Business Environment Analysis: Ford Motor and Macroeconomic Factors

This report provides a comprehensive analysis of Ford Motor's business environment, encompassing its organizational structure, including public, private, and voluntary sectors, and the impact of macroeconomic factors. The report examines Ford Motor's purpose, size, scope, and legal structure, c...Read More

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Purpose and different type of organisations and adoption of legal structure........................3
P2. The size and scope of different type of organisation............................................................5
LO2..................................................................................................................................................6
P3. The relationship between different organisation function and their link to organisational
objective and structures...............................................................................................................6
LO3..................................................................................................................................................8
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................8
P5. Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................10
LO4................................................................................................................................................12
P6. Explain how strengths and weaknesses interrelate with external macro factors................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Environment can be explained as the process of collection of all the internal as
well as external factor which has the direct impact on the performance of a company. It is
necessary for any of the business organisation because it enables to finds about the plans and
strategies which are being applied by the rivalry firms. The chosen organisation for this
particular project is Ford Motor which is one of the automotive sector company. This company is
performing their business activity in different part of the world. The report is based on public,
private and voluntary types of organisation where there will be discussion about its size, scope
and its legal structure. Different external factors will also be explained in this file which will
allows to decide that how any of the business decision is required to be taken.
LO1
P1. Purpose and different type of organisations and adoption of legal structure.
There are different types of business organisation which perform their activity in a
systematic manner for the purpose of accomplish any of the specific targets. There are different
form of organisation where some of them might have the objective to earn profit whereas other
might have the intention to work for the social welfare (Teng, Thekdi and Lambert, 2012).
Different types of business organisation are explained below:
Public Sector Organisation: It is one of the form of business organisation where
involvement of government can be seen instead of general public. This types of organisation
doesn't have any of the motive to earn the profit. The best suitable example of public sector
company in UK is Crown Prosecution Service which conduct criminal prosecution in England
and Wales. Purpose – The main purpose of the company is just to provide the services to public
living within England & Wales.
 Legal Structures –
◦ Central Government – The process of collecting the fund in this types of
organisation is Incomes Tax which they collect from the public at large.
◦ Local Government – They takes the help of Council tax to collect fund for
operating the activities.

◦ State Government – Some of the specific power has been given to this types of
government from which they easily collect the fund.
Talking about Crown Prosecution Service, they are one the public company which is
controlled by Central Government.
Private Sector Organizations –The form of business which are established and run by
the private individuals is known as private sector company. Ford is one of the private sector
industry which perform their business activity in different part of the world such as United
Kingdom, United States etc. Purpose – This are those business organisation which perform their activity just for the
purpose of earning profit by selling goods and services.
 Legal Structures –
◦ Sole Proprietorship : This are the firm where business activity are needed to be
performed at a smaller ground where interference of other people is not allowed
(Singh, 2012). To start any of the sole proprietorship, it is necessary to do the
registration for self-assessment in HMRC.
◦ Partnership : These types of business can be performed only in the situation where
more then one people come together with a common objective for earning profit.
Here, partnership deed plays the crucial role in conducting the activities.
◦ Limited Company : This are the business organisation where business activities are
performed at a greater platform. It is needed to be understood that this types of
compnay can be started only in the situation where it is registered under the
Companies Act 2006. Ford Motors is one of the suitable example of limited company.
Voluntary Organizations – This are the organisation where number of people come
together with a objective which they wants to achieve in a specific time period. Proper
agreements plays the crucial role in it. Cancer Research UK is one of the organisation which
perform the voluntary work for achieving the specific objectives. Purpose: This types of organisation mainly have the concept that they must work for the
welfare of the public.
 Legal Structure –
◦ Trust – This are those entity which are not legally registered due to which they are
not allowed to enter in any sort of agreements.

◦ Unincorporated Association – This are also not legally registered where liability of
the person entered into the agreement is always not limited in it.
Company like Cancer Research is based on the trust where they are not allowed to enter
into the agreement for personal benefit.
P2. The size and scope of different type of organisation.
It is necessary to understand that different business organisation have different types of
working structure for attaining the objectives. On the basis of objectives, companies are divided
into three different categories and they are voluntary, private and public. Below, there is the
discussion about the size and scope of this types of organisation in detail.
Ford Motors
Background: It is one of the company which was founded in the year 1903 on 16th June.
The area in which company is serving its services are Dearborn, Michigan, U.S.
Product & Services: They provide the product and services of vehicles which are mainly
of official purpose, sports and luxury types (Huang and et. al. 2013).
Vision & Mission- Company has the vision to reach to the destination where they can be
recognised as the biggest automotive sector industry.
Size- There are around 90 plants of ford in world world which is allowed to give
employment to around 213000 employees.
Scope- They have the option to enter into the market of Japan and South Korea for
earning more profit.
Cancer Research UK
Background- It is the organisation which was established in the year 2002 on 4th
February. It is located in London where they mainly focuses on reducing the cases related to
cancer.
Services- They are providing the treatment to the patient who are from the issues of
cancer of different stages.
Vision & Mission- Company wants to remove the issue related to the death which occurs
because of cancer.
Size- Around 4000 employees who are working with the company whereas 40000
volunteers who are connect with the organisation.

Scope- They have been providing their services to world wide but main focus is in the
part of UK.
Crown Prosecution Service
Background: It is one of the company which was founded in the year 1986 where its
headquarter is in London, United Kingdom. They are mainly working for the purpose of giving
justice to the general public where police investigate the case.
Services: They mainly focus on criminal proceeding and try to find whether the
evidences which are collected by the police are relevant or not (Golovnev and et. al. 2013).
Vision & Mission- They have a clear vision to become one of the excellent department
which go through casework in detail to make sure that decisions are being taken in a fair way.
Size- In present scenario, there are almost 6000 employees who are working with Crown
Prosecution Service.
Scope- As the results are effective, it can be easily said that company can expand its
work in different part of UK which help people feel them secure as right decision will be
declared in it.
LO2
P3. The relationship between different organisation function and their link to organisational
objective and structures.
In any of the organisation there are different organisation who are being provided
different types of roles and responsibilities. This duties are needed to be performed for the
purpose of accomplishing the goals of a company. In context of Ford Motors, they are one of
those organisation who have categorised different department for performing any of the business
activity. The relation between these department have been explained below:
Human resource with marketing department: Human Resource is one of the most
important department in any of the organisation as they are the one of those department who has
the responsibilities to hire the appropriate candidate who can work as per the requirement of a
company (Ehret, Kashyap and Wirtz, 2013). In context of Ford Motors, they are very close to
marketing department who helps to bring on the skilled and professional candidate who can
perform as per the requirement. This will give the HR team the idea that which candidate can be
helpful for them in future course of time.

Marketing with production department: It is the responsibility of the marketing team of
Ford Motors determine and find that what are the requirement customers and changes which they
are willing in the upcoming model. This will allow the production department to do proper
planning that how they can introduce the changes in organisation so that requirement of
customers can be met with limited cost. Once new product is manufactured by the production
department then advertisement can be done by the marketing team of Ford Motors to earn the
profit.
Financial with production department: The department of Finance in Ford Motors has
the responsibility to manage the every single work which are related with the monetary
transaction. It is one of the department which helps to bring the stability within the production
department as it has the responsibilities to manage the additional amount of fund whenever it is
required by the production department (Khan and Quaddus, 2015). In short, financial
department is one of the most important department of Ford which allows the production
department to perform their task in qualitative manner.
Organisation Structure- Ford Motors is one of the matrix structured company where
some of the important person of the organisation is regional manager, store manager and
personnel managers. This is very helpful for performing any of the work in a systematic manner.
It is allowing them to take competitive advantage in the market and even allowing the
organisation to accomplish their goals on time.
Matrix Organisational Structure: It is one of the organisation structure which are used
by the business organisation for the purpose of accomplishing the goals of a company. In this
types of organisational structure, it is needed to be understood that report can be done to business
manager in a different way which will allow the company to earn the profit and chances of errors
also reduces in it (Kolk, 2016). Here, it is the responsibility of employees working in Ford
Motors to report their top level management so that required decision can be easily taken by the
company.
Analyse the advantage and disadvantage of interrelationships between organisational
functions and the impact that can have upon the organisational Structure.
Talking about the positive side of interrelationship between different department, it can
be easily said that company will be able to perform any of the work in a systematic manner. The
main advantage is that there will be better communication system which will be able to develop a

healthy environment in the organisation (Analysing The Organisational Structure, 2019). On the
other hand of side, it is needed to be understood that if any of the department is unable to
perform any of the work as per the requirement then in that performance of other organisation
will be also affected in it which is one of the main disadvantage of interrelationship between
different departments.
LO3
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
PESTLE analysis can be explained as the process which is used by the firms for the
purpose of find the current position of the market which can affect on day to day working
policies. It is one of the model which has a great impact on decision making ability because
single decision can create lots of problem through which goals might not be accomplished on
specific time period (Sodeyfi, 2016). In context of the manager of Ford Motors, their manager
can be beneficial by using the PESTLE analysis because it will simply help to take better
decision for future period of time by analysing all of the factors. The detail information about the
model is explained below:
Political Factor:
It is one of the factor which has the great importance for any of the business organisation
because they are needed to take any of the decision as per the decision taken by the government
parties. Talking about Ford Motors, they are needed to understand that Political Factors has the
great effect on their da to day activity.
 Positive: As UK is of the area where political stability can be easily found which means
that company can easily take the long term decisions for attaining the goals.
 Negative: Just because of the Brexit, it has been found that free trading policy has been
removed due to which more expenses will be incurred for import and export work.
Economical Factor:
It is one of the external factor which has a huge impact on working policies because
slight changes in the inflation rate or any other exchange rates can create huge problem which
will have a impact on daily performance. In context of Ford Motors, they are needed to

understand about the economical factor because that has a positive as well as negative impact on
the company.
 Positive: The economic condition of UK is increasing day by day due to which Ford has
the good opportunity to earn huge amount of profit in future period of time.
 Negative: Company like Ford is performing its activity in different part of the world
where economic condition are not stable which is one of the reason that they are unable
earn profit from other part of the world (Virglerová, Dobeš and Vojtovič, 2016).
Social Factor:
Social factor simply explains about the believes and culture of the people. It is needed to
understand for Ford Motors that if they want to sustain within the market then they must try to
find that what are requirement of customers.
 Positive- Company can introduce the chances as per the requirement of people which
will enhance the profit.
 Negative: People living in different area are connected with organisation due to which it
not possible for the company fulfil the demand of every single customer which is one of
the negative side for the organisation.
Technology Factor:
It is the factor which has the connection which technologies which a company uses to
sustain within the market. For company like Ford Motors, they are needed to focus the most on
this factor to perform better in the market.
 Positive- Ford Motors must keep themselves updated as per the requirement of customers
which will allow company to earn more profit from the market.
 Negative- As technologies are needed to be update on regular basis due to which it is
needed to be understand that it will increase the overall expenses of a company (Otache
and Mahmood, 2015).
Environmental Factor:
It is related with the cultural values where organisation is required to conduct those
business activity which doesn't create problem for existing natural resources. Resoirces must be
used in a systematic manner.
 Positive- If manager of Ford motors will be able to manage all of the activity due to
which use of carbon can be decreased then goals can be accomplished easily.

 Negative- If in any of the situation company will not be able to perform their task as per
the requirement of people and environment then sale of Ford may reduce significantly.
Legal Factor:
This is a external which has a huge importance for business organisation as it includes
rules and regulations which has been enforced by the government. Different types of laws which
are imposed upon the company like Ford is employment law, consumer protection law and many
more.
 Positive- If Ford Motors will follow all of the rules and regulations then it will be helpful
for them to develop the perfect brand image in the market.
 Negative- If in case company fails to follow the rules and regulations then legal penalties
can be imposed which can create lots of issues for the organisation like Ford (Banica and
Hagiu, 2015).
P5. Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.
It is needed to be understand the SWOT analysis is one the business which helps to determine
the current position of company internally. This can be one of the option through which
improvement can be done. Below, there is the discussion about two different organisation on
which SWOT has been done.
SWOT analysis on Ford Motors
Strength Weaknesses
 It has been found that Ford Motors has
develop the global recognition in the
market due to which they are able to
attract customers easily.
 The second strength which company
like Ford Motors have is that they have
a very reliable Research &
development department which is
allowing them to bring any of the
changes as per the requirement of
 It is found that while comparing the
company with German and Japanese
market, Ford has a very poor reputation
in the market due to which profit
earning is very low.
 Market of Ford Motors is completely
dependent upon the performance which
they show in the market of United
States and United Kingdom.

situation.
Opportunities Threats
 Ford Motors is one of the company
which is still not available in digital
market which allows organisation to
enhance the sale.
 Company has the opportunity to work
by adopting latest technologies which
will allow them to manufacture Eco-
Friendly.
 In current situation, Ford has been
facing tough competition in the market,
specially from the organisation like
TESLA, Toyota and many more.
 The prices of raw material and steels
products which are being used by Ford
is increasing day by day due to which
profit margin will be affected from it in
future period of time.
Influence of SWOT analysis in decision making process of Ford Motors
It is needed to be understood for Ford Motors that they must focus on weaknesses and
threats so that they can get the opportunity that how they are required to perform in any of the
situation. Manager must give more importance on opportunities which are in front of the
organisation so that company will get the opportunity to reach near to their mission and vision.
And at the end if Ford Motors will be able to give more focus on Strength of a company then
they will be able to give more tough competition in the market.
SWOT Analysis Of Cancer Research UK
Strength Weaknesses
 The main strength of the Cancer
Research is their team of doctors which
have been working really hard for their
project.
 It has been found that company has
started to deal with almost 285000
cases of cancer on a yearly basis which
is one of the great strength for company
to accomplish their targets (Sodeyfi,
 As they are required to have a proper
research and development team who
can do various research on cancer but
due to the lack of fund they are unable
to do that in a systematic manner.
 Their are unable to sustain their
employees for the longer period of time
which is one of the major problem for
the organisation like Cancer Research

2016). UK.
Opportunities Threats
 Cancer Research UK has the
opportunity to take the help from
government for the purpose solving the
issues related to fund.
 As company has been trying hard to
perform better in the field of R&D,
they have the opportunity to develop
the drug which can cure the problem of
cancer in a significant manner.
 The major threats which is occurring
upon the company is that they are able
to manage the fund which can be one of
the reason that they might have to shut
down the work in future period of time.
 One of the major threats for Cancer
Research UK is that their expertise and
doctors who are of other nation might
not be connect with organisation for
longer period of time.
Influence of SWOT analysis in decision making process of Cancer Research UK
It is crucial for the organisation like Cancer Research to understand that they must work
on weaknesses because that will allow them to sustain within the market. By looking at the
situation of the opportunities in front of them, they can easily try to find that how they are
required to work and what can be the ways of raising the fund because that is the only way to do
proper research in the market (Kolk, 2016). Looking at the threats, it will be crucial for the
department of organisation to ensure that they will build the strong team of doctors as well as
scientist who can allow themselves to perform for future period of time.
LO4
P6. Explain how strengths and weaknesses interrelate with external macro factors.
It is needed to be understand that strength and weaknesses of company always plays the
crucial role for the business organisation like Ford. It can be said that strength and weaknesses
are also inter-related with external macro factor which has been discussed briefly below.
PEST Analysis: It is the business model which gives suggestion to business organisation
that how external factor may influence the decision making process of the organisation. Below,
PEST analysis has been explained upon Ford Motors.
Political Factor

It is the factor which is related with the rules and regulation which are imposed by the
local and state level government. Some of the major rules which they mainly focuses are tax
policies, anti-dumping duties and many more.
 Strength: The main strength of Ford is that they are able to follow all of the rules and
regulations of UK law which allows them to develop earn more profit from the market of
UK.
 Weakness: If in any of the situation, government of UK take the harsh decision then in
that situation Ford Motors might have to suffer because they totally depend upon the
market of UK.
Economic Factor
It is the factor which has the direct connection with the economical situation of a nation.
It is needed to be understood that Ford Motors must work as per the economical situation of a
company.
 Strength: As they mainly performs in the market of UK where economical condition are
developing day by day due to which it becomes easy for Ford to perform better in the
market.
 Weakness: If in any of the situation, inflation rate changes then Ford Motors will have to
suffer to attain their goals even sale might also decrease (Banica and Hagiu, 2015).
Social Factor
This is the factor which directly explains company is required to work as per the
guidelines and believes of people. Ford Motors is required needed to focus on this factor the
most.
 Strength: It is needed to be understand that Ford Motors Must work as per needs and
believe in culture so that their sales can be enhanced at a greater speed.
 Weakness: If in any of the situation company ignores the requirement of people as per
their believes and culture then customers might switch to another company.
Technological Factor
This is among one of those factor which has the huge importance for any of the
organisation because it directly reflects that well company adopt changes for attaining their
goals. Talking about Ford Motors, they are one of the automotive sector industry where
technology plays the crucial role.

 Strength: Within this respective factor, company like Ford Motors will be allowed to
perform their any of the task in a systematic manner which will allow to achieve their
targets by meeting the requirements of customers.
 Weakness: It is one of those factor where company like Ford Motors will have to adopt
the changes which will decrease the efficiency of the employees in first phase.
CONCLUSION
From the above file, it can be easily concluded that Business and business environment
can be one of the most crucial topic as it tells that how any of the work is needed to be done.
Different types of business organisation have different types of role and responsibilities which
they must conduct to accomplish the target. PESTLE analysis will allow Ford Motors to
determine that what are those factor which can affect their working policies and according to that
they will be able to take decision. On the last strength and weaknesses will allow the perform
better in the market to take competitive advantage in the market.

REFERENCES
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