Business And The Business Environment Assignment Sample

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Introduction of Business And The Business Environment Assignment

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The topic Business and the Business environment is a collection or tally of all the external and internal factors such as needs of the customers, employees and expectations, demand and supply, market trends and social trends, economic changes, and so on. The focus of this study is to understand the types and purposes, scope and size, strength and weakness, positive and negative impacts on the macro environment of Morrison.

Explanation of types and purposes of organizations

The "Wm Morrison supermarkets" is a private supermarket chain in the UK. The purpose of this organization is to make affordable, healthy food and it can be available for everyone, (Morrison’s-corporate 2022). They sell vegetables and fruits that have plenty and at low prices. They offer many healthy options and reduce the amount of sugar, salt calories in their products. They make sure that they meet their strict standards.

The private organization refers to any corporation, partnership, agency, or person that is not handled by any public body or by profit. The term Business structure also refers to the legal structure of any organization that is allowed in the given jurisdiction. The limited company is a common method of fusion that restricts the value of undertaken liability by the shareholder's company. This also ensures the legal structure of the members of the company's liability. The corporation's structure of the business is an organizational category and it is widely acknowledged in the jurisdiction and specified by the definition of legal that of a particular category. The term flat organization structure refers to that type of organization in which there are low levels of charge between the employees and the inflated level managers. The organizational structure of a matrix is a structure of companies in which the relationships reporting are set as a matrix, or grid, despite traditional hierarchy. As it can be understood in other words such as relationships, dual reporting of the employees, - in both the manager of function and the manager of the product.

The term voluntary sector means the organizations whose primary focus is to make a social impact instead of profit. This sector is also called the third sector not for profit or civil society. Charity is one of the types of voluntary sector defines that their work with other charities through Morrison’s Foundations, their dedication to raising the funds for the good causes of their champions of their community, and their efforts to reduce the wastage of foods and with that helping to those who need the donations of unsold food, Morrison’s(2022). The foundation of Morrison’s aims is to create a positive change in the living of the people, in whales, England, and Scotland. They try to cover the activities from the hospitals the children, and homeless shelters, (funding 2022).

Explanation of the scope and size of different types of organizations

 Store numbers of Morrison’s in the UK

(Source: Statista, 2022)

The above statistics state that the sum of "Morrison’s grocery stores" in the financial year of the UK from the year 2009/10 to 2020/21. As of the previous year 2021, there are 497 Morrison’s stores in the UK. As of now, this is the "fourth largest supermarket" following Tesco and others in the UK, (Statista, 2022). As of now, Morrison's organization has removed 739.6 sugar tones, 9.03 billion calories, and 79.72 salt tones. There are 70 products in their range of Nourish with their specific amount of nutritional benefits. They have a direct supply from the 2,700 British farmers and growers. As from there For Farmers range £20m is always given back to the farmers. There is always 100% assurance with Morrison’s fresh meat, milk, eggs, and cheddar cheese, (Morrison’s, 2022). According to 2021, there are 497 supermarkets across whales, England, and Scotland and in addition, one is there in Gibraltar. Morrison’s have around 110,000 employees till February 2021 and they served 11 million customers each week.

 Flow chart

(Source: rsmuk, 2022)

Explanation of relationship between different functions of organizations and how they are linked to organizational objectives and structure

The Morrison’s organization Human Resources department functions involving all managers and executives. Employees are considered as the important part of the organization and through a skilled workforce, it is also possible to gain a high competitive edge. The all over Business Model delivers their high standards through the help of the employees (Morrison’s-corporate 2022). Strategic Human Resources concerns implementing and monitoring of strategies, ensuring that the organization’s objectives are accomplished. The organization is able to provide the best customer service with the help of its trained staff in order to attract more customers.

The objectives of Morrison supermarket are to maintain an affordable price structure for the healthy foods for everyone. They have “low prices” and “sell plenty of fruit and veg”. They also offer the “healthier options” and reduce the level of “salt, sugar” as well as “fat and calories” in their products. They ensure that the food they sell is safe, and meets strict standards.

The Morrison is a “non profit making” and “volunteer based organization”. The company belongs to a hierarchical structure. This “hierarchical structure” helps employees to better understand the “various levels of leadership”. The management roles are more properly defined in this type of “pyramid structure” (Morrison’s-corporate 2022). Based on the functional structure of Morrison, both experts and leaders of each functional department are mainly assigned to work with their own projects. In addition to this, focus is also provided on the different projects that are conducted by other departments as well.

Identification of the positive and negative impacts the macro environment has on the business operations, supported by specific examples




? Parliamentary system

? Unitary state

? Constitutional monarchy


? Increase in GDP rate 0.8% in January 2022, (ons, and 2022).

? The tax rate in the UK-Starter rate is 19%, the Basic rate is 19%, the Intermediate rate is 20% and the Higher rate is 41% (rsmuk, 2022)


? The environment and pollution

? The growth of the aging population

? Low pay poverty and inequality

? Inflation in the cost of living specific to a housing

? The mental health of the people such as anxiety and depression.


? Artificial intelligence, cyber security, and block chain


? “Pension schemes Act 2021”

? Medicines and Medical devices Act 2021”


? Climate change- air pollution and soil contamination.

? Seawater rising due to rising temperatures and loss of marine resources led to the loss of the UK's marine ecosystem.

Table 1: PESTLE analysis

(Source: Self-developed)

The analysis of the above data states that there can be both positive and negative impacts on the private sector. The positive impacts include their political system because their political system is stable and follows the parliamentary system, unitary state, constitutional monarchy, and because of this the private sector flourishes. As in course of an economic factor, there is a rise in the GDP rate by 0.8% in January 2022, (ons 2022) and the Tax rate in the UK is as follows the Starter rate is 19%, the Basic rate is 19%, Intermediate rate is 20% and Higher rate is 41%, (rsmuk 2022). This data shows clearly the positive impact on private companies. As in the technological factor due to artificial intelligence and cyber security and block chain because of these technologies companies do not invest more in labor work instead they invest in technologies to do the work fast and efficiently. As it also emphasizes the legal factors such as the Pension schemes Act 2021 and Medicines and Medical devices Act 2021 by this it can be understood that their government also thinks about the benefits for the nation of the people. The negative factors include social factors such as industrialization the environment is getting polluted day by day, the growth of the aging population, the poverty rate is very high with equality, due to work people are suffering from mental health problems such as anxiety and depression and the inflation in the cost of living of the people. There are many environmental changes as well such as air pollution, contamination of soil, and rising seawater due to rising temperatures in climate change and this led to the loss of the UK's marine ecosystem.

External and internal analysis of the specific organizations in the identification of weakness and strengths



? Presence of an efficient supply chain

? More than 400 stores in the UK market (Morrison, 2022)

? Buys products directly from farmers and fishermen

? Poor customer satisfaction

? Online presence weak

? Unable to benefit from the international exposures (Morrison, 2022)



? Expansion in the international market is a great opportunity for Morrison (Morrison, 2022)

? E-commerce businesses are trying to boost its growth in pandemic conditions

? Huge competition is one of the biggest threats to Morrison

? The three big giants of the UK grocery industry such as Tesco, Sainsbury and Asda poses great threat to Morrison (Morrison, 2022)

Table 2: SWOT analysis

(Source: Self developed)


The major strength of the Morrison’s organization is the efficient supply chain as well as their “own manufacturing unit”. There are more than 400 stores in the UK market. It also offers low prices all over the UK market. The concerned organization offers good quality products at low prices which are freshly made. Along with its online home delivery service the aforesaid organization serves approximately 11 million customers in each week through both online and offline (Morrison, 2022). The organization purchases the products directly from the farmers as well as “fishermen”. It buys “thousands of cattle and lambs” every week from farmers, which makes it the largest supermarket for the customers as well as farmers. The company makes use of both traditional and digital marketing media which enables it to reach out to different people via different platforms, with a consistent message.

Morrison’s online presence is weak whereas the organization mostly operates in the UK and is unable to benefit from the international exposures. The Morrison’s often fails to meet customer demands, leading to poor customer satisfaction. The organization was ranked number 9(out of top10) showing that it needs to put a lot of work in place to improve its brand image. The UK food and grocery market is expected to grow nearly £218.5 billion by 2023 (Morrison, 2022). This is an effective scope for Morrison to expand its business in the UK and in the “international market”. To enhance e-commerce boosting growth in the pandemic, the organization should excel in various digital and online platforms such as Amazon, Ebay.

Morrison is well behind its competitor’s i.e Tesco, Sainsbury and Asda. The retail company was also charged for the hygiene offenses and sending unsolicited emails to customers. It is essential to keep a strong focus in this context to maintain the brand reputation severely.

Interrelation between the weakness and strengths of external macro factors

The business favoring “political stability” is that once the company gets the permits and the licenses to operate in the regions and states. The organization also invests a strong amount of money in setting up the core facilities (Zinecker et al. 2021). Political instability can’t hurt them as their employees do not skip their work because of strikes and other protests which do not impact the profits of the businesses negatively.

Increasing GDP impacts Morrison with more wealth and confidence.GDP growth is also responsible for the growth of businesses of the company. Air pollution due to rapid urbanization and increase in population dynamics impacts huge financial loss and company expenditure.

Low pay scale, poverty, inequality and inflation in cost of living specific to housing greatly affect the Morrison negatively (Downar, 2021). It also adds up to mental health problems in people causing anxiety and depression. The organization cannot put up with advanced and modern technologies in UK, so it has to make improvements. Pension schemes affect the overall mental status of employees and workers.


Morrison is a well-known supermarket chain with a strong presence in the United Kingdom. In fact it is the fourth largest supermarket chain in the country. It has many opportunities to explore; it must also keep an eye on threats, particularly relentless competitive pressures from some competitors. Along with this the organization should also make a bold online presence, and meet customer’s expectation levels. It also should gain a strong foothold on the digital marketing and e- commerce segment.


Downar, W., (2018). The university and the external environment–towards a collaborative system of resources exchange. European Journal of Service Management27(3/2), pp.135-141

Funding (2022), The Morrisons Foundation, Available at-, [Accessed on 28/03/2022]

GDP monthly estimate, UK : January 2022 Available at- c [Accessed on 28/03/2022]

Morrisons(2022) Our long-term success depends on doing the right things, Available at-, [Accessed on 28/03/2022]

Morrisons(2022), Community and Charity, News Available at- , [Accessed on 28/03/2022]

Morrisons-corporate, (2022) Our long-term success depends on doing the right things Available at-,sure%20it%20meets%20strict%20standards. [Accessed on 28/03/2022]

Rsmuk (2022), Tax facts - 2022/23 Available at-, [Accessed on 28/03/2022]

Statista (2022) ,Number of Morrisons stores in the United Kingdom from financial year 2009/2010 to 2020/2021, , Available at-[Accessed on 28/03/2022]

Zinecker, M., Skalicka, M., Balcerzak, A.P. and Pietrzak, M.B., (2021). Identifying the impact of external environment on business angel activity. Economic Research-Ekonomska Istraživanja, pp.1-23.


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