Business Environment Report: Morrison Company Analysis and Strategy

This report provides a comprehensive analysis of the business environment, focusing on Morrison Company, a major player in the retail industry. It begins by defining and differentiating between public, private, and voluntary sectors, outlining their purposes and legal structures. The report then examines the size and scope of various organizational types, from micro to global entities, with specific examples such as the National Health Service (NHS) and Morrisons. A key section delves into the interrelationship of organizational functions and how they link to organizational objectives and structure. The report also identifies the positive and negative impacts of the macro environment on business operations, supported by examples. Finally, it conducts internal and external analyses of Morrison Company to identify its strengths and weaknesses, explaining how these interrelate with external macro factors. The report offers insights into the company's strategic positioning within the competitive landscape.

Business & the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Different types and purposes of public, private and voluntary sector...................................3
P2: Explain the size and scope of a range of different types of organisations.............................4
TASK 2............................................................................................................................................5
P3: Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................5
TASK 3............................................................................................................................................7
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.................................................................................7
TASK 4............................................................................................................................................9
P5: Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.............................................................................................................9
P6: Explain how strengths and weaknesses interrelate with external macro factors.................10
CONCLUSION..............................................................................................................................12

INTRODUCTION
Business environment comprises of the aggregation of different individual entities as well
as factors that can or cannot be in the approach of an organisation to control, but definitely all
these factors hamper its growth and profitability. As every business irrespective of its large or
small size operate in the dynamic environment which make it essential for them to analyse the
external surrounding and function accordingly (Aithal, 2017). For the better understanding of
report, the trainee business analyst of the North west London chamber is to assist the businesses
like Morrison to become more successful. Morrison company has been selected which is a part
of retail industry and offer different food and non food items like vegetables, packaged eatable
items, drink, magazine, clothing etc. The company has the largest supermarket chains and deal
with customer via both physical stores and online platform. This report cover topics like
different, type, size as well as scope of the company. Analyse the interrelationship among
different functions of an organisation and how they are related with the organisation structure.
Determine the positive as well as negative influence of the business operation within macro
environment. Further, explanation of the internal strength as well as weakness of the business are
covered in the report.
TASK 1
P1: Different types and purposes of public, private and voluntary sector
Organisation basically refer to the entity that comprises of different type of people who
come together to attain the single objective. There are different type of organisation such public,
private and voluntary that have their own responsibility, structure and purpose which is
explained below.
Public organisation
It is owned, managed as well as operated by the government in order to generate the
profit for the social welfare. Here the organisation offer services at nominal rate so that different
category of citizen can avail the reliable services (Chi, 2015). Funding for these organisation are
raised from the taxes, fines and fees. The National Health Services or NHS offer healthcare
services such as optical care or dental care to the local residence of United Kingdom. Most of the
people rely on these services to get the prescription or surgery done from the professionals.

Purpose: The purpose of public company is to enhance the economy by investing on
infrastructure, education and healthcare facilities for the low income group people that provide
them fair and effective chances to improve their livelihood. In context to NHS company its
purpose is to offer the same hospitality facility to the people of different social classes. This can
enhance the quality of life and services for different individual and families.
Legal structure: As public organisation is run by legal authorities due to which such
companies can be controlled by central government, state government or local authorities. Due to
which the governments is sole responsible to carry out all the expenditure as well as makes
precaution to carry out adequate functioning of firm.
Central: Central government is basically the apex body that function to regulate the
different departments in order to function for the welfare of society.
State: These legal authorities are basically liable to make the authority for the specific
zone. Based of this they monitor the functioning of different department in order to control and
restrict unethical practices.
Local: It include the role of municipal communities that usually manages the small area
which can be either town or village. Intervention of these authority enhances the legal practices
which help to build the lives of the local people .
Private organisation
Unlike public organisation, these companies are usually managed by the individual or
group of partner. The major objective behind these companies is profit maximization for which
they fulfil the need of customer and diversify their operations globally (Craig and Campbell,
2012). It terms of Morrison company does not involve the interference of government as it work
for self motive rather than social motive.
Purpose: The purpose of private company is to focus on the quality of product and
generate loyalty from the prospectus by delivering them suitable offering. Along with that the
company try to differentiate from competitors in order to enhance the brand loyalty. The purpose
of Morrison company is to become the global leader within retail sector , for which they adopt
innovative techniques to differentiate its services from the other.

Legal structure: The legal structure of the private company comprises of sole proprietor,
partnership , cooperative and limited companies which are further classified as private and public
limited company.
Sole proprietor: The business is set up and controlled by the single entity who brings the
capital along with them and have the liability to pay the expenses of company. The owner is sole
responsible to take all the necessary decision of business without any chaos or conflict. For
instance, PaperRocket Accounting business was started by the Sarah Solo and worked within
contractor accountancy world in order to become professional accountant.
Partnership: This business is carried out by more than two partners that collectively
come together and participate in the functioning of business. The share or the ration associated
with the profit and loss varies from one partner to the another depending upon the contribution
on capital. It involve preparation of partnership deed that involve all the details of partner along
with their contribution.
Private Limited companies: It comprises of the company that has separate legal entity
that mean the business is distinct from the people or owner who run it. Due to which each
shareholder of the company have limited liability which mean they are not all all liable to pay for
the further losses or debt. There are two type of limited companies that is public and private,
within public limited the companies issue the shares to the public and help them to take the
ownership of company. Further, private limited companies can be register with the minimum 2
members to maximum 200 members. The liabilities are limited and here the company can even
continuer to exist even if the own dies or goes bankrupt. For example, Brakes is a private limited
company that offer and supply the different food items and beverages to the different catering
industry of UK. In context to the Morrison company falls under public limited company as here
the public are allow to issue the share of company. This is profitable situation for both Morrisons
as well as its customers like the company gains the fund which can be used fro different
functions like to enhance the quality of product or diversify the business. Similarly, with the help
of financial statement the public identity the performance of company and gain better rate of
return due to the high profitability as well as productivity.
Voluntary organisation
These organisation usually include the group of like minded individual who come
together and function for the social cause. It involve the non profit organisations that work

voluntary to accomplish the certain purpose (Hillary, 2017). Oxfam is the charitable organisation
whose objective is to work against the global poverty and improve the livelihood of each and
every people.
Purpose: Voluntary organisation is formed by the association of like minded people that
join together to fight against the specific cause. Oxfam was incorporated in 1995 with the sole
purpose to reduce the injustice by eradicating the poverty issue globally.
Legal structure: Usually the different types of voluntary organisation have legal
structure like charity, limited guarantee company as well as trust. Within this the company gains
the donation for the public known as charity, which is used to accomplish the specific social
cause.
Trust: This legal structure involve the organisation that uses the fund in order to manage
the property for specific purpose.
Unincorporated Association: Here, in this type of companies the people engages
voluntarily for the short tenure with the objective to overcome the issue.
Oxfam company which work for the social cause amongst Trust as well as
Unincorporated Association has adopted the trust legal structure. As respected company is the
collection of 19 independent organisation which gets the charity from the individual, business as
well as government to carry out different process. The person who offers the fund to the
organisation in order to participate for the social welfare is known as donor. Thus, such
awarenesses and contribution of the people help to fulfil the particular social cause.
P2: Explain the size and scope of a range of different types of organisations
Size: The size of the company is determined by the several factors like sales per
company, number of employees and profitability ratio.
Scope: It determines the capability of company to grow or expand within or across
geographical area in order to enhance customer base.
Different type of organisation
Micro organisation: it refer to the small business which have only the capacity to
employee nine employee or less than that e.g. Castle Hill fire protection ltd. It is usually run by
the family members that may employee two or more people to generate the revenue out of their
business.

Small organisation: The size of these business are relatively larger than micro
organisation as they employee less than hundred worker to function independently like LMA
Recruitment. It may include business such as sole proprietor or partnership.
Medium organisation: This enterprise have capacity to employee around 200 people
that collective work to empower the lifestyle of people and enhance their experience by gaining
better positions, for example Verdant Leisure.
Global organisation: It basically involve the companies that have the objective to
maximise profitability for which they move beyond their working area or reach out to
international boundaries in order to build global image. It comprises of ifefrent types tahat is
explained below:
Multinational: It function in multiple countries to promote their offerings and enhance
global image but they focuses to bring modification in the product as per the demand of local
market. Like, Tesco added highly nutritious product or varieties of organic items in order to cater
the requirement of health conscious people.
Transnationals: These are the complex organisation which invest different activities like
foreign operations, research and development to deal with foreign buyer. These company such
as Vodafone does not consider any one country as its national home.
International company : They just involve in the productive activities like import and
export of goods and services rather than making the investment outside their home country. It
include companies like HSBC holding and BHP Bilton PLC.
Business operate in the dynamic environment that constantly changes so accordingly
different form of the firm on the basis of their size and scope prepare their objective, vision and
mission that is determined below:
Public company (National Health Services)
Size: This company was established in 1948 and offer the medical services to the large
audience of England, Scotland as well as Wales. For this the company has offered employment
opportunity to approximately 17,00,000 people who have specialised knowledge over their field.
Additionally, the company operate at large scale due to which in 2019 the annual budget of
company is over £115 billion.
Scope: Along with size the scope of NHS is also wide, as it is funded by the government
due to which it uses viable equipment or technique to retain the trust of people. Along with this

the researcher makes the adequate decision to regularly enhance health related issues for the
customer. It make precaution to prevent the impact of diseases in the health of whole society,
instead of concerning only for one individual. This depict that the scope of NHS is to adequately
serve the national requirement because it makes the effort to reach out each and every local
residence of UK successfully. Additionally, for this the experienced professional or doctors are
hired who have specialised knowledge over their stream and can effectively help the local
residence to overcome their illness. This laid the NHS to gain the loyalty and expand its size by
meeting the requirement of national area.
Objective: The objective of company is to improve the level of sound health care in
order to achieve best possible result to maintain the quality of health care services.
Vision and mission: The vision of NHS is to help the people to lead the healthy and safe
life. Whereas, its mission is to regularly improve the status of health in order to promote healthy
lifestyles.
Private organisation (Morrison company)
Size: Morrison company have one of the largest supermarket chains that determine it has
large size. It was founded in 1899 and has around 490 physical retail outlet. It has over one lac
potential employees that help the company to generate the net income of £311 million. Along
with that with the enhancement in technology, Morrison company uses the online platform to
directly deliver the goods at the footstep of customer.
Scope: It is the fourth biggest outlet for which the company focuses to strengthen the
distribution channel to cater the people of each and every corner effectively. Along with that they
have the scope to attract the involvement of youth from various channels of business. Simply the
scope of Morrison company is to expand its size effectively in the global market so that they can
gain the dominance in retail market. Due to which it even concentrate to hire the most potential
employee that can work effectively to attain the goal and take the organisation in better direction.
Thus, this can let the firm to potentially diversify its business in the different geographical area
sustainably.
Objective: The objective of company is to use potential medium or sources to serve the
market in more efficient manner. It basically uses advance technology to deliver the product
within market.

Vision and mission: Morrison's vision is to deliver valuable items to the customer for
their well being. Further, their mission is to consider the valuable feedbacks of customers in
order to remain competitive.
Voluntary organisation (Oxfam)
Size: Oxfam company started its non profitable business in 1942, for which they
collectively work to give the relief to poor people from poverty. It serve the worldwide area for
which nineteen charitable organisation work together to fulfil the same motive.
Scope: The company became functional for the global movement that determine it has
the broad scope to fight against inequality and beat the poverty together. This helped the people
to rebuild their lives and fulfil the basic need that is food, clothing and shelter.
Objective: The objective of Oxfam company is to reduce the gap between rich and poor
by enhancing the social condition of the weaker or unprivileged section of the society.
Vision and mission: The vision of company is to remove the global poverty whereas its
mission is to cover the basic need to customer and embrace their living standard.
TASK 2
P3: Explain the relationship between different organisational functions and how they link to
organisational objectives and structure
The main motive of the different type of an organisation is to fulfil the goal for which
they adopt the suitable structure. The purpose of different type of structure is to meet the need
target market and progressively conduct the functioning of business (Types of organisational
structure, 2019).
Divisional structure: This structure is most commonly seen in the large companies that
operate in the wide geographical area in order to cover the wide needs of the customer rapidly. It
comprises of different division that collectively work together to attain the long term objective
and scope of business. Like different sales team are responsible to cover the geographical area
effectively.

Illustration 1: Divisional structure, 2019
Source: Divisional structure, 2019
Matrix structure: This is the hybrid structure which include the combination of
divisional and functional structure. Such dual management helps the manager to cover different
aspects of the managerial activities effectively.
Illustration 2: Matrix structure, 2019
Source:Matrix structure, 2019
Functional structure: The organisation comprises of different head or division which
comprises of the small groups that are prepared to fulfil the specific objective of the business. It
may include group like marketing, finance as well as information technology that have deep
knowledge regarding their context and help to operate the business functioning. The
representatives of Morrison company gets the advantage of this structure as they are divided into

various sections on the basis of their skill set or capabilities. It assist the company to attain the
better result by meeting the expectation of business effectively. Hence, there are different type of
the structure such as divisional, hierarchical, functional as well as matrix, amongst which the
Morrison company has opted functional structure.
Illustration 3: Functional structure, 2019
Source: Functional structure, 2019
Interrelation of the different organisation function
Research and marketing: As Morrison company adopt the functional structure that
determine both the research as well as marketing function perform different activities. But both
of them are interrelated with one another like the role of research department is to anticipate the
changing trend as well as need and preferences of customer (Ifinedo, Pyke and Anwar, 2018). On
the basis of this the relevant information is delivered to the marketing department that help to
launch the innovative product in the market. Thus, the interrelation of different function helps the
organisation to attain the long term objective of Morrison company that is to offer the quality
product to the potential customer.
Marketing and finance: These two department interrelate with one another with the
objective to manage the cost and reduce the unnecessary expenditure of company in order to
deliver the quality output to the customer. As financial department prepare the budget of the
overall Morrison company with the purpose to maximise the productivity. Additionally,
marketing department role is also to spread the relevant information about the company in order
to attract the interest of customer. So it depend upon the budget prepared by the finance function

to allocate the resources for the different business activities (Palepu and Healy, 2013). Thus,
functional department helps the Morrison company to maintain the clarity and coordination
among different groups of an organisation.
TASK 3
P4: Identify the positive and negative impacts the macro environment
Any change in the macro environment directly affect the functioning of large players like
Morrison retail store. So the company need to constantly shape its policies and gain overall
profitability by focusing on the different external activities in order to sustain the business
operations. It include the PESTLE analysis which is the strategic tool and assist the company to
analyse the external market appropriately (Palo and Tähtinen, 2013).
Political factor: It comprises of the government regulation or law, policies as well as
trade tariffs which is mandatory for business to adopt. Morrison company before diversifying in
any country need to understand these political reforms and determine the stability so that they
can sustain in the market effectively.
Positive: Morrison company majorly depend upon its home country that is UK because
their the political situation are stable that favours the country to generate huge amount of
revenue. This further assist the Morrison company to bring innovation and sustain in the stable
market by generation invention for the convenience of external market.
Negative: The government of UK has announced certain laws for the food and non food
retailer that they have to manage their waste as per Environment Protection Agency. This has
finally enhanced the cost of Morrison's retail outlet.
Economic factor: Morrison company uses the different economic factors like interest
rate, inflation rate as well as growth rate to determine the forecasted growth within retail
industry.
Positive: Although there are different economic fluctuations like inflation or recession
but still Morrison company due to its stable or reasonable pricing strategy survive in different
conditions. The people have loyalty towards company due to which they are capable enough to
maintain profitability (Rezaee, 2016).