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Desklib is an online library that provides access to quality study material for various subjects and courses. It offers solved assignments, essays, dissertations, and more. The report discusses the types of organizations and the growth of the international business environment. It also explains Sainsbury's, Morrisons, and Oxfam. The report further discusses the business functions of Sainsbury's and the advantages and disadvantages of the company. The second part of the report uses PESTLE analysis to identify and discuss the various macro environmental factors that have an impact upon Morrisons. It also applies SWOT analysis to Morrisons for identifying the key strengths and weakness and explaining the interrelationship these have with the external factors that are been previously discussed.

BUSINESS AND
BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.1 Types of organizations and the growth of the international business environment...............3
1.2 Explanation of Sainsbury's, Morrisons and Oxfam...............................................................4
1.3 Business functions of Sainsbury's by the use of organizational chart and the advantages
and the disadvantages of the company.........................................................................................5
PART2.............................................................................................................................................6
Using PESTLE analysis identifying and discussing the various macro environmental factors
that have impact upon Morrisons.................................................................................................6
Applying SWOT analysis to Morrisons for identifying the key strengths and weakness also
explaining the interrelationship these have with the external factors that are been previously
discussed......................................................................................................................................8
Presenting a critical reflection of the key findings and evaluating how decision-making
process influence by them..........................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
An organization basically refers to a setting which is associational in which people are at
differentiated levels of the hierarchical structures and play the part given to them to fulfil various
functions of the business in particular. Business environment can be particularly defined as a
corporate entity within which a number of commercial tasks take place to generate revenue and
expand the brand(Cherunilam, 2021). There are many types of organizations in which these
business elements in particular are situated. This report has two parts, in the first part, it will
precisely be explaining 3 types of the organizations, the sizes of these organizations, the visions,
and the scopes. It will further discuss the interrelationship between various functions of business
with regard to a specific function in particular out of the mentioned three organizations by an
organizational chart which is also called the portfolio of fact sheets. The second part in the
discussion will particularly display the positive and also the negative impacts of the macro-
environmental factors of Sainsbury's. The research study also determines the internal and
external factors of it by diverse models followed by a reflection of the reports findings.
MAIN BODY
1.1 Types of organizations and the growth of the international business environment.
Public limited company (plc)
A public limited company or organization or business is a type of firm that is corporate
and in which the ownership of an entity is specifically provided to the public in general
(Leuering., 2021). The people who particularly have an inclination towards purchasing the
market shares within such a company are easily able to do the same. An individual that is
investing in a public limited company as a major stakeholder in the company is individually or
personally liable for all the gains as well as all the risks as the amount that is invested is
particularly restricted to the same amount of money. One important example of such a company
is a UK based company named Sainsbury's. It is a public limited company and has an impressive
listing within LSE market.
Private limited company (pvt. Ltd.)
Unlike the public limited companies that are publicly owned, a private limited company
is defined as totally opposite of the prior as in this overall ownership of the organization lies
within the hands a selected number of individuals in particular (UK., 2016). Such types of
businesses are mostly never enlisted on the stock markets as they are precisely owned by private

sector. As it is suggested by the title itself, the commercial liability as well as the number of the
company's shareholders is also limited in this case in particular. For example, the company
Morrisons is a major example of the private limited company or organization. This company has
expanded very fast as the decision-making capacity of the company lies with only a limited
amount of people.
Community interest company (CIC)
As it is suggested by the name itself, a community interest company is a company which
is set up for a major purpose of doing contribution towards the benefits of the communities that
are surrounded largely without any motive of generation of profits or revenues (Mason., 2020).
Such organizations exist for the purpose that the collected funds from the business may be
distributed between the society members who actually require help or support. A major example
of such a community is Oxfam. This is company that is based as well as operation in the United
Kingdom in particular. And the sole motive of the company is to save more and more people that
are in need of help and are in an emergency situation or condition in particular.
1.2 Explanation of Sainsbury's, Morrisons and Oxfam.
Sainsbury's public limited company
Sainsbury's is the second largest organization that is working within the United Kingdom
in particular (Muskett., 2017). It is a company that is very famous and well- known for the
products as well as the services that it provides to its consumers or customers. The company
particularly deals in consumer goods in particular and also the products as well as the services
are quality based and also affordable for the target audience of the company in particular. The
company was founded in the year 1869. Hence, it is an old player in the market of the United
Kingdom. The aim of the company is to provide good and quality products at a price that is
affordable for mostly the largest segment of the market in particular. The company mainly
believes in the concept of being fair to the suppliers as well as the environment and not hinder
the overall customer base of the company in a short period of time. The major aim of the
company is to help and support everyone to enhance their eating habits as this is the major
requirement and a very crucial aspect of the society in recent times in particular.
Morrisons private limited company
Morrison's also comes in one of the largest chains of supermarket in the United Kingdom
in particular (Flett. Wilson. and Gover., 2020). The company is on the fourth position. It is

mainly known for the products and the services it sells. It has around 497 supermarkets all across
England, Scotland as well as Wales in particular. The headquarter of the company is located in
England in West Yorkshire in Bradford in particular. The company was founded in the year
1899. It is spread all across the United Kingdom and is very famous too. The company has
grown a lot throughout the last decade specially. As the marketing strategies of the company has
improved as well as enhanced during the period.
Oxfam
Oxfam is basically a company that was founded in Oxford that is located in England in
particular and the company is a British company. It is specifically a confederation of around 21
charitable organizations that are independent. This collection of the organizations mainly or
majorly focuses on the alleviation of the global poverty levels this was particularly founded in
the year 1942. It is led by the Oxfam International in particular. The headquarter of the NGO in
particular is located in Kenya in Nairobi. It is known to be an international NGO that works for
individuals all across the world in particular.
1.3 Business functions of Sainsbury's by the use of organizational chart and the advantages and
the disadvantages of the company.
Production function
Sainsbury's is a company that manufactures most of the products or goods that it
particularly provides to its customers in particular. And the production function specifically is
based on the model of lean manufacturing in particular and also the company produces or
manufactures edible goods in the factory of its own.
Human resource management function
The human resource function of the company Sainsbury's particularly deals with the
hiring as well as the recruitment of the workforce that is considered to be of diverse or different
personnels and then further categorizes the job positions as well as the job roles in accordance to
the talents of the individuals that have been selected in particular (Marchington. and et.al., 2016).
Research and development function
The research as well as the development department of the company in particular is
basically involved in the activities related to consistent up gradation in the technologies of the
company in particular.
Finance and Accounts

The accounting as well as the finance department of the company basically records the
financial transactions that are specifically conducted within the company for the purpose of
keeping a record of the transactions.
Sales and marketing
The marketing as well as the sales department of the company is a very relevant and
necessary requirement of the company (Baines. Fill. and Rosengren., 2017). This function
particularly focuses on spreading awareness regarding the company and the products or the
services that are provided by the company. The sales function specifically focuses on selling of
the products that are produced by the company and are specifically demanded or required by the
customers or the consumers of the company in particular.
Pros and cons of interrelation and influence of functions on the organization
Advantages
 The connection or inter- relationship among the departments basically leads to inter-
departmental discord.
 It also helps in promotion of interpersonal communication enhancement. It also creates problem solving skills.
Disadvantages
 Overlapping of the functions and increase in the levels of complexity at times.
 Mismanagement of time because of occurrence of completions of processes
simultaneously.
 Miscommunication, and faulty hearing and other things as well may reduce the levels of
productivity of the employees working in the company.
PART2
Using PESTLE analysis identifying and discussing the various macro environmental factors that
have impact upon Morrisons.
PESTLE analysis are the six external factors that affects the business. The six external factors
includes political, economical, sociological, technological, legal and the environmental factors
that impacts company not only to make products but also the marketing strategies that company
adopts for reaching higher level of success (Phan, 2021). These factors help companies to take
the best decision for their organization. It becomes easy for the organization to make better
plans. The detail explanation of six factors are as follows-

Political Factors-
The political factors working in the outside environment is impacting Morrison
supermarket Plc's profitability. Being international supermarket chain the Morrison is exposed
with a dozen political environment (Lewis, 2017). Political stability is the main factor that
impacts the existence of company. The company today works easily in many countries because
countries are becoming democratic and the easy legal framework of countries is in support of
Morrison's. The taxation policy of UK is also good that favours the company but BREXIT was
the major political event that changed lot for the company and had huge negative impact on the
existence of the company.
Economic Factors-
The rate such as inflation rate, foreign exchange rate and the economic cycle has impact
upon the demand and the supply of the products in the economy. Morrison's has been using the
economic factor of UK in its favours. Growing economy of the country has been able to give the
economic advantage to the Morrison's to operate and to manage the affairs of the company. Less
government interactions in the affairs of the company has played major role in stabilizing
Morrison's. The higher oil prices are increasing the cost of the products supplied by the company
which is one economic factor that has decreased profits of the company.
Sociological Factors-
Sociological factors also influence the existence of the company. Morrison's has been
providing those products and services in the market that helps to satisfy consumer demands.
Designing and producing those products and services that justifies the consumer demand is very
important to survive In the market today. The other social factors like raising population has
given the best opportunity to the Morrison's. Morrison's is also launching its brand through the
TV campaigns. Growing concerns in health can be a great opportunity for the company as
company can grab consumer by producing those products that are health conscious.
Technological Factors-
Technological up-gradation all over the world has disrupted company as today more
choices and options are available in market. This technological advancement have negative
impact upon the existence of Morrison's. Morrison's is also trying to serve consumer of different
countries by upgrading its social media accounts. Transportation industry is also becoming wider
and larger that can help Morrison's to grow on wider scale. Investment can be done in those

technologies that reduces the cost of the product to give Morrison a competitive advantage over
the other firms that exist in the market.
Legal Factors-
There are number of laws that should be complied to run company. Morrison's has been
complying all the tax law, patent law, employment laws and data protection law. That has been
reason behind the success of the company today. Morrison's is trying to enter other markets as
well and complying all the major laws will increase consumer base and will give competitive
edge to the company. Morrison's have also done many ethical audits to ensure that the products
are not harmful for the consumer consuming it. Company also use the political and the legal
guidance to support the several regulations that are been put out for the company.
Environment Factors-
Environment factors can impact the profitability of the organization. All the European
countries have different environment laws and its is the liability of the company to comply all
such laws. The weather, climate change, recycling etc. are such factors that counts in the
environment factors. This is the reason behind starting recycle bags in the market to avoid
consequences of environmental damage. Morrison's is also trying to offer fruits and vegetables
that are plastic free and is also shifting towards the zero waste campaign (Simões, 2020).
These were all the factors that impacts the existence of the Morrison's. Being one of large
supermarket chain Morrisons get affected by the external factors a every external factor has
major impact. Macro-economic factors has larger impact that's why company must considered
them time to time. Following and complying all these will increase the capability of the company
to satisfy consumer in market. It will also enhance reputation of the company.
Applying SWOT analysis to Morrisons for identifying the key strengths and weakness also
explaining the interrelationship these have with the external factors that are been
previously discussed.
SWOT analysis of the Morrison's will provide us the details regarding the strengths,
weakness, opportunity and threats that the company is facing (Benzaghta and et.al., 2021). The
business strategy of “Fix, Rebuild and Grow” is the main competitive advantage to Morrison's
that will not only help company to grow its profit in market but instead will help to grab all the
marketing opportunities by building good marketing bard. But it has also got lot of disadvantage
as well and specially after the BREXIT company is trying to save itself and gain competitive

advantage on it strengths that the company has over the other firms in the market. The SWOT
analysis of Morrison's is as follows-
STRENGTHS  Being one of the largest supermarket chain is the main
strength of Morrison's. Morrison's is among the four largest
supply chain store in UK.
 Morrison's have food preparing skills and also has the best
supply chain management system with proper distribution
networks around the world.
 The variations in products Morrison's offered in the market
helps company to have wide consumer base and increase the
profitability of the company.
 Morrison's also offer customization of products schemes to its
consumers (Teoli, Sanvictores and An, 2019).
WEAKNESS  Limited geographic presence as company does not have many
retail store in the market.
 Less marketing programmes weakens the loyalty of consumer
towards the product of Morrison's.
 Delayed responses by the Morrison's has also been weakness
of the company since starting of the company.
OPPORTUNITY  Morrison's Can become no.1 retail store in the world.
 Online marketing and various discount channels offers
convenient shopping to the consumer that will boost the
growing sector in UK.
 Morrison's can partner with various other e-commerce
platforms to gain more profitability in market like company
can partner with Amazon.
 E-commerce has been boosting after the pandemic and that
can increase online presence of the company which will give
huge advantage to the company.

THREATS  Changing laws In every other country where Morrison's
operates and launches its retail store is the major concern for
the company.
 The global competition in the international market.
 Increase technological risk is the one of the treats to the
company.
 Morrison's profit has decreased despite its amazing products.
 The shortage of products is the market is also one of the
major threat to the company.
Morrison's weakness and treats are the results of the macro economic factors that works
in the external environment today. Changing rules and regulations counts under the legal factor
which has negative impact upon the existence of Morrison's. The international market and open
trade market today is another factor that comes under the political factors of the country that
works from outside but has serious implication on the existence of the company.
Presenting a critical reflection of the key findings and evaluating how decision-making process
influence by them
From the above done report it has been i observed that the business of Morrisons is
highly affected by both the internal and external environmental factors. A complete knowledge
of the PESTLE analysis becomes an important part in the decision-making process of the
company as no effective decision can be taken without analysing the actual existing factors in the
external environment (Gardašević and et.al., 2022). For example, for the Morrisons it is very
important to be aware of the political factors where the company is operating or is planning to
expand its business. As it deals in wide range of products and operates in 497 other countries,
there is always a threat for the company of getting exposed to the political environment of any
country (Simões, 2020). So in order to avoid such complications, I feel it is a top most priority of
the company to analyse all the political factors that can affect the smooth working of the
company. Also, key findings like the personal strengths and weaknesses of the company, enables
the company to take right decisions related to its functioning (Namugenyi, Nimmagadda and
Reiners, 2019). Here, Morrisons after analysing its personal strengths and weaknesses can work

towards grabbing the right opportunities for itself and overcome its weaknesses in a right
possible manner. For example here, after doing the SWOT analysis of Morrisons, I observed that
the company has a huge supply chain management which it can make the use of and utilize in the
overcoming of its weakness related to the limited geographic existence (Tengiz, 2020). I
observed that the existing factors in the external and internal environment of a business actually
helps in mending the structure of a company, both inner and outer structure. It can be in terms of
the scope or the size. During the time I was collecting the information, I also noticed that even
after being such a great brand, Morrisons still have a huge scope and opportunities available
ahead of it, for the purpose of growth.
Furthermore, I also noted that a business's strategic planning is highly influenced by such
factors like economic trends, demographic trends and partnerships and funding. As these factors
affect the management techniques of a company, the factors again influence the process of
decision-making related to the customers of the company. Here with the above done study, I
observed that the company has wide opportunities available out of which one is spreading the
social awareness and E-commerce business of the company. As the population of the world is
clearly shifting towards online marketing and here after finding this key opportunity, I observed
that the company can take the decision of enhancing its customers base in the market by serving
to all kinds of customers, even to the ones who are not indulged in traditional shopping. From the
overall report I also observed that the company raised its pricing on each product after analysing
the competition in the market. As the companies were increasing their prices, Morrisons also
started raising its prices. This shows how much the analysis make difference in the strategies of a
business and also shows how much a business's decision-making process is influenced by the
key findings. Thus, yes the key findings helps in the decision-making process of the company.
As seen above, I observed that the company can make number of decisions after analysing its
strengths and weaknesses.
CONCLUSION
From the above report it has been concluded that an environment of a business plays a
very important role in its functioning. Here a comparison of three companies were made namely:
Morrisons, Sainsbury and Oxfam. The comparison was done on the basis of its background, size,
scope, legal structure, stakeholders and vision and mission of the companies. Furthermore, one

company was selected I. E Morrisons, and its various business functions were examined by
showcasing the inter-relationship between the functions of the company and their advantages and
disadvantage and how they were affecting the structure of the company. The report presents a
pestle analysis on the company Morrisons, both negative and positive impacts of the external
factors of the company, SWOT analysis of the company to identify the personal weaknesses,
strengths, opportunities and threats, in order to explain the relationships of these findings with
the macro environmental factors. Lastly, the report showcase a reflection that evaluates the
influence of the key findings on the decision-making process of the Sainsbury company.

REFERENCES
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