Business and Business Environment Report: Analysis and Impact

This report delves into the intricacies of the business environment, focusing on diverse organizational structures, including private, public, and voluntary companies, with a specific case study on Morrisons. The analysis encompasses the size and scope of various enterprise organizations, the interrelation between different business functions and structures, and the positive and negative impacts of the macro environment on company operations. Furthermore, the report includes a detailed SWOT analysis of Morrisons, assessing the interrelation between strengths, weaknesses, and larger environmental factors. The report explores the legal structures, purposes, vision, and mission of different types of organizations such as Starbucks, NHS, and Oxfam. It examines how these aspects are linked to business objectives, products, and services. The report also covers the interplay between marketing, finance, and human resources within an organization. Overall, the report provides a comprehensive understanding of business operations within a dynamic environment.

Business and Business
Environment

Table of Contents
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................1
Diverse kind and purpose of organization with their legal structure......................................1
Explain the size and scope of various form of enterprise organisation..................................3
Task 2...............................................................................................................................................6
Inter-relation between different functions & structure...........................................................6
TASK 3............................................................................................................................................8
Assess the positive and negative impacts on macro surrounding on operations of company 8
TASK 4..........................................................................................................................................10
Analyse the SWOT analysis of company.............................................................................10
Assess the Interrelation among strength and weakness with large factors...........................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

Introduction
Business sector is changing rapidly and it is becoming necessary for every individual to
have a focus on different types of organization so that goals are accomplished. Entrepreneurs
choose the type of organization on basis of market and proper research analysis and accordingly
strategies are implemented and objectives are achieved within time period. (Al-Taie, 2020).
Main purpose of this report is to understand me importance of Business and business
environment in this contemporary area and market. Competition level is increasing at higher and
it is becoming essential for every business to focus on changing market situation to understand
the business environment. Morrisons, which is a large supermarket chain headquartered in
United Kingdom. It deals in large number of products like daily consumable items, grocery
product and many more. This report comprises of various types of organization, Size and scope
of various enterprises, relationship between organizational function and structure, positive and
negative impact of macro environment, SWOT analysis and interrelation of macro factors with
strength and weakness.
Task 1
Diverse kind and purpose of organization with their legal structure
There are three kind of corporation that is described as under:
Private company: The first type of company is the private company, there kind of companies
are owned and manage privately started with the main aim maximizing profit and satisfying the
needs and wants of their target customers. The private companies are the legal separate entity
incorporated under companies act. The Starbucks Company is of the example of private
company
Purpose: The main purpose of Starbucks is to be the leader in the marketplace and
maximize their profits. Also to analyze the environment and culture under which it operates and
perform accordingly.
Vision- Vision of this company is true being the leading food and Beverages Company
across the globe.
Mission- Mission is to provide high quality of products and services to customers to
increase Goodwill of a brand.
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Legal structure:
Sole proprietorship: Under this a single character performs enterprise and intention to
perform income for unmarried character. As it is owned and managed by the single entrepreneur
so who is only responsible for all the profit and loss.
Partnership: it is the type of company formed with the mutual agreement between two
or more individual who agrees to carry out all the business activity together and sharing all the
roles and responsibility as well as sharing all the profit and loss according to the partnership deed
(de Vecchi, 2018).
Corporation: It is started out through the group of individuals. The reason is to perform
income however it wishes lot of paper works an agreement that subsequently turns in to
settlement. The stakeholders are considered to be the main party under this type of corporation
Public agency: The public agency are the type of companies which are owned and
managed by the government, which the main aim of satisfying the needs and wants of the
general public, this type of companies are owned by the government bodies, even the major
decisions are taken by them. The national healthcare services (NHS) is one of the public services
company owned and controlled by the public bodies (Ayios 2018).
Purpose: The main aim of NHS is to diversify healthcare company for the health of
human beings belonging to incredible magnificence or earnings group without any kind of
discrimination.
Vision- Vision of public agency is to provide benefits services to public and increase
their living standard.
Mission- Main mission of this enterprise is to provide health care services to people.
Legal structure:
Central authorities: Its motive is to manipulate and manipulate the sources of the
economic system by using assisting the agency to execute paintings effectively. They have the
strength to enlarge guidelines and regulations in the advantage of the economic machine (Chang,
2018).
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State government: Some services are presented by using way of U.S.A. Authorities
most effective in order that they percentage their electricity with countrywide government as
properly.
Local government: Necessities at individual diploma are placed out through them. They
accumulate budget additionally thru way of council tax.
Voluntary company: These type of companies are started with the main aim of working
towards satisfying the needs and wants of the society and also actively working towards their
welfare. It is mainly started by the individual who is interested in working towards social
welfare. Oxfam is one of the example of these type of company which is continuously working
towards social welfare (Dressler and Paunović, 2019).
Purpose: The main purpose of the company is to continue to work towards social
welfare and help community facing poverty
Legal structure:
Trust: It is one of the essential document which helps in creating trust among two parties
involved, it allows the individual or the business organization the right to effectively manage the
money or essential for someone else. It is basically the legally binding document or
arrangements and also including the unsecured debts.
Un-incorporated association: These type of companies are formed through the mutual
agreement between two or more people with the aim of satisfying the needs of the society and
not earning profit.
Task 2
Explain the size and scope of various form of enterprise organisation
Private organization: It is a vital segment of financial gadget that is completed with the
useful resource of the business enterprise human beings that body the registered commercial
enterprise. Herein, Starbucks Company which continuously tries to apprehend the dreams of
purchaser and provide predicted amount of kinds to fulfill the dreams of capability aim
marketplace (Foltean, 2019).
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Background: It is the widely known multinational agency which has the main chain of
Coffee residence everywhere in the globe. Advanced tool and techniques are taken into
consideration to understand the buyers behavior that allows to grown the operation of the task.
Vision: The vision statement of the company is to offer excellent quality of coffee and
build long term relationship with their potential customers.
Mission: The motive of reputation quo is to expand the present skills in their personnel
further to higher them to create a heat way of lifestyles. Their recognition is given to keep the
uniqueness of their store in addition to offer their products around the globe (Ghosh and Rajan,
2019).
Objective: The objective is to govern the explicit function of well established brand
everywhere in the country in respect of earning competitive advantages over extraordinary
opposition.
Size: The employer serve in expected 28000 geographical regions, having vast number of
employers around the globe.
Scope: The predominant scope of Starbucks is to enhance their economies of scale
through enhancing their productivity and reducing cost.
Structure: The structure of the company is Matrix commercial enterpris, organization
structure in respect of effectively the facts and verbal exchange the various personnel and higher
delivery facilities to the patron
Public corporation: These challenges are controlled and run by means of way of countrywide
government to provide expected facilities for the significance of network (Hampden-Turner and
Trompenaars, 2020).
 Background: NHS is part of healthcare gadget company in UK. This corporation is
started in 1948, offering variety of services, which include dental treatment and optical
offerings at nominal prices.
 Vision: The main vision of the company is to improve the health of each people by way
of providing healthcare service effectively.
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 Mission: The aim of the company is to provide you with contemporary services along
with technology and equipment for the betterment of fitness offerings in respect of
getting keep of better outcome.
 Objective: The objective of the company of NHS is to provide higher healthcare
centre’s and controlled agree with of patients.
 Size: The primary size of the NHS Company has made it viable to characteristic internal
fur international locations of UK which consist of Scotland, Wales, North Island and
England. The organisation has employed over 1.5 million frame of people that on the
steady basis seems for the better health of sick human beings.
 Scope: The scope of NHS is to growth the fitness device and guards the lives of character
from paying heavy monetary prices. Structure: Hierarchical framework is observed with
the useful resource of NHS Company wherein all of the commands are introduced from
better scale of authority to decrease degree.
 Voluntary business enterprise: It is largely bear in mind non-profits organization with
the aim of working towards the social welfare. Herein, Oxfam is one of the Voluntary
business enterprise.
 Background: Oxfam is one of the well established voluntary organization working
towards the welfare of the society. The company was started in 1942 and currently
having around 19 charitable business around the globe.
 Vision: The imaginative and prescient of the company is to see the hobby of person and
create awareness in respect of creating the motion resultant reducing the global poverty.
 Mission: The mission statement of Oxfam is to provide solution for the general increase
of the dominion.
 Objective: The objective of the company is to expand their business and gain
competitive advantage in the marketplace. and also continue to work towards the welfare
of the society.
 Size: The Corporation has strength of around 10,000 people operating hard to fight
poverty in over 90 global places. Along with this, the task spent $1.14 billion and reached
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greater than $22.2 million character in its long time development and humanitarian assist
programs (Harmon, 2019).
 Scope: The chosen firm has extensive scope as they operate in approx 90 international
locations with hundreds of companions.
 Structure: The management of this company complies with useful structure to work
against global motive.
Analyze how the structure, size and scope of different organizations link to the business
objectives and product and services offered by the organization.
Size and scope of organization like private public and voluntary is a linked with the
business objectives and product as well as services offered by Morrison’s because with the
consideration of these three components products and services of organisation are being
distributed within market. Moreover it is to specify that these help in accomplishing of goals as
well as objectives within time period. It is necessary for select company to have a proper
awareness about these elements that strategies are being implemented accordingly. Size
and scope of enterprise, need to be properly analyzed so that goals are accomplished properly
without facing any problem (Kim and Shim, 2018).
Task 2
Inter-relation between different functions & structure
It is critically essential to have a deep knowledge about different functions structure so
that accordingly operations are being carried out in there are different types of functions and
structure which are integrated with each other and are mentioned as follows-
Marketing and finance: Marketing department of Morrisons agency is responsible to
well known the purchaser behavior in respect of increase the structure of the hole. Essential
information of the purchaser behavior with the aid of interaction and market analysis helps
business organization in sporting out the planning and promotional plan. The finance division of
Starbucks reputation quo is responsible to maintain the accounting of all of the monetary
transaction purpose of which budgets are organized for unique tenure. These budgets are utilized
with the aid of using marketing unit in respect of format campaigns and promote visitors of
clients (Al-Taie, 2020).
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Marketing and HR: The main responsibility of the human resource department is to
manage and handle the workforce of the company and ensuring that there is availability of
skilled and talented workforce at the right place. The HR supervisor of respective organization
includes of employee portal is primarily based upon on which the entire important information
with reference to the profits and personal information are indexed down for better management
of group of workers. Basically, marketing and advertising supervisor of respective agency
transmit critical facts to human useful beneficial useful resource branch approximately the 6
exchange in fashion or regulations based totally absolutely mostly on which training is offer to
personnel to decorate their skills (Kopnina, 2019).
Organization structure: The structure of Morrison’s is generally Matrix structure
company form that includes intersection with numerous realistic regions of corporation. Several
divisions together with finance, advertising operational and HR are associated and together
beneficial useful resource to carry out the better manage and controlling approach.
Analyze the advantages and disadvantages of interrelationships between organizational functions
and the impact that can have upon organizational structure.
Organization functions are inter-related related with structure of enterprise. Main benefit
of organization function and structure is that with the help of these two businesses is capable of
driving their activities effectively. Organization function have a direct impact upon structure
because functions like Marketing department making sure that profit and sale of business is
increasing at higher scale. This has been also analyzed organizational functions as well as
structure and need to be properly carried out so that strategies are implemented accordingly.
Limitation of organizational function which structure is that Marketing department changes their
activities according to situation and it took time for structure of the Enterprise to get adjusted.
These impacts need to be properly examined so that everything is being stated and implemented
properly with the detailed information (Levine, 2019).
Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions.
Different types of business structures are there for example Matrix, divisional, etc.
Depending on their bases and requirement, structures of firms are being adopted by company.
This has been examined that both the structure and organizational function need to be
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simultaneously working so that all activities in enterprises are effectively executed with proper
consideration. From the above discussed paragraph it is seen that structure and functions of
company play important also these are to be adopted in such a way that benefits are achieved at
all aspects. Each buisness organiosation has their own business structure, the types of buisness
structure used depends on the size of the business orgnisation, there are various functions are
carried out in every kind of buisness organisation having different structure effectively. The
nature of each structure and the interrelationship among those structure is different which leads
to directly makes the operational implication more effective. The kind of business structure used
in the micro firm will be more simple and direct as compared to the structure of the small and
medium size business. The interrelationship in the functions of the micro business will be more
simple and direct which allows the company to have effective operations and enhance the overall
performance as compared to the small and medium business which has bit difficult and separate
functions, interrelatuionship amongt them will lead to more effeciency. Whereas the global
business has more complext business structure under which the decisions are taken by the
regional operations, for enhancing the better performance the business functions should be
standarised. In case of the of the chosen company follow the matrix structure which allow the
company to effectively manage and maintain various functions effectively and efficently.
Company effectively participate in decision making related to various units of the organisation
also ensuring effective interrelationship among various department.
TASK 3
Assess the positive and negative impacts on macro surrounding on operations of company
PESTEL Analysis: It is defined as the one of the essential strategic tool used by the business
organisation in order to evaluate the macro environment in which company operates. It helps
company to evaluate the various factors that can directly impact the functioning of the business
and analyse the changes happening in the environment. It is essential for the business
organisation to conduct the macro analysis in order to evaluate and analyse the various factors
present in the macro environment and directly influencing the functioning of the business
(Matthyssens, 2019). It will also allow company to formulate essential strategy to deal with the
factors effectively. In context to Morrison the PESTEL analysis is highlighted below:
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Political factors: The political factors includes the government policies, rules, taxation, laws and
so on and the extent to which the government of the country influence the business operations.
Any kind of political changes or instability will unfavourable environment for the company. In
context to the chosen company, company is directly expose to the various political environment
while trading their operations, son any kind of changes in political factors or Brexit will
influence the functioning of the company.
Positive impact: The Company is enjoying the positive impact of the modern politics
which allows free trade in many countries.
Negative impact: The increase in the tax rate or any political changes will directly
influence the functioning of the company.
Economic factors: The economic factors include inflation rate, interest rate, employment rate or
consumers spending power and so on. developed will allow consumers to spend more and will
help company to grow and vice versa (Mukherjee and Nuñez, 2019). In context to the chosen
company, UK has biggest economy around the globe and has essential policies and strategies
which allows company to grow effectively. Some of the positive and negative impact of the
factor on the company are highlighted below
Positive impact: Developed economy allows its customers to spend more buying
products and services which lead to enhancing the profitability and productivity of the company
effectively.
Negative impact: The economic factors like employment rate or recession will directly
impact the functioning and profitability of the company.
Social factors: The social factors include cultural and behavioural factors which directly impact
the performance of the business organisation. Company needs to continuously analyse the taste
and preference of the customers so as to fulfil the wants accordingly. In respect to selected
organisation, company continuously work towards satisfying the changing needs of the society.
The company uses its brand value and name in order to attract customers and keep up with
changing trends and preferences in the marketplace effectively (Ray and Chaudhuri, 2018).
Positive impact: The chosen company is one of the fourth biggest chains of supermarkets
in the UK attracting large number potential customers and continuously satisfying their needs
and wants which leads to enhancing customers base.
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Negative impact: The changing taste and preference of the customers will directly
influence the performance of the business organisation.
Technological factors: It includes introduction of new technology or advance technology which
has direct impact on the performance of the company, use of innovative and advance technology
will helps company to gain competitiveness in the market. In respect to the Marrison company,
company needs to make sure that they are using well developed technology to enhance their
performance in the market (Joo and Shin, 2018).
Positive impact: Company is actively engaged in using various advance technology in
order to attract large number of customers and enhance their performance.
Negative impact: Any changes in the technology will directly influence the operations of
the company.
Environmental factors: The another factor is the environmental factors, it involves improving
the lives of the society through working towards their welfare , each and every business has
responsibility to work towards the welfare and sustainability of the environment which leads
them towards gaining competitive advantage in the market. in context to the chosen company,
they are activity committed towards sustainable development goals to reduce the food waste and
offer varieties of naturally wonky produces in the stores.
Positive impact: The company is activity working towards the sustainability of the
environment such as reducing food waste, working towards environment will help company to
gain competitive advantage in the marketplace.
Negative impact: Not fulfilling the environment responsibility can lead company towards
failure and can effect their profitability.
Legal factors: The legal factors includes all the legal laws, rules and legislation implemented by
the government that has to be followed by each and every company for smooth functioning and
execution of various operation (Raynus, 2019). In context to the chosen company, company
follows all the required legal laws and legislations such as safety and health related laws and
keep themselves updated with the current legislations and laws in order to work smoothly and
effectively.
Positive impact: The company follows all the required laws and legislations which allows
them to work smoothly without any barriers.
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