Relationship between Organisational Functions and their Interrelation with Objectives and Structure

This article explains the relationship between different organisational functions and their interrelation with objectives and structure. It explores how the functional structure helps in achieving organisational goals. The focus is on Morrisons, a UK supermarket chain, as a case study.

Business
And
Business Environment

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1. Explain different types and purposes of public, private and voluntary sectors with their
legal structures........................................................................................................................3
P2. Describe the size and scope for range of different types of organisations.......................5
TASK 2......................................................................................................................................7
P3. Explain the relationship between different organisational functions with interrelation of
their objectives and structure..................................................................................................7
TASK 3......................................................................................................................................8
P4. Identify the positive and negative impacts of macro environment upon business...........8
TASK 4......................................................................................................................................9
P5. Describe the internal and external analysis of an organisation to identify its strength
and weakness..........................................................................................................................9
P6. Explain how strength and weakness interrelate with external macro factors................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
The business environment consists of internal and external factors which affect the
functions of business that develops competitive strategies to compete with rivalries. The
organisation which is selected for this project is Morrisons which was introduced by William
Morrisons in 1899. It is the UK’s fourth largest supermarket chain with fresh services and
value to compete with rivalries. This project describes different types of organisation with
their size, scope, purpose and legal structures (Aithal, 2016). It further explains relationship
between different organisational functions through interrelation of their objectives and
structure. This also identifies the positive and negative impacts of macro environment upon
business operations. Additionally, it interprets the internal and external analysis of an
organisation from strength and weakness which interrelates with external macro factors.
TASK 1
P1. Explain different types and purposes of public, private and voluntary sectors with their
legal structures
Business environment is defined surrounding of an organisation which impact upon
the operational functions of an enterprise. The internal surroundings consist of suppliers,
competitors, public, customers, market intermediaries and external atmosphere includes
political, economical, social, technological, legal and environmental factors. There are
different types of organisations which are classified as public (not for profit), private (profit)
and voluntary (non-government) business sector which are mentioned below:-
Public Sector:- This enterprise is most probably governed by government through
politicians as focusing on public transportation, infrastructure, education, health care, military
services, etc. It runs business with aim of not-profit organisation which is considered as small
business such as BBC, British Army, Environment Agency, Network Rail, Automatic
Weapons Establishment (AWE), NHS, etc. This manufactures product for promotion and
supply it through various services for enlarging customers. From the above mentioned UK
public companies National Rail is selected as being the large managing network of railway
for government. This organisation follows ethos, norms and code of conduct imposed by UK
the head office of railway which provide guidance to operate business for its growth and
stability.
 Purpose:- The aim of public sector is to expand road and rail network for delivering
goods and services, distributing income and social welfare, etc. The main purpose of
Network Rail is to facilitate valuable and reasonable railway services for public.
 Legal Structures:- This sector mainly focus on legal legislations that involves local,
state and central government which helps to run business effectively with no profits.
The National Rail is considered as business operating its functions with transportation
facilities approved by government legal structure (Aydiner, and et.al., 2019).

Private Sector:- The sector which does not involve government regulations is
operated by entrepreneurs for maximisation of revenue and profits. The main purpose of this
sector is to fulfil the desire of target market by manufacturing goods and services with least-
cost effectiveness for enlarging customers. It mostly depend on profit motive organisations
which are termed as large business such as, Tesla, Sainsbury, Tesco, JCB, Mark and Spencer,
Greenergy, Morrison, etc. From the above prescribed private companies Morrisons is selected
as being fourth largest supermarket chain in United Kingdom.
 Purpose:- The main purpose of this sector is to maximise profitability ratios by
creating high job opportunities as compared to public sector. The aim of Morrisons
brand is to accelerate the change in midst of pandemic. The goal of organisation is to
become more competitive by serving their customers with total quality management.
 Legal Structures:- This sector mostly concentrates on providing tax benefits to their
business owners, minimise liability for sole proprietorship, partnerships, joint
ventures, merger and acquisitions, etc. The legal structure of Morrisons is described in
organisational-structure in which all the actions are performed in particular head and
department (Cai and Yang, 2014).
Some of the examples for legal structure are mentioned below as:-
 Sole Proprietorship:- This business refers an enterprise which consists of only one
entrepreneur that develops innovative ideas for planning through strategic decision
making procedure. Managers of Morrisons follow the direction and guidance of
business owner as to perform their actions with the motive to achieve organisational
goals and objectives.
 Partnership:- It is defined as the business which consists of either two or more
partners or business owners who collectively invest funds and share profits
proportionately. It is an arrangement where parties, known as business partners, agree
to co-operate in accordance with their mutual interests. Managers of Morrisons focus
on this private sector as to meet the requirements of customers that result in sharing of
profits as prescribed agreement.
 Corporation:- This is legal enterprise which is separate and distinct from its owners
which consists of all the rights for an individual, except the right to vote and certain
other limitations. Managers of Morrisons determine the rights and responsibilities that
individual possess by entering in contracts, loans and borrow money, sue and be sued,
hiring employees and pay taxes.
 Co-operation:- It is described as an organisation performs its action with
collaboration and co-ordination among each other that develops the ability to achieve
success efficiently. The workers act together for common, mutual, some underlying
benefit, etc. It is an activity of workforce to complete their action with help of
someone for some specific target. Managers of Morrisons provide charity and
donation for society that result to increase customer support and loyalty.
 Franchise:- This is defined as the marketing concept adopted by an organisation as
strategy for business expansion. It further focus on implementing franchisor licensing
with its know-how procedures, intellectual property, use of business model, brand and

rights to sell branded products and services to franchise. The managers of Morrisons
lead to franchise their company by allowing licensing to another company which
result in brand awareness, loyalty and positioning.
The interrelation between functional units of private sector that are explained with
reference to managers of Morrisons are as follows:-
 Marketing with Production:- The marketing refers as the procedure for
understanding customers needs, desire and wants by building and managing relation
with them. Production is defined as the process for transforming raw material into
finished goods which is capable to meet the requirement of buyers through supplying
qualitative products. The marketing and production are interrelated with each other as
the managers of Morrisons analyse the demand of end-users and manufacture finished
goods and services to fulfil their high level of satisfaction at which they are ready to
pay high premium.
 Finance with HRM:- The finance is broad study of monetary terms which describes
the activities associated with banking, leverage or debt, capital markets, money and
instruments. The Human Resource Management refers as strategic approach for
effective management of people through recruitment and selection which increase
specialisation by reducing time consumption. The finance and HRM are interrelated
with each other as the managers of Morrisons by identifying the expected budget with
estimated revenue and expenditure that are to be managed with actual budget through
controlling the actions of workers to reduce delay.
Voluntary Sectors:- It is also termed as non-governmental business which targets to
perform its action with motive of non-profit. The objective is to perform their functions for
social welfare that develops customer support and loyalty. This is non-government
organisations that perform actions as medium-sized businesses which includes National
Group Organisation (NGO), National trust, Oxfam, National council for voluntary
organisation (NCVO), etc. that perform actions for charity and donations. From the above
mentioned UK voluntary companies NCVO is selected for providing various types of
services to society.
 Purpose:- The main purpose of voluntary sector is to facilitate society with charity
and donations without maximisation of profit. The purpose of NCVO is to support
voluntary and community sector by creating flourish environment for civil.
 Legal Structures:- This sector mainly focus on trust, warranty and guarantee for
public sector. These are known as small group with short-term goals and low
incomes. The legal structure of NCVO is to set-up the charitable transactions with
non-profit actions (Fabuš, 2017).
P2. Describe the size and scope for range of different types of organisations
The size and scope for different types of organisation which are categorised as public,
private and voluntary sector are explained as under:-
Public Sector (National Rail):-

On the Basis of Features Explanation
Vision The National Rail develops strategic vision for rail by focusing
to expand the business for network of railway to boost
housing, economic growth and deliver benefits to passengers.
Mission Mission of National Rail is to run safe, reliable and efficient
railway, serving its customers and communities.
Objectives The objective of National Rail is to enforce law and ensure
that continuous improvement in industry for health and safety
of passengers with workforce and public by achieving
excellence.
Background The National Rail Logo was introduced by ATOC in 1999
which was first used by Great Britain public timetable on 26th
September.
Size In 2016, there were 1.718 billion journeys through National
Rail network of British, being fifth most used service in the
world.
Scope Network Rail is considered as the owner and infrastructure for
most of the railway network in Great Britain.
Product Product of National Rail is described as Public transport, Rail
Delivery Group, etc.
Services The Britain’s National Rail network includes train company
information and promotion, train arrival and departure, fares
enquiries, ticket bookings, etc.
Market Share The market share of Network Rail in Great Britain from 7.4%
in 1998 to 11.1% in 2013.
Shareholders The Great Britain National Rail does not have any shareholder
as it not seek for profit motive and facilitate universal service.
Private Sector (Morrisons):-
On the Basis of Features Explanation
Vision The vision of Morrisons is to become the leading utility
services provider in the UK and Ireland.
Mission The Morrisons mission is to always deliver very best service
for less cost (Glowik and Bruhs, 2014).
Objectives Objective of Morrisons is to become the cheap provider of
goods and services to their customers.
Background The Morrisons was introduced by William Morrison in 1899
as being the fourth largest supermarket chain. It’s headquarters
are in Bradford, England, UK.
Size There were 498 Morrison’s stores in UK on 4th February, 2018.
It is the fourth largest supermarket in United Kingdom
following Tesco, Sainsbury and ASDA.
Scope The scope of Morrisons is Demographic with 100% branded
fresh meat, milk and eggs are sourced in Britain with the
considered terms, areas of responsibility, duties and scope of
work.
Product The product of Morrisons are food and drink, clothing, books,
magazines, CDs and DVDs.

Services Services of Morrisons includes online supermarket chain
which provides ease to consumers in purchasing the products
and facilitated by home delivery with convenient 1 hour slots
at low prices.
Market Share The market share of Morrisons is 10.14% in August 2017.
Profit Share The Morrisons analyse large sales which is stronger than
expected profits.
Shareholders Morrisons shareholders consists have 40% stake in enlarged
group of share market.
Voluntary Sector (NCVO):-
On the Basis of Features Explanation
Vision The vision of NCVO is to create society in which people are
inspired to make positive difference from their communities.
Mission The NCVO have diverse community of 14,000 members in an
organisation being the third voluntary sector workforce in
England. It provides expert support and advice to community
by saving their time and money.
Objectives Main purpose of NCVO is to support the voluntary and
community sector by creating environment in which civil can
flourish.
Background The NCVO was formed as National Council for Voluntary
Organisation in 1919 with legal status of charity in England.
Size According to the latest NCVO data on 2014/ 15, there were
140,500 voluntary organisations in England and Wales were
around 165,800 in UK.
Scope The NCVO has a reputation as an authoritative voice for sector
as robust, actionable with scope and finance in UK Civil
Society (Helm and Gritsch, 2014).
Product The NCVO’s Trusted Suppliers provide specialist products
and services that can save not for profit organisation time with
15% discount on payroll services.
Services The services of NCVO provide the best experience, improve
and tailor our services as well as carry out marketing activities.
Market Share The NCVO captures UK civil of 35% of market share from
total voluntary sector income of government.
Shareholders It is non-profit organisation which does not deal in
shareholders as there are no business owners.
TASK 2
P3. Explain the relationship between different organisational functions with interrelation of
their objectives and structure
Organisation structure describes activities performed in particular direction with
proper guidance to achieve organisation goals and objective. The managers of Morrisons
implement this to determine the rules, roles, duties and responsibilities for division of work.

Functional structure:- It is the most common structure of organisation which
segregate workforce through specialisation in similar set of roles to complete specific task.
The managers of Morrisons can use this structure to diversify members with their activities
that improve efficiency to remain stable in global market.
Divisional structure:- This focus on grouping organisational functions into division
which consists of necessary source and function. The managers of Morrison can use this to
analyse the section for finance, human resource management, information technology,
marketing, research and development, etc.
Morrisons adopt divisional structure as the large enterprises to produce
differentiated products and services for segmented potential consumers. This structure
determines roles and responsibilities for every department which provide opportunity to
attain success for business in competing with rivalries (Hillary and ed., 2017).
The interrelationships between different functions for managers of Morrisons are:-
 Department of Finance and Human Resource:- Finance refers as the system of
money, investments and other financial instruments. Human Resource improves
effectiveness of an organisation by quality management. These both functional
departments interrelate with each other to perform activities by investing money to
generate capital. The managers of Morrisons focus on managing their expected and
actual budget with revenue and expenditure by proper direction and control to reduce
wastage.
 Department of Sales and Marketing:- Sales is defined as the activity to sell finished
goods for maximising volume of output. Marketing is the procedure to position
product in mind’s of target market which increase sale. These both functional
departments interrelate with each other for enlarging potential customers by
promotion. The managers of Morrisons imply this to maximise their revenue and
profitability ratios to achieve success in global market.
TASK 3
P4. Identify the positive and negative impacts of macro environment upon business
Macro environment:– This component is part of extrinsic environment which
determines the opportunity and threats that affects growth of business in competitive market.
The managers of Morrisons implement this to analyse the competitive strategies of business
as compared to rivalries (Likoko and Kini, 2017).
PESTLE analysis:- It is the framework which analyse factors of external
environment that impact stability of an organisation. This is described with PESTLE analysis
with either positive or negative impact on business atmosphere. These are explained with
reference to Morrisons is as follows:-

Political factor – The political system of United Kingdom is usually which helps
organisation to achieve goals efficiently. The managers of Morrisons implement rules and
regulations which are governed by political leaders for strategic decision making in planning.
 Positive:- Nowadays, the buyers are health conscious which enlarge demand for
healthier products from managers of Morrisons which enhance revenue and
profitability ratios.
 Negative:- The managers of Morrisons are negatively impacted by certain political
leaders as they state that labelling on healthy foods are misleading as it does not have
nutritional quality.
Economic factor:– This element includes inflation rates, GDP rates, interest rates,
population growth, etc. The United Kingdom determines fluctuation in money as compared to
other countries (Quinlan and et.al., 2019).
 Positive:- The managers of Morrisons are positively impacted to determine foreign
exchange rate which increase value of money that maximise profits.
 Negative:- The managers of Morrisons are negative impacted by economic factor in
analysing population growth through birth and death rate which fluctuate demand of
target market.
Social factor:- It includes demographic conditions, population growth, age and
income distribution, health consciousness, etc. The managers of Morrisons examine
emerging trends of buyers for fulfilling their desire with superior quality products and
services.
 Positive:- The managers of Morrisons are favourably affected by creating job
opportunities to society which improve efficiency in goal achievement.
 Negative:- The risk for managers of Morrisons is to maintain the loyalty of their
existing customers.
Technological factor – This factor involves adopting new machines, automation,
innovating ideas, etc. This is important for organisation to update their products and services
with latest technologies to create opportunity for competing with competitors.
 Positive:- The managers of Morrisons are favourable in positioning products to
customers for maximisation of revenue, profits and market share.
 Negative:- Morrisons managers are negatively impacted by use of latest technologies
that will be obsolete in future with high costing.
Legal factor:- It includes legal and lawful obligations, health and safety measures,
consumer protection rights, product labelling and packaging, etc. The managers of Morrisons
implement this to perform actions legally to remain stable in global market.
 Positive:- The managers of Morrisons are positively impacted by manufacturing
qualitative product with focusing on consumer protection to meet consumer
requirements (Saleem, 2017).

 Negative:- The managers of Morrisons are negatively impacted as they are bound to
pay minimum wages to employers with bonus and incentives to motivate them.
Environmental factor – This determinant involves environmental pollution targets,
stability and instability of business, full utilisation of scarce resources, etc. In UK, managers
focus on environmental protection, changing weathers and climates.
 Positive:- The managers of Morrisons have internal strength by restricting
environmental pollution and providing healthy and safe atmosphere for workforce and
buyers.
 Negative:- Morrisons managers are negatively impacted by the environmental factor
for restricting the wastage disposal and managing that in effective manner for
production.
TASK 4
P5. Describe the internal and external analysis of an organisation to identify its strength and
weakness
SWOT Analysis:- It is the abbreviated form of through strength, weakness,
opportunities and threats (Saleem, 2015). This framework focus on strategic decision making
in planning functions to determine the competitive strategies of business. It is described with
reference to managers of Morrisons who compete with its rivalries such as Tesco, ASDA,
Sainsbury, etc., to sustain in perfect competition market.
Strength (S) Weakness (W)
 The Morrisons manufacture food
with high skill and supplies it with
supply chain management to meet the
requirements of customers.
 This has large product diversification
which attracts large numbers of
potential consumers.
 The Morrisons is limited in
geographic presence which creates
delay to change in accordance with
response of target market.
 Lack in total quality management of
product creates low buyers and
restricts their support and loyalty.
Opportunity (O) Threats (T)
 It is the fourth largest supermarket
retail chain which leads to remain
stable in competitive market for
achievement of organisation goal.
 The Morrisons facilitate its customers
with online shopping and discount
channel for being the fastest growing
sector in United Kingdom.
 The Morrisons face threats for
changing rules and regulations
imposed by government which are to
be implemented by organisation to
achieve success.
 The increasing competition with the
entrance of new companies through
their new product and service that
attract buyers.
P6. Explain how strength and weakness interrelate with external macro factors
The strength and weakness which interrelate with external macro factors are
mentioned with reference to Morrisons are as follows:-

Basis Strength Weakness
Political The UK government mostly
remain stable and creates
opportunity for growth and
stability of Morrisons.
Customer purchasing power is
affected due to change in taxation
policy which impose high prices on
product for decreasing value of
money.
Economical This factor positively impacts the
business of Morrisons by
analysing the foreign exchange
rate to maximise money and
wealth.
The Morrisons determine population
growth by analysing birth and death
rate which influence demand of
product.
Social The strength of Morrisons in
social factor is to enlarge workers
by creating job opportunity to
improve efficiency.
The weakness of Morrisons is to
perform their activities mostly for
social welfare and not for
maximising profits.
Technological Morrisons focus on technological
factors for adopting new
equipment which is capable to
meet the customers changing taste
and preference.
The weakness of technological
factor for Morrisons is adopting new
technology that will become
obsolete in future which cost high
(Weiss, 2014).
Legal The Morrisons concentrates on
legal legislations of UK
government through consumer
protection rights by producing
good quality products.
Morrisons is negatively impacted by
legal and lawful objectives of
government which bound managers
for paying minimum wages to
workers for their survival through
food, shelter and cloth.
Environmental The managers of Managers of
Morrisons have internal strength
by restricting environmental
pollution and providing healthy
and safe atmosphere for
workforce and buyers.
The weakness for Morrisons from
environmental factor is to reduce the
wastage disposal through
management of production which is
very difficult task.
CONCLUSION
From the above discussion it have been concluded that business environment is the
combination of internal and external surroundings which plays major role in determining the
competitive strategies of an organisation. This project describes public, private and voluntary
sectors of organisation with their purpose, size, scope and legal structures. It further explains
relationship between different organisational functions through interrelation of their
objectives and structure. This project also identifies the positive and negative impacts of
macro environment upon business operations through political, economical, social,
technological, legal and environmental. Apartly, it interprets the internal and external analysis
from strength and weakness which interrelates with external macro factors to determine the
competitive strategies. It creates opportunity for the economic growth and stability of
business in perfect competition market.

REFERENCES
Books and journal
Aithal, P. S., 2016. Study on ABCD analysis technique for business models, business
strategies, operating concepts & business systems. International Journal in Management and
Social Science. 4(1).
Aydiner, A. S., and et.al., 2019. Business analytics and firm performance: The mediating role
of business process performance. Journal of business research. 96. pp.228-237.
Cai, S. and Yang, Z., 2014. On the relationship between business environment and
competitive priorities: The role of performance frontiers. International Journal of Production
Economics. 151. pp.131-145.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech
Republic.
Glowik, M. and Bruhs, S. M., 2014. Business-to-business: A global network perspective.
Routledge.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International Business
Review. 23(2). pp.418-428.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Likoko, E. and Kini, J., 2017. Inclusive business—a business approach to
development. Current opinion in environmental sustainability. 24. pp.84-88.
Quinlan, C., and et.al., 2019. Business research methods. South Western Cengage.
Saleem, M. A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).
Saleem, S., 2015. BUSINESS ENVIRONMENT. 3/e. Pearson Education India.
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach.
Berrett-Koehler Publishers.