Business Environment and Its Impact on Enterprises

This assignment requires a comprehensive analysis of the business environment's influence on selected enterprises in the Czech Republic and Slovakia. It involves reviewing literature related to the topic, including research papers and articles that discuss the impact of the business environment on entrepreneurship, innovation, and productivity. The assignment also includes a SWOT analysis of Morrisons, a UK-based supermarket chain. Students are expected to demonstrate their understanding of the business environment's role in shaping entrepreneurial outcomes and provide a detailed analysis of the selected enterprises.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions and its link with organisation
objectives................................................................................................................................1
TASK 3............................................................................................................................................3
P4 Positive and negative impact of Macro environment on Business operations..................3
TASK 4............................................................................................................................................5
P5 Internal and External analysis of organisation..................................................................5
P6 Interrelation of Strength and weakness with external Macro factors................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business compose and involve various kinds of activities and functions which have to
perform in better and appropriate manner. Environment of a business association is not stable in
nature and get fluctuate with every due course of time (Bah and Fang, 2015). Business
environment need to understand by managers of a company properly which further enable them
to derive better results and objectives. This project is based on Morrison whom want to
understand the environment of business properly so that effective working could be done. It will
include and define about different purpose and kinds of business entities which have a vast
impact on business environment. All the business firms are differ from each other in context with
size and scope which need and required to better understand by business managers. Although, it
will also define about the relationship of various organisational functions which further assist in
accomplishing business objectives. Thus, the external and internal environment need to assess
effectively which further need to evaluated with the relationship among each one of them.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between different organisational functions and its link with organisation
objectives
Organisation has to perform operational activities in an adequate manner and for this,
they will examine surrounding effectually (Belás and et. al., 2015). It is must for an enterprise to
develop an appropriate framework so they will achieve desired goals and aims within certain
time span. Morrison is one of the leading association which is operating business in retail sector.
They are having more than 75000 individuals who are working with them. Along with, they are
providing variety of products and services to to customers which enables them in improvisation
of profits and market share.
Company is following flat organisational framework; hence, people of affiliation with
easily communicate with each other. Therefore, staff members will easily share thoughts and
opinions with superior. Manager will take assistance of employees into procedure of decision
making. It increases their involvement level and in addition render motivation to them. Policies
and strategies of an enterprise need to be flexible; thus, it can be modified as per requirement.
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Morrison needs to perform numerous kinds of function and this will include finance,
human resource, purchase, sales and so forth. It is required for them to accomplish entire
activities in an effective manner; thus, they will be able to maintain an effective place at
marketplace. If they all will get combined then, superior of firm will easily attain desired targets
and goals significantly (Botha, Kourie and Snyman, 2014).
Henceforth, interrelationship of organisational structure of Morrison with another
function will be stated as beneath:
Marketing department: It is must for each organisation to do promotion of their products
and services. Therefore, they will be able to gain attention of numerous people towards them. In
context of Morrison, they are using various tools and methods for this purpose, such as social
media, websites, print media and so on. Along with, they will do modifications in items as per
requirement of customers. This aids them in improvisation of sales and production. In this
manner, they will improve profits and brand image at marketplace. Additionally, desired aim will
attain within limited time duration (Cai and Yang, 2014).
Human resource department: Manager of this division needs to appoint skilled as well
as talented individuals at workplace; thus, they will help them to attain coveted targets and
objectives within limited period of time. This unit is much connected with another divisions.
They will render training to employees so that they will be able to complete their work with
proper coordination and cooperation as well.
Production and operations: This kind of department is related with company's initial
activities. They have to manufacture products and services as per needs and wants of clients;
therefore, they will be able to fulfil it accordingly. They will store material at warehouses and
use them as per desires of people (Caiazza, Shimizu and Yoshikawa, 2017). This enables them to
take benefits from contenders at marketplace and in addition improve profits or market share.
Accounting and Finance: It is required for this unit to prepare budget for each
department. This needs to be follow by them in an appropriate manner; therefore, they will be
able to reduce wastage or unwanted cost from business procedure. As a result, coveted targets
and goals get achieved within limited time span. This will comprise many things, such as survey,
asset creation and so forth. If affiliation is having sufficient finance then, they will easily attain
coveted targets timely.
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Research and development: Manager of Morrison needs to analyse needs and
requirements of clients regarding products and services; therefore, they will accomplish it timely.
Morrison is providing variety of items to people and for this, they will conduct research to know
about demands of people. This enables them to take benefits from contenders at marketplace.
Along with, they will be able to know about market trend (Cull and et. al., 2015).
TASK 3
P4 Positive and negative impact of Macro environment on Business operations
There are numerous components which will cater impact to entire business operations
either in a direct or indirect manner. It is required for superior to conduct activities effectively;
thus, coveted targets will get attained within limited time duration. External elements are not
controllable and influence overall structure in an adverse way. These will render either positive
or negative influence on business activities (Eling and Schaper, 2017). Along with, numerous
types of laws and legislations which are formed by government will also impact working
performance of employees. It is must for manager of Morrison to formulate certain strategies;
therefore, they will be able to accomplish work in a systematic manner. As a result, company
will easily take benefits from rivals at marketplace. This has been analysed that extrinsic
elements will affect overall work so this will get hampered as well. For above stated aim, it is
needed for an enterprise to use PESTLE investigation because it assists to identify their positive
and negative affect also.
Therefore, PESTLE analysis of Morrison is stated as beneath:
Political factor: As indicated by this element, each organisation needs to implement
many types of laws and legislations into business as it provides maximum growth and
enhancement to affiliation. If there is any modifications into rules then, operational activities of
an enterprise will get affected in wide manner. It is required for them to produce products and
services in an effective way; thus, they will fulfil needs and wants of people effectually
(Epifanova and et. al., 2015). Positive effects: It is must for Morrison to operate overall exercises in an effective way.
With help of free trade policy, firm will reduce cost of sourcing from business procedure.
This has been analysed that activities of an enterprise also impacted due to Brexit in a
positive way.
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 Negative effects: After revision of tax rate, it is required for Morrison to enhance value of
goods and services. In this manner, production and sales of affiliation will get affected in
an adverse manner.
Economical factor: This element is highly associated with many aspects, which will
comprise: growth rate, inflation and so on. If buying power of people is much high then, it shows
growth and success of economy of country (Georgescu and Popescul, 2015). In relation to
Morrison, they are operating their business in many countries; therefore, it is required for them to
analyse economical circumstances of each place. This has been examined that this type
component will render affect to profits and sales graph of firm. Positive effects: If there is inflation in nation then, purchasing power of people is much
high. Flow of fund will be effective and this aids to provide more success and
enhancement to an association.
 Negative effects: Alterations in this component will enhance clashes amongst various
small retailers because it will improve value of goods and services. In this manner,
manufacturing procedure will get influenced (Huang-Horowitz, 2015).
Social factor: It is essential for an association to conduct research so that they will be
able to know about needs and wants of people. Therefore, they will accomplish it within limited
period of time. It is must for firm to fulfil entire CSR activities in an effective manner as this
enables them to increase brand image at marketplace. Along with, they will easily retain clients
for longer time haul. Positive effects: It is required for Morrison to maintain an effective relationship with
clients as it helps firm to gain their loyalty as well as trust.
 Negative effects: As affiliation is manufacturing products on continuous basis without
knowing needs and wants of clients or market trend then, this will restrain them to take
competitive benefits from rivals in market.
Technological factor: Organisation has to use latest tools and techniques while
producing products and services for customers. Unique methodologies will help an affiliation to
make business process more innovative (Khan and Quaddus, 2015). As a result, they will be able
to accomplish task with maximum effectiveness and appropriateness.
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 Positive effects: With support of new techniques, affiliation will be able to develop
qualitative items and in addition will accomplish coveted targets within limited time
span.
 Negative effects: To implement new tools at workplace, company needs proper amount of
finance.
Legal factor: Many types of legislations and laws need to be implemented on association
which are formulated by regulatory body. This has to be taken after by firm so that they will
conduct business operations ethically (Menychtas and et. al., 2014). Positive effects: Manager of Morrison has to be ensure that they are completing entire
activities by following proper acts. This aids them to maintain brand image at
marketplace.
 Negative effects: Company will not be able to use their own strategies or policies due to
utilization of government regulations or rules.
Environmental factor: Several elements are associated with this which will cater either
positive or adverse affect on business. Therefore, it is required for an affiliation to identify them
in an appropriate manner (Moroni, Arruda and Araujo, 2015). Positive effects: It will render positive affect on company because it will help to diminish
affect of Red-Tapism on business; therefore; they will be able to conduct business in an
appropriate way.
 Negative effects: This is required for an enterprise to reduce paper work and start utilizing
some other software or internet to manage things significantly.
TASK 4
P5 Internal and External analysis of organisation
This is fundamental for an organisation to take an effective judgement and for this, they
need to identify weaknesses as well as strengths in an effective and efficient manner. This assists
to decide what is appropriate for an association. Along with, it is required for them grab
opportunities which are available for them in market. Therefore, they will easily overcome from
their threats effectually (Virglerová, Dobes and Vojtovic, 2016). In this manner, manager of
Morrison will conduct SWOT investigation and this will be understand by the following
description:
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Strengths: Morrison is one of the leading association in retail segment and established in
United Kingdom. They are having an appropriate customer base. Clothing sector is much
effective and trendy which assist to gain attention of numerous individuals towards them, along
with, organisation is operating their business at many nations; therefore, they will easily generate
maximum profits for them. It will aid them to take benefits from contenders at marketplace. Firm
is offering variety of goods to individuals which help to gain their attention. In this manner, they
will easily improve market share (Bah and Fang, 2015).
Weaknesses: There are many shortcomings which are associated with organisation. They
are not able to offer products to individuals at per current market trend and this will restrain them
to take competitive benefits. They are providing variety of items to persons, such as food,
clothing and so on. Along with, firm is not using latest techniques to produce merchandise in a
creative manner. Additionally, quality of products is not appropriate and they are selling it to
people on high value. As a result, they are losing client base which will cater an adverse affect on
image of firm.
Opportunities: Morrison is considering as a foremost retailer firm in United Kingdom.
They are having more than 800 store worldwide which enable them to increase customer base in
an effective and efficient manner. It has been analysed by manager that, more than 20 million
clients visited their stores per week. To enlarge market share, it is required for them to take entry
into emerging market (Belás and et. al., 2015). For this, they have to produce qualitative items
and services for customers. It will help them to gain attention of numerous individuals towards
them.
Threats: Competition at marketplace is much high and this is considered as major threat
for an organisation. As there are many alterations in technology which will force an association
to modify the operational activities. If they are not be able to do this, then it will be more
difficult for them to take benefits from rivals. Henceforth, it is needed for firm to develop
appropriate strategies so they will maintain sustainability in market for maximum period of time
(Botha, Kourie and Snyman, 2014).
P6 Interrelation of Strength and weakness with external Macro factors
There are some components of SWOT investigation which are much connected with
PEST analysis. This will be understood by the following description:
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Political factors: This type of element will cater impact to entire business operations
either directly or indirectly. Therefore, it is must for superior to examine it effectually. As a
result, they will do business in an ethical way. Along with, firm needs to follow proper rules and
laws which are formulated by government.
Economical factors: Each nation's economy condition is different from others. As UK is
having much stable economical circumstance; therefore, buying power of people is much
effective (Cai and Yang, 2014). Before, expansion of business firm needs to analyse economical
elements effectively of another nation. Along with, affiliation will easily acquire investors for
business.
Social factors: Perception, nature and belief of each clients is differ from each other. It is
must for company to accomplish needs and wants of individuals according to their desires. This
enables people to maintain their living standard in an effective manner. Along with, by fulfilling
demands of persons on time, Morrison will be able to take advantages from rivals. Along with,
will increase market share and profits as well.
Technological factors: With assistance of latest techniques and methods, firm will be
able to produce qualitative items and services effectually. On the other hand, it is must for
organisation to use distinctive tools to take benefits from contenders (Caiazza, Shimizu and
Yoshikawa, 2017).
Henceforth, there are some significant element which will affect directly to strengths as
well as weaknesses of Morrison.
Strengths Weaknesses
 They are having more 550 outlet in
United Kingdom and more than 1000
individuals are working with them.
 Collaboration with some production
unit and food suppliers.
 Relationship with dealers and suppliers
is much effective.
 Leisure as well as home, in addition
video and music concept of firm is not
much attractive concept of firm.
 Limited customer base.
Opportunities Threats
 Affiliation will expand business in  Lots of governmental rules as well as
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some another nations.
 Provide products and services related to
non food items.
regulations which are imposed by
authorities.
 Rivalry is enhancing on continuous
basis.
CONCLUSION
It get concluded from the project that business environment is not stable which get
modify with every course of time. There are various kinds of entities are working in an
environment whom belong to differ size and scope. The various functional attributes of an entity
refer and related with each and every section which enable and support to gain and accomplish
business objectives and targets properly. Although, external and internal environment analysis
facilitate to better understand the working environment where management want to expand
themselves. Henceforth, their interrelationship assist in providing and craft beneficial strategies
for future consideration.
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REFERENCES
Books and Journals
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Belás, J. and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
(1). p.95.'
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
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.
Caiazza, R., Shimizu, K. and Yoshikawa, T., 2017. Cross‐Border M&A: Challenges and
Opportunities in Global Business Environment. Thunderbird International Business
Review. 59(2). pp.147-151.
Cull, R. and et. al., 2015. A new index of the business environment for microfinance. World
Development. 70. pp.357-388.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Epifanova, T. and et. al., 2015. Modernization of institutional environment of entrepreneurship in
Russia for development of innovation initiative in small business structures. European
Research Studies, 18(3). p.137.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20.
pp.277-282.
Huang-Horowitz, N. C., 2015. Public relations in the small business environment: Creating
identity and building reputation. Public Relations Review. 41(3). pp.345-353.
Khan, E. A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal microenterprises: content analysis and partial least
square approach. International Journal of Sociology and Social Policy. 35(3/4). pp.273-
288.
Menychtas, A. and et. al., 2014. 4CaaSt marketplace: An advanced business environment for
trading cloud services. Future Generation Computer Systems. 41. pp.104-120.
Moroni, I., Arruda, A. and Araujo, K., 2015. The design and technological innovation: how to
understand the growth of startups companies in competitive business
environment. Procedia Manufacturing. 3. pp.2199-2204.
Virglerová, Z., Dobes, K. and Vojtovic, S., 2016. The perception of the state's influence on its
business environment in the SMEs from Czech Republic. Administratie si Management
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Online
Morrisons SWOT analysis. 2017. [Online]. Available through:
<https://www.mbaskool.com/brandguide/lifestyle-and-retail/2039-morrisons.html>.
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