Morrisons: Industry Analysis of Organization and External Factors

This report provides a detailed industry analysis, focusing on organizational structures and the impact of PESTLE factors on businesses, particularly using Morrisons as a case study. It examines various types of organizations, including public, private, and voluntary sectors, highlighting their legal and organizational structures. The report explores how different departments within an organization interrelate to achieve business objectives, emphasizing the importance of collaboration between finance, marketing, HR, and production. A PESTLE analysis identifies key external factors influencing Morrisons, and the report assesses the company's strengths and weaknesses in relation to these factors. The analysis concludes by underscoring the significance of adapting to external changes and leveraging internal strengths for sustained business success. Desklib offers access to similar solved assignments and past papers for students.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Organization and types of organization......................................................................................3
Organizational and legal structure of different types of organization.........................................5
Explaining how organization department interrelate to business objectives..............................6
Conclusion...................................................................................................................................8
PART B............................................................................................................................................8
PESTLE analysis.........................................................................................................................8
Identification of the strengths and weaknesses with internal and external analysis.................10
Interrelation of external factors with the strengths and weaknesses of the business................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
An Organization is a place where a group of people work as a team in order to meet
business goals. The present report will give detailed information about purpose and types of
organisation. The study will give detailed information about Morrisons, deals in groceries and
other products like clothing etc. Further, the report will examine the mission vision of company.
The case study will analyse business function and examine the interrelationship between them.
Along with this, the case study will study the PESTLE analysis of Morrisons in order to identify
impacts of macro environment on business operations. In addition to that, the report will examine
finance or marketing department functions and legal structure of firm and their benefits and
drawbacks.
PART A
Organization and types of organisations
To achieve common business goals and objective an organized structure designed in
order to perform daily operations with discipline. An organization can be of different types, and
they perform their functions differently. It can be public, voluntary, small and medium scale
organization. It is a structured unit in which the responsibilities of each worker are clearly
mentioned and relation between them are established.
A clear purpose helps organization and its employees to understand and manage the
business activities. To achieve and understand the mission and vision statements is the main
purpose of firm. They focus on service, manufacturing, customer satisfaction and products.
When employees feel motivated while performing business operations, it will ultimately engage
their performance and enhanced employees well-being. In the company, the main purpose id
personal growth and development which enhances employees sense of significance and their
work contribution.
Public sectors- The public sectors include goods and services of public such as public
education, healthcare centre, banking sector and military. This type of organization are owned by
the government and in order to provide services and goods for the benefit of public and their
welfare. For example- BBC British broadcasting company is a public corporation.
Purpose- The main purpose of this organization is to provide broadcasting of public service and
motivate people to explore new content and participate in activities like culture, values and

sports. To give impartial information, current affairs and news to help people understand and
engage with the surroundings. They provide educational content to help support learning for
teenagers and children.
Private sector organization- Any business or corporation that is not operated by a profit
or a government body. They are owned by individuals in order to make profit and operate with
money raised from taxes (Jansen and Winegar, 2021). The profit gained by the private company
will provide benefit to the investors, shareholders and owners. Morrisons is the private
organization deals in groceries and other services like books, clothing and homeware.
Purpose- the main purpose of this organization is to feed the nation by introducing new ways of
groceries delivery to customers and providing other products on their stores. They have very
high standards of hygiene and focus on cleaning, sanitizer and maintaining sites and offices.
Voluntary organization- It is a type of union where group of individual enter into an
agreement mostly as volunteers to form an organization in order to meet business purpose. This
organization. For example- Oxfam is NGO in UK, charitable trust fighting global poverty. It is a
non-profit group with collection of operations.
Purpose- the main purpose of Oxfam is to provide facilities to needy people and focus on global
poverty. This organization work with people to bring changes in order to fight inequality to end
poverty across regions. They fight for the human rights from the local to the global.
They focus on health and education, clean water for all, providing food and better treatment for
illness. They provide facilities for women and fight for equality. Many volunteers work as a team
in order to end the injustice and poverty. They organize events and campaign for the betterment
of society. Together they protect lives when disaster strikes and help people build lives for others
and themselves.
Organizational and legal structure of different types of organization
Oxfam
Mission- The main mission statement of Oxfam is to help create long-lasting solutions to the
injustices and empowering needy people to create safe future and free from poverty.
Vision- A world in which people treat each other equally and fight for human rights, by
assuming their roles as full citizens of a world the volunteers support needy poor people.
Oxfam's management team is responsible in law for the charity and its activities. The trust forms
the council of trustees, which is non-profit limited liability company LLC. It is the multi

stakeholder assembly and hold accountable to needy people where they work together in order to
fight for rights.
Legal structure- Being a voluntary organization this company has the legal structure which is
responsible in law for the charity, its assets and activities which helps the company as the
governed body for being associated to Oxfam which is a non-profit limited liability company.
Organizational structure- Oxfam as an organization has a tall organizational structure which
helps the business in the operations which has a matrix structure which makes it an effective
multinational company. In such an organizational structure the layouts groups provides
importance to the ranks of level of relevance (SUDARVIZHI, 2019).
Product and service they supply
Oxfam has a business trust model which is a non-profit organization which provides services for
the benefit of the society.
Morrison
Mission- To offer facilities to customers with the freshest food at reasonable cost and providing
great services in order to satisfy customers need (Fraser, 2021). To create profitable growth and
development the company focuses on innovation and apply improvements, if necessary.
Vision- To serve customers better by providing products, supporting food banks, Doorstep
delivery with the help of digitalization in order to offer convenient services.
Legal structure- the organization is a statutory corporation structure, It is a private sector
organization which is very common in UK and is said to be the directly registering the company
with the owners. Its operation is like a distinct legal entity towards the directors and shareholders
which influences individual on its own.
Organization structure- Morrison Supermarket PLC is engaged with the operations of different
retail supermarket stores due to which they have a hierarchical organizational structure which
helps it in better staff communication.
Product and service they supply
This organization provide the service of a supermarket retailer which the business does by
purchasing goods from different businesses and selling them in the business.
BBC
Mission- To serve high quality services to public which inform, entertain and educate in order to
set the standard in the UK and across the world.

Vision- To represent the UK, its values and culture to the world and support the creative
economy. For the growth and development, the BBC bring people together for shared knowledge
and experience.
Legal structure- This is a public sector organization which follows the legal structure of a
public service broadcaster which has been established by the Royal Charter. The regulation of
which has to be for maintaining it as the limited liability which offers the public goals.
Organization structure The organizational structure for public company like BBC refers to the
formal and informal way management which is owned by the government institutions and
agencies.
Product and service they supply
This organization is the broadcasting new provided to the world and it is government owned
organization which it does platforms such as television and internet.
Explaining how organization department interrelate to business objectives
Interrelationships are created when each department of the company has direct and
indirect relation with each other. The department need to collaborate closely with each other in
order to meet goals and these goals actually helps them to reach its ultimate target. When
business management, resources and information interconnected with each other to work on
business activities and its operations. Each department relies on each other to enable them to
attain their specific business objective and particular functional activities. Working together
involves shared experience, mutual respect, understanding each other and communicating
effectively.
Finance department - The connection between different departments is an important part
of every business in order to meet goals as team. Finance team plays a vital role in the company
as they provide extra funding and determine how much money is required and how much amount
the company receives. As every company need machinery, land, equipments and other resources
in order to produce products or services. Among all the business operation that a company has,
finance team and operations department is most visible when it comes to being disciplined about
achieving company's growth (McLoughlin and Meehan, 2021). Nowadays, a company's
performance is totally measured by how much a company growth is improving. While the
production and operation team manages stock and monitor money spend and receives.

Marketing department- The finance department of company understand the marketing
strategy with the help of marketing department in order to set budget for the company. Marketing
team understand the finance mindset in order to reduce costs and unnecessary spends and cash
flow of the company. Marketing department works to satisfy customers needs by providing them
products and services. In Morrisons, the finance team includes planning to manage company
funds. Sales, finance and marketing teams work together to achieve long term aims. By making
revenue the key objectives for the finance team, marketing management teams can achieve goals.
Getting involved in other department is essential part of working as a team.
Human resources department- When HR and finance department work together in the
company in order to work efficiently, productive and gain profitability. HR main objective is to
hire and educate a well-trained production team and marketing team (Marketing and finance,
2021). HR introduces new potential employees to other department in the company with whom
they will have a working relationship to meet business goals. The finance team works closely
with the marketing team to monitor business trends and customers trends. Finance team then
study the strategic nature of the business work that company's marketing team does on the field.
Finance department approve the budget needed while producing products, managing staff and
customers. Providing staff and hiring potential employees is the duty of human resource
department. They provide remuneration, employment by making budget with the finance
department.
Production department- All department are interconnected with each other and direct
linkage from business practices to achieve organizational performance. Operational department
helps HR managers and interact on administration related issues regarding pay scale, bonus and
other matters. Production department have capabilities to determine the numbers and types of
goods which can be marketed and accurate sales prediction for each product in order to meet
production operations. Production function of the company focuses on developing new goods in
the market and managing the high quality and quantity of those products and arrange deliveries
on times. Then these goods are being delivered by marketing team as they concentrate on
satisfying customers and meeting their preferences. By analysing interrelationship between
various department it is noted that the marketing department in the Morrisons act as a guide and
lead the organization's other departments in producing and servicing their goods in order to serve

their customers. By investigating the report it is evaluated that cross team collaboration is helpful
in business success.
Advantages disadvantages
 Hierarchical structure provide clear
chain of command and offer
specialization to company.
 This structure can understand the roles
and responsibilities on employees in
order to achieve business goals.
 It is helpful to make decision at
different management levels within the
company.
 The hierarchical structure will create
communication barriers sometimes.
This will later compose disunity among
employees and impact the company
performance.
 Sometimes this structure create
inconsistencies in the management
which can create issues while
performing activities at different levels.
 Due to complicated chains of
command, the company may problems
which can slow down the strategic
decision making process.
Conclusion
To conclude, with effective collaboration all working operation of business can achieve
common aims and goals. In this way, the organization may improve efficiency and business
performance. By investigating the report, it is summarized that the company needs to monitor
activities and business result to create a picture of current position and market trends.
Furthermore, the company needs to focus on their customer satisfaction and their preferences.
PART B
PESTLE analysis.
PESTLE analysis is an important business tool used by company to track the
environment they are operating in planning and organizing to launch a new service or product.
PESTLE analysis gives detailed information about the macro-environment factors that may
impact positively or negatively business strategies (Sari and et.al., 2021). These factors play an

important role in evaluating the business methods that will help Morrisons in overcoming the
issues like changing business needs, customer trends and competition from similar field retailers.
Political factor- political factors involves fiscal policy, trade policies and other laws and
tax related law that a government may levy and it may impact the business activities. Brexit was
a major political event that affect the company negatively (Saudi, 2021). There was a lot of
challenges faced by Morrisons due to changes in policies and regulation related to trade.
Economic factor- These factors includes increase in inflation rate, foreign exchange rate
and tax rate, thus, it will directly impact economy and business performance. Due to this the
purchasing power of the customer change this may impact the reputation and growth of
company. Due to increase in oil price, various household budgets become tighter and purchasing
power of the customer negatively affected by this factor.
Social factor- These factors involves population analytics and trends, therefore, increase
in education and health awareness in the UK may impact the business opportunities. The power
structure in UK economy is slowly moving towards the old generation so it has immense impact
over the workforce talent availability (Vander Weyer, 2021.). High level of social welfare
concerns will impact higher customer activism and pressure on the business groups. Due to
education level of the society, the company has faced challenges as it will directly affect level of
income and quality of jobs. This may results in higher spending and living standard of
customers.
Technological factor- Nowadays, due to innovation in technology many companies faces
challenges that may affect the operations of the industry and the market position. Because of
research and development the amount of technological awareness is increases (van den Bekerom,
van der Voet and Christensen, 2021.). Morrisons uses new technology and artificial intelligence
to drive sales in order to meet its objectives. This helps them in reducing wastage and
unnecessary cost, the company digital data to inform the management team about emerging
trends.
Legal factor- There are certain laws that are made by government that may affect the
business operation in the Morrisons. While there are few policies and regulation that companies
maintain for themselves in order to compete in competitive market. For example consumer laws

and labour laws etc. the company has legal guidance to give benefit to their customers, and they
are complies with food safety in order to satisfy clients.
Environmental factor- Those factors which are determined by the surrounding
environment is called environmental factors (The morrison company PESTLE Analysis, 2021).
For example farming, agriculture and climate others. The company reduced use of poly boxes in
supply chain in order to maintain eco-friendly environment. Carbon emissions were reduced to
create pollution free environment. Offering plastic free fruit and vegetables options is the main
task completed by the company.
Identification of the strengths and weaknesses with internal and external analysis
The SWOT analysis of Morrisons complies of the following which has been drawn upon
after the analysation of both the internal and external analysis of the organization.
Strengths :
The strengths of this organization are can be understood with the help of analysation of
the supply chain and distribution of the network which helps the business in the management of
product cycle. It has large product portfolios in which the customers have options such as food,
beverages, music and clothes. It offers the customers the facility of purchasing in a big
supermarket which will provide the customers easy access to the products they desire. The total
number of stores it has also gives it competitive advantage (Singh, 2017). This organization is
listed in the London stock exchange& FTSE index. Recent developments regarding the online
retailing and shopping gives the organization a decisive advantage for increasing the business of
the company.
Weaknesses :
The major weaknesses this organization has is that it has a limited market capacity which
limits its reach in the industry whereas other competitors of this organization which are large
public organization are expanded worldwide thus having more brand value over the world. The
industry of Morrisons is very competitive as it consists of major competitors such as Tesco,
ASDA, Sainsbury etc. These organizations are having the similar business model which makes
the business more effective in the development of strategies which can influence growth in the
business of the organization. Other than he large competition this company also had faced
pertaining issues which will affect the brand image (GHOSH and SHARMA, 2020).
Opportunities :

The recognized opportunities which this organization has is a part of the organization
strengths on which the business can capitalize on. The tremendously growing industry of which
this business is part of is an opportunity to which the business can capitalize on by tapping into a
productive element. In this organization the best way of growth can be recognized in expansion
of the business which has the potential for boosting the overall business of the organization. The
Rise in demands of the privately labelled products can create opportunities of growth which will
result in growth of the organizational benefits (Morrisons SWOT analysis , 2020). The evaluation
of the smaller companies and strategic partnership can allow the business growth with the help of
tapping into the benefits which are towards the operational management of the business.
Threats :
The major threats for this business is that it has to deal with a lot of competitors the
market which is a result of easy entry in this industry as there are not restrictions in the business
of this organization which affects the thought process. It can be said that the competitors of this
organization face competition in the management of the affects of the margin for Morrison. The
increase in the government taxes and other policies is also a factor which has bad influence in the
business as it fails in the management and development of the profit. The increase of the E-
commerce business affects the business of the organization as online business model of such
organization can provide the customers the products with very least efforts which can help the
business with its growth.
Interrelation of external factors with the strengths and weaknesses of the business
Morrisons is an organization which is influenced by the level of impacts from both
external factors which were discussed with the help of a Pestle analysis. The factors of the
external and macro analysis are directly related with the strengths and weaknesses of Morrisons.
This can be understood with the help of the analysation of the external factors which are as
follows,
External Factors Strengths Weaknesses
Political There are certain influences which
is done by the political factors of
the organization that influences
growth in the business and also
The political advantages which the
other businesses get from the
influence of government can be
negative factor to the business of

allow the organization in the
development of the opportunities
which allow the development of
organizational policies (Islam,
2020).
the organization which give
Morrison a clear disadvantage for
the development of business
practices.
Economical The economic factors can act as a
strength for this business when
influence of better economical
condition helps the business in
growth opportunities.
The economic recession can result
in negative influence to the
management of the organization
which has a negative impact of
towards the development of the
strategies which can allow the
business new ways of showing
growth in the market place.
Social The social preferences which the
business enjoy is said to be a
strategy that provides the
organization with added benefits
which are considered to be very
effective strategy that allows the
organization in the development of
the operational management of the
business.
Changes in the social preferences
towards the supermarkets are said
to be the negative influence which
becomes a weakness for the
organization which creates dis-
balances in the management of the
organizational operations.
Technological The development of new strategies
and technology allows the business
to develop growth in the operation
by adding innovation which allows
the business in the growth towards
the development of the
technological factors that allow the
business in innovative strategies.
The changes in technologies some
times becomes hectic factor which
influences the business to change
its operations that can be negative
for the business resources.