The Impact of Business Environment

This assignment delves into the crucial role of the business environment in shaping organizational success. It examines how factors like economic conditions, legal regulations, technological advancements, and social trends impact businesses across different industries. The provided literature review explores diverse perspectives on this topic, highlighting key challenges and opportunities arising from the dynamic nature of the business landscape.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations..................................................................1
P2 Size and Scope of various types of organisations.............................................................1
P3 Relationship between different organisational functions and its link with organisation
objectives................................................................................................................................1
TASK 2............................................................................................................................................3
P4 Positive and negative impact of Macro environment on Business operations..................3
P5 Internal and External analysis of Morrisons.....................................................................5
P6 Interrelation of Strength and weakness with external Macro factors................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment refers to the surroundings that are present inside and outside the
organisation that have positive and negative impacts. There are number of factors that affect the
functioning, growth, performance and objectives of the company in several ways. Thus, it
become important for the management to perform environmental scanning to study the strengths
and weaknesses in relation to external macro and micro elements (Bah and Fang, 2015). The
company included in this report is Morrisons which is a well established supermarket in England
operating at several place and consist around 500 stores. They offer different products which
include clothing, books, magazines, food and drinks. This report highlight the different types of
organisations that are present in business world and have different aims and objectives to be
followed. There are some conducive relationship that has to be linked with company's structure
and objectives in order to achieve vision and mission in set time period. Apart from it, there are
different micro and macro elements that have to be consider while framing rules and regulations
correctly.
TASK 1
P1 Different types and purposes of organisations
Covered in PPT.
P2 Size and Scope of various types of organisations
Covered in PPT.
P3 Relationship between different organisational functions and its link with organisation
objectives
Each and every organisation is having their own targets and aims which they want to
accomplished within limited period of time (Belás and et. al., 2015). It is required for them to
conduct operational activities effectually so they will manufacture items effectively. Manager of
an enterprise need to design an appropriate framework to attain goals in an significant manner. In
context of Morrisons, they are doing business in UK and they are having more than 84000
individuals who are working with them. They are providing variety of items to people, for
instance: food, cloths, luxurious and so on. They have sufficient amount of finance; therefore, it
is easy for them to complete entire activities effectively as well as efficiently.
Morrisons is following Flat organisational framework; thus, overall activities are done by
workers who are doing job over there. This will help to motivate or encourage staff members
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towards work. To increase their involvement in firm, superior take their assistance into
procedure of decision making. To make things more effective, employer will modify their
strategies timely. This will aid to cater them success and growth and they will be able to take
benefits from contenders in market (Botha, Kourie and Snyman, 2014).
There are many kind of functions are performed by Morrisons, this will include sales,
marketing, research and development, accounting and many more. If they are able to perform
entire working operations in a significant way then, they will attain coveted targets and goals
within limited period of time. Functions of firm need to be relevant with structure; thus, targets
will accomplished with maximum effectiveness and appropriateness.
Therefore, interrelationship amongst various organisational framework along with
function is stated as beneath:
Marketing department: This is considered as a foremost function which need to be
execute by an affiliation; in this manner, they will sale items as well as services to people at
marketplace (Cai and Yang, 2014). For this, it is must for them to know requirements and
demands of clients. Thus, company will manufacture goods accordingly. This has been examined
that, this unit is linked with each division and they have to perform many functions effectively. It
will assist firm to take benefits from rivals in market as well.
Human resource department: It is termed as most proficient unit of an enterprise.
Superior of an affiliation need to appoint suitable or capable individual for business; thus, they
will be able to perform entire activities proficiently. They help other departments of firm to bring
coordination as well as cooperation amongst them.
Production and operations: This needs to be perform by an enterprise at the initial stage.
It is essential for them to know about requirements of people so that they will manufacture items
accordingly and accomplish needs of consumers timely. This is connected with firm's structure
because they need to produce items according to decided plan. In relation to Morrisons, they
introduce items after evaluating market trend so that they will be able to fulfil requirements of
individuals and attain desired targets effectually (Caiazza, Shimizu and Yoshikawa, 2017).
Accounting and finance: They are much connected with finance transactions which will
occur in firm on regular basis. They need to develop budget; therefore, they will assign sufficient
amount of finance to each department. In this way, they enable to accomplish operational
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activities in an effective manner. If brand image of company is much strong then, they will take
load from some other financial institutions.
Research and development: They need to analyse needs and demands of clients so that
they will accomplish it accordingly. This will aid affiliation to take competitive benefits from
rivals. Along with, they will easily improve market share and profits (Cull and et. al., 2015).
TASK 2
P4 Positive and negative impact of Macro environment on Business operations
There are numerous elements which will be available in surrounding and provide impact
to entire operational activities of business. This has been analysed that, extrinsic components are
totally uncontrollable. Internal as well as external factors will cater affect to firm either
positively or negatively (Eling and Schaper, 2017). This will provide affect to strategies and
policies of an affiliation. In relation to Morrisons, it is required for them to follow rules in an
effective manner; therefore, they will be able to attain coveted targets and goals significantly. To
analyse extrinsic environment, they will acquire support of PESTLE investigation as this will
render positive and negative impact on an enterprise.
Political factor: This will comprise those rules and regulations which are developed by
government. If any new act or law is introduced by regulatory body then this will provide affect
to entire operational activities of Morrisons. Positive effects: This will assist an enterprise to operate business in an appropriate way.
If there is implementation of free trade policy in country then it aids to diminish cost
which is related to sourcing. Along with, it has been examined that Brexit has also
influenced overall business exercises (Epifanova and et. al., 2015).
 Negative effects: If there is implementation of any new laws or legislations into
affiliation then, it will increase price of resources. This is not good for firm and clients as
well because this results to enhance value of items and services which are offered by
company to consumers. It will render affect to customer base also.
Economical factor: This component is much associated with growth rate, inflation, wage
and so forth. It will differ from nation to nation as Morrisons is operating their business in
various countries; therefore, it is required for them to concentrate on it specifically. If there is
any alteration in up and down of economy then this will render affect to production and sales of
an enterprise either in a direct or indirect manner. Therefore, it is fundamental for organisation to
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examine overall changes which are taking place in business surrounding (Georgescu and
Popescul, 2015). Positive effects: If there is inflation in nation then, this will improve buying capacity of
individuals and in addition sales and productivity of firm will get improved.
 Negative effects: As business environment is dynamic in nature; thus, it is not easy for
company to manage alterations effectively.
Social factor: To accomplish operational activities properly, firm will obtain
some resources from surroundings; thus, it is fundamental duty of them to return it
back. It is must for an enterprise to fulfil CSR activities as this enables them to
increase reputation in world. Along with, they will take benefits from rivals at
marketplace. Positive effects: By this component, organisation will be able to obtain many
chances and will get in touch with some new individuals in society. This aids
them to increase client base (Huang-Horowitz, 2015).
 Negative effects: Morrisons has launches a specific chain of items so they are
unable to follow trend of market.
Technological factor: As indicated by this, it is must for an organisation to use latest
methods and techniques into business. In recent time, many kinds of new methodologies are
introduced by researchers on regular basis. With assistance of this, firm will be able to produce
products effectively and will decrease unwanted cost and wastage. Along with, they will be able
to make business operations more effective. Positive effects: It will cater positive influence on affiliation as with help of this, they will
accomplish entire operational activities within certain time span. Therefore, they will
fulfil requirements of people timely and achieve desired goals.
 Negative effects: Organisation has to invest maximum amount while introducing latest
techniques into business (Khan and Quaddus, 2015).
Legal factor: This will comprise those laws and legislations which are developed by
regulatory body so that they will run business in an effective manner. Positive effects: It is must for Morrisons to follow proper acts while conducting business
as it aids to reduce unethical work. Along with, they will be able to make good image in
front of clients so they will retain for maximum period of time.
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 Negative effects: By following these acts continuously, people will forget to use
management strategies or policies.
Environmental factor: This will contain overall components which are associated with
surrounding. This element is having strong affect on company (Menychtas and et. al., 2014). Positive effects: In context of Morrisons, this factor will provide positive affect i.e., red-
tapism will get diminished so work will accomplished appropriately.
 Negative effects: It is essential for company to reduce paper work so that they will be able
to reduce wastage. They will utilize latest techniques to store data which help to enhance
work accuracy (Moroni, Arruda and Araujo, 2015).
P5 Internal and External analysis of Morrisons
For intrinsic investigation Morrisons will conduct SWOT analysis and for external they
will do PESTLE. Thus, this will be understand by the following description:
Strengths Weaknesses
 Association is having an appropriate
brand image across the world.
 They are providing variety of items and
services to customers.
 Infrastructure of an enterprise is much
appropriate.
 Customer base of firm is much high as
they are providing products to people
as per their demands.
 There are numerous issues which will
be face by an enterprise. If there is lots
of pressure then, Morrisons is not able
to regulate business in an appropriate
manner.
 Pre tax revenues of affiliation is go
down by almost 10%.
 As compare to rivals, prices of items
are much high.
 Many people are much satisfied with
the goods which are offering by them.
Opportunities Threats
 To enhance market share, they will
provide items to individuals online.
 They are much successful in
transactional banking segment
(Morrisons SWOT analysis, 2017).
 Economical recovery is low as
comparison to others.
 There are numerous competitors of firm
at marketplace, such as Tesco, ASDA
etc.
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PESTLE analysis will be mentioned as beneath:
FACTORS EXPLANATION
Political  They are operating their business in constantly changing political
circumstances.
 Alterations in government rules and regulation on regular basis.
 Strict policies in relation to Tax.
Economical  Income of individuals who are residing in UK is increasing quickly.
 Company is providing maximum job opportunities to people as well.
Social  It is required for an association to concentrate on changing
preferences and tastes of clients; thus, they will accomplish it
accordingly.
 As Morrisons is following proper strategies as well as policies;
therefore, they are having an effective and better reputation at
marketplace.
Technological  Modifications in techniques and methodologies will provide positive
affect on economy of country.
 Along with, organisation is having numerous kinds of information
and in addition solutions regarding communication.
Legal  For production of goods and services, enterprise is using eco –
friendly materials.
 Packaging of items are up to the standard which are developed by
government.
Environmental  It is required for them to concentrate on waste management.
 They will introduce some sessions or programmes to make people
understand that how they will use resources in an appropriate
manner.
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P6 Interrelation of Strength and weakness with external Macro factors
This has been analysed that business environment will cater affect to operational
activities of Morrisons either in a direct or indirect manner. It is required for an affiliation to
know about their strengths and in addition shortcomings; thus, they will be able to manage it in
an appropriate manner (Virglerová, Dobes and Vojtovic, 2016). Organisation will develop some
kind of strategies or policies so that they will generate maximum profits. Global presence of firm
is much effective; in this manner, it is easy for them to maintain customer base. They are
enlarging their business activities; therefore, they will be able to increase market share as well.
Henceforth, this sorts of extrinsic components will be provide influence to company. As it is
needed for manager of company to spend more amount as well as time; henceforth, they will
easily fulfil their roles and responsibilities in an effective and efficient manner.
It has been evaluated that Morrisons is having an adequate brand image at marketplace.
They are providing best quality of products and services to consumers. It is required for them to
assess trends of market so that they will be able to survive at marketplace for maximum period of
time. Organisation needs to formulate some strategies in relation to expansion into some another
nations, such as India. It is having highest economical growth as purchasing power of individuals
is much high. This has been examined that, with assistance of extrinsic element Morrisons will
screen their investments within minimum time duration (Bah and Fang, 2015).
Enterprise is offering variety of products and services to customers. They are producing
items for each sector of clients as this enables them in improvisation of profits and in addition
market share. This will assist them to maintain their position at international marketplace.
Affiliation is following proper laws and legislations so they will conduct business in an ethical
manner. This is needed for firm to utilize latest methods and techniques as it assists to increase
sales and productions. To secure data and in addition information, Morrisons need to utilize best
and effective software. This will help them to diminish unwanted cost and wastage as well. By
accomplishing needs and wants of individuals, they will maintain sustainability at marketplace in
an effective way (Belás and et. al., 2015).
Morrisons is one of the leading firm which is operating their business in various
countries. They need to expand their clothing sector as they are offering items and services to
individuals as per market trend. This enables them to take benefits from contenders; as a result,
they will easily increase profits and market share. It is must for them to fulfil CSR activities
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timely because, this assists them to maintain customer base for maximum period of time. By
examining internal and external factors, superior will formulate some appropriate strategies and
policies. Therefore, they will run business in an effective and efficient manner. On the other
hand, quality of items and services are much appropriate which help them to obtain competitive
benefits. They are offering products to individuals at a affordable prices which help to gain
attention of numerous people towards them (Botha, Kourie and Snyman, 2014).
CONCLUSION
From the above prepared report it can be concluded that every business organisation have
to operate in dynamic environment which keeps on changing with time. Thus, it become
necessary to examine all the factors that may hinder or foster the overall growth and share of the
company. The focused company is this report is Morrisons that is a well constituted retail sector
operating in England having 500 stores. There are sustainable relationships between various type
of organisational system that is totally concentrated on accomplishing final objective and aims of
the company. Business entities have to operate in accordance to factors that are present inside
and outside the company and therefore they have to perform environmental scanning so that
specific strengths and weaknesses could be identified. Therefore, management have to perform
this work task in proper mode.
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REFERENCES
Books and Journals
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environment: Knowledge management and knowledge management technology.
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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
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Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
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Epifanova, T. and et. al., 2015. Modernization of institutional environment of entrepreneurship in
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Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20.
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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-
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Menychtas, A. and et. al., 2014. 4CaaSt marketplace: An advanced business environment for
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Moroni, I., Arruda, A. and Araujo, K., 2015. The design and technological innovation: how to
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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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