Business Environment of Morrisons


The business environment includes different forms of organisation and components which influence operations. Investors, management, suppliers, employees, customers and competitors are various intrinsic components which directly influence functioning of firm. Government, environment, social and technological are extrinsic elements which indirectly affect business activities(Business environment.2018). Present report is based on Morrisons which is famous retail store headquarter in London. This assignment specifies information about different types and purposes of organisation which have vary in aspects of size, scope, structure and objectives. There are various functions which have relationship between each other and help management achieve goals. Macro environment components positive and negative impacts are acknowledged by seniors. Internal and external analysis is conducted by administration to anticipate interrelation of strengths and weakness of system with macro environment elements.

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P1 Different types and purposes of organisation

Non-government and non-profit organisation are various companies which are started and managed by individuals to deliver appropriate products and services in market. It is essential that variety of things are provided in respect to demands of people (Li and et. al., 2011).

Basis of Comparison



For Profit


Non government organisation are enterprise which are originated and regulated by single persons to provide variety of products and services in respect to needs and demands of public.

Non-profit organisation include firms which deliver items in market to accomplish requirements of customer. This help executive generate adequate revenue which is invested in business.

Companies which are started by individuals to utilise funds and conduct appropriate business operations and deliver appropriate things in market to get good amount of profit from business.

Area of Operations

NGOs executes large measure of activities.

Limited scale of activities are conducted by NPO.

Limited and large scale of operations are executed by firms.


Prime goal of this sector is to develop and improve society which help in enhancement of economy of nation.

Promote art, science and commerce is main aim of this sector.

Increase customer base and sales which help businessperson generate large amount of revenue is main purpose.

Private organisation: This sector comprises firms which are monitored and regulate by single person. Businessperson invests funds and has adequate resources to execute appropriate activities and deliver items and services in respect to needs and demands of people. Morrisons is private enterprise which provides different variety of food, home appliance and various other products in their store. This helps public to purchase things in according to their taste and preferences.

Purpose: Private organisations are firms which are owned and run by entrepreneur with motive to gain appropriate revenue from business by using funds. Morrisons provides different variety of products to accomplish requirements of people. This helps management to improve market reputation and profitability (Vaiman, Sigurjonsson and Davidsson, 2011).

Public organisation: This aspect includes enterprise which are managed and controlled by state and central government. These firms are established by authorities to provide items and services to people to fulfil their demands and needs.

Purpose: Regulator bodies execute activities for welfare of society by delivering appropriate things in market to accomplish their requirements. Along this, employment opportunities are increased which give chance to people to gain money for maintaining livelihood(Wack, 2017).

Voluntary: This tactic includes organisation which are started and established by individuals to enhance and society and sections which are not developed. Business operations are executed effectively which help person to solve difficulties and problems which are present in market.

Purpose: These firms prime goal is to deliver adequate products and services to public. This help individuals overcome issues of society by providing variety of things in respect to needs and wants of people.

Legal structure: Each organisation functions in respect to conditions of market. Scope and area of activities are dependable on amount of capital which influences business activities and objectives achievement (Yu and Ramanathan, 2013).

Private organisation: This sector includes firms which are managed and controlled by individual or group of persons to gain adequate profit from business. This is legal structure of private enterprises which is stated below:

  • Sole proprietorship: These are companies which are started by individual to utilise money and deliver appropriate items to accomplish demands of people. Limited scales of operations are conducted by entrepreneur as there is shortage of assets and money. Hence, business activities are executed to generate adequate profit from business.

Partnership: These are firms which are incorporated by two or more people which enter into agreement. Partnership deed is signed by individuals to utilise resources and skills. This helps them to have appropriate amount of funds available to operations effectively (Chetwood and et. Al, 2014).

Public organisation: This tactic comprises firms which are regulated and by regulatory bodies. Items and services are delivered for welfare of society and enhance conditions of country by enhancing number of jobs and facilities. This form of structure is followed by public sector enterprise which is as follows:

  • State Government: These are organisation which are coordinated and managed by authorities to improve state of nation and deliver appropriate things in market in respect to demands of people.

Local Government:This aspect includes firms which are set by regulatory bodies to conduct appropriate business operations and deliver adequate items and services for welfare of society (Zsambok and Klein, 2014).

P2 Size and Scope of various types of organisation

Every organisation varies with each other in aspects of size, scope, objective and structure. In UK, micro, small, medium and large are various forms of firms. These enterprises deliver variety of products and services in market to attain their goals and objectives.

Micro scale organisation: This segment comprises firms which are incorporated and regulated by entrepreneur to generate adequate amount of profit from business. This helps individuals to get financially secured and maintain their living standards. Funds and skills are invested by person as there are very few members and limited resources available(Meiners, Ringleb and Edwards, 2014).

Scope:Micro scale organisation conducts small operations which are executed by individual to enhance their livelihood and don’t concentrate on economic development.

Small scale organisation: This sector comprises organisation which are set up by individual to establish adequate business and generate profit. Market survey and research are used by administration to anticipate demands of people and competitors offerings. These are aspects used to design system and deliver appropriate things in market. Around 50 subordinates are present in firm to conduct operations and fulfil demands of people.

Scope: Enhance state of economy and increase employment opportunities is tactics followed by firm. Along this, management expand business and open new branches in different nation to increase market reach and customers (Li and et. al., 2011).

Medium scale organisation: This tactic comprises firms which have good image and reputation in market. Management have capability and resources to enlarge business and open divisions in different nations. This helps executive to enhance market reach and customer base which benefit firm improve sales and profitability. Arround 250 members are present in such organisation.

Scope: Enhance economy and GDP of UK by launching branches in different nations. Export and import are organised by administration which help government to have monetary benefits and funds availability.

Large scale organisation: This aspect includes firms which have branches in different nations. Different variety of products is provided by Morrisons to deliver thinsg in respect to needs and wants of people. Approx. 250 to 500 members are present in large scale enterprise to execute appropriate business activities and provide adequate items to customers (Zeng, Li and Duan, 2012).

Scope: Large scale firms’ aim is to sustain market position and reputation by delivering innovative and creative items and services in market.

Transnational Company: This aspect defines firms which have branches in more than one nation. For this, management require to have adequate resources that is funds, material and workforce to conduct appropriate business activities.


P3 Relationship between various functions of organisation in respect to objectives

Every organisation has different functions such as HR, finance, R&D, production, marketing and sales to execute adequate operations and achieve goals and objectives. This is description of various departments which are stated beneath:

Human resource department: Employer responsibility is to conduct recruitment, selection, compensation, training and development practices. In Morrisons, staff members are distributed in segments in according to their skills and knowledge. This helps firm deliver appropriate items and services to customers (Sekaran and Bougie 2016).

Finance department: This unit includes duties which are performed by management to formulate financial statements that is profit & loss and balance sheet. These aspects benefit administration to have complete information about income and expenses of Morrisons. Every department are provided adequate funds to execute activities properly.

Research and development department: Market survey is tool which helps management to acknowledge needs and wants of people. Morrisons is retail store which provide different variety of items and keeps on modifying products in respect to demands of public.

Production department: Organisation requires providing different products and services in market to fulfil demands of people. It is essential that appropriate items are manufactured and available in Morrisons store. Along this, management require to have complete information about taste and preference of customers.

Marketing department: The marketing plan is constructed by superiors of Morrisons to frame appropriate objective and strategies in respect to pricing, promotion and distribution. This helps company to attract people by informing them about different variety of items and services. Online advertising, sales promotion, social media and personal selling are various techniques used by management to establish competitive advantage; thereby position firm higher than competitors (Saleem, 2017).

Sales department: Different promotion techniques are used by seniors of Morrisons to inform people about products. This makes it easier for salespeople to grab attention of people and make them purchase things in according to their demands and requirements.

Therefore, these are various units which have interconnection with each other and help Morrisons to have adequate manpower and funds available to execute appropriate activities. Different varieties of products are provided by company in respect to taste and preference of people. This benefits company to improve sales volume and profitability.

Organisation structure: Functional, divisional, flat and matrix are different types of structure which are adopted by organisation in respect to their objectives and resources. This helps executive to design system and conduct appropriate business operations. Staff members are distributed and provide duties in according to their skills and abilities. This benefit firm deliver adequate things and services in market in respect to taste and preferences of people (Tayur, Ganeshan and Magazine, 2012).

Morrisons followed functional organisation structure which helps administration to coordinate and manage activities effectively. HR, finance, operation, R&D, marketing and sales are various departments which are constituted by executive. These units advantage firm to organise operations and deliver appropriate items to customers. Thus, company is able to enhance market image and reputation by establishing competitive advantage over rival brands.


P4 Positive and negative impact of macro environment upon business organisation

PESTLE ANALYSIS: There are many factors which has to be considered by manager of Morrison's to know impact of external as well as internal factors on business operations. PESTLE is the techniques through which association can know what has to be done through which changes can be done in effective way. There is positive as well as negative impact on business operations. PESTLE analysis of Morrision's is as under (Vaiman, Sigurjonsson and Davidsson, 2011) (Wack, 2017) (Yu and Ramanathan, 2013)-


Positive aspects

Negative Aspects


Morrisons has good image in market, this is because they keep eyes on government norms through which targets can be achieved and loyalty of customer increase.

There is change in governmental parties, so it is essential to modify changes in their actions. This affects decision making power f managers.


This component is essential as this helps to complete task in effective and efficient manner. Through raising funds business activities are performed in effective way. If finance is ready then this helps to run business operations in effective way.

When there is less of amount for arising funds then this affects business operations adversely. Business actions get diverted and this affects performance of business operations. In case of shortage of funds business operations get affected.


Business runs in society, so it is essential to make policies according to it. This helps to make good image in industry and people are aware of name in industry. It is essential to analyse market and then this helps to satisfy demand of customer.

Due to alterations in demand, consumer has to make changes in their plans and policies due to which this sounds t be costly and this affects concentration of employees (Chetwood and et. Al, 2014).


While using updated technology, there is requirement of policies which are effective for making good image in market. Employees also remain satisfy as they learn new techniques which help them to be competent with external forces.

Morrison's is the retail store, so while using updated technology such as fast billing, packing system, etc. which affects profits of company. It is not possible for Morrison's to accept every changes happening in technology, so this affects business operations.


Legal factor is one of the most important which provide satisfaction to internal as well as external parties of Morrison's. This helps to make changes in policies which are effective for growth of association (Zsambok and Klein, 2014).

As it is not possible for company to work according to changes in business operations. This helps to make changes in business operations and it is essential to appoint some expert personnel for this purpose this is costly.


Morrison's works in society and it is essential to make changes in business operations to provide satisfaction to workers. This is effective for making changes in plans and policies and helps to provide satisfaction to society.

Due to change in business environment activities of company gets affected and this affects business operations, so it is essential to make policies through which changes has to be accepted by managers of Morrison's.



P5 Internal and External analysisto strengths and weakness of organsisation

SWOT analysis is tactic used by management of Morrisons to have complete information about system potentialities. Strengths and weaknesses help seniors to design system and implement appropriate tools and techniques to provide quality items and services to people. Market opportunities and threats are identified by administration to provide products in respect to market trends. This benefits company to establish competitive advantage and position firm higher than rival brands (Türetken and et. al., 2011).



  • Morrisons is well known and famous supermarket established in London.
  • Different variety of products and various range things are available in store to provide choice to customers to purchase things in respect to their taste and preferences.
  • Online websites help management to have large customer base and market reach.
  • Large amount of funds and manpower is required by Morrisons to execute business operations effectively.
  • Customers require quality items and services, so firm require having skilled and competent staff members. 



  • Morrisons has large number of chances to increase number of customers by expanding outlet in different nations.
  • Target new market segments and provide different variety of products to people.
  • ALDI, ASDA and TESCO are various competitors of Morrisons.
  • Management require providing appropriate items and services to customers to satisfy their needs and make them loyal towards firm.

P6 Interrelation of Strength and weakness with external Macro factors

PESTEL analysis is technique which helps management of Morrisons to have complete information about market conditions and system abilities. Strengths are used by senior to utilise market opportunities; while weaknesses are reduced to execute business activities in effective manner. This is interrelation of external macro factors with strengths and weakness:

Strengths:These are various aspects which are beneficial for performance of firm which are described below:

Political factor: In UK, government has reduced taxation rates which help Morrisons to utilise funds and deliver adequate things in market. Along this, management frame strategies and policies in respect to authorities and function system legally (Crane and Matten, 2016).

  • Economic factor: UK has inflation which defines that public have adequate amount of funds to buy appropriate items and services in according to their taste and preferences.
  • Social factor: Morrisons provide different food items and many other products to fulfil needs and requirements of people. This help administration enhance sales and profitability.

Technological factor: Latest tools and techniques help Morrisons deliver quality things and quick services to customers. Besides this, online websites benefit management to enhance market reach and customer base(Gilboy, 2016).

Weakness: These are various difficulties which Morrisons face are stated below:

  • Political factor: Government makes improvements in laws and legislations which require transformation in strategies and policies of This impacts on functionality of system and performance of firm.
  • Economic factor: Exchange rate fluctuations influence import and export of items from one nation to another.

Social factor: Morrisons require providing items in according to taste and preference of people which changes in time. Thus, management require making modification in products in respect to needs and wants of people (Gharajedaghi, 2011).

  • Technological factor: Online websites require proper maintenance and skilled members to manage customers and their requests. Failure of transaction may impacts on reputation and image of

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As per above report, it can be comprehended that business environment had different forms of organisation. Private, public and voluntary are firms which differs with each other in respect to size, scope, structure and objective. Micro, small, medium and large scales are various enterprises which are present in market. Human resource, finance, production, marketing, sales, research and development are various departments which help management conduct appropriate business activities; thereby deliver things in market. PESTEL and SWOT analysis are techniques used by administration to have complete information about internal and external components. These tools helps organisation to have complete information about strengths and weaknesses of system. Macro environment elements are anticipated to acknowledge opportunities and threats present in market. Thus, strengths and weakness are interrelated with macro environment tactics.

Students Also Read: Responsibilities of Marketing Functions of ALDI


  • Chetwood, M. K.,and et. Al, 2014. Transforming a legacy IT infrastructure into an on-demand operating environment. U.S. Patent 8,775,232.
  • Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
  • Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for designing business architecture. Elsevier.
  • Gilboy, G. J., 2016. The myth behind China's miracle. In SEEKING CHANGES: The Economic Development in Contemporary China (pp. 1-16).
  • Li, Q., and et. al., 2011. Towards the business–information technology alignment in cloud computing environment: anapproach based on collaboration points and agents. International Journal of Computer Integrated Manufacturing, 24(11) pp.1038-1057.
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