Organizational Structures, Business Objectives and Macro Environment

This report provides a comprehensive analysis of the business and business environment, focusing on the internal and external factors that affect organizational operations. It begins by examining different types of organizations, including private, public, and voluntary sectors, along with their legal structures. The report then delves into the size and scope of various organizations, linking their structure to business objectives and the products/services they offer. Furthermore, it explores the interrelationships between organizational functions and their connection to the business structure, analyzing the advantages and disadvantages of these interrelationships. The report also identifies the positive and negative impacts of the macro environment on business operations, utilizing the PESTLE model for analysis. Internal and external analyses are conducted to identify strengths and weaknesses, and their relationship with the external environment is examined using SWOT analysis. Finally, the report critically evaluates the impacts of both macro and micro factors on business objectives and decision-making, providing a holistic view of the business environment.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Section 1 (LO1 and LO 2)...............................................................................................................1
Explain different types and purpose of organisation public, private and voluntary sector with
their legal structure......................................................................................................................1
Explain size and scope of range of different types of organisation............................................5
Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................7
Explain relationship between organisational function link to organisational objectives and
structure.......................................................................................................................................7
Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have.......................................................................................9
Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions........................................................9
Section 2 (LO3 and LO 4).............................................................................................................10
Identify positive and negative impact of macro environment upon business operations.........10
Apply appropriate PESTLE model to support analysis of macro environment........................12
Internal and external analysis of specific organisation to identify strength and weaknesses . .12
In what way strength and weaknesses interrelate with external environment..........................13
Apply appropriate SWOT analysis to justify how it influence decision making......................14
Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making................................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business and Business environment refers to an effective term that involves the internal
and external factors which may affect the operations and functions of the organisation that
considers the customers, management, supply & demand and regulations of the firm. It is an
important concept for every business enterprise because it helps in fulfilling the expectations of
the customers in an appropriate manner. This report is based on the various types of the
organisation considering their purpose that will impact their sustainability in the marketplace.
Further it involves the size and scope of the various types of the organisation that is helpful in
enhancing the knowledge regarding completing this project about the different companies.
Further this study reflects the interrelationship between various organisational function and also
link it to the business structure that helps in attaining the overall objectives of the firm. This
inculcates the internal and external factors that may affect the overall operations of the business
and its profit earning. At last interrelate the various strength and weaknesses with the PESTLE
analysis extrinsic factors(Prajogo, 2016).
MAIN BODY
Section 1 (LO1 and LO 2)
Explain different types and purpose of organisation public, private and voluntary sector with
their legal structure
Private organisation
It refers to that type of the organisation which is established for – profit earning by an
individual or a group of individuals. This type of business venture are operated by the federal
body but they are not controlled by the government. It includes sole proprietorship, partnership
and company that earns a profits according to their size and purpose. The best example of this is
the Morrisons, which is British grocery company in the UK that deals in varieties of product
range with the main of earning profits(Čepel and et. al., 2018).
Purpose- It major aim is to offers the best quality products to the customers by focusing on their
needs and wants so that company will sustain for large period and earn high profits. Like
Morrisons, company always do more emphasis on their offering which is attractive and fulfilling
customers needs for gaining high revenues.
Legal structure
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 Sole proprietorship- It refers to that business venture which is owned and operated by a
single individual and take all the responsibilities related to gaining profits and bearing
risk. As they face little legal boundation for profit earning(Cherunilam, 2016).
 Partnership- This type of venture are operated by two or more than two person for
sharing the profits and losses. Partnership firm will operated by including some
regulations and guidelines under the partnership deed where dividation of profits and
liability can be maintained according to the partners interest.
 Company- This type of organisation is of two types which is public limited and private
limited. When company will arrange and collects the funds form general public than it is
called public limited and if the monetary value are invested by privately that in known as
private company. Both types of company are working for gaining higher profits where
liabilities and expenses are sharing among various shareholders. Morrisons is belong to
this legal structure that is working for gaining higher profits.
Public organisation
It defines that category of an organisation which is work under the guidance of
government body because of focusing on welfare of the company. Example of public sector
organisation is BBC that is largest public service provider company in UK(Bitkowska, 2015).
Purpose- The main objective of public organisation is to provide the benefits to the society
people that helps in enhancing their living standards. It is generally supported by the government
of the country. As BBC main purpose is to provide the entertainment and news providers
services to the public so that they will know the current portfolio of the nation in which they
stay.
Legal structure
 State- This aspect is accountable in front of central authority but maintain their control in
the particular region.
 Local- This legal structure is only take action for their local area and accountable to
central and state government.
 Central- It is high level authority that has high power to controlling the local and state
government for the welfare of the whole country and society. In this BBC group is
controlled by this legal structure.
Voluntary organisation
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It refers to that organisation which can serve the society the various benefits that reflects
the welfare of the people and saving the life of the people. The best example of this is the cancer
research that helps the people of society by offering the money to the cancer related patients.
Purpose- The purpose of voluntary organisation is to provide the varieties of benefits to the
people of society. In this Cancer research can work for deducting the number of patients related
to the deaths of cancer related(Gaganis, Pasiouras and Voulgari, 2019).
Legal structure
 Trust- It refers to that legal structure which is accountable for maintaining the funds of
the company for benefits of the society people. In Cancer research funds are managed to
help the patients related to cancer in the form of financial terms and organizing
campaign.
 Unincorporated association- This structure is formed for fulfilling the task which is
connected with the society people. In this people are working for their mutual interest to
solve the issues of society people by offering innovative solutions.
Comparison between profit, not for profit and governmental organisation
Basis Profit or private
organisation
Not for profit
organisation
Public or
governmental
organisation
Concept It refers to that
business enterprise
which working for
achieving the major
goal of earning higher
profits and revenues.
In this a person or a
group of persons are
operated their business
by following some
rules and guidelines
related to operation of
business for generating
It refers to that
enterprise that are
working for welfare of
people not for the
profits basis. They
basically maintains the
trust with their
members so that task
can be completed
within time
period(Alsaad,
Mohamad and Ismail,
This type of business
venture are dependent
of the involvement of
a government. This is
founded by the citizens
of the country but
controlled by the
government which
involves public sector
organisations.
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higher profits. 2017).
Key objective Its main attribute is to
gain higher profits by
satisfying the needs of
customers by
designing the
innovative goods.
The key purpose is to
solve the society
people issues by
offerings unique
solutions.
Their main aim is the
welfare of society and
citizens of with
involvement of
government.
Size and scope The size of profit
organisation varies
according to the
investment made
which comprises of
small, large and
medium, sized
business organisation.
The size and scope of
NGO depends on the
amount of charity
received and numbers
of its stakeholders.
The main types and
size of public sector
organisation consists
of central, State and
local level organisation
which is depended on
their control and
management.
Mission The mission of profit
organisation is
associated with
enhancement of
productivity and
profits.
The mission of NGO
is working for the well
fare of society.
The main aim and
mission of public
sector firm is to
provide efficient
services and security
to its citizen.
Vision Higher level of growth
and expansion is the
main vision of private
sector company.
Creating and leading a
better world is the
amin vision of NGO’s.
Providing a safe and
clean nation is the
main vision of public
sector companies.
Stakeholders Stakeholders of private
companies consists of
individuals who had
made investment in
that company among
The stakeholders of
NGO consists of its
members and trusty.
The stakeholder’s of
public companies
consists of its
government sector
employees and serving
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with its customers,
employees, business
partners and all other
associated parties.
parties.
Explain size and scope of range of different types of organisation
Morrisons- It is one of four largest chain of supermarkets in the United Kingdom, and is
headquartered in Bradford, England. It is founded in 1899 by William Morrison. Its store
locations were primarily focused in the North of England, Morrisons employed 110,000
employees, and served around 11 million customers each week.
Profit share- Morrisons PLC generated a net profit of approximately 651 million British
pounds. It has a increase of 18 million compared to preceding financial year. Currently,
Morrisons is the fourth largest supermarket and has huge market share and is one of the 'big four'
grocery retailers.
Objectives- The main objectives of Morrisons is to listen to its customers and make
needed changes across the business organization thus it believes in providing better services to
its customers. Company always improves to offer best products, and work hard to get the right
colleagues at the right time and skilled workforce at the right place.
Market share and size- Morrisons market share in August 2017 was 10.14% , down
0.86% from 2015. The company is listed on the London Stock Exchange and is part of the FTSE
100 Index of companies.
BBC- It is the largest service provider company which is related that is a broadcasting house
that broadcast the media, culture and sport for making people trendy and up to date that is very
essential to survive in this competitive world.
Profit share- Company total revenues is around £ 4.889 billion annually by providing the
television, radio and online services to their customers.
Objectives- The main objective of BBC is to serve the various features to the public in a
way to provide information, education and entertainment related to the British nations. This
helps in stimulating the cultural excellence.
Market share and size- It employees around 22401 employees who are working for
them. It covers the large area in the broadcasting service to the customers.
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Cancer research- It refers to that organisation which is formed creating awareness as a charity
in UK. It is established on 4 February 2002 by the merger of Imperial cancer research fund and
the Cancer research campaign. The company mainly focus on the health policy by raising the
money from donations, legacies, events, corporate partnership etc(Gavurova and et. al., 2017).
Profit share- Total revenue of the Cancer Research is the £634.81 million by collecting
the funds for the welfare of the cancer patients.
Objectives- The major aim of the organisation is to reduce the number of deaths related
to the Cancer. For this they continuously research the options of preventing, diagnosis the
disease.
Market share and size- This organisation mainly cover the large market share and
having a wide scope in the country by curing the patients from the disease cancer. It includes
40000 as a volunteers.
Difference between micro, small and large size business
Basis Micro Small Large
Meaning This ventures are
refers to those which
are working with low
resource for gaining
limited amount of
profits only to survive
in the
marketplace(Georgesc
u and Popescul, 2015).
It refers to those
venture that are
operated their business
for supporting their
family members.
This type of business
are operated with lots
of resources and
capital and working
for generating higher
profits and revenues.
Size and scope Size is very small of
micro business that
only operated their
business for selling the
products within the
local area. In this 0- 9
employees are
In this 9- 49
employees are
working and this only
have state presence.
More that 250
employees are
working with the
global presence.
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working.
Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation.
In this different organisation's have their own product and services according to the
structures, size, and scope. In privet business organisation have product and services that help
them increase market share and profitability in the market. This organisations have objective to
stay in the market and gain high level of growth in the current business. Their main objective is
to provide better products and services to their customer so that they can gain customer loyalty.
Whereas the main motive of public organisations is to provide better growth and product and
services to citizens of the country. These organisation does not work for profit maximisation
their main objective is welfare of the customers, and voluntary organisations take initiative for
the growth and achievement of goals and objectives of the firm.
Explain relationship between organisational function link to organisational objectives and
structure
Organisational structure- It refers to that structure that will outlines the certain activities for
achieving the overall objectives of the organisation. It includes the various rules, roles and
responsibilities in communicating the information between the various department within
working place(Wood and Logsdon, 2017).
 Functional structure- It refers to that structure within the organisation in which
company can make the group of members according to their skills and capabilities so
that task can be accomplished within set time frame. In this task can be divided as per the
different department within organisation so that high productive results can be achieved.
 Hierarchical structure- It refers to that structure which is flow top to down that
represents the proper hierarchy. In case of Morrisons, company follows this
organisational structure where positions and task can be divided into several parts for
accomplishing the work in a smooth way. In this top authority plays the major
responsibility and authority for maintains the company benefits. This helps in achieving
the overall objectives by reducing the conflicts between the employees.
 Divisional structure- It is structure that groups each organizational structure into a
division. Every division contains all the required resources and functions to support the
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defined product line. In Morrisons, this structure is been used in decision-making for
implementing innovative strategies for achieving the set targets. It follows the hierarchy
for better functioning of all departments into the organization. This approach makes
easier to allot the responsibility for better results and it increases its functioning into
market.
Illustration 1: source- Morrisons organisational structure
Interrelationship between various department
 Production and finance- In this finance department is work for allocating the budget to
production department according to their needs so that production department can use the
funds in producing the goods and services. This helps in eliminating the wastage and
enhancing the proficiency within the Morrisons company. This interrelation is very
essential for smoothly done the work.
 Marketing and research and development- In this research and development
department can research the market so that marketing department can promote the goods
and services of the Morrisons to the customers as per the trend follow in the marketplace.
If the connection between this two department is strong than company will gain high
profits and it also sustain for a long period of time.
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On the basis of above discussion about the organisational structure a compression can be
made that Morrisons is dealing in large number of products and services thus adoption and
implication of Divisional structure is most suitable to bifurcate its task and activities as per each
product category. Further, in case of BBC which operates in telecasting of new adoption of
functional structure is most viable to ensure more clarity in work through dividing and
bifurcating all task and activity as per the main function in order to bring efficiency in its
operations.
Analyse the advantages and disadvantages of interrelationships between organisational functions
and the impact that can have.
There are various departments in the organisation that are interlinked with each other, effective
working of all the department in the organisation is important to gain competitive advantages and
growth in the market. Production and finance function of company helps in better functioning
and gain profitability in the market. However, coordination between these function of
organisation could be get difficult sometimes that affect the management. It could effect the
decision making process of the company also increase the level of conflict in the organisation.
Whereas marketing and research and development department of company helps company in its
proper functioning, but there are lack of coordination in this departments and it affect
productivity and sell of company. Thus, there are advantages and disadvantages of interrelation
between all the departments of the company that have impact on its growth.
Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions
From above analysis it is critical evaluated that different organisation have different size
and structure and on the basis of which interrelationship between the departments can be set to
function the organisational activities. In large organisation interrelation is very necessary to
conducting the task properly and effectively. But on the other hand small organisation, voluntary
organisation does not have enough financial resources because of having small size and
structure due to this interrelation cannot be done as in this every particular person can take their
decision at their own level. Hence, it is to be justified that every organisation can function their
task as per their size and structure so that profitable results can be enjoyed by the company in
their long term survival.
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Section 2 (LO3 and LO 4)
Identify positive and negative impact of macro environment upon business operations
Macro environment- It refers to that condition which involves the whole economy rather then
particular region or state. In involves the various terms like inflation, employment, fiscal policy
etc. In context of Morrisons, manager can use the PESTLE analysis to examine the external
environment that can be shown below.
Political factor – These are the external factors related to government thus it includes tax policy,
labour law, environmental law, trade restrictions, tariffs and political stability.
 Strength- In this deduction in the tax rate in UK, Morrisons can take advantage for high
profit earning by selling their products on low cost. In this people are also spend well
because of stable political condition.
 Weakness- Due to high change on import duty Morrisons can buy inputs on high prize
that will enhance the cost of the goods for the customers and it will negatively affect the
operating cost of company and also the profit earning.
Economical factor – These are the factors that affect the economy directly which includes
interest rates, tax rates , law policies, wages, and government activities. These are not directly
connected with the factors but influences investment cost.
 Strength- Morrisons is the fourth largest supermarket into the industry store offers the
varieties of products to their customers which is major opportunity for company to
enhance their sales and expand the business in another countries(Gebauer, Haldimann
and Saul, 2017).
 Weakness- In this demand of employees are high related to their pay and it will
negatively affect the Morrisons operating cost and the performance.
Social factor – These factors are related to things which directly affect individual's lifestyle. It
includes wealth, religion, buying habits, education level, family size, population density and
structure.
 Strength- In this Morrisons, can gain the opportunity for fulfilling the needs of the
customers by providing the high class products at reasonable cost. This helps in
maintaining a higher brand position in marketplace.
 Weakness- To fulfilling the needs of customers Morrisons can invest in researching the
market and because of this it negatively impact their overall cost of the business.
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Technological factor – These are the external factors that affect business directly and are an
important factor of PESTLE model. It includes benefit of new technology and its life cycle,
benefits of automation and intellectual property.
 Strength- As Morrisons can adopts the high technology by offering their products to the
customers with online media and solving the issues of people by using the digital
platform. This will increase the overall profits of the firm.
 Weakness- Because of adopting the advanced technology in selling the products and
solving the customers issues company will recruit the experience person that will impact
negatively with high expenses(Monroe, Rikala and Somervuori, 2015).
Legal factor – These factors are used to decides business selling products and affects its
mechanisms. It includes consumer law, discrimination law, copyright law, health and safety law,
employment law, fraud law, pyramid scheme legality and import/export law.
 Strength- In Morrisons, manager can mainly focus on benefits of the employees by fairly
treating them according to their abilities and capabilities. This helps in achieving the
targets on time.
 Weakness- If Morrisons manager cannot focus properly on employees benefits than it
will reduce the overall performance and high employees absenteeism.
Environmental factor – These are factors which affects the organization which includes energy
sourced from solar plants, recycling of products, influences of weather and climate change which
affects the functioning of the company.
 Strength- As Morrisons can follow the proper environmental laws by eliminating the use
of plastic bags and promoting the use of Jute bags that will attracts the large customer
base and helps in earning higher profits.
 Weakness- The major weakness of the Morrisons is that promoting the use of Jute bags
including the major investment and due to this company expenses may be increases and
this negatively affects the profits and revenues(Vasilev and et. al., 2017).
Apply appropriate PESTLE model to support analysis of macro environment
Thus, analysis can be made the macro factors leads both positive and negative impact on
business operation of Morrisons as political instability and legal issues are taken as the man
negative implication of macro environment. On the other hand improvement in technologies and
setting of online platforms leads out many benefits and advantages for Morrisons by the way of
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leading effective advertisement and ensures better productivity and performance through
attracting larger number of customers.
Internal and external analysis of specific organisation to identify strength and weaknesses
SWOT analysis of Morrisons can be shown below:
Strength Weaknesses
 Morrisons is the fourth largest chain of
supermarkets in UK that has high sales
and revenues in supermarket industry.
 Another best strength of Morrisons is
that they provide many job
opportunities to the unemployed person
in all over the globe that helps in
enhancing the brand image and
provides proper training and
development to all employees.
 Because of Brexit company decreases
their operating profits which affects the
brand image and its credibility into
marketplace.
 Because of low pricing strategy it can
face the reduction in profit margins.
Opportunities Threats
 Morrisons can take the online business
opportunity that will attracts the large
base of customers and increases its
customer base and acquire more market
share.(Huang-Horowitz, 2015).
 The another opportunity for Morrisons
is the emerging market that give
profitable results to company and
increases its profitability.
 The major threat for Morrisons is the
competitors that was present in
marketplace such as ASDA etc.
 Governmental regulations, legal matters
etc. may affect the operations and
performance of business which
represents as a major threats.
SWOT analysis of ASDA can be shown below:
Strength Weaknesses
 The strength of ASDA is that they can  Major weakness of ASDA is that it has
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offer the wide range of offerings to
their customers such as ASDA Money,
George clothing, Chosen by you etc.
limited presence in the global market as
compared to their rival firms.
Opportunities Threats
 ASDA grab the opportunity to
expanding their business in the other
countries like China, India etc.
 Changing in the government policies
will be the major threats for the ASDA
in this competitive business
environment.
In what way strength and weaknesses interrelate with external environment
PESTLE
analysis
Strength Weaknesses
Political
factor
It major strength is the company sells its
products on low cost for increasing more
and more customer base.
Because of high changes in import duty
Morrisons can enhance their expenses
and its total profit margin would be
affected.
Economic
factor
It offers various products to the
consumers to attract more and more
customers and to increase its sales.
High demand of employees related to
pay will affect the operational cost.
Social
factor
Density in population helps in
maximising the sales and profitability of
the organization.(Konstantin, 2015).
Research the market for satisfying the
market demand involves major cost in
recruiting the professional candidate.
Technolo
gical
factor
It uses innovative technology as a digital
market helps in attracting large customer
base to expand its market share.
High investment in technology financial
resource of the company will impacted
negatively and thus puts it into the bad
picture.
Legal
factor
Adopting rules and legal guidelines
related to employees benefits helps in
retaining employees for longer time in
If firm will not follow the rules this will
impact negatively on the image of the
company and its credibility into the
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company and thus helps in attaining
employee loaylty.
market.
Environm
ent factor
Following the proper laws relating to
saving the environment like recycling
the products and using solar plants for
energy helps in gaining higher profits.
Morrisons can use the jute bags instead
of plastic bags will involves major
investment and this will affect the
operating cost of the company and thus
cut down the unwanted cost.(Veselovsky
and et. al., 2017).
Apply appropriate SWOT analysis to justify how it influence decision making
Pestle model helps in better functioning of the organization and provides assistance about the
competitors for placing its product in a greater way into the market for attaining its set targets.
Thus it increases the profitability of the organization and attains more and more customer base.
Hence organisations easily get to know the external factors for the efficient decision making and
to maximise the opportunities.
Critically evaluate the impacts that both macro and micro factors have upon business objectives
and decision-making
From above analysis it is critical evaluate that both macro and micro factor have
impacted the business organisation objectives and decision making process in positive and
negative manner. In terms of positive aspect, it helps in providing the several types of knowledge
related to the several factors so that objectives can be attained specifically and within the time
period. On the other hand focusing on adopting the analysis of macro and micro factors including
more cost and time of business due to which overall cost is to be impacted that affect decision
making. Due to this they cannot take effective decisions for growing the business suscess.
CONCLUSION
From the above project study it is concluded that business environment is an integration
of the external and internal factors that presents as an essential factors for the operations and
functions of the business enterprises. It inculcates the various types of organisation i.e. public,
private and voluntary that have variant in their size and structure. Further it involves the
relationship between various organisational function that may link with the business structure for
achieving the overall company objectives so that it will sustain in the market for a longer period
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of time. At the end it inculcates the various factors of business environment by using PESTLE
and SWOT so that opportunities are gained more and threats can be reduced. This helps in
gaining the higher profits and revenues for a longer period of time.
15

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