Morrisons Business Environment and Organisational Functions

This report provides a comprehensive analysis of the business environment of Morrisons, a well-established supermarket chain in England. It begins with an introduction to the concept of the business environment and its impact on organizational operations, growth, and objectives. The report then delves into the organizational structure of Morrisons, highlighting the relationship between different organizational functions such as marketing, human resources, production, accounting, and research and development, and how these functions link to the company's objectives. A significant portion of the report focuses on the macro-environmental factors affecting Morrisons, utilizing the PESTLE analysis framework to identify and assess the positive and negative impacts of political, economic, social, technological, and legal factors. The report offers specific examples to support these impacts. Finally, it examines how the company's strengths and weaknesses interact with these external macro factors, concluding with a summary of the key findings and implications for Morrisons' strategic management.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Explain the relationship between different organisational functions and
how they link to organisational objectives and structure..............................1
TASK 3............................................................................................................................................4
P4 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples..........................4
TASK 4............................................................................................................................................6
P5 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples..........................6
P6 Explain how strengths and weaknesses interrelate with external macro
factors..................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment can be stated as process where there are various kind of factors
within the surroundings which in turn has positive and negative impacts on the process of
business. There are various kind of factors which are being impacted for functioning, growth,
performance along with objectives in number of ways. Hence, it is highly essential to have
scanning regarding the environment of company done by the management (Bah and Fang, 2015).
This kind of study will be highly related to the strength and weaknesses along with macro and
micro environment. Company taken for this kind of report is Morrisons which is well established
marketing within England and thus have around 500 outlets working. There are various different
products which are being offered including clothing, books, magazines, foods and drinks. There
are number of things which will be discussed within this report like various kind of aims and
objectives. There are number of relationships which will be conducted in order to attain the
objectives within allocated period of time. Besides this, there are number of macro and micro
which will be considered while formulating regulations and rules in better way.
TASK 1
Covered in PPT
TASK 2
P3 Explain the relationship between different organisational functions and
how they link to organisational objectives and structure.
There are some certain tasks and objectives for every kind of company which needs to be
accomplished within tenure given. It is highly essential for the company to conduct the
operations along with activities in effective manner in order to manufacture the items efficiently.
An appropriate framework needs to be designed by the manager of company with the motive of
attaining goals and objectives in effective manner (Belás and et. al., 2015). Area of operations
are being done within the context of Morrisons and thus they mainly have about 85600
employees which are working with them. Company is mainly providing necessary services to its
employees so as to maintain the healthy kind of relationship for long period of time. There is
sufficient amount of finance, hence it is highly essential to complete the whole activities in
effective and better manner.
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Flat organisational structure is being followed by the Morrisons, therefore there are entire
activities which are being done for completing the job. This in turn will allow to have
motivational factors which can be given to the employees and thus there valuable suggestions
which can be taken within process of decisions making. Strategies will be modified by the
employer on regular basis. This will allow the company to have growth and success which in
turn will provide various kind of benefits from the contenders within market.
Figure 1: Organizational Structure, 2018
Source: Organizational Structure, 2018
Morrisons mainly perform the various kind of activities which in turn will include the
sales, marketing, accounting and R&D sector (Botha, Kourie and Snyman, 2014). Certain aims
and objectives of the company will accomplished in effectual way if all kind of sector performs
in better and effectual manner. There are various kind of functions which are mainly attached
with the structure along with targets which can be attained by applying maximum effectiveness
along with appropriateness.
Hence, there is the interrelationship among various kind of sectors along with the
functions which are being described below:
Marketing department: This kind of function is highly related to the foremost company
which is being implemented and thus in that, sales item along with the services for the people at
marketplace. There are certain needs which should be known along with clients demands. Hence,
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goods will be manufactured as per the needs and desires (Cai and Yang, 2014). This has been
mainly observed that this kind of unit is being launched with every kind of division along with
performing many kind of activities. This will mainly provide the help to avail the benefits from
the rivals within marketplace. Main functions perform by marketing department include
promotion planning, distribution planning, consumer analysis, environment analysis and price
planning.
Human resource department: This is one of the mots effective and essential sector of the
company where the manager of the HR sector will have the process of selection and recruitment
and will hire the effective workers. This will mainly help other kind of sector to bring out the
coordination along with cooperation among each other. Recruitment and selection, orientation,
maintain good working conditions, development and training and manage employee relations are
the major functions perform by human resource department.
Production and operations: This kind of factor which is bring performed at the starting
stages. This kind of factor is highly essential for obtaining the needs of the people which in turn
will manufacture the products as per that and thus accomplish the needs of customers in
allocated period of time (Caiazza, Shimizu and Yoshikawa, 2017). With the relation to the
Morrisons, items are being introduced in order to evaluate the market so that needs can be
fulfilled and thus objectives can be attained. Major function perform by production department
of Morrisons include: manufacturing of products with quality, purchasing, design, plan
production and many more.
Accounting and finance: This kind of factor is highly connected with the financial sector
which mainly occurs on the regular basis. It is highly essential to develop the budget along with
allocating certain amount to everyone in an effective manner. If the image of brand which is
highly strong and thus can be taken from the financial companies. Formulation of budget,
financial control, management of risk and many more are the major functions perform by finance
department.
Research and development: it is highly essential to analyse desires and needs of the
customers in order to accomplish them in better way. This will provide help in attaining the
competitive advantages from the competitors. This will in turn improve the market share along
with profits. Research on new product, development of new product, quality checks and
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innovation are the major functions perform by research and development department of
company.
TASK 3
P4 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples
There are various elements that exist in surrounding and possess direct impact on overall
functioning and operation of business entity. It has been figure out that extrinsic factors are
totally uncontrollable. Mainly there are two sources of factors namely Internal and External that
affect firm either positively or negatively. In context of Morrisons, it is primarily important fir
them to follow all rules and regulation in an effective manner which ultimately leads to
accomplish business goals and objectives in a structure and thorough manner (Cull and et. al.,
2015). To evaluate extrinsic environment properly, the company needs to take the support of
PESTLE Analysis framework which help in determining the impact of external factors such as
political, technological, economical, socio-cultural, legal etc. on their overall business operation.
Each factors posses an influence on company in both positive and negative manner.
Political Factors: This external factor determine the extent of government to which they can
influence or affect company's business operation. Under this, rules and regulation mainly
formulated by government bodies. However, if any new law introduced by regulatory body of
particular country the company is obliged to follow it and this will directly impact Morrisons
operational activities. Positive effect: With the formulation of such policies , it become easier for firm to
operate business in more appropriate manner. For example: Suppose if there is a
implementation of free trade policy in the country then it ultimately helps in diminishing
cost concerned with sourcing. In addition to that, it has been analysed that Brexit also
impact overall business exercises of Morrisons.
 Negative effect: If Government introduce new legislation into affiliation then it lead to
increase the cost of resources. However this is not good for the company as well as for
clients because it leads to decrease the value of goods and services that are offered by
company among its target audience. Moreover it also affect customer and market base of
the firm as well.
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Economical Factors: This factor is related with inflation, growth and interest rate. These rates
are usually vary from one country to another. As Morrisons operates in many countries so they
need to effectively taken into account all these economic factors (Eling and Schaper, 2017). If
there is any alteration found in an economy then it will directly affect the production and sales
department of the company. Therefore, it is necessary to examine all economical change that are
taking place in the market or surrounding. Positive Effect: At the time of deflation, purchasing power of customers gets improved
which ultimately leads to increase the overall productivity and profitability of Morrisons.
 Negative Effect: During the situation of inflation, purchasing power of buyers gets
decreases because prices of products gets increased which enable customer to think
before actually buying product. Moreover in such situation customer prefer to buy
product available at low cost. Chances of shifting from one brand to another remains high
at the time of inflation.
Social Factors: In order to attain operational activities in a proper manner firm needs to obtain
some essential resources from surrounding. Thus, it is fundamental duty of company to return
something to society as well (Epifanova and et. al., 2015). The company can do so by putting
lots of efforts in conducting various CSR activities through which business is adequately serving
to the society and making it a better place to live. Along with, it also assist the firm in gaining
high competitive edge in the overseas market.
 Positive Effects: By this factor, companies are able to enhance its goodwill in the market
and they can attract large number of customers as well who are much associated with its
country or society. Morrisons can improve its customer and market base among other
competitors.
 Negative Effects: The main disadvantage is Morrisons is not producing products as per
customer needs and requirement. They are launching special chain of items that may not
be liked by customer but still they launch so as to beat market competition.
Technology Factors: It is important for every firm to use innovative and advance technology
that gives them high competitive advantage over its rivals. In the modern era, many new form of
methodologies have developed that makes the functioning and operation of business more
effectively and efficiently (Georgescu and Popescul, 2015). With the help of latest technology,
company can increase its overall productivity in a structure and through manner and eliminates
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unnecessary waste and cost. Along with the company becomes able to make their business
function and operation more effective. Positive Effects: Innovative technology is positively affecting Morrison's growth and
success as it assist in making their workflow more effective which enables them to
accomplish desired task within stipulated time frame.
 Negative Effects: It requires huge investment and cost for introducing latest technology
in the company.
Legal: This factor compromises of such laws and regulation which are mainly formulated by
particular country's regulatory body so that entire functioning and performance of company gets
increase. Positive Effect: If Morrisons follows all laws and regulation systematically it
automatically reduces the chances of doing unethical work. In addition to that, company
can also improve their brand image and goodwill in the country.
 Negative Effect: In case of non-compliance of these factors companies will have to bear
high penalties or consequence for the same.
Environmental Factors: These factors are directly related with surrounding and possess strong
impact on company's operation. Positive Effect: In case of Morrisons environment factors will affect their operation in a
positive manner. For example: Eliminating red tapism increases company;'s efficiency.
 Negative Effect: Extensive use of carbon footprints may adversely affect environment
and society.
TASK 4
P5 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples
Below described is the SWOT analysis of the company (Morrisons SWOT analysis. 2017) :
Strength
 Strong brand image all across the
world.
 Offering wide variety of product and
services to target audience.
Weakness
 The company deals with numerous
issues such as they are not able to
regulate business in adequate manner.
 Prices of products are relatively high.
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 Strong market and customer base that
gives them high competitive edge in
overseas market (Huang-Horowitz,
2015).
 Pre tax revenue decreases by almost
10%.
Opportunities
 The company needs to expand its
market presence through online channel
as well.
 The company gains popularity in
transactional banking segment.
Threats
 Strong market competition prevails in
market.
 Economy recovery is slow as compared
to others growing countries.
PESTLE analysis will be mentioned as beneath:
FACTORS EXPLANATION
Political  Business is being operated in constantly political situations.
 There were many changes within the rules and regulations.
 Various strict policies are being formulated.
Economical  Income of an individual which mainly resides within UK which are
being increased.
 Maximum opportunities for job will be provided by company for the
people.
Social  This is being needed for the company for concentrating on changing
the preferences along with taste of clients which will be
accomplished as per that.
Technological  There are various kind of changes within the technology which in
turn will provide the positive impact on the economy of country.
 There are various kind of sources which has the data along with
addition solution regarding the communication.
Legal  There are eco-friendly products which are being utilised for the
production of goods and services.
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 Items are being packaged for the standard which are mainly
developed by Govt.
Environmental  It is being needed to mainly focus upon the waste management.
 This in turn will mainly introduce the various kind of training and
development sessions along with optimum utilisation of resources.
P6 Explain how strengths and weaknesses interrelate with external macro
factors
Every company operate in a environment which is made up of various external factors.
Changes take place in those elements affect company’s operations in both positive and negative
manner. Morrisons is one of the significant player in retail sector of UK. They are selected in this
country. Brexit is a political scene which may restrict this wander from accomplishing their gaol
of brisk extension (Khan and Quaddus, 2015). This external factor will make more troubles for
Morrisons in expected time since they have to contribute more money and vitality, post Brexit,
for fulfilling diverse kind of commitments. Brand estimation of Morrisons is amazingly strong .
They are considered as one of the fundamental brand in dress segment. Engravings and Spencer
is entering in creating markets like India. This country has most vital money related
advancement rate and obtaining vitality of people in this nation is moreover extending. Delicate
coordination is a key deficiency of Morrisons. This association can use latest advancement for
improving their assignments related to coordination. Morrisons can in like manner use new
development in analysing distinctive market slant which is accessible in different countries. They
are working in various nations so if they will evaluate each market then they can make items and
give benefits in like way.
Company has an opportunity to expand its activities in operations in various areas of world.
With this, company can deal with its weakness of limited geographic reach. Further, company
can go for different strategies such as strategic partnerships in order to boost up the business
growth. Increasing competition from other players is one of the major threat for company as this
decreases the profit margin of company, to deal with this company can use its positive brand
image to attract more customers towards its offerings. Increase in tax rates and government
policies is another threat for company and to deal with this company can increased its online
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business. As Morrisons has an effective supply chain, through this company can offer its featured
products
CONCLUSION
From the above report, it has been summarised that business environment of a firm
should be healthy and positive in nature where workers can work with full of efficiency. Proper
planning can aid organisation in hitting its desired targets. Size along with scope of business firm
helps firm in making plans and strategies which should be considered by administration in much
effective way. With the use of PESTLE analysis firm can examine its strengths and weaknesses
which help company in making taking effective decisions which will aid firm in enhancing both
profitability and productivity at the same moment. Tools are their than can be used by firms in
order to measure their overall effectiveness thus achieving effectiveness.
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