Analysis of Business Environment: Morrison's, CCS, National Trust

This report provides a comprehensive overview of the business environment, encompassing various aspects such as organizational structures, legal frameworks, and the influence of micro and macro environments. It delves into the characteristics of private, public, and voluntary organizations, illustrating their business purposes and legal structures with examples like Morrison's, Crown Commercial Service, and the National Trust. The report further explores the differences between micro/small, medium, and large-sized organizations, and examines the interrelation between various organizational functions within a business. It highlights the importance of effective interdepartmental communication and collaboration to achieve common goals and sustain market competitiveness. This analysis offers valuable insights into the dynamics of the business world, aiding in understanding how organizations operate and adapt to their environments.

UNIT 1
BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents

INTRODUCTION
Business environment refers to the integration and gathering of the entire factors related
to intrinsic and extrinsic aspects. It helps the organisation to sustain and explore their entity by
making better customer relations. This business environment helps in taking the effective
decisions that can helps in earning more and more profits and longer sustainability ion the
marketplace. It is extremely important to examine the business environment because it helps in
analyzing the strength and weaknesses that helps in capturing the opportunity and work on them
to gain the market share. Within this project there are diverse types of business are taken with
their purpose and legal structure so that it easy to determine the capabilities of the enterprise.
Therefore, it also explains the organisational structure that is viewed to explain the
interrelationship between the various departments of the organisation that is exercises within the
working place. It also shows the influence of macro and micro environment and how they impact
the whole business enterprise to sustain in the market(Belás and et. al., 2015).
LO1
P1
A business firm is concerned with various numbers of people and resources that helps in
earning profits and sustainability in the marketplace. The world of business there are different
types of business and each company has its own principle and legal structure that can be shown
underneath.
Private organisation – It refers to that type of organisation which is directed and constituted by
a being or a group of persons with the sole motive of earning profits by selling the products and
services to the customers. The best example of this type of organisation is Morrison’s that is the
largest superstore in the UK and deals in foods, drinks, clothing, books, magazines etc(Aithal,
2016).
Business purpose – The main purpose is to produce high amounts of earnings and revenues by
supplying the huge range of products to the customers in a view to innovate and modify the

goods to satisfied and attracts the large base of customers. The main purpose of Morrison’s to
enhance their market and earns more profits by satisfying the customers needs.
Legal structure
 Sole proprietorship - It refers to that structure in which a person is sole responsible for
earning profits and taking the risk. They required a little amount of funds to set their
business. example – Bakers and chefs, fitness instructors etc. in this they bear a unlimited
liability for debts and no legal separation with the person and the entity. They have full
control on taking the decions and handle all the profits and losses.
 Company - It can be two types i.e. public limited company and private limited company.
in this if funds are generated from the general public than it is called public limited
company and if funds are collected privately than it is called private limited company. In
this all risk and profits is handling by the company not the person. In this Morrison’s are
come under the public limited company with the purpose of earning profits(Prajogo,
2016).
 Partnership – It includes two or more than two people to form a partnership firm in this
every partner is responsible to bear the risk and loss and profits are distributed among all
the partners as per the partnership deed. In this all decisions are taken by the partners and
have a limited liability as compare to sole proprietorship.
Public organisation – It defines the sector which is maintain and managed by the government
with the motive of interests of the society people. They provide the wide range of services like
transportation, education health care, infrastructure etc. In this Crown commercial service is the
best example of this type of organisation which is an executive agency and trading fund that
manages all the procurement of common products and services etc. on behalf of the
government(Ajayi, 2016).
Business purpose - The main purpose is to offers thy products and services to the public for tier
welfare and solving the issues related to the society. In this Crown commercial service is operate
under the Government trading funds act 1973 that offers the professional services to the people
so that they will improve their money and the other commercial functions.
Legal structure

 Centre - It is an political authority that runs and maintain the entire nation. It has the
power to control the state and local government and Crown Commercial services are
placed under this type of legal structure.
 Local - It refers to that government who can maintain and manage the local area or a
particular society in the whole country.
 State- It refers to the sub-category of the central government who controls the whole
state and takes decision for the betterment of the state(Dahles and Susilowati, 2015).
Voluntary organisation – It refers to that business which is working for the welfare of the
society and enhances the stability in the environment without focusing on earning the profits.
There is no interference of the government in this group of voluntary people are involved who
have the interest in welfare of society. National trust is the best example that preserves the
cultural heritage of the country(Kasemsap, 2018).
Business purpose – The main intention of this nature of organization is too safe the society
people and thinks for the welfare of them by solving the critical issues through their innovative
ideas. in this National Trust helps in preserving the cultural heritage without focusing on earning
profits.
Legal structure
 Charitable trust – It refers to that where number of individuals is known as trustees that
can involves in saving the country and welfare of people. They provide the financial
assets and resources for providing the food to the malnutrition children and use all the
funds for the welfare of people who needs. In this National Trust are come under this
category.
 Unincorporated association – It is another kind of organization that is formed for a
[prticulr purpose to attain the common goals and welfare of the society(Bah and Fang,
2015).
Types of business
Basis Profit enterprise Not for profit firms Non governmental
organisation

Meaning It refers to those
organisations which
have the main purpose
of earning profits by
offering their products
and services to the
public. They render
the ownership to their
shareholders who
invest money by
purchasing the shares
and also they follow
various implications
because general
public money are
invested in this type
of businesses.
It refers to that firms
who are working for
welfare of a society
and invest the money
to the society needy
peoples. In this
shareholders invest
their money for their
interest to welfare the
society and the
organizations can save
the money and
maintains full
transparency with the
shareholders and
make trust with the
society.
They arte that type of
organisation which
are not depends on the
government they
getting work with the
amount of donations
they get. It includes
the voluntary types of
organisation where
they perform the task
and achieve the goals
without earning
profits.
Scope of the firms There scope is very
wide as they only
work for earning
profits
It involves different
local, global and
public enterprises that
are working for joint
affairs.
They are working for
those operations in
which society face
problems and earns a
profits by welfare the
society.
P2
Morrison’s – It is a fourth largest chain of supermarket that is founded in 1899 by William
Morrison. it is a public limited company that deals in various types of product range like foods
and beverages, clothing, books, magazines, CDs, DVDs etc(Stott, Stone and Fae, 2016).

Purpose – The main purpose of the Morrison’s is to one stop shop for all the person as they get
whatever they want in a one particular place. They become a cost conscious and make a efficient
business that is effective and attractive to the customers so they earns a high amount of profits.
Products and services – Morrison’s offers a varieties of products like foods and drinks, home
wares, magazines, books, CDs, DVs, clothing.
Market and profit share – There are approx 110000 employees are working in all over the
world and in all stores. It has a market share of 10.14% and a revenue of GB 17735 million with
an operating income of GB 465 million.
Crown commercial services – It is an executive agency that is founded in April 1991 that is the
trading fund of the government of UK. It is totally responsible for managing the income of the
people and their goods and services so that they done their operations more effectively. In 2010
they joined there hands with the Efficiency and Reform Group and with the OGC(Saleem, 2015).
Purpose – The main purpose of getting the maximum benefits from the government for the
welfar4e of the people and society by offering the commercial solutions in order to save the
productys and services to the whole public of the UK.
The main objective of CCS is saving the people and their money at the time of purchasing the
common products and services.
Products and services – The goods and services under the Crown commercial services is
Buildings, solutions, people, technology and the corporate solutions and ideas.
Market size - They provide different types of services and work in various sectors such as
health care, universities, college, schools, charities etc. There market size is very large.
National Trust- It is a type of voluntary organisation that works for the welfare of the society by
preserving the cultural heritage for a particular demographic region(Georgescu and Popescul,
2015).
Purpose – The main objectives of this type of entity is to examine the techniques that are helpful
in securing the cultural heritage and maintain their long life.

Market and profit share – This type of business firm cannot work for the profit but they
include the number of workers who cater the services to the public and the society for a good
cause. In this they have 61000 volunteers are working with 12000 employees to safe the society
and preserve the heritage.
Product and services – it includes those techniques that are consider to preserve the cultural
heritage in an effective manner.
Comparison between micro/ small, medium and large sized organisation
Basis Micro/small
organisation
Medium
organisation
Large organisation
Meaning It refers to that
organisation that sells
the goods and services
for earning small
profits for feeding
their particular family
members.
It refers to that which
is working for earning
profits on a small
scale with having a
limited number of
capital, resources and
employees.
It refers to that which
is working for
satisfying the
demands of the
consumers in the
competitive market
and gains the
competitive advantage
for earning and
sustaining in the
marketplace.
Size The size of this
enterprise is less then
10 to 50 employees
not more than that.
The size of the
business is not more
than the 250
employees that are
working with the
company.
The size of the
business is denoted as
a more than 250
employees who helps
in earning more
profits and sustain in
the market for
satisfying the
customers demands.
Scope The scope is not as The scope is large as The scope is very

big as they restricted
to the geographical
locations(Khan and
Quaddus, 2015).
they have more
capital and resources
top expand their
business in other
locality within the
same country.
wide as they does not
restrict to the
geographical region
they expand their
business anywhere in
the world. Because
they have lot of
capital and resources.
LO2
P3
Interrelation between various organisational function
In business organisation it is very important to make the effective and efficient
interrelations can be done between the various functional departments. it helps in accomplishing
the goals in a specified time period and also integrate all the staff members to achieves the
common targets. In case of Morrison’s some of the interrelations between the departments can be
shown below(Virglerova, Dobes and Vojtovic, 2016).
 Production and finance – This two factors are closely linked to achieved the targets and
earns a high satisfaction from the customers side without doing more expenditure. In this
production department can perform to produce the goods and services by providing them
new design or modified the old one as per the market demands. whereas finance
department can make a budget for producing the products, equipments, raw materials,
high techniques etc. for all this that are required to produce a goods. In Morison’s finance
department can sanction the budgets and maintains all the cash flows so that expenses
cannot be faced by the company in the production departments in making the goods for
the customers. It is very essential to effective communication done within both the
departments to earn proficient results.
 Marketing and research and development - In this marketing departments involves in
promoting the goods and services to the customers and communication with the large

audience about the products so that they can improves their sales and earns a high amount
of profits in this Research and development department can research the market current
and future trends so that they can notifying the changes to the marketing departments it is
very significant to know the taste and preferences of the customers, rivals strategies and
the technologies to implement the elements of the marketing mix. In Morrison’s it is very
effective to interlink this two departments because their combination gives the effective
results and helps in sustaining in the market place for a long time period.
Organisational structure
It refers to an activity that shows the blueprint of the various activities that is helpful in
accomplishing the goals of the business enterprise. It can include the different roles, rules and
responsibilities that help in flow the information into the various departments in effective
manners within the company. It is very useful to convey the important information from the
various functional areas without facing any obstacle. This can explains the some of the types of
organisational structure that can be shown below(Veselovsky and et. al., 2017).
 Hierarchal structure- This organisational structure includes the various levels in which
authorities are divided among them according to their designations. This is an easy
process that helps in allocating the task, roles and responsibilities into the various
different departments so that objectives can be achieved in an effective way. The main
objectives of the business firm are to enhance the performance of an individual so that
they can perform in an effective and efficient way. It can also ease the communication
between the members of the company so that information can be easily conveyed to the
person who needs this to fulfill their targets.
 Divisional structure – It refers to a type of organisational structure that can make groups
of each function within the business firm into a small division. In this each and every
division contains all the required that is used to process a function that supports the
product line such as finance, IT, marketing departments etc. In this structure each
member can contains some type of authority to complete their operations so that they can
achieves their targets in an effective way. It also helps in achieving the objectives in a
proficient way. In context of Morrison’s company they use this type of structure that
helps in achieve the targets and completes their objectives so that they earns high amount

of profits and revenues and sustain in the marketplace for a longer period of time. It also
helps in enhancing the productivity of an individual person and also maintains the
relations between the employees and the employer so that task can be achieved in a
timely manner. Morrison’s organizational structure chart is given below(Frösén and et.
al., 2016).
LO3
P4
To Morrison’s it is very essential to examine the macro environment by using PESTLE
analysis so that company will sustain in the competitive market place for a long time period and
earns profits. This shows the impact of the PESTLE factor on the operations of the business and
it can be shown below(Alsaad, Mohamad and Ismail, 2015).
 Political factor – It is an effective factor that helps in giving the knowledge related to the
stability of the government of the country. It also includes the various policies that was
implemented and imposed by the ruling party.
o Positive impact – In terms of Morrison’s supermarket tax that is based on the
Morrison’s can be void by the local government of the UK because of this the
people cannot pay high amount on the purchased of gods and services. this helps
in enhance their products range.
o Negative impact – It also contains the negative impact on the Morrison’s because
of high import duty due to this the price of the raw material are high and this will

enhances the cost of production. due to this customers pay high price on the
certain products that is import from the china and East Asia
 Economical factor – It contains the GDP, growth rate, buying power of people in the
UK that will affect the Morrison’s profitability in two ways(Eruemegbe, 2015):
o Positive impact – Because of global presence and low cost selling products
Morrison’s can expand their business in the more countries and it works as an
opportunitioes because of high range of goods and services they offered to the
customers.
o Negative impact – for the reason that of increasing the minimum wage rate of the
employees it will negatively impact the Morrison’s business because it consumes
more expenses and due to this they may face problem in run and operate the
business.
 Social factor – It is associated with the values, preferences, taste and attitudes of the
customers towards the trends of the market. it will impacted th Morrison’s business in
positive and negative way.
o Positive impact – Because of world is growing fast and the people follow the
latest trends and expect company will follow the same by delivering the products
in the Morrison’s in an effective way by using various effective channels and use
those products and services that are not harm and feel the particular person
sentiment.
o Negative impact – Now a days people are move towards the organic products
because they are conscious about their health due to t5his they consumes less
sweetened food and drinks that will be the major threat to the Morrison’s.
 Technological factor – As in the growing world advancement in technology helps in
successing the business enterprise and their operations. it can better the supply chain and
provides the customers in an effective way.
o Positive impact – Use of advanced technology in paying the amount of the
busing products by the customers helps in conveniently play the money without
waiting this will maintain the company image and attracts the customers.