Strategic Management and Business Analysis

This assignment delves into the realm of strategic management and business analysis. It examines various aspects of strategic management theories and their applications in both public and private sectors. The assignment encourages critical thinking by utilizing SWOT analysis to evaluate the internal strengths and weaknesses, as well as external opportunities and threats facing a hypothetical business. A range of sources, including academic journals, books, and online materials, are used to support the analysis.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Various types, purpose and legal structures of organisations................................................1
P2 Size and scope of different types of the organisation ...........................................................3
P3. Relationship between organisational function and its link to their structure and objectives4
P4: Identifying the positive and negative impacts of macro environment by specific examples.
.....................................................................................................................................................7
P5: Conducting internal and external analysis for the organisation............................................8
P6 Relation of strengths and weaknesses of the organisation with macro factors....................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is very necessary to operate successful business at any place.
Some important factors of this environment are customers, suppliers, competitors, activities of
government and market. Business study is very important as it affects prices, location,
distribution system and personnel policies. Morrison is a supermarket company in UK which was
founded by William Morrison. It has increased its sales in various countries mainly in Scotland,
Wales and England. It has 479 stores in all over the world with operating income of £468 million
(Bouckaert, Peters and Verhoest, 2016). .
In this report, the main concern is given on the purpose of public, private and voluntary
sectors organisations and their legal structures. Scope and size of various organisations are
discussed. Further, the relationship between different companies and their link to the goals and
structures are defined. Positive and negative impact of macro environment and internal and
external analysis of Morrisons are explained. Moreover, relation of macro factors with strengths
and weaknesses are explained.
Task 1
P1 & P2 are covered in ppt.
P3. Relationship between organisational function and its link to their structure and objectives
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There are different functions involved in Morrison which helps in smooth running of the
business. Different organisational functions are described below:
Human resource management:
Human resource management refers to managing employees in the organisation. It looks
after staff policies, benefits, compensation and designing work. They are responsible for giving
training and development program, recruiting and selection process of the employees(Proctor,
2014). This will help in making the team of skilled persons which will increase the efficiency of
Morrison. Human resource manager makes different policies which balances the needs of the
employees and the organisation (Mayhew, 2017). They ensure that Morrison is going in right
direction and following all the legislations. Therefore, human resource management plays an
important role in well-functioning of the organisation.
Research and development department:
Research and development department finds new and creative methods to improve the
quality of existing and new products. This helps Morrison to reduce costs, increase profitability
and make effective position in the market. Further, this department is responsible for testing the
quality of all products before launching them in the market. It researches all the features of the
items and analyse that these products are helpful for the people or not. It also makes sure that the
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Illustration 1: Organizational function of Morrison(Mayhew, 2017)

price will be feasible to the target market and customers otherwise Morrison has to face
problems. It also makes sure that all the products and services of the organisation will benefit
the customers properly or not. This will help the organisation to increase their performance in the
global market.
Finance:
The financial function of Morrison keeps track of the activities which are related to the
money and budget. It keeps online record of the money paid and received by the organisation.
These details help in clearing tax issues and other legal policies. Financial function helps senior
authority to make future plans for achieving long term objectives of the organisation and review
business strategies (Suh, 2014). This department is also responsible for maintaining staff
members’ salaries, loans and pension plans.
Administrative:
This function looks after administrative tasks like computer services, handling mails and
complaints etc. They also look after the campus and important equipment of Morrison. This
function is very necessary for receiving orders of the clients, listening complaints and providing
essential tools to the employees of the workplace.
Sales and Marketing:
Marketing department analyses the needs of the user and try to develop different business
strategies to fulfil their demands. Its main role is to determine the target market and customers by
identifying the age, sex, background and preferences of the area in which they are going to
implement the product (Fatteross, 2017). When the product is made by the production
department, their duty is to advertise and promote it in the market. This will help Morrison to
increase the popularity and branding of their product which in turn will increase their reputation
in the market.
All this function work together to achieve the goals and objectives of the organisation.
The communication between all these functions are very necessary to increase the efficiency of
Morrison. Regular review of the function and company's performance will give the idea whether
the organisation is going in right direction or not. Further, all these functions help in increasing
the popularity of Morrison in the market.
All these functions are related to each other in terms of providing best services to the
organisation and the customers. Human resource management is related to finance department as
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it has to consult finance department before making the policies related to the employees’ welfare
and pay scales (Kew and Stredwick, 2017). Further, sales and marketing department is related to
research and development and production department as all these functions have to coordinate
their activities before lunching any product and services in the market. Without manufacturing
the product by production department, marketing sector will not be able to make strategies to
promote items. Moreover, administrative department and marketing sector have to discuss all the
problems which are faced by the customers so that they can enhance their product efficiency
(Foxall, 2014).
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P4: Identifying the positive and negative impacts of macro environment by specific examples.
Pestle analysis can be considered as a marketing rule that is used by organisation as a tool
for tracking the workplace to see whether they are operating or designing to establish a new
product. Pestle analysis can be beneficial tool for the company, if used correctly. It is used to
identify the external factors that affect company performance (Abrhám, Bilan Krauchenia and
Strielkowski 2015). The PESTLE stands for political, economic, Social, technological, legal and
environmental. Morrison, is one of the most popular UK supermarket industry. Pestle analysis on
Morison can have both positive and negative impact. Environment plays a very crucial role in a
business. The factors that affects the UK food industry can be both macro and micro. Macro
level is a layer that effects the decisions taken by managers of the organisation. Some examples
of macro changes can be tax change, new laws etc. In order to examine them managers conduct
pestle analysis.
Political factors-:
These play a very important part in a business. These provide an equality between
systems of control and free markets. It can also be helpful for determining the location of
headquarters. The important issues that are solved here includes tax regulations, employment
laws Morrison has to be aware about certain laws announced by the government to protection of
environment. Non-retailer food will be influenced by the forthcoming waste management
regulations that will lead to increment of price of the business. Since the government policies are
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Illustration 2: Macro factors(Atuma, 2011)

changing this may have indirect effect in their tax policies that will generate competition among
business and will minimize profit margins. The new government policies can be useful for the
customers as they have to pay less amount to supermarkets leading to less Morrison sales
(Aristovnik and Obadic 2015).
Economic factors-:
This factor will provide the issues that will have an impact on the business. These factors
can be downfall, rates of unemployment, interest rates. Morrison have got their own suppliers for
generating fresh produce, which give them control of quality of their food product. Another
positive impact is that they can keep prices low for the customers and is the fastest than any other
supermarkets.
Socio-cultural factors-:
Using this factor, one can analyse the market elements like customer abilities, their
limitations, lifestyle. This factor will help to determine how the wants of customer are shaped
(Ismail Cebeci, 2012). Morrison have recognized a new way for finding out co-worker job life
history. Morrison have begun new campaign named “Let's grow” that gives free gardening
instruments to local schools.
Technological factors-: These factors determine technology can create positive and negative
impact on the development of a product. They may include government research, importance of
internet (Atuma, 2011). Morrison after take over from Safeway had gone through downfall of
technology. It then planned for launching advance technology that would create automatic
ordering of products.
Environment factor-: These factors consist mainly of climate change and weather, managing
the waste materials, Eco-friendly products and practices etc. Instead of giving away free non-
degradable plastic bags, Morrison tried to increase the sales of long lived reusable bags. They
also made profit along with the help for global warming(Michael).
Legal factor-: These are laws that need to be followed up. They are laws of discrimination,
Safety and health law, copyrights, patent laws. Morrison have got their own policies for saving
of energy that will be useful for government to control pollution. Morrison is a public limited
company also follows the legal basis for business.
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P5: Conducting internal and external analysis for the organisation
SWOT analysis is a tool that is used for identifying and categorizing both internal and
external factors. Internal factors can be strength and weaknesses and external factors
compromise of opportunities and threatening. SWOT analysis can be done for a new business,
project, individuals. It is changeable part of a business and organisation. SWOT analysis on
Morrison-:
1)Strengths-: These are the characteristics that are in the favour of the organisation. The most
important advantage of Morrison is that they provide a wide and fresh food items in the
supermarket which provide help to keep the rates low (Nikolaou, Hankey and Lean, 2016).
Further, it is fourth largest supermarket in UK and has large product portfolio which has
increased the popularity of the organisation.
2)Weakness-: This can be the characteristics that are not in favour of the organisation. During
recession and down fall when UK's economy was affected, it was disaster for Morrison, as it
covered only UK market. Morrison was not expanded to another foreign supermarket like other
supermarket.
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Illustration 3: SWOT
analysis()

3)Opportunity-: These characteristics are external to the organisation and they may use it to
take the advantage. Morrison also faced various opportunities-:
Finding it difficult to enter the business-: New entries in the market may be difficult, this can
be achieved by taking over the existing company. Safeway was already occupied by the
Morrison so the danger of entering the market was solved.
Using the easiest way of expanding stores-: In comparison with other rivalries Morrison had a
way to fighting this by growing the stores.
Providing online shopping to customers-: This would be the major opportunity for the
Morrison. This would create competition in the marketplace. It will also be highly beneficial
move for the Morrison to make their name in the financial field.
Leading to less bargaining for consumers-: Consumers should get the best result of their
money; customer satisfaction should be there. Consumers cannot bargain much as they are aware
of supermarkets policy of one visit shoeing. Now-a-days consumers have various supermarkets
to go to. And for that reason, leading supermarkets have started membership scheme.
Giving high bargaining power to suppliers-: High bargaining power provide suppliers with an
opportunity to earn a profit (Thai and Turkina, 2014).
4)Threats-: These can be the potential point of failure to the business. Morrison also faced
various threats like price related wars among competitors, new entry in the supermarket not only
related to food products but also clothing, hotels etc.
To deliver the improved value to its consumers Morrison uses its capability like high gross
boundary than the competitor. More profit can be predicted, by maintaining certain level of
productivity as far as cost is concerned.
External analysis:
Political factors affects directly to the business of the organisation. Due to change in
policies of government and legal laws, Morrison has to face various problems for deciding price
of the products as high tax will directly affects the cost and prices of goods and services. Further,
environmental factors like climate change are responsible for affecting the services of the
organisation (Crane and Matten, 2016). Bad weather and climatic calamities disturbs the well
arrangements of store of the organisation. Advance technology is also very necessary for making
effective image on the customers.
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Social factors plays an important role in fulfilling the demands of the customers
according to their culture, beliefs and practises. So, the organisation has to manufacture goods
and services according to the trend and culture of their users. Technological factors include
internet facilities, technical equipments and online delivery of the products. Further, it also helps
the organisation to promote its business by advertising their products with the help of social
media and its websites.
P6 Relation of strengths and weaknesses of the organisation with macro factors
TWOS can be done to overcome the weakness and threats of Morrisons by using
strengths and opportunities of the organisation. TWOS for Morrison is done below:
Strength and opportunities:
In this, internal strengths of Morrison are used to determine external opportunities. For
example, the efficient supply chain will help in making more money by properly supplying the
products according to the demand of the customers. Availability of many superstores in UK and
other countries will help the customers to easily access the products (Moroni, Arruda and Araujo,
2015). This will give the opportunity to Morrison to increase more stores and branches in other
countries.
Weakness and opportunities:
Due to recession in economy of UK, the organisation has to suffer from product recall as
its major part of profit margin was dependent on UK. It has grown market for organic products
which has given the opportunity to develop its business in new way.
Strength and threats:
The major strength of the organisation is that it has gained the trust of their customers by
providing fresh food items. Further, it has 450 stores in UK which helps the customers to easily
access the products of Morrison. The major threat to the organisation is that market share of the
competitors has increased which has raised the competition and prices in the market. The value
for the customers is been provided by this company. At low price the fresh and quality food
items are been given. By giving fresh and good quality food this company Morrisons promote
the concept of market street.
Weakness and threats:
Morrison is facing many problems like its limited geographical reach and rising costs of
manpower. Further, tax issues and change in government policies is another threat to Morrison.
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Due to high tax rate they have to increase the price of their products which has increased the
burden on the customers and company (Marsh, 2017). It has adversely affected the user and
revenue of the organisation. In terms of information technology its networks and infrastructure
are not well developed. In terms of visitors and it lacks and in this area a lot of important is
needed.
Strengths and weakness of Morrisons are related to the external macro factors. Political
factors, economic, social, technological factors are helps in analysing the factors which directly
affects the business of Morrisons. Political factors include government laws and legal policies.
These includes taxation issues and other charges which can be handled by making good image
on the mind of the people. By gaining the trust and confidence of the customers towards high
branded and best quality products will help Morrison to face high tax of the government.
Further, the technological factors can be improved by providing better technical services
to the customers. By providing home delivery of the products before time or on time will help
the company to achieve customers satisfaction. Customers also support the company when it
sometimes fails to provide their services.
The weaknesses of Morrison like improper management of different stores will be
overcome by employing more employees which will handle the problems which are occurring
due to poor management of the stores. Problem of lack of high skilled candidates can be solved
by making effective strategies related to the recruitment and selection process. Another way to
resolve the problem is by imposing more strictness to human resource managers, so that they can
focus on making better strategies and plans for hiring talented and skilled persons.
Environmental factors which affect the functionality of the business can be overcome by
making strategies which helps in controlling the situations. Moreover, social factors also
influence the business of Morrison. The company has to make products according to the needs,
beliefs of the people. It is not possible for the organisation to make different products for various
people. Further, culture of people may vary from one country to another (Kew and Stredwick,
2017). So, Morrison has to manufacture products and services to the culture of the region which
is another barrier for the organisation as it has to manufacture products according to their
demands.
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CONCLUSION
From this report, it can be concluded that business environment is essential for achieving
goals and objectives of the organisation as it analyses the external factors. In this report, different
types of organisations like public, private and voluntary are classified. Further, their purpose,
mission, vision, scope, products, background and legal structure details are given. Organisational
function of R & D, human resource management, finance, sales, marketing, administrative
functions are described. The relationships between this function and their importance are
defined.
The report has made assessment of positive and negative impact of macro environment
on business operation of Morrison. Further, interrelation of strengths and weaknesses with
external macro factors are studied which helps in defining the factors which affect the
performance of the company. Moreover, internal and external analysis is done to determine the
strengths and weaknesses of Morrison.
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REFERENCES
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