Report: Analysis of the Business Environment for Morrison Plc

This report provides a comprehensive analysis of the business environment surrounding Morrison Plc, a UK-based food retailer. It begins with an overview of different organizational types, including private, public, and voluntary organizations, and discusses the growth of the international business environment. The report then delves into the organizational structure of Morrison Plc, explaining its hierarchical culture and operations within the retail industry. Furthermore, it explores the interrelationship of various departments within the company and how their functions contribute to achieving organizational objectives. A key component of the report is a PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors impacting Morrison Plc, along with their positive and negative implications. Additionally, internal and external analyses, including SWOT analysis, are conducted to identify the company's strengths, weaknesses, opportunities, and threats, and their impact on decision-making. Finally, the report elucidates the interrelationship between macro and micro factors affecting Morrison Plc, providing a holistic view of its operating environment.

BUSINESS & BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Explanation of different types of organisations and the growth of the international business
environment.................................................................................................................................3
2. Explanation of the organisational structure of different type of organisation........................5
3. Explaining the functions of the Morrison plc and how its function will interrelate to the
organisational objectives.............................................................................................................6
4. PESTLE analysis of Morrison Plc with its positive and negative impact on organisation.....7
5. Conduct the internal and external analysis for Marrison plc in order to identify the
strengths and weakness and their impact on decision making process.....................................10
6. Explaining the interrelationship of the macro and micro factors that are affecting the
Morrison plc..............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is the individuals, institution and all other factors that will help in
controlling the business enterprise, which helps in increasing the business profitability are the
business environment. There are lot of factors which helps in constituting the business
environment. Such as its suppliers, customers, distributors, employees , marker condition etc. the
present report will help in understanding the business environment that will affect the
performance as well as the profitability of the company. The present report will discuss about
Morrison plc which food retailer organisation operating in UK. The report will give an overview
of different type of organisation with its growth in global platform. Further, the report will
discuss the explanation of Morrison plc organisational structure with its regulatory framework.
Later, the report will include macro and micro factors analysis using PESTLE and SWOT and
explain the interrelation between them.
MAIN BODY
1. Explanation of different types of organisations and the growth of the international business
environment.
There are different type of organisation that varies as per there operations and purposes.
The four types of business organisation, they are: Private organisation: it is privately held company which are owned by non-
governmental organisation or by small group of owners. The main purpose of the private
organisation is the growth of business by maximising its profit. Business in the private
company includes selling of goods and services to customer (Saviotti and Metcalfe,
2018). The private sector funds their capital by raising shares and debentures to the
shareholders or investors. The example of private sector organisation is Morrison Plc
supermarket,
product and services- It is a retail supermarket organisation which are indulge in selling and
providing food products in their stores.
Mission and vision- To increase the customer satisfaction by supplying best quality food
products. To achieve the growth by adapting new technology in operations.

Purpose- the main purpose of Morrison plc is profit maximization by increasing its marker share
and customer base.
Legal structure- company has to get article of association, Memorandum of association and
after issuing with a certificate of incorporation the company can trade as private limited
company. Public organisation: Such organisation owned and governed by the government of a
country and established to provided services to the citizens (Berkhout, Hanegraaff and
Braun, 2017). They do not operates to make profit, but they operates to create enough
revenue to keep operations better. The main purpose of the public sector organisation is
to serve the citizens, generating employment opportunities, maintain infrastructure in
country. They played a great role in developing and growth of the country's economy.
For example, Bank of England.
Overview- it is the central bank of United Kingdom. It is the sole issuer of bank note. It manages
the gold reserve of the country.
mission and vision- to promote the good of the people of United Kingdom.
Purpose- its main purpose is to maintain the monetary and financial stability in the
country.
legal structure- The public sector are accountable to the central or state government, they
are funded directly by the government and they tend to supply public services. Voluntary organisation: Such organisation are usually comprised of several
organisation whose main purpose is to provide benefit and enrich to the society
(Greasley, 2017). They operates with no motive of making profit and there is no or little
intervention of government. The profit earned buy the voluntary organisation are invested
back to the organization for further operations. The example of voluntary organisation
are, The British Red Cross Society etc.
Mission and Vision- To work for providing help to people in crisis both in UK and overseas.
Purpose- Their main purpose is to work for helping people without discrimination, regardless of
their ethnic origin, nationality, political beliefs or religion.

2. Explanation of the organisational structure of different type of organisation.
Following are the organisational structure and size of different type of organisation.
Morrison plc: It is the private limited company which follows the hierarchy culture of
organisation. In this culture formal rules and policies are to be followed. Morrison plc has
defined organisational culture (hierarchical corporate culture ,2018). It is UK's 4th largest chain
of supermarket in United Kingdom, it has around 500 stores across the UK with the workforce of
130000. Its main operations are supplying and selling Food and Drinks, clothing, Books,
Magazines, CDs etc. in retail industry. The scope of business of Morrisons are wider as it
operates across the United Kingdom and also on the global platform.
Bank of England: It the central bank of England, it is the public sector organisation which are
governed by the government of United Kingdom. It is one of the world's oldest bank, which are
following hierarchy culture of organisation (Goffee and Scase, 2015). Its main objective is to
create financial and monetary stability in country. Its operation included making policies and
decisions regarding the financial monetary issues in the country. They are authorised to issue
banknotes in United Kingdom. It has wider scope which has to be ensure that all the firms and
society are renders with the financial services by the bank.
The British Red Cross Society: It is the voluntary organisation of United Kingdom which are
indulge in operation of helping the people all over the United Kingdom and overseas in case of
any crisis strikes. They follow the flattered organisational culture , where all of they are at the
same level. It has wider scope with more than 32500 volunteers and 3500 staff.

3. Explaining the functions of the Morrison plc and how its function will interrelate to the
organisational objectives.
The organisation structure of a company comprises of different departments, each
departments function are interrelated to other departments. The Board of directors' function is to
take policies and decisions regarding future growth and objectives of the company. All the
functions of several department will work to follow the ultimate objects. Morrison plc being a
retail sector company has to follow the market trend and customer needs product. The marketing
department will research and analyse the market trend and customer needs. Based on the report
from marketing department, the operational department will operated its function of
manufacturing the products according to the need of customer which will serve the objective of
the management of company. The HR department's function is to hire the best and suitable
Illustration 1: Organisation structure of Morrison plc

candidates for several departments. Its function will interrelate to the company's objective, as the
employees will great efficiency will increase the performance of all departments.
4. PESTLE analysis of Morrison Plc with its positive and negative impact on organisation.
Pestle analysis is strategic tool that helps in analysing the macro environment of the
Morrison Plc. Pestle analysis considered the different factors that can have positive and negative
impact on the organisation.
Political: It is the factor that may have direct impact on the Morrison's long-term profitability in
a country. As operating in retail sector, the political factors are great influencer as it is operating
different countries and faces different political environment and risk factors. Political stability of
country, level of corruption in country (Charoenkitamorn and et.al., 2018). The government
interference in retail industry, taxation and trade regulations & tariffs related to consumer
services. These political factors may have both negative as well as positive impact on the
Morrison Plc.
Positive:
Political stability of a country helps the organisation for its smooth operation that will
help to increase the profitability of organisation. Good tariff and trade regulation helps in import
and export of the company's product.
Negative:
The political factor such as level of corruption in country will have the negative impact
on the working of company. The taxation system varies from country to country that will affect
the revenue earned from that country.
Economical: The factors such as inflation rate, saving rate, interest rate, foreign exchange
determine the demand ans supply and investment in an economy. The different type of economic
system in countries of operation and its stability. Exchange rate and stability of the country has a
big impact on the organisation and its revenue (Quigley and et.al., 2018). The financial market
system, its the company needs to raise the capital. The level of efficiency of worker in retail
sector has a great impact on the operation of country. The qualification and educational level in
the economy of country.
Positive:

The Morrison Plc can use the company's stable economic factors such as growth rate,
inflation & industry’s economic indicators such as Retail industry growth rate, consumer
spending etc. to forecast the growth trajectory of not only retail sector but also that of the
organization.
Negative:
If a country has less education level in economy there will be no skilled worker to hire, it
will affect the affect the operations of company and its profitability will be hampered. The
inflation and exchange rate of currency will increase the cost of product and import in the
particular country that will hamper the revenue and growth of Morrison in that country.
Social: the culture and value of the society have a great impact on the culture of organisation in
that environment (Morrison and et.l., 2011). The belief and attitude of the population plays a
great role in understanding the customer and their needs by the marketing team of Morrison Plc.
The social benefit needs that has to be analysed by the leaders such as the demographic and skills
level of the population,class structure of people in the country. Attitude of the population
towards health and environmental issues etc. These factors has both positive as well as negative
impact Morrison Plc in the country.
Positive:
The positive culture and the entrepreneurial spirit and broader nature of the society helps
in enhancing the skills and belief of the population, that helps to build a favourable
organisational culture (Castle, Morrison and Barger, 2011). The educational level and skilled
worker contributes in the growth of the organisation.
Negative:
Rising age population prevents various business opportunities of Morrison Plc. Brexit has
going to affect the standard of living and consumers priorities that will affect the profitability of
the retail market sector in UK.
Technological:
Technology is fast disrupting various industries across the board.
A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry (Morrisons Plc SWOT and PESTLE Analysis ,2018). Slow

speed will give more time while fast speed of technological disruption may give a firm little time
to cope and be profitable. The technological factors such as the investment in technological
development, impact od technology on product offering, rate of technological diffusion.
Positive:
Investment in technology will help the company in reducing the waste efforts and cost
making the business more efficient and responsive to customer. The use of digital data ton
inform the business in identifying the emerging trends and helps in achieving the customer
satisfaction.
Negative:
Implementing technology in company will require heavy investment. Skilled employees
are need to be hire for accessing the it deportment. It will create an extra cost to company.
Investment on technology can affect the revenue of the company.
Environmental:
Different markets have different norms or environmental standards which can impact the
profitability of an Morrisons Plc in those markets. Even within a country often states can have
different environmental laws and liability laws. Such environmental factors are weather, climate
change, laws regulating environment pollution, regulations in retail industry etc.
Positive:
As per working according to the laws and regulation of country's environmental laws and
regulations the company can achieve the better networking from government (Chick and et.al.,
2018). Eliminating through waste management could save company's cost.
Negative:
Before entering a new market or starting a new business Morrison should carefully
evaluate the environmental standard in the particular country for the operations. Weather,
climactic changes may affect the operations of Morrison that should be analysed properly.
Legal: The regulation framework of the country plays an important role in protecting the
intellectual property of the organisation. Before entering to the market, Morrison plc should

evaluate the legal structure and framework of the country. Some legal factors are discrimination
law, consumer protection law,employment law etc.
5. Conduct the internal and external analysis for Marrison plc in order to identify the strengths
and weakness and their impact on decision making process.
SWOT analysis is a tool which helps in identifying the strategies that an organisation
needs to evaluate from its strength, weaknesses, opportunities and threat of the company. SWOT
analysis helps the Morrison plc to make strategies by evaluating these tool. It will help the
organisation in making effective decision making process.
The SWOT analysis of Morrison plc are as follows:
Strength: It is the internal strategical factors that helps in evaluating the strengths of the
company. Being one of the leading in its marketing industry, Morrisons is possessing numerous
strength which helps it to be competitive in market and maintain its customer base (Pesce and
et.al., 2018). Morrison plc has efficient supply chain and distribution channel, its digital
marketing through websites has increased its sales and revenue of the business. It has over 500
stores in UK with a strength of 130000 workforce.
Morrison is expertises in entering new market and making success. it helped the
organisation in building new strategies for enhancing its revenue stream. This will impact the
decision making process, as company has to make new strategies to built its strong brand
portfolio in order to expand its new product-line in new market and helped in gaining customer
satisfaction.
Weaknesses: These are the internal strategic factors that Morrison plc should evaluate for
improving the area where needed (Waddington, 2017). As compared to other organisation in
retail industry, Morrison plc's profitability ratio and net contribution are much below than other
organisation. Though Morrison has grater workforce than other organisation, it has to spend
more on training and development as compared to its competitors. The organisational structure
are limiting expansion in product segments. Morrison plc had to do more investment in
implementing new technology for expansion across the board.
Weakness can impact the decision making process, as the training and development of
employees will create extra cost to company. In order to expand the business in new

geographical location, company has to invest on its technology to reach more customers across
the border. It affect the decision making process as investment on technology will require to cut
the cost in operations. Financial planning has to be revised by the company, it will affect the
current decision making policy as current asset ration and liquid asset ratio needs to be changed.
Opportunities: it the external strategic factor that Morrison plc should evaluate to make new
decision policies remain competitive in the industry. In order to achieve the competitive
advantage, the company need to see what are the opportunities that it can grab (Özkale and et.al.
2017). There are new environmental policies that will help the Morrison plc in advantage in new
technology and help in increasing market share in new product category.
Opportunities in market can impact the decision making process, new strategies for the
improvement in digital technology had to be made in order to practise differentiated pricing
strategy in new market. It will help the firm in maintaining its customer base in the market. The
company has to make decision regarding the adaptation of new technology standard and
government free trade agreement which will enable Garrison in entering the new market.
Threat: It is the external strategical factors that will create threat or challenging for Morrison
plc. Increasing technological era has been increasing the competitors also which being
challenging for the company in long-term future. Lack of producing innovative product in
market is creating to high and low rate of sales for much period of time. Increasing the
competition in market is a great threat foe the company which are creating pressure on Morrison
plc
Increasing market share and customer base of the competitors, has impacted decision
making process (Scolozzi and et.al., 2014). As new decisions and strategies are being required to
attract the customer. Company has to cut the prices , promoting their products through discounts,
special offers etc. Increasing in taxes has lower down the profit earned buy the company that will
impact the decision making of the operational activities of the company.
6. Explaining the interrelationship of the macro and micro factors that are affecting the Morrison
plc.
The macro and micro factors are interrelating to each other, these factors affect the
decision of each other and will affect the Morrison plc. The weakness of the company that its not
a cost-leader in the market, will interrelate to the social and economical factors. However,

during th etime of inflation the spending power of customer will decrease they choose the
cheaper product that can affect the profitability of Morrison plc. The internal strategical factors
of Morrison like strength and weakness has linked with technological factors. The increasing in
the technology has given a tool to customer through which it can compare the prices offered by
the Morrison with other competitors. However, the adaptation of new technology will help in
promotion the product which will help in attracting more customer to the company.
The company is facing threat of new environmental regulation it can influence the macro
environmental factors of the company. The increasing in the environmental laws like eliminating
the use of plastic bags will affect the profit of Morrison, however implementing using of non-
degradable plastic bags will also help in maximising the profits of company that will also help in
creating good of the company in market.
CONCLUSION
By summing up the above report, it can be concluded that business environment are the
forces that affect the operations and performance of the organisation. The present report has
concluded different type of organisation with their legal structure. The report has included the
size and scope of different organisation. The report has discussed relationship between
organisation structure with their objectives with the help of a chart. The report than concluded
macro factors that impacted Morrison plc with their negative and positive impact. Further, the
micro factors are also analysed with their impact on decision making process. Later, the report
has shown the interrelationship of macro and micro factors.

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