Business Report: Unit 1 - Organisation Types and Business Operations

This report provides a detailed analysis of different types of organizations, including public, private, and voluntary sectors, examining their structures, sizes, and scopes within the context of a chosen company, Morrisons. The report explores the interrelationships between various organizational functions, such as HR, finance, marketing, and operations, and their impact on company objectives. It also delves into the effects of the macro environment, applying PESTLE analysis to identify both positive and negative impacts on business operations, and incorporates internal and external analyses using SWOT/TOWS to evaluate strengths, weaknesses, opportunities, and threats. The report concludes with a critical evaluation of macro and micro factors influencing business decisions and objectives, highlighting the complexities of different business structures and their relationships with organizational functions.

Unit 1

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Determining different types & purpose of organisations relating to public, private,
voluntary and legal structures.....................................................................................................4
P2 Size & scope of different types of organisation within chosen company context.................6
M1 Analysis of different organisation's structure, size and scope link with business objectives
.....................................................................................................................................................7
TASK 2............................................................................................................................................8
P3 Determining interrelationship between different organisational functions & their company
structure or objectives.................................................................................................................8
M2 Analysis of various advantages & disadvantages of organisational function
interrelationships and their impact on company structures.......................................................10
D1 Critical analysis on complexities of different type of business structures & their
interrelationship with variolous organisational functions.........................................................10
TASK 3..........................................................................................................................................11
P4 Identifying negative & positive impact of macro environment on business operations with
specific examples......................................................................................................................11
M3 Application of PESTLE model for detailed analysis of impacts of macro environment. 13
TASK 4..........................................................................................................................................13
P5 Conducting internal & external analysis of organisations for identifying their strengths and
weaknesses................................................................................................................................13
M4 Application of Swot/Tows analysis to justify influence of decision making within an
enterprise...................................................................................................................................14
P6 Interrelation of external macro factors with strengths & weaknesses of organisation........14
D2 Critical evaluation of macro & micro factors impact on business objectives & decisions. 15
CONCLUSION..............................................................................................................................15

INTRODUCTION
Business environment affects various forms of businesses and their structure in both
negative & positive way. These include both internal & external factors that are being analysed
by managers to know strengths & weaknesses of organisation such as Morrisons, a multinational
supermarket company with being fourth largest chain in United kingdom. Chosen firm has its
major products that are food or drinking beverages, clothing items, magazines & audio books
etc. with across more than 400 stores spread at various places. The below report mainly consist
of two major parts in which first part discusses about different functions & structure adopted
within organisation with interrelationships. Whereas second part describes about impact of
macro & micro environment of business operations.
MAIN BODY
TASK 1
P1 Determining different types & purpose of organisations relating to public, private, voluntary
and legal structures.
Organisations are of different types and therefore their functions are also related to
various sectors. Major sectors are voluntary, public and private sectors that determine actual
structure of organisation adopted by top management to carry out various operations
successfully. Some of important types of organisations with key advantages, disadvantages &
differences are mentioned in following points:
Sole trader/ proprietor organisations
This form of organisation is solely owned and managed by an individual who is owner of
organisation. Inventory of the company is maintained too under ownership of sole proprietor or
small group of individuals appointed by him. Sole proprietorship firm is a privately controlled
business firm having no such separate legal existence from it's sole proprietor owner (Perera and
et. al.,2017). These form of private entities incorporate under a trade name selected by single
proprietor of organisation. A very less capital requirement is needed in such small business start-
ups, therefore it has less burden of legal paperwork requirements in comparison with other type
of organisations. The owner of the firm is personally liable for various business activities such as
delay in payments. This form of enterprise are not working under control of government.

Legal structure: The structure of such organisation follow a hierarchy of top to bottom
structure with sole proprietor being only decision maker of all activities in business.
Objectives: Main objective behind starting up such businesses is fulfilment of consumer
requirement inn particular sector or domain through limited goods & services provided by sole
trader (Berghoff and Rome, 2017).
Sector:This type of organisation are mainly operates as a private business enterprise that
is owned by a single person & monitored by limited no. of shareholders, board directors of
organisation.
Partnership firms
A partnership firm is defined as involvement of more than two individuals as owners or
stakeholders business. Therefore such organisations prefer conducting a firm with two or more
individuals who are willing to distribute profits as per their shared capital contribution in
business ( Lam and Wong, 2018). Partners in a type of organisation share both profits & losses
together with also sharing certain responsibilities tat includes payment of machinery, paying off
axes according to their share of profits etc.
Legal structure: Depends on choice of function, departments & mutual consent of all
partners of firm to decide structure of organisation.
Objectives: Objective behind froing a Partnership exactly means building relationship
between individuals who are willing to conduct business activities top achieve a common goals
with objective or earning profits in future.
Private organisations
Private organisations majorly are businesses who are not under control of government of
country. The net revenues earned by chosen private firm that is Morrisons yearly was £513
million in year 2020 (Niemimaa and et. al., 2019). The individuals or sole owner who is liable
for firms liabilities & gaining profits are privately owning these enterprises. Also this entity has
has capacity to employ a huge number of people with current workforce being more than
100,000 staff for conducting daily business activities in retail sector.
Legal structure: Private type of organisation are owned or managed by board members,
limited number of shareholders or large parent companies not functioning under government
control.

Public sector enterprises
Such from of organisations are segment of public sector operating under control &
management of government in particular country. Government allocates various financial funds
through taxation and rates providing them to company for future operations. Tax therefore is
main source of public sector corporations. Major reason behind creating such form of
organisation is welfare of society providing consumers with products & services at reasonable
rates & prices. All forms of business operations are monitored by government authorities which
includes recruitment of employees, setting up price of company products & services.
Legal structure: Public enterprises follow divisional structure consisting of different
commissions & departments as per work tasks.
Objectives: Main objective of public sector firms is to make sure consumers are
provided with goods or services at cheaper prices than private organisation.
Voluntary organisations
Voluntary organisations are formed when two individuals are willing to start up a
business with an unstructured from (Mawejje and Sebudde, 2019). Here, individuals are free top
use any form of conducting business operation voluntarily without following any specific
organisational structure. These stakeholders of firm create an unincorporated association that
does not require any form of legal requirements or paperwork to conduct a business or activity.
Legal structure: There is not legal structure of these firms rather these firms have an
unstructured way of performing various business functions.
Objectives: Main objective of such type of enterprises is bring a dynamic change in long
run within business environment. Therefore, such enterprises voluntarily try to provide unique
solutions,as well as suggestions to sole proprietors or other companies in industry to function
effectively than before voluntarily.
P2 Size & scope of different types of organisation within chosen company context
Sole trader/ proprietor organisations
Size: This form of organisation is majorly a small business with specific consumer
market within industry.
Scope: Scope of these form of organisation is limited to specific consumer segments
focusing solely serving to a certain type of consumers with their products or services.
Partnership firms

Size: Size of such firms depend son number of partners involved in conducting business
of organisation (Ngibe and Lekhany, 2019).
Scope: There are useful form of firm as it helps firm take new initiative, share new
visions & mission of accomplishing goals as well as contribute in bearing losses or gaining
profits equitably.
Private organisations
Size & Scope: In context with Morrisons, a leading supermarket platform in United
kingdom is a privately owned organisation with more than 494 stores at various locations across
UK. Following organisation is headquartered in Bradford, England & was founded in 1899.
Public sector enterprises
Size: These type of organisation usually are large scale firms controlling under them
various private & public entities too by acquiring a certain share of companies (Ali, 2019).
Scope: Public sector organisation broadly operate in different economic sectors. These
include primary, secondary & tertiary sectors that help in development of economy & various
structures in economy system.
Voluntary organisations
Size: Organisation in voluntary sector has been continuously growing now a days with
rise in variety of ranging groups, structures, membership size and mission of entity.
Scope: These organisation have a good scope in expanding businesses in fields of
consulting, advisories and solution providing companies in market sector
M1 Analysis of different organisation's structure, size and scope link with business objectives
Private organisations main objective behind conducting various activities in organisation
is earning high profits whereas public sector enterprises main motive is to serve the public &
society through various improvement strategies. Organisations with a formal structure and size
look froward in attaining different business objectives. One such renowned firms is Morrisons
that is a private supermarket organisation offering variety products. Organisational structure of
public organisations has been analysed and it comprise of different government authorities that
can be either state, central or federal governments. Also there is legal structure of voluntary
enterprises that includes formation of an unincorporated organisation. Legal structure of private
Organisations consist of sole proprietors, directors, top authorities, partners in partnership firms
as well as voluntary corporations.

TASK 2
P3 Determining interrelationship between different organisational functions & their company
structure or objectives
Organisational functions & objectives: These include various operations that are
carried out to accomplish actual goal of organisation. These include planning, organizing,
directing, controlling, sales, marketing and distribution of goods & services etc.
Objectives: Main objective of organisation is to expand their retail business
internationally with more & more partnerships in coming years as well as collaborate with new
skill based enterprises to become largest supermarket firms in UK (Talwar and et. al., 2017).
Organisational structure: This is a system that is followed by all organisations
determining various categories of business activities that should be performed to achieve a
common goal of organisation. The activities defines in a structure of company can be roles,
responsibilities, departments and different level of firm. In context with Morrisons being a
private organisation follows divisional structure of performing various activities.
Divisional organisational structure of Morrisons
This structure consist of varied divisions relating to specific work responsibilities, tasks
or product. In relation to Morrisons, managers have autonomy to make certain decisions to
expand their large retail business as per their new or existing products (Biloslavo, R., Bagnoli, C.
and Edgar, D., 2018). This help firm enhance their decision making & accountability. Divisional
organisational structure allows Morrisons to develop healthy workplace culture as per market
demand helping firm with accomplishing business objectives quickly. Chosen firm use this
structure to accomplish various business objectives through divisional departments explained in
below diagram as follows:

Interrelationships between various functions with its structure adopted by selected firm:
HR department and finance division: Interrelationship between human resources &
financial budgets is collaborative in work. Role of HR department here is to train all employees
who are working at finance divisions to assist them, create effective budgets or policies that are
future useful for growth & development of business. Financial department also takes up help of
HR manager to help them create effective policies to carry out various financial activities. In
relevance with Morrisons these divisions are useful in gaining success in various business
endeavours (Al-Hakim, L. and Lu, W., 2017). To carry out necessary activities HR department
also require financial assistance of fund resources that are provided by financial departments on a
consistent basis. This financial assistance is future is used by HR department to conduct crucial
training programmes, give salaries to employees & monitor reward systems by remunerating
them with beneficiaries according to performances. This interrelation between finance and HR
division at Morrisons helps organisation develop effective personnel with appropriate skills to
attain ultimate goals of enterprise.
Marketing and operations division: Operation within nan organisation include various
production. On other hand, manufacturing functions as well as marketing divisions main motive
is to deliver end products manufactured by firm to ultimate consumers in market effectively.
This interrelation between these divisions at chosen entity help them offer products that exceeds

expectations & maintain a beneficial position in marketplace. It is duty of marketing division to
communicate with operations department about current market trends & consumer needs.
Therefore, main marketing function of managers is to conduct effective research analysis
consisting of questionnaires, surveys, live discussions etc. to know actual demand of consumers
for product wanted in Industry.
R&D and production division: The R&D and productions division at Morrisons are
interrelated to each other. This help managers reduce duplication of activities & reduce wastage
of resources having clearly defines objectives to create new products as per consumer
expectations (Trewin, 2020). This interrelation between various organisational divisions assist
Morrisons create unique & adaptive products along with technological up-gradation. R&D
division of the firm interacts with Production division to construct innovative products and
enhance technological infrastructure to increase efficiency of the manufacturing process
M2 Analysis of various advantages & disadvantages of organisational function interrelationships
and their impact on company structures.
One of major drawbacks behind such interlinking of departments is duplication of
activities as well as more & more consumption of time. With lot of time taken to take common
decisions for organisation, it becomes difficult for employees to work effectively. With rising
disadvantages there are various advantages too of this interrelation. In relation with Morrisons,
manufacturing & production department is able to offer effective quality products within
specific time period through interrelation of operations & marketing departmental divisions.
D1 Critical analysis on complexities of different type of business structures & their
interrelationship with variolous organisational functions.
Business functions are dependent on each other that makes them bring a collaborative
effort to complete goal objectives of business within specific time period. Similarly every
division of organisation is interconnected with other divisions for deriving various activities of
business. One such example is interrelation of HR & finance department of Morrisons that
showcase various functions such as allocation of financial resource to carry out different
activities of human resources such as conducting training & development preprogrammes, set up
new policies for improvement procedures etc.

TASK 3
P4 Identifying negative & positive impact of macro environment on business operations with
specific examples
PESTLE analysis: This is a framework that determines impact of macro factors that affects
external business environment of firm. Major components of this model analysis comprise of
political, social, economic, technological, legal and environmental factors that affect chosen firm
operations at a broad level (Özlen and Handzic, 2020). In context with Morrisons, detailed
analysis of various negative & positive impact of these external factors has been described in
below mentioned points:
Political Factors: This factor consist of various political influences within external
environment that caused change in functions of business. In relevance with Morrisons, After
implementation of Brexit it was observed that there was a great disruption in supply chains of
UK organisation that is identifies as a political factor impact.
Positive impact: It has been found that there are major changes mad after Brexit that
were supportive to organisational firms of United kingdom. This benefited various firms like
Morrisons with gaining a positive impact over its operations in future.
Negative Impact: With rising import duties & other transportation costs, overall
expenditure of Morrisons got increased . This eventually negatively impacted company's rising
costs for imports after Brexit.
Economical factors
This factor depend on demand & supply of commodities in market. It may consist of
various rates that impact buying behaviours or capacities of customers such as inflation, deflation
rates, interest rates etc. In context with Morrisons, decrease in pound currency brought an impact
on money flows as well as demands or supply within industry.
Positive Impact: Decreased since Pound currency value got decreased, it help chosen
firm get opportunity to invest into international market globally that brought money inflows
leading to a positive impact.
Negative Impact: Buying of raw material from EU nations became a challenging task for
organization (Doppelt, 2017). This incurred huge costs for Morrisons to buy highly priced
material goods that negatively impacted chosen firm's production of goods & services.
Social Factors

These are various factors that are occurred within society impacting organisation through
its chaining trends & beliefs. One of most common social factors identified with respect to
Morrisons was rise in trend of single consumer household socially.
Positive Impact: Individual Buying of goods from organisation in bulk quantities since
these were individual households who required every product for themselves separately that
lasted for long time.
Negative Impact: It may also be possible that individual consumers buy goods only when
essentially needed that may lead them take long time to revisit for purchasing.
Technological Factors
With rising demand for online businesses, Morrisons also adopted launching various
online retail platform to showcase its goods, services & product offers to technologically upgrade
themselves globally.
Positive Impact: Major impact is that it will help chosen firm expand their business for a
larger consumer base online across world.
Negative Impact: With upgradable retail online platform, there are different competitors
too that are big challenge for Morrisons to fight & produce unique products online that
differentiates them from others.
Environmental Factor
In relevance with respected firm, it has been a strong point of them is to provide various
environment friendly goods such as organic food items and storage of products in plastic free
baggages etc.
Positive Impact: In order to enhance brand image of Morrisons, managers have been
creating strategies for sustainable business & reduce carbon emission footprints.
Negative Impact: The overall sustainable initiatives have brought up cost expenditure so
organisation too (Bock and George, 2017).
Legal Factors
Compliance food and safety legislative laws such as FSA are main legal factors tahtr
impacted business operation of chosen firm at large.
Positive Impact:With maintaining honest records & following government set laws have
helped firm create a goodwill within society that consumers trust.

Negative Impact: Application of all legislations or laws is a time taking process that may
lead to red tap ism of activities & procedures.
M3 Application of PESTLE model for detailed analysis of impacts of macro environment
Chosen firm has been broadly affected by several macro factors that include compliance
of health & safety regulations, Brexit value of pound decrease impact, online shopping increase,
increase in demand for sustainability and increasing single households. These have broadly
impacted various decisions of organisation such as expanding their online reach, incur expenses
on expanding business internationally as well as following of appropriate laws.
TASK 4
P5 Conducting internal & external analysis of organisations for identifying their strengths and
weaknesses
SWOT Analysis of Morrisons
Strength
 Major strength of organisation is that
Morrisons provide whole lot of variety
products with strong distribution channel
network leading to an effective supply
chain management at different places. The organisation have across 500 plus
stores in UK that creates whole lot of
employment opportunities for domestic
people.
Weaknesses
 Since organization is well established in
UK but lacks its geographical
recognition globally that other
competitors in market place.
 The issue of farmers right have
negatively affected company's brand
image as well as lack of technology has
restricted from adopting to dynamic
changes (Gasparin and et. al., 2021).
Opportunities
 The major opportunity for firm in
expansion of business internationally &
enter into global markets with their
unique products leading to increase in
sales & profitability of firm.
Threats
 With change in various government
policies, rules, legislations and laws it
may be possible that organisation has to
incur huge costs to bring change in
company structure or procedures.