conducting pioneer research to find causes of heart and other diseases.
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Legal structure: Legal structures involved in voluntary sector organisations are
charitable incorporated, limited by guarantee, unincorporated association and trust. At British
Heart Foundation, administrative authorities precede with limited by guarantee structure.
P2. Size addition to scope of distinct organisational types.
Within competing world, huge organisations works with motive to gain great heights in
business (Boshyk, 2016). Different organisations comprises contrary size and set procedures or
activities accordingly to reach towards vision and mission. For the present report, scope and size
in context to three organisation are as explained:
Public organisation (Crown Prosecution Service)
Mission and vision: The vision of Crown Prosecution service is to become one of
independent prosecution service which is respected and trusted by people. The mission of the
same entity is to conduct fair prosecution, impartial charge assessment and promote justice with
respect for various rule of laws.
Objectives: The main objective that Crown Prosecution service has is to deliver all types
of advisory services to investigative agencies in timely, principled and accurate manner.
Size and Scope: At Crown prosecution service, around 6000 people are employed for
providing legal advices about investigation practices to police as well as other investigation
agencies. It has huge scope to expand operations through using digitalisation techniques for
providing assistance services to agencies residing within as well as outside UK's boundaries.
Organisational structure: Management of Crown Prosecution Service precede activities
by following divisional organisational structure in which all functions are grouped into various
divisions such as specialist Fraud Division, CPS proceeds for Criminal Units, Special Crime as
well as Counter Terrorism Divisions and others.
Private organisation (Ford)
Mission and Vision: The mission statement of Ford emphasis towards making livings of
general public better by providing mobility accessibility addition to affordability. The vision of
the private entity is to become most trusted brand that designs and manufactures smart vehicles
for shrewd world.
Objectives: Objectives of Ford are to enhance sales volume, sustainability and safety as
well as innovation. The financial objectives comprises of increasing global sales together with
achieving balanced geographical profitability.
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Size and Scope: In Ford, around 199000 people are employed for working as well as
contributing for successfully running operations of entity (Number of Ford employees from FY
1992 to FY 2018, 2018). The operations are performed in wide nations like North Korea, Sudan,
India, UK, Cuba and others having wide number of stores. The scope of the company is vast as it
runs business through diverse products such as luxury vehicles, automotive parts and many
more. It designs and manufactures vehicles after considering trends in market and customer
requirements which enhances its scope for competitive sustainability.
Organisational structure: To implement decision making as well as efforts, functional
organisational structure is opted by Ford company (Organisational structure of Ford, 2019). In
this, the hierarchy to make decisions as well as authority flows within strategic management,
tactical management, operational management and non management manpower.
Illustration 1: Organisational structure of Ford. 2019
(Source: Organisational structure of Ford. 2019)
Voluntary organisation (British Heart Foundation)
Mission and Vision: British heart Foundation have vision of making a world in which
individuals do not die untimely of heart and other diseases (Crane and Et. Al., 2019). The same
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entity has mission of playing leading role within the fight against diseases related to heart and
circulation such that it restrictions can be made for disability together with premature death.
Objectives: The objective associated with British Heart Foundation is to deliver more
treatments and precautions so to beat diseases that causes premature death (British Heart
Foundation, 2019).
Size and scope: There are around 4514 employees in which 14 are Board members, 500
are part time staff, 2000 are volunteers and 2000 are full time staff that provides wide types of
services such as assistance and advisory services. The organisation renders humanitarian services
to reduce premature death and achieving fight from cardiovascular diseases, it has wide scope to
expand its operations to provide services that results in society welfare.
Organisational structure: The management authorities of British Heart Foundation
works in the flat structure wherein each committee is generally placed within one of governance,
advisory as well as operational stream.
Illustration 2: British Heart Foundation. 2019
(Source: British Heart Foundation. 2019)
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M1. Analysis regarding linkage of structure, size along with scope of organisations with
objectives and products.
As Crown Prosecution Service is one of public organisation that has objective of
providing advisory services and help in achieving sustainable responses so to contribute in
thriving investigative industry. After emphasising towards employee size that was diverse and
organisational structure all the activities are set and performed for gaining set objectives
effectively (Divanbeigi and Ramalho, 2015). In relevance with private organisation, Ford being
leading private company with huge number of employees, products and scope that works with
functional structure to communicate information so that all the customers are properly served,
objects are set accordingly. In regards to voluntary organisation, British Heart Foundation has
objective for delivering treatments along with precautions for beating various disease. The
company employs huge people so deliver the activities and have vast scope, proper
organisational structure which helps in formulating all objectives and plans to achieve them.
Hence, structure, size of employees and organisational scope are directly link with business
objectives and commodities.
TASK 2
P3. Relationship among various organisational functions as well as linkage with objective and
structure.
Organisational structure is aforementioned to hierarchical levels that are followed within
entity as well as explains the ways roles and responsibilities are allocated for achieving
objectives. Different organisations works with different organisational structure which includes
matrix, flat, bureaucratic, divisional and functional structure (Falkner, 2017). Managers designs
and implement organisational structure so that all functions are properly carry forward to achieve
objectives. Moreover, it assists in the ways how growth aspects can be achieved and set targets
are determined for achievements.
In context to Ford company, administration team follows functional organisational
structure so to organise its workers. In this, all the people are grouped into distinct functional
units such as marketing, human resources, operational and many more. The entity has distinct
functional departments which executes workings as per their own objectives addition to achieve
overall aims and goals that business have to attain.
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Interrelationship within organisational functions as well as the ways they are link to
organisational structure together with objectives are the followings:
Finance and operational function: Functions of finance department are based on
monitoring addition to controlling cash flows at workplace. It also assist other departments
through setting budget of each and providing valuable guidances required optimally utilising
funds. At Ford, financial department transforms raw accounting transactions into usable
statements which help managers to understand financial conditions so that suitable and effective
decisions are made. At same time operational function involves distribution, warehouses,
manufacturing and packaging (Hair Jr, Page and Brunsveld, 2019). The operational department
of Ford works to manufacture high quality cars so that the objective of company to fulfil
expectations of clients is achieved. Both functional units work in sync to each other and
coordinate activities within organisational structure as finance department arranges funds for the
operational department so that all the production and distribution activities are carried out
without any fund shortage. The operational department provide all the information about
requirement of funds to financial department. Thus, both these functions works to share
organisational resources by working within set structure so to achieve objective effectively.
Marketing and human resource functions: Functions of marketing function are related
to framing strategies addition to plans so to promote image of brand along with its products in
the global market. The department analyses pertaining situations about customer demands and
emerging trends and further communicates information to distinct departments. In context to
Ford, marketing function organises activities by contacting with human resource function
regarding the requirements of manpower to execute activities. Human resources collects detailed
information about customer expectations and accordingly plans all the workings which are
required to be executed. All the activities are perfectly coordinated among marketing as well as
human resource department which leads the entity to achieve objectives in prompt ways. All the
workings of marketing function and human resource functions are executed within set
organisational structure addition to objectives through providing directions to each other for
performing actions.
M2. Advantages and disadvantages about interrelationships within organisational functions.
Organisational structure plays unique significant and unique character within businesses
as it assist in framing critical decisions by exchanging view points, information together with
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thoughts among distinct functions (Hamilton and Webster, 2018). Functional interrelationships
provides advantages to management of Ford by assisting activities, escalating profit level,
maintaining internal cooperation and enhancing business effectiveness which shows positive
impacts in structure of business. In contrary, the disadvantage associated with functional
relationship is concerned with increasing chances of sharing confidential information by one of
functional member to rival companies. At organisation, there are some people who build trusted
and loyal relationships with the distinct functions for own benefit and shares information by
using informal communication mode which impacts negatively on the business structure.
D1. Critical analysis about complexities of various business structure types together with
interrelationships of distinct functions.
Administration of Ford have embraced distinct structures at their different work premises.
For example, within functional structure, functional groups generally faces complexities at the
time they communicate, interact addition to grabbing attention of population of international
market that reduces performance flexibility due to which complexities like miscommunication
together with misconduct of dealings arises among functions of human resource along with
marketing. In context to divisional structure, manpower faces complexities that are related to
operational inefficiency between specific functions of marketing and human resource wherein
manpower do not succeed in communicating particular information about emerging expectations
and demand to marketing function due to which inappropriate plans are framed and it influences
marketing practices negatively.
TASK 3
P4. Impacts that macro environment has on operations of company.
Business environment is a accumulation of internal and external factors that directly
influence the decision making process of an organisation in a positive and negative way. Some of
the external elements are competitors, government, suppliers, consumer and many more (Hillary,
2017). In order to manage these macro components in an effective way, PESTLE analysis is
regarded as one of the important strategic management approach that an enable an organisation
to identify its external environment and also empower them to make corrective course of action
in a better way. In context of Ford, it takes an initiative to imply the PESTLE analysis within its
business function which is explained below:
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Political factor: Under this, it encompasses government rules, regulation, policies,
procedures which impact establishment profit margin ratio.
Positive: Recently, UK government come up the system of Brexit that influenced
negatively over Ford's productivity ratio. However, organisation make an effort to modify or
alter its all employment policies and procedure as per the requirement of Brexit. Due to this, it
enable Ford to improve its ability to attain sustainable growth and development in an effective
mode.
Negative: On the other hand, if Ford fails to apply such alteration into its business
function them it may lead to face the difficulty in enhancing the market share among
competitors.
Economical factors: In this, it comprises economic growth, inflation, deflation, interest
rate and GDP that effect firm's overall performance (Huang-Horowitz, 2015).
Positive: In UK, Ford undergoes with a huge recession period which negatively effected
its potentiality in enlarging the market division and also to strengthen profit margin ratio.
However, Ford make an attempt to reduce the price of its product that aid them to retain its
existing consumer towards the brand and also to attract the new customer in an impressive style.
Negative: Whereas, if Ford does not maintain the product price as per the economic
situation, then there is a possibility of reducing the sales volume.
Social Factors: This component is link with population income, demographic elements,
age, customer taste and preference and so on.
Positive: As per the analysis, there is a huge demand among UK population regarding
electric or hybrid vehicle which impose great challenge within Ford volume of sales. IN order to
overcome this challenge, Ford make an attempt to introduce hybrid cars or vehicles that drive
them to capture the attention of large number of consumer towards the company, Due to this
contribution, it help Ford to place its brand in an aggressive position among competitors.
Negative: While, if Ford denies to implement decisions in regard of satisfying the
customer demand or need then it decreases its customer base and also reduces the proficiency
ratio inside marketplace.
Technological factors: It is relate with innovation, automation or latest technologies in
order to gain competitive advantage.
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Positive: Ford faced intense level of demand fro UK population regarding innovative
gadgets inside vehicles that negatively influenced company's profit maximisation ratio. Hence,
for overcoming the same, Ford takes an initiative in introducing novel and advanced gadgets into
its vehicles like route map, driverless cars and many more. With the help of this, it strengthen the
potentiality of company in gaining competitive advantage among rivalries in a innovative or
productive style.
Negative:On the contrary, if Ford does not makes an effort to develop any technological
advancement then it reduces the ability of establishment to acquire best position within industry
in a stipulated time duration.
Legal factors
Positive: In this, Ford take an attempt to adhere to all government legislation, laws,
policies, regulation in an effective mode. Hence, it aid them to minimise the intervention of
government into its functional unit and also lead them to place the brand in a batter position
without nay hindrances (Hunter, Saunders and Constance, 2016).
Negative: On the other hand, if Ford denies to follow government laws and regulation
them it negatively impact over its goodwill and brand value among rivalries.
Environmental factors
Positive: Under this, Ford fulfils the requirements of UK consumer by introducing
environment friendly cars i.e. electric and hybrid vehicles which has less emission of fuel and
also aid company to decrease the pollution from environment. With the help of this, it lead Ford
to enrich its proficiency ratio and also to improve overall productivity ratio in an improved
mode.
Negative: While, if Ford fails to take appropriate actions to control the emission of
pollution then there is a possibility of impose negative impression inside UK market.
M3. Application of PESTLE model in appropriate manner.
Ford is manufacture of vehicles that executes activities for offering automobile
commodities to customers. The administrative team of Ford applies PESTLE analysis for
monitoring macro environmental dimensions for framing policies, plans and strategies as well as
implementing them promptly (Hunter, 2015). Working in dynamic environment and managing
the business properly by considering dimensions governed by political system impacts positively
on the company. When business fails to work as per legislations then huge penalties are paid by
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