AL9: Management Models & Macro Environment Analysis of Morrisons

This report provides an analysis of Morrisons, a leading supermarket chain, focusing on suitable management models and its macro environment. It explores the human relations model, emphasizing employee satisfaction and motivation, and the systems model, highlighting the interconnectedness of organizational departments. The report also uses PESTLE analysis to evaluate the external factors impacting Morrisons' operations, including political, economic, social, technological, legal, and environmental aspects. The analysis concludes that while political and economic factors pose challenges, social and technological factors offer positive opportunities for the company's growth and efficiency. The study emphasizes the importance of management models in delegating responsibilities and adapting to the business environment, suggesting that the company can leverage the human relations model to engage employees and the systems model to improve overall operational efficiency.

INDIVIDUAL REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Describe a suitable management model for your chosen organisation bringing out the
underlying theories management model.....................................................................................1
TASK 2............................................................................................................................................4
Conduct an analysis of the macro environment of its operations...............................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Management is the aspect of dealing or controlling the people or the things which results
in systematic running of the business. Planning, organising, staffing, directing and controlling are
the functions of effective management(Alampanos and et. al., 2020). Management model is
choice made by the organisation's top management related to the defined objective, motivative
efforts and certain activities so that they can ensure the effectiveness in their management.
Morrisons is the chosen organisation for this report, It is the leading chain of supermarket in the
London. The company is founded by William Morrison in 1899. The scope of the report is to
analyse the various model of management and their similarities and differences with the
organisation. Moreover, It will evaluate the internal and external analyses by using PESTLE
framework so that they can understand the market scenario effectively.
TASK 1
Describe a suitable management model for your chosen organisation bringing out the underlying
theories management model.
Management Model
These are the choice made by the organisation which is being selected by the higher
authority or top-level management regarding the specific strategies, functions and their action
plan so that they can ensure the effectiveness in their operations. In context to Morrisons, there
are various management model which are explained as follows:
Human relation Model
It is the model which is introduced by the Elton Mayo and says that A school of
organisational thought which emphasis on worker satisfaction, informal workplace and the
certain means by which the employees get motivated for the specific job role. This theory is
having the three main components. First, the theory focuses on the significance or the importance
of the individual that they must be satisfied so that they will contribute to the higher level of
performance in order attain the higher level of profitability(.Kalaycıoğlu and et. al., 2017). This
model is not concerned with the management and their other aspects, they only emphasis on the
employee motivation and their working. It leads to have the informal working within the
workplace and helps in influencing them by which they can increase the overall profitability and
productivity of the company. In context to Morrisons, they are using this model so that they can
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maintain the good relationship with the employees which ensure their satisfaction related to the
job role which combinely contribute to the success of the company. they believed that the
employees can be motivated through the monetary rewards by which will work hard and be more
productive. This helps in enhancing or boasting the overall efficiency of the organisation.
Morrisons is using various reward system in order to motivate their employees for their better
performance.
Under this theory, the organisation is divided in to three distinct layer, The first is the top
level management which are owners, board of directors and executives that discuss their set long
term goals. Middle management is responsible for overseeing the ongoing tasks within the
organisation ad ensure that all the task must be fit with the pre decided budget of the company.
At the lowest level of the chain, supervisors are the one who work hard for attaining the set
objectives of the company. In context to Morrisons, they are running their business organisation
on larger scale so hierarchical structure helps them to delegate the duties and responsibilities to
the employees so that they can complete them in an well-defined manner.
This theory involves the viewpoint at the workplace in which the large task broken in to
small task so that they can be effectively completed. Employees also able to understand their
roles and responsibilities which helps in increasing the overall productivity and profitability of
the company. In relation to Morrisons, They can split the huge task into small duties so that they
can be easily accomplished(Bosso and et. al., 2017).
System Model
It is the theory which is introduced in 1940s and 1950s, is an related the specific task so
that they can have the better working in an organisation. System is defined as the integral part of
the organisation in which the sub-system are there that are the various departments of an
organisation, they combine work and understand the needs and wants of the other aspect so that
they can have the better working in the organisation as a whole. In context to Morrisons, they are
using this model so that they can have the appropriate system in their operations and also ensure
the tasks to be done in an well defined manner. The system model is one who is get affected by
internal factors and the external aspects of the business. It is considered as the open concept as it
gives the strategies and action plans so that they can ensure the effective functionality of
business organsaition.
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The primary attributes of system are, they are having sub-system which is made up of
combination of different departments as they are inter-related in order to work in an well-defined
manner by which they can reach to their desired goals and objectives. It is the transformational
process in which employees give their best in transforming raw material into finned goods so
that they can ensure the smooth running of their business organsaition. Employees also have
consideration for products& services, financial results, human results which impact their
functionality and also help in getting better results for the input.
Organisation and its operations
Morrisons is the top leading chain of supermarket which is headquartered in Bradford,
West Yorkshire, England. The company is having the market share of 11% and having more than
400 stores and in each store around 300 employees are working in the retailing and the
manufacturing of the food. They have started their small business with egg and butter stall in
Rawson Market. The significance increase in the company's presence in the North England have
the turning point for their success and market growth.
Morrisons is serving more than 25000 customers each week and with the comparison of
such small stores like Lidle that is offering around 1000 product line to their potential customers.
Morrisons is having the product that are having limited feasibility and low variety as they can not
full fill the individual demand. Foe instance, The range of fish is limited according to the
standard of the Morrisons store so they can bot cater to the individual person. But the presence of
an in-store fishmonger helps them to enhance its level of buyers contact who can have the good
contact and also can increase the overall feasibility of the company as they can full fill the
customised neds of their customers of fish in accordance to the want of their potential customers.
Analysis of similarities between model and organisation
Management model are the pathway of analysing the certain task to be done and the
action plan so that they can have the better working within the organisation. Morrisons is the
large organisation which is operating their business on the larger scale so it helps them to
delegate the duties and responsibilities to the concern department and their subordinates so that
they can get effectiveness in their working. This also ensure the easy flow of communication and
the activities. Human relation model is concerned with employees and their prospectives rather
then the management functions. This said that the material which is being used by the employees
must be convenient for the workforce so that they can effectively look into their concern
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departments. Morrisons is also working with large number of employees so this model helps
them to have the effectiveness in their operations. System model also helps in getting the better
outcome as it emphasis on getting good results by having full control overall the land, labour and
machine so that they can ensure the smooth running of the business in a appropriate manner.
TASK 2
Conduct an analysis of the macro environment of its operations.
PESTLE Analysis
It is the framework of analysing the external business environment and their factors so
that they can easily measure the market scenario and the competition in the market. Such factors
includes the political, economical, social, technological, legal and environmental aspects. In
terms of Morrisons, these factors are explained as follows:
 Political factors: These are the factors which s concerned with the political stability,,
government rule and regulation so that they can have the effectiveness in their operation.
In Untied Kingdom, there is the stable government by which Morrisons can sustain in the
market for along period of time(Woodward, 2018.). Company need to comply with on
going changing rules and regulation which is being imposed by the government. There is
a major event f Brexit due to which the government has change their regulation and
policies. Various government legislation on UK food retailer also impact the overall
functionality of the business.
 Economical factors: such factors which includes the inflation rate, economic growth,
interest rate and it also includes the foreign direct investment. Due to the major impact of
Brexit, there is a significant change in the currency and also created the inflation pressure
on the certain firms. As the rise in the price of the oil also affects the overall household
budget for the customers an the increasing price leads to slow down the overall
operations of the company.
 Social factors: These are the factors which includes the cultural trends, demographics,
analytics and population. Due to increasing age population are presenting the various
business opportunities to the business so that they can have the better working within the
organisation. The company is using the television campaign foe launching the new brand
positioning so that they can attract the large group of their potential customers. Morrisons
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is also emphasising on having the products that can meet the needs and wants of their
potential buyers.
 Technological factors: These are the factors which includes the advancement or the
change in the technology and this can be done by effective market research so that the
company can understand the competition present in the large market place. Morrisons is
using the artificial intelligence so that they can drive their sale effectively. They are
making the best use of their funds by investing in the technology which can help in
reducing the wasted effort and cost so that the business can be more efficient and
responsive to their customers. Use of digital data in order to identify the emerging
changes in the large market place and Continuous focuses on research and development
so that they can build the in-house software.
CONCLUSION
It is concluded from the above report that management model plays an significant role in
the successful running of the business enterprises so that the top-level management can delegate
the duties and responsibilities to the concern individual. The company can use the Human
relation model so that they can access the machines and the material by which employees can
sustain in the current business environment. Moreover, the report also discussed the PESTLE
analysis in which the political and economical factors have the negative impact on the business
and social and technological factors have the positive impact on overall working of the company.
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