Business and the Business Environment: An In-depth Analysis Report

This report provides a comprehensive analysis of the business environment, focusing on the supermarket chain Morrisons. It begins by defining different types of organizations, including profit, non-profit, and non-governmental organizations, and compares their characteristics and stakeholders. The report then differentiates between micro, small, and medium enterprises, highlighting their key differences. It proceeds to evaluate the interrelationships between various organizational functions such as marketing, finance, human resources, and customer service. Furthermore, the report critically analyzes the macro-environment using the PESTEL model and examines both internal and external factors that affect organizational profitability and productivity. The report also includes an evaluation of the internal and external strengths of an organization using SWOT and TOWS matrix. The analysis is structured to provide insights into strategic decision-making and organizational management within the context of the business environment.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Describe the various kind of organisation which aims and purpose are different. ....................3
Difference between micro,medium and small enterprises..........................................................5
TASK2.............................................................................................................................................8
Evaluates interrelationship between different organisation functions........................................8
TASK 3..........................................................................................................................................10
Critically analysis of macro-environment using PESTEL model. ..........................................10
TASK 4..........................................................................................................................................13
Examine internal and external factors which affect the organisation profitability and
productivity...............................................................................................................................13
Evaluate the internal and external strength of organisation.....................................................15
TOWS Matrix...........................................................................................................................16
CONCLUSION.............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business environment is wider and broader concept in order to organisation analysed
business situation and accordingly gaining competitive advantages. In present context, there are
various internal and external factors which affect business operation so before operates business
organisation evaluates such factor because they effectively and efficiently take decision at
appropriate time (Zizlavsky, 2016). The report about is Morrisons which is situated in 1899 and
it is one of the leading supermarket chain in UK. They operates ample number of retail outlets
which provides wide range of products and services to customer. The paper consist about
different types of organisation on the basis of size and scope, function of organisation they are
interrelated to each other as well as analysed internal and external factor which helps to utilizing
PESTEL, Porter's mode, SWOT and TWOS matrix considering in these report.
TASK 1
Describe the various kind of organisation which aims and purpose are different.
Profit organisation-: Profit organisation refers those company which main aim to earn
profit and focussed customer in order to providing high quality goods and services. It includes
various organisation which come under as profit organisation such as restaurant, insurance
company, retail and real estate companies and many more. They are main purpose or motive to
increasing sale revenue and capture market share at market place. It considered also various
other legal firms like corporations, partnership and sole proprietorships (Marin and et. al., 2018).
Morrisons-: Morrisons is a public limited company that establish in United Kingdom and
they main purpose earning profit. They are providing wide range of products and services to
customers and top retail supermarket chain and they included in those companies of UK which
gaining higher profits. It main objectives providing higher quality of services and maintain
standard of living.
Morrisons stakeholders-: Morrison is one of the leading company in United Kingdom so
its targeted a large customer segment and they are both internal and external stakeholders. There
are various stakeholders like employees, suppliers, distributors, business partners, local
community, government and shareholders.
Non-profit organisation-: These kind companies are main purpose to establish for only
providing service to community. Not for profit enterprises are incorporated under the companies

Act in order to providing goods and services to customer. It considered as legal entities which
formulated by group of people and they main objectives to promote cultural, professional,
religious and social purpose (Nogal-Meger, 2018).
Brilliant club-: It is founded in 2011 the main purpose to serves society in order to
enhanced its reputation for conducting research and evaluated statistically data which impact on
peoples progression and delivering service to students such as conduct programmes in schools in
rural areas, coastal areas and post-industrial areas. It mainly work for children, providing proper
guidance, conduct different activities and deliver talented and dedicated employees.
Brilliant club stakeholders-: This kind of companies work national level and main
purpose serves community and not gaining profits. It has wide range of customers and
stakeholders like local government, public groups, national organisation and commissioners.
Non-government organisation (NGO)-: This organisation works for social-welfare and
main aim not earn profit only serves to society. They are not registered or affiliated any
government bodies and work autonomously. They mainly works for social issues and solves
various kind of problems for community (Patrick and et. al., 2016). It creates awareness of
human right, empower women, save girl child and educate them.
Save the children-: This charity is situated in UK which main aim to save the children
and providing quality education. It work on this tag-line transform lives as well as not only save
the child but also providing all basic facility like healthcare and protection from harm and abuse
them. It provides services globally and run various programmes for children such as heath &
nutrition, protection, education, and other grant related expenditure (Sadler-Smith, 2016).
Save the children stakeholders-: They only works for donation and it is charity
organisation so various shareholders like employees, partners, suppliers, alliances, donors,
alliances, healthcare, academic institution and private sectors.
Comparison between different organisation in context of profit, non for profit and non-
government organisation
Basis Profit organisation Non-profit
organisation
Voluntary
organisation
Size It is one of the
famous brand which
Brilliant club kind of
organisation are works
not for profit so only
Save the children is
non-government
organisation and

known as Morrisons
so currently 1,10,000
employees are
working and
according to the
annual report, 2019
work as team and
included only 310
employees worked in
these kind of
organisation.
around 24000
workforce in 120
countries.
Legal structure It is public limited
company.
These kind of
organisation come
under as public sector.
It is charitable
organisation.
Objectives It is main aim to
providing quality
services to customers
and deliver higher
standard of living.
To providing welfare
services to society and
The brilliant club
work for students so
provide various
programmes which
helps in career.
It is charitable
organisation so main
aim to serves society
and save the child
providing good life.
Product & services Grocery items,
clothing and home
products.
Providing education
programmes and
training to students.
Main aim work as
welfare for society
along with save the
children and operates
globally.
Funding Investors, financial
institution.
Government funding
under various
schemes, taxation,
insurance
contribution.
Donation from trust,
government funding,
partners and charities.
Difference between micro,medium and small enterprises.
Basis of Micro businesses Small Medium businesses

comparison businesses
Definition These kind of
enterprises are
established with
required
minimising capital
and employees
because it's
operation cost are
not high and
adding value to the
nation. Provides
goods and services
to small customer
based (Sebikari,
2019).
Small
organisation
which work
with very small
number of
employees not
required to
investing so
much amount in
business. It
significantly
contribution to
the economy.
Medium enterprises refers to those
which are coming under small and
large organisation. It scope is greater
than micro businesses. There ample
number of medium businesses
operating in UK.
Number
employees
Number of
employees working
less than 10
peoples.
These kind of
businesses
required small
areas and
worked only
less than 50
employees.
They are operates a business with
less than 250 employees.
Turnover These company
annually turnover
up to 2 million
(Seetharaman,
2020).
This company
required small
amount of
investing so
accordingly
turnover up to
10 million.
Turnover up to 50 million

Examples Ice-creams shop,
cafe and street food
shops
Privately owned
restaurants,
Hotels.
Contract basis logistic companies.
There various kind of business forms and difference on the basis of features.
Forms of businesses Characteristics
Sole proprietorship These kind of business which are owned by
single person in order to monitored and
controlled all the functions of business. There
are the advantages of these organisation are
no legal restrictions and any type of agreement
as well as solely enjoy all the profits of
company.
Partnership Partnership is those businesses which
operating with two or more person and mutual
understanding. In this all profit and losses
share between the partners and its legal
obligation between partners which known as
partnership deed.
Public limited company These kind of organisation ownerships are
single and independent. Managers and owner
contributes capital and only two shareholders.
They invites application and offer shares for
general public (Shengelia, 2017).
Private limited company Private limited company have minimum two
shareholders but they cannot invites
application and offer shares to general public.
It considered as small and medium sized firm
are included. It can be limited by shares or

guarantee.
Cooperative enterprises There are various kind of cooperative firms are
situated in UK which providing various
services and mainly dealing in retailing
industry, so it is advantages of these
organisation it provides cheap grocery item
and foods for its members ans share profits
among the members of company.
TASK2
Evaluates interrelationship between different organisation functions.
Business functions play vital role in an organisation because it performed a various
activities which helps to attain goal of organisation. Functional heads are specialised in own
field of area so perform task in effective manner such as account staff clear bills, salary
checkouts and clerical works similarly customer service department serves various kind of
services to customer in order to solve queries, solve the problems and so on. Morrisons each
functional heads responsible for perform task in effective manner so all kind of activities run
smoothly (Søilen, 2016). There are ample number of business functions like production,
administration, customer service, distribution, IT Finance, marketing, sales and human
resources. There are number of functions are performed and they all are internally linked
together so describe below.
Marketing & finance-: In relevance of company,Marketing department refers to those
which are dealing promotes various products and services to enhancing profitability of company
and these department linked to each other departments in order to successfully accomplished
task. Finance department are most important pillar of organisation without that difficult to
perform activities. Both are coordinated to each other like preparing budget, reports and provide
funds for the promotional activities. These department is also linked with other department such
as customer service , production, sales and so on (Stacey, 2016).
Marketing & Human resources-: Morrison organisation marketing and human resources
department worked with collaboration because marketing manger provides information to HR
manager to need a that number of candidates so these departments play vital role they hire a

number of candidates and conduct selection procedure for recruitment of right person placed
right job. It involved providing training to employees so grape opportunity according to need of
market.
Marketing & sales-: In context of organisation, sales manger assigned targets to sales
executive because increasing sales revenue. Marketing and sales department both are worked
accomplish coordinated in order to sales a product through various sales promotions like
discount, rebates, gift Boucher and many more. Marketing manger helps to sales department to
achieving targets (Yang, 2017). It involves developing new strategies to grape market
opportunities and compete rivalry's.
Marketing & customer service department-: customer service department of Morrisons
provides services to customer in order to solve their enquires, problems and concerns. It is
responsibility to provides best service to customers and internally linked with marketing
departments. Customer is valuable asset of the organisation so accordingly treated so fulfil all
the needs and wants of customers. Moreover, customers service staff must be fully trained and
professional so provide new experience to customer and make customers happy These
department gives feedback of marketing department on the basis of customer views & opinions
so marketing department on that basis needs to modify in the product and services.
Marketing & production department-: Marketing department also worked with
operation department. Morrisons operational heads focused in operation activities and conduct in
that way to smoothly perform task. Marketing heads gives information production manager
required changes in goods and services because know about the customer market trends, taste
and preferences (Zizlavsky, 2016).
Marketing & IT department-: it department play crucial role because day by day
changes technology so it is important for organisation utilized advanced technology. Marketing
and IT department worked with collaboration and perform task in effective manner. Marketing
heads help technology for developed new products so accordingly improves techniques and then
serves to customers. IT department linked also other function of organisation because without
technology cannot perform work in efficient and effective way so it affect the organisation
objective and goals of company
Organisational structure of Morrisons.

Morrisons has utilize very sound organisational structure which followed hierarchical
organisational structure. In these structure top management play vital role so responsible to
control and support all other functions of department. Top level management monitor and
controlled activities and other department face any kind of activities so gives information of
superiors solve and handle queries. Morrisons heads responsible to delegate worked to their
subordinates they are accountable for works in order to check work and quality control. In these
organisation communication flow from top to bottom and bottom to top. Top to bottom
managers gives information and guidance which followed by employees. Bottom to top
employees report mangers about works and face any problem in organisation so flow
communication in smooth way. Every individuals follows chain of command and this eliminates
confusions, conflicts and increasing effectiveness. Each Morrisons stores has followed a
hierarchical structure and the employees of the lower level followed all rules, regulation and
command of superior and properly report to managers from the upper level (Boshyk and et. al.,
2016).
Thus, organisation function and structure essential element of company without that
company cannot perform task smoothly so their heads responsible work is divided in proper
manner employees work completed with dedication and honesty.
TASK 3
Critically analysis of macro-environment using PESTEL model.
PESTEL is frame work which help to analysis external factor in order to affect business
performances. It is strategic tool which used by top management to identify, analyse and monitor
external factor in order to impact in organisation and also determine opportunities and threats
related to these factor. It includes various factors such as political, economical, legal and
technology. Manger analyse these factors and accordingly developing strategies and decision
making. Analysis of these factors which are mentioned below.
Political factors-: political factors incudes various guidelines rules, regulation and
legislation. The political condition of united kingdom is strong and stable so government
policies support business models (Brown and et. al., 2018). Morrison has not much impact of
government policies because stability of the government easily followed the rules and
regulation. It includes BREXIT which highly affect the business operations and considers as

political issue. It involves tax rates, interest rate, trade and tariff policy so government
supporting business like Morrison and their tax policy to encourages small and large business
model.
Positive impact: Due to political condition of UK is stable so smoothly operates
business functions and enhancing profitability of company.
Negative impact: When government imposed higher taxes so it affect business
profitability.
Economic factors-: These is the important factor which affects the business strategies
and productivity of company. It includes interest rates, inflation rates, GDP, income distribution
and exchange rate. In context of organisation, below interest rates so it directly affect business
operations which brings increase in profitability and market share of Morrisons. Economic
condition of UK is strong and stable (Dubey, 2016). Inflation rate fluctuates so it impact on
business in order to high inflation rate so decreasing investments and reduce customer
purchasing power so decrease profitability of company For example BREXIT which affect the
economic condition of UK . When economy face recession period so it intervention in sales &
profitability of the organisation which affects decreasing disposable income and increasing
unemployment rates.
Positive impact: The economy of UK is stable so brings to improve performance and
profitability of company.
Negative impact: High interest rates charges so impact on investment so brings lower
profitability reducing purchasing power of customers.
Social factors: It includes various factors such as culture, beliefs, tradition, values and
background. In relevance of organisation, each enterprises carrying such factors when carrying
out their business activities. These factors affect business operations because each customer has
different taste, preferences , culture and values so on that basis organisation provided goods and
services to customers.
Positive impact: Due to fulfil the needs and demands of customers so it impact positive
on business operations accordingly know the taste, preferences and market trends (Ledgerwood
and et. al., 2017).

Negative impact: Morrisons cannot serves services according to market trends so
customer not make happy so it impacts on business operations and decreasing profitability of
company.
Technological factors: In present context, technology drastically changes which affects
company productivity and day by day brings new innovation in products and services. Morrisons
research and development department play vital role search new techniques and exploit a new
opportunities for everyone. It involves various kind of innovation in products, services and
online investing so taking advantages of new technology (Søilen, 2016).
Positive impact: Due to utilize various new techniques like online shopping and
delivery, self services, utilize social platforms to promotes products and services, payment
services so all these things brings smoothly running organisation.
Negative impact: There are ample number of competitors are present which affect the
profitability of company.
Environmental factors: Business sustainability depend on these factors where business
conduct operation such factors affect as climate, weather, pollution and global warming and so
on. In context of organisation, utilise recycling of products and environment friendly products
and services. For example produces paper carrier bags which reduce pollution.
Positive impact: Due to produces eco friendly products and services so developing
strong bond with customers and maintain good relation with employees (Shengelia, 2017).
Negative impact: Morrisons has does not using eco friendly product so difficult to
sustain business model for longer period of time.
Legal factors: It includes various kind of legal laws such as labour law, wages law, fraud
and legislative laws. Morrisons followed all the laws in order to smooth running their operations
and stability of company.
Positive impact: All legal laws helps to organisation to grow and developing
transparency in the business activities.
Negative impact: Morrisons adhered to followed such laws and conditions when
organisation not followed so affect the image of company
Therefore, analysed various macro environmental factors which helps to determine opportunity,
strength, weaknesses and threats are available in business environment so essential to analysed
them in effective manner because affect the organisation system.