Detailed Business Environment Analysis Report for Morrisons (2024)

This report offers a comprehensive analysis of the business environment surrounding Morrisons, a major UK supermarket chain. It begins by examining different types of organizations, their purposes, and legal structures, with a specific focus on Morrisons as a public company. The report then delves into the scope and size of various organizational types, linking them to their objectives. A crucial part of the analysis involves exploring the interrelationship between organizational functions within Morrisons, along with a description of how these functions contribute to the company's objectives and structure, including a discussion of advantages and disadvantages of the organizational structure. The report also identifies and assesses the positive and negative impacts of the macro environment on Morrisons' business operations, utilizing the PESTLE model for a detailed analysis. Finally, the report provides an internal and external analysis of the organization to pinpoint strengths and weaknesses, considering their interrelation with external macro factors, thereby offering a holistic view of Morrisons' business environment.

BUSINESS & BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Different types and purposes of organisations voluntary sectors and legal structures for the
Morrisons................................................................................................................................1
2. Scope and Size of a range of various types of organisations.............................................2
TASK 2............................................................................................................................................3
3: Analysing the relationship between different organisational functions and also describing
the procedure of how they link to organisational objectives and structure............................3
M2. Analysing the major advantages and disadvantages of interrelationship between the
organizational functions of Morrisons....................................................................................5
TASK 3............................................................................................................................................6
4. Identifying the positive and negative impacts of the macro environment has upon the
business operations of Morrisons...........................................................................................6
M3. Applying the PESTLE model for provides a detailed analysis of the macro environment
of Morrisons...........................................................................................................................6
TASK 4............................................................................................................................................7
5: Analysing the internal and external analysis of the organisations in order to identify
strengths and weaknesses for the Morrisons..........................................................................7
6.: The strengths and weaknesses that are interrelated with external macro factors for the
Morrison company..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...............................................................................................................10

INTRODUCTION
Business environment refers as all internal and external environmental factors that can
affect any individual, company and entity. In such factors, it contains management team,
employees, staff members, customers, suppliers and many more persons or entities (Armstrong
and et.al., 2015). They all can influence performance, growth and profitability of that
organization. Every company operates its business in its distinctive environment. There are a
company Morrisons that operates supermarkets retail chain in the UK.
In this given report, there are various types of organizations and their size, scope are
described. Further, this report states that the relationship between different organizational
functions and their link with each other. Lastly, it turned to strengths and weaknesses interrelates
with the external macro factors for the Morrisons. It also covered The strengths and weaknesses
that are interrelated with external macro factors for the Morrison company.
TASK 1
1. Different types and purposes of organisations voluntary sectors and legal structures for the
Morrisons
In present world's, every organisation run and operates its business for achieving some
objectives and goals whether it is profit making or not for profit (Belás and et.al., 2015). In the
kinds of organizations, it can be governmental or can be nongovernmental organization. These
are some types of organization and in addition to this there are some types of organizations
which are as follows:
1. Private Organization – Private companies or organizations are normally by an
individual, family, or group of investors who operates this type of business for earning
profits and their growth. This organization has ownership members which is maximum to
200 persons. Each and every organization or company should use pvt. Ltd. Word at the
end of its name. It cannot be listed in any stock or share market. Its main purpose is to
run a big organization by privately without any interfere of any outsiders.
2. Public Organization – Public company or organization owned by the public and they are
also the owner of this (Botha, Kourie and Snyman, 2014). This organization also works
for the public. Its share issue in public and then they purchase from some kind or money
after this procedure they will being the owner of that company. These type of
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organizations are operates its business activities for the growth of its owners and provides
them profit. Its main purpose is being a successful organization in their industrial market.
3. Voluntary Sector – it is a kind of organization which has a group of people or entities
and are connected and linked together for contributes in to their society or community. It
is usually operated by the persons who have not paid any amount for his or her own
contribution (Charter, 2017). This type of company has basic feature that they not need
any legal formalities and they all solely dependent on their stakeholders of capital
contribution. It can be understand with an example as a small group of people which
shares target or objectives to increase awareness of this business.
Legal Structures for Morrisons – Morrison’s is a public company which is a UK based fourth
largest chain in supermarket and it is situated at the Bradford, West Yorkshire, England. It is
established by entrepreneur William Morrison in 1899 so it has also a name of WM Morrison. Its
business focus in the North England and it also trying to increase its significance in the South
England.
According to the legal structure of this company, its operation is operating in house
concludes production, process, transportation, distribution and packaging (Crane and Matten,
2016). Therefore, from this procedure, it has also an impressive control of its operations and it
makes an image of powerful player in the target market. This organization has been updated with
an expensive program by name is Safe way for its outlets so that the company gets an experience
of constrained changes for its stores and they follow anti – monopoly competition strategy to
achieve its goals and objectives.
2. Scope and Size of a range of various types of organisations
The scope, size and structure are depends on the objectives and goals of that organization
and it linked with together. There are always seen a thing that is any company fix its big target
and goals as according to their vision and it is only when this company has the best
organizational structure (Drucker, 2017). In any firm, if there are number of employee and staff
members are low and they all have known about their duties and responsibilities with their
subordinates then there are no possible things for them that to reach at their target easily.
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In the other side, there are any business that objectives are based on their size and number
of employees. If any business's size is big and they invest huge amount of money in their capital
fund, then they will be able to fix big dream for cover up their vision (Goleman, 2017). There are
some kinds of organizations by this we can get the various size, scope of different organisation:
 Run for Profit Organisation – any kind of business which operates its activities for
earning profits are known as run for profit organization. These types of organization
normally run their business in private sector and it means it owned by individuals and
private firms. The revenue generates from these business generally again invest in this
business and it works towards this business growth. It will make sure that balance profits
must be distributed in investors (Hair and et.al., 2015). Its stake holders are depends on
legal structures and profits from their business and their operations activities are based on
the multiple things that are technology, retail, fashion and food.
 Operates Business not for Profit – these are the organizations, which established and
operates its operational activities not for any financial gain or profit. Its main motive is to
grow and public well fare of the society. In this category, it includes charitable trust and
social enterprises. These all organization is work for social and it is focus only in the
public growth. These types of organizations are free from any tax liability and it
generates more funding from sponsorships, donations and many more agencies.
 Non Governmental Organisation – it is states as the NGOs which run and operates its
business separately from any state or local government. They can get any fund or help
from the state or national funding agency but they can not represent this thing in publicly
(Hamilton and Webster, 2015). In this context, the world bank has defined the two
various group of NGOs that are advocacy NGOs and other one is operational NGOs.
TASK 2
3: Analysing the relationship between different organisational functions and also describing the
procedure of how they link to organisational objectives and structure.
The organizational structure of any company is depends on the functions of business and
operational activities of that firm. This is held because every organization has always makes a
strong structure which is properly based on the objectives and targets of that company. The role
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and responsibilities of this structure is to serve better quality products and services to their target
customers. Every business have some function towards the achievement of their goal and these
function are connected to serve their customers with their outputs that can be products and
services uniformly as well as maintain control in the organization (Hillary, 2017). The
organizational structure of a company is better than it achieve its targets and goals timely with
effectively and efficiently so that it make sure about the organizational structure is co relates
with its structure in order to accomplish its objectives.
According to the given scenario, there are a company which operates its business in supermarket
that is Morrisons and its organisational structure is describes as given below chart :
In this company, the directors have launched an effective drive that are see in the retail
market and it removes the layer of management from its organizational structure. The company
has a Chief Executive Officer at the top level in their structure and under this post, there are
various departments and their subordinates (Armstrong and et.al., 2015). They all staff members
work with the combination with the numbers of employee in the proper way. This will help to
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Illu
stration 1: Organizational structure chart of Morrisons
(source: Organizational Chart, 2017)

the company in order to achieve the targets and goals of the company and it also attracts new
customers with effectively and efficiently. Morrisons has more than 25000 employees at the
departmental manager or supervisor level in their portfolio. The Chief Executive of this
organization is Alistair Buchan at the top level (Belás and et.al., 2015).
M2. Analysing the major advantages and disadvantages of interrelationship between the
organizational functions of Morrisons.
Advantages :
1. Specialization – The main benefit of organization function is, grouping employees in
their specialization and it makes sure about the dependable stage of their particular
department.
2. Operational speed – it is the second advantage of this kind and the strong tech is go for to
handle the supportive problem and it faster than someone with less experience.
3. Operational clarity – it is based on the clarifies according to the function and it main
work is allocation of tasks.
Disadvantages :
1. Segregation – every department in the company have numbers of employees that means
the fruitful relationships among the employees low or reduce (Botha, Kourie and
Snyman, 2014).
2. Weakening of common bonds – in common organizations, it has many purposes to
improves employee morale and their performance and this is an essential predictor of
company's success.
3. Lack of co ordination – in the functional organisation, every department need to input
from other department and it is not often in every case.
4. Territorial disputes - A different disadvantage of a functional organization that it is
closely related to the failure of functional groups to co operate with one another is the
possibility of territorial disputes.
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TASK 3
4. Identifying the positive and negative impacts of the macro environment has upon the business
operations of Morrisons.
For every organization, in their macro environment risk is always appears that means in
each business there are many risks and certain deficit and it need more hard work to identifying
them for the business. In the case to retail supermarket, there are not possible for any company to
reduce the changes as the risk is raise and for this purpose they have to adapt those type of
changes (Charter, 2017). There are many factors of macro environment that can affect the
business operations and activities of Morrisons. Business advancement can also provide various
business related opportunities. The technology has many types of positive and negative impacts
on the business operations. It can increase the point of sale to growth in sales and it also has a
negative impact that is the online consumers select only those companies that have
technologically strong with better customer services. So it is necessary for Morrisons to adopt
technology in the proper manner. There are also some other impact of macro environment on the
business activities of this organization such as law, politics and various governmental policies
(Crane and Matten, 2016). There is a fact of the retail industry is always has a pressure to
become a social responsibility of the organization if they want to sell environment-friendly
products, giving warranties to their customers.
M3. Applying the PESTLE model for provides a detailed analysis of the macro environment of
Morrisons.
PESTLE analysis of Morrisons company describes as follows :
1. Political Factor – the company operates its business across the world so its performance
is depends on every country's political environment and it can strongly influence by the
policies regarding to the politics of those nations which it runs its operational activities.
2. Economical Factors – the economy in the UK shows the positivism from the economical
crisis and inflation and in last decade there are growth environment in this sector. This
will take some time to increase the disposal income of their citizens.
3. Socio – Culture Factors – the customer's demand is always changed and this will a great
impact on this organization (DruDrucker, 2017). The number of old people is increasing
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and this will due to their mobility issues. So that, it is essential for them to fill their own
store with fresh and organic products.
4. Technological Factors – technology is more influence in the present days because there
are a huge change due to the digital technology. All customers give more value to the
company with the help of technology and this will an important thing for this Morrisons
company that is to give their attention by the use of strong technological equipment.
5. Legal Factors – this company survive its business in many countries and in each country
have their own rules, laws and acts which are related to the business. This will also have
a great influence to this business (Goleman, 2017). There are many legislation factors and
it can affect directly to the operational activities of this particular organization.
6. Environmental Factors – in this context, the corporate social responsibilities for every
company which should be accomplish. To be environmental responsibility, it is
associated with this company.
TASK 4
5: Analysing the internal and external analysis of the organisations in order to identify strengths
and weaknesses for the Morrisons.
For any organization the internal and external analysis of their environment depends on
the several factors and these factors can affect any company whether internally or externally.
This analysis can help for the development of this Morrison business (Hair and et.al., 2015). It is
associated with the identification of the business's strength and weaknesses and this can help in
reduce their weaknesses by updating and developing many effective and efficient strategy. The
company require to developing the opportunities to increase its export activities of the
organization. The major elements to analysis of the internal and external environment of the
company, there are SWOT analysis that is as follows :
1. Strength to be determined –
 The company has very prevalent brands and high customer loyalty.
 It has vast area for operates its business activities and operations.
 It has a geographic diversification.
 It is one of main leading market player.
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2. Weaknesses for recognition -
 It has also an issue with the limited fund position.
 They have a problem to implement common ethics and rules or norms in their
business environment.
 It has heavy investments in the other businesses
3. Opportunities -
 The organizations have many opportunities for capitalize it future growth.
 It should invest in the production department to provides better products and services.
 By entering in the new market helps to this business to expand its operations and
make new customer (Hair and et.al., 2015).
 This organization gets a steady enlargement in their brand through acquisition and
merger. This strategy must increase its growth.
4. Threat -
 Its enlarged level of consolidation that is negative image.
 There are changing demand of the customers and also financial crisis.
6.: The strengths and weaknesses that are interrelated with external macro factors for the
Morrison company.
It is clear for this company that is from the external and internal factors of organization
have a great strategic position and this will set the loyal customer image. This will help for the
customer that the company can easily enter in the new markets (Hair and et.al., 2015). In
addition to this, they also have loyal employees and staff members and their switching rate
among employees are few that is an opportunity for expansion of business in various
geographical areas. There are a clear point that they have an effective and best product
differentiation plan as well as they follow many strategies. However, it has seen that during the
operation in various nations globally. It is recognized that it associated Morrisons which has a
better source of income because it has many organizations but they are surviving too much in the
period of expansion. Its expansion may be due to tax rates and different policy of Foreign Direct
Investment of different countries.
During the time of economic crisis and inflation, various countries responded according
to their economic condition. In every country, they have their own policies, rates, taxes and laws
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for supporting their business environment. It will profitable for every business that they have to
knowledge that monthly disposal revenue is different in amount in different countries (Hair and
et.al., 2015). There is a problem with company that is it do not have efficiently and effectively
represents in the web market and they also have not welled technological advancement
equipments. So that for this reason it is essential for them to enhance the technological
advancement in their portfolio.
CONCLUSION
Business environment concludes all elements which can influence any business and its
operational activities. It includes all stake holders and also outsiders. This report contains market
situation if the company Morrisons which operates its business in supermarket industry and run
for profits. The essential thing is, success and failure of any organization is fully depends on the
strategy which is followed by this business. Strategy refers as the forecasting power of the
company and its base is the resources, variability, uncertain business environment, competitive
advantages and market demand. It will easy for the organization to start any business activity
with fulfilment of all resources.
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REFERENCES
Books and Journals
Armstrong and et.al., 2015. Marketing: an introduction. Pearson Education.
Belás and et.al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management, (1),
p.95.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Hair and et.al., 2015. Essentials of business research methods. Routledge.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Online
Organizational Chart. 2017. [Online]. Available through:
<https://www.smartdraw.com/organizational-chart/>.
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