Business and Business Environment: Morrison's Supermarket Analysis

This report delves into the business and business environment, focusing on various organizational types, including public, private, and voluntary sectors, and their purposes. It examines the size and scope of organizations, distinguishing between micro, small, medium, and large enterprises. The report then analyzes organizational structures, specifically hierarchical, flat, and matrix structures, with examples such as Morrison's supermarket. Furthermore, it applies strategic analysis tools such as PESTLE (Political, Economic, Social, Technological, Legal, and Environmental), SWOT (Strengths, Weaknesses, Opportunities, and Threats), and Porter's Five Forces to evaluate the external and internal factors influencing Morrison's. The report also addresses challenges of global organizations, like Morrison's, and discusses how organizational functions align with the company's mission and objectives. This analysis provides insights into how Morrison's can navigate its business environment, make strategic decisions, and achieve its goals.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1. Different type of organisations with purpose and growth...................................................1
P 2. Size and scope of the organisation.......................................................................................3
LO 2.................................................................................................................................................4
P3 Organisation structure and function.......................................................................................4
LO 3.................................................................................................................................................6
P4 PESTLE model......................................................................................................................6
LO 4.................................................................................................................................................7
P5 SWOT analysis of Morrison supermarket.............................................................................7
P6 Porter's five forces analysis....................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business and business environment is the sum collection of the internal and external
factors such as employees and customers are needs and expectation, supply and demand,
innovation and management activities are sets in the business and its environment. It is the total
of the individual and the other factors that are outside from the business (Hamilton and Webster,
2018). Business is depends upon these activities and that are affected by the overall performance
and sustainability of the business. In the present study is discussed on the various companies
which are related to the public, private and voluntary firm. This study is based on “Morrisons”
which is the supermarket. Study lays emphasis on the different types of organisation and its
purpose. This will show size and scope of every organisation factors and its organisational
structure and functions are help to run smooth business functions and work. In the study
discussion on PESTEL model for analysis the macro business environment is impact to the
business and its environment. It is also highlight the SWOT and porters five forces that are help
to analysis which factors are impact and influences decision making of the super market.
LO 1
P 1. Different type of organisations with purpose and growth.
There are three types of organisation which are work for earn money and gain profit from
their business. Different types of companies such as the private (profit sector), public and
voluntary firm (non-profit sector) are as follows with its purpose and growth of organisation:
Public organisation
Public organisation is owned and governed by the government and provide their services
to customers and people. Public companies has aim to give free services to the peoples without
any profit and loss (Quinlan, Babin, Carr and Griffin, 2019). for example: British petroleum is
the public sector company. The British petroleum is British multinational company. That is
severs oil and gas to customers.
Purpose
It main purpose is to serve specific social or political purpose rather than commercial.
The main purpose of company is build a deep understanding of customers needs and want which
are help to company for develop and deliver effective solution.

Private company (Profit sector)
The private sector company is the part of economy growth and that sector is highly
contributed in growth of economy. It refers the private, corporate and associations business. The
aim is to provide services and gain high level of profits from the business. For example:
Morrison is the supermarket chain (Chang, 2016). it is highly profitable of the company and
sales high quality of goods and services. That is profitable organization. That have purpose and
growth which are as follows:
Purpose
Profit sector main purpose is to earn the money and expand their current business.
Morrisons has the purpose is to provide the each product which are related to the domestic and
daily use products with earn some money. Morrisons has achieved three years positive growth in
sales across the board.
Voluntary sector (non-profit)
It is the group of union and individuals entered the agreements. It includes the trade
association, trade union and environment group. Cancer research centre is the voluntary sector
company which is established at London. That is non-profitable organization. That have aim to
provide and delivering world leading translation research and improve patient life and care to
them (Teece, 2018). It is highly considering research campaign and imperial research funds.
Purpose
The aim of this sector is to work for the welfare of society rather then earning money for
the business expansion. The main purpose of the cancer research centre is to provide the best
services to customers and peoples. For improving their heath by the providing the best
treatments.
P 2. Size and scope of the organization.
As per the size and scope are had three types of organization such as the micro, small
medium and large enterprises.
Basis Micro Small Medium Large companies
Meaning Micro business
have the five
Small business is
defined as the
Medium size
business have the
Large companies has
the large number of

employees or fewer
employees of sets.
For example; wiser
is the micro
business firm.
business with the
maximum numbers
of 250 employees
or maximum of
1500 employees
(Maximum number
of employees.
2017).
250 employees and
its annual turnover
below 50 million
(vom Brocke, Zelt
and Schmiedel,
2016).
employees with the
high amount of
capital. This
includes the biggest
corporations, IT
sector companies
and also high brand
cafes and retro.
Large companies are
mainly focused on
innovation and new
products.
Mission Is help to event to
navigate their
pathways to
sustainable event
practices.
To translate new
knowledge into the
presentation and
treatments and also
provide the
effective and
valuable clinical
services to the
peoples.
To provide all their
customers with the
very best values for
money on their
values.
To provide the
quality of product
and services tom
customers.
Vision To unites event
professional and
together work
towards increased
attention to and
knowledge of
sustainability in the
event management.
Lead efforts to
prevent and cure of
peoples with water.
The vision is to
prepare proper
platforms where
advanced seeds are
into the product.
To delivers best
quality.

Scope Scope of micro are
quite vast in term of
covering several
new technologies,
development
expansion.
Small business
have larger scope to
grow their business
in different manner.
Medium having
large scope due to
high demand of the
customer.
Large are very high
as compare to others
in order to meet out
the company aims
and objectives.
Market
share
Market share of
micro businesses
are very high
because of high
start-ups that helps
in economic
development. Its
brand values give
positive image at
marketplace and
also to customers.
Small enterprises
having good market
share in order to
provide the good
services products.
Market share of
medium size
customer are high
in UK because they
contribute in
national economy.
In UK share of big
organizations are
high or limited.
Growth The growth of
micro organization
is limited as
compare to large or
medium company.
The company has
secured listings
with the same UK
largest national pub
chains.
The small sector
growth business is
low as compare to
medium and big
organization.
Medium size
organization is
growth are low as
compare from the
big organization.
The large companies
are most effectively
and efficiently make
there products at
marketplace for
promote.

LO 2
P3 Organisation structure and function
Hierarchical organisational structure:-
Hierarchical structure refers a vertical chain where every department and entity of the
company except one is subordinate to a single other entity. It contains a chain of command in
hierarchical manner. It is a popular organization structure that is followed by various global
organization. Morrison supermarket also follows hierarchical organization structure in their
organization. In this structure, employees are grouped with one supervisor. The few is created on
some bases of factors (Ramanadham, 2019). The main aim of following this structure is to
allocate tasks in an effective manner according to skills and abilities.
Function: Employees are grouped according to their functions and skills they performed
such as finance, human resource, technical and administration etc. It is a suitable model for large
organization. It follows a layout of the pyramid. Every employee in the organization is
subordinated by someone except CEO. This structure helps to develop skills of the employees as
specialist.
Flat organizational structure:-
Flat organization is a type of structure who supervise and guide less to employees but
promote with increased involvement in the process of decision-making. There is no level of
management between staff level employees of all departments and management. Mostly the flat
organizational structure is followed by private and small companies. Arcadia group is a private
company that is followed flat organizational structure. This structure helps to maintain good
relationship between management and employee because of few and no levels. They do not
supervise their employees and involving their employees in decision-making that helps to
enhance productivity of the organization.
Functions: Employees are able to perform all the functions of the organization, and they take
decisions itself for their own level that helps to create friendly environment at workplace.
Matrix organizational structure:-
In this organisational structure, the relationship between the people are set up as grid and
matrix that is not a form of hierarchy. It is an organization management between the similar

skills of the people. Mostly these structure is followed by voluntary organization. The cancer
research charity organization is also followed matrix organizational structure. This organisational
structure helps to optimum utilization of the resources and experts can help in the projects (De
Vries and Van der Poll, 2016).
Function: The main function of the matrix organisational structure is that provides information
to the both across and up through organization. It contacts with many people that helps to
contributing in the organization.
Challenges of global organization:-
They are various challenges for Morrison. One of challenge for Morrison is cultural
barriers. It is a big barrier for the organization in global market because there are lot of cultural
presence in global market that have to consider in strategy of Morrison. One more is
communication barrier. In each country have different language that create complexity in
communication that can be stop expansion in particular country. Morrison is fourth largest
supermarket in UK. It holds more than 450 stores with 110000 employees. It generates £17,262
million revenue in 2018 with operation income of £458 millions. Morrison can expand their
business operations globally. With the help of organizational structure of the Morrison, they can
expand their operations globally.
Function related to organization's mission and objectives:-
Mission of Morrison is to provide and offer the great value for money on their weekly
shopping, no matter wherever they live. For achieving objectives and mission it is important for
departments of the company to perform collaboratively. Functions of the Morrison supermarket
can help to achieve organization mission and objectives because Morrison supermarket's
employee performs effectively because they work in their specialization that helps to increase the
productivity of the organization and enhance the sales and profitability of the organization and
contributes in accomplishing organization's mission and objectives. The objective of Morrison is
to enhance their sales and profitability of the organization, attract more customers and provide
the best quality products and services to their target market. There is an interrelationship of all
functional department like marketing and customer services. Marketing department collects
informations about customers needs and demands. They provide all these informations to
customer department and on which bases they try to increase and satisfy customers needs. The

mission as well as objectives of the organization helps to define the structure of the organization
by analysing the market research and then identify that which structure is fit for their
organization that helps to company in achieving their objectives as well as accomplish the
mission. Customer service department and production department work together and focus on
producing the best quality products which can satisfy needs of customers.
LO 3
P4 PESTLE model
Political factor:-
This factors effect long term profitability of the Morrison in UK. It operates in retail in
UK as well as other countries and expose themselves in different political environment and risk.
There is various political risk that impact Morrison profitability. In UK, Morrison has impacted
by various political factors. These factors are level of interference of government, trade
regulations and tariff are different for each country that impact profitability of the Morrison
because they have to deal with various political environment. It also includes tax rates, wages
legislation and industrial safety regulations that are also impacted Morrison's
profitability(Almonawer and Ashaye, 2017). There are various factors that are in the favour of
the company and give opportunities includes governmental incentives for electric auto mobiles
as it is famous and specialize in producing these products.
Economical factor:-
There are numerous economic factors that impact the profitability and performance of the
Morrison in UK. These factors are inflation rate. Saving rate of UK. Morrison supermarket plc is
considers economic factors at the time of decision-making process. These factors are the growth
rate of retail industry, consumers spending on retail sector, inflation rate etc. Morrison
supermarket should consider various economic factors while entering in new market such as
exchange rate, efficiency of financial market, stability of the host country currency, skill level of
workforce, economic growth rate, unemployment rate and inflation rate etc. Economic stability
issue is the big threat for the company. On the other hand decreasing battery cost is an
opportunity because there is an increasing demand for electric batteries.
Social factor:-

With the help of social factor, Morrison supermarket will find and understand their target
market in UK and accordingly design the marketing message for their retail customers. Morrison
supermarket should consider various social factors in their macro analysis such as demographics,
education level of the population, person's attitude, beliefs and perceptions etc. Increasingly
popularity of low carbon lifestyles also give opportunity to Tesla organization to the great extent.
Technology factor:-
Technology factor provides some opportunities and threat to the Morrison supermarket
such as investment in technology help to reduce wastes as well as enhance the quality of the
products that reduces cost that directly enhance the profitability of the Morrison. Morrison
supermarket uses digital data to identify the trends and help to serve in better way to customers.
One more positive impact of the technology for Morrison supermarket is that helps to focus on
research and development that helps to build in house software and provide quick information
about the market as well as future impact (Su and Wang, 2019). Investing in technologies can
increase the cost of the company. It is analysed that it has strong financial position and on the
basis of this it can make this factor in its favour and take opportunitiees from it.
Legal factor:-
Morrison supermarket complies legal standards of the food and safety that helps to create
positive image to the public and enhance sells and profitability of the organization. There are
some major legal factors that impacts Morrison supermarket such as anti-trust law of retail
industry, employment law, data protection, health and safety law and intellectual property law
etc. Energy consumption regulations and expansion of international patent protection are main
opportunities for the company that can increase their sales and profitability.
Environmental factor:-
Morrison supermarket have to follow all the environment norms and standards of UK.
Morrison supermarket is considered various environmental factors before entering in market.
The main environmental factors that impacts Morrison in UK market are weather, climate
change, air and water pollution, waste management in consumer sector that helps to enhance the
efficiency of company, attitude towards ecological and green products that create positive image
towards customers and society, Morrison supports renewable energy and uses in their store that
helps to protect environment etc. Morrison supermarket have to consider all the environmental

factors before entering in new markets as well as start new business in UK market (Banahene,
Ahudey and Mensah,2016).
LO 4
P5 SWOT analysis of Morrison supermarket
SWOT analysis of Morrisons examines strengths & weaknesses of this supermarket. It
also analysis and examines threats and opportunities that the company face. The main aim of
SWOT analysis is to reduce and decrease weaknesses and threats in order to being in a
competition and attract more customers towards its products and services.
Strengths
Morrisons is one of the leading firm in this industry and it has various strengths that
makes it enables to thrive in a market place. Strength is the ability of achieving and doing
something in an effective manner without getting influenced from things.
 The main strength of this supermarket is it has an efficient and effective distribution
network and supply chain.
 It operates and provides various products line such as music, clothes, beverages, food etc.
 Other important strength of Morrisons is that it has about 500 stores in United Kingdom
with 130,000 employees (Jenkins and Williamson, 2015).
 This supermarket has very strong free cash flows which provides it various resources in
order to expand its business into new projects.
 It has strong relationship with its customers that makes it able to achieve high level of
customer satisfaction.
 Its online retailing and shopping has given it various opportunities this business to
increase sales.
 Morrison also has highly skilled staff that helps it in achieving its determined goals.
Weaknesses
Weaknesses refers those areas where this supermarket want to work upon in order to improve its
image and to become sustainable market. It is the state and condition of being weak and not able
to perform things.