BMS412 Business Environment Assignment with Morrisons (GC01808)

Executive Summary

This paper aims to demonstrate the impacts of the internal and external factors on Morrisons. Morrison is the Yorkshire food store serving customers across the UK in where they operate over almost 500 stores and serves online even home delivery service, (Morrisons, 2020). Morrisons is mainly a food & grocery services provider and, uniquely, they offer sources & process most of the fresh food that they sell through their industrial facilities. Nowadays the business is impacted by several factors. Firstly, this paper discusses different types/sizes of organizations. Then, outlines the interrelationship of function on organization structure. Secondly, this report explains the impact of the internal and external environment on business operations and the influence of globalization on organization strategy. Thirdly, the report justifies the interrelationship of functions in Morrisons PLC and the impacts of internal and external factors.

Table of Contents

1. Introduction.
2. Company’s Overview.
3. Literature Review.

3.1 Different types/sizes of organizations.

3.2 Interrelationship of function on organization structure.

3.3 Impact of internal and external environment on business operations.

3.4 Influence of globalization on organization strategy.

4. Discussion and Analysis.

4.1 Justification of the size/type of Morrisons.

4.2 Interrelationship of functions in Morrisons PLC.

4.3 Impact of internal and external factors in Morrisons PLC.

SWOT Analysis.

PESTLE analysis.

4.4 Influence of globalisation in Morrisons PLC.

Conclusion.

References.

1.Introduction

Any kind of business faces some environmental factors that impact the business externally and internally. This report finds those factors greatly determine the business’s success. The business running locally or internationally faces these problems and overcomes or gets benefits. The international business considers the external factors with high priority to cope with the new business environment and legal factors. Being the fourth largest retailer shop in the UK, Morrisons competes with most of the newly entering businesses into the marketplace (Morrisons, 2020). This report finds several factors of the Morrison within their very recent business activities applying some tools like SWOT analysis and PESTLE analysis. A SWOT analysis covers the internal factors of a business and a PESTLE analysis describes the external impacting factors.

2.Company’s Overview

According to Ewel (2020), Morrisons in the UK placed as the fourth largest supermarket and they have more expert workforces preparing food in their own store than any other retailer.  Every week, they serve more than 11 million customers and more than 110,000 personnel across the business work hard to ensure great service to the customers as their choices and demand (Morrisons, 2020). The business reached its pinnacle stage with more than 11 million households at Morrisons.com service. With competition, they actually work to sell the goods at a more cheaper price and with satisfaction by the customer. The company was founded in 1899 by William Morrison which began its egg and butter stall in Rawson Market, Bradford, England and now the company is headquartered in Bradford, West Yorkshire, England. Morrisons’ market share in August 2019 was 27%, down 0.5% from 2017.

3.Literature Review

3.1 Different types/sizes of organization

The business is classified as profit, size, range or structure. So, the business comprises profit, non-profit, government, non-government organization, small, Micro, medium-sized enterprises (SMEs), Partnerships, sole traders and private limited companies etc. Business organizations established for profit-making usually function is in the private sector are owned by individuals or group entities and their primary purpose is to generate profits (Mishra, 2020). The non-profit organization generally works for charity and generate their finance through sponsorships, donations, and other similar funds. Microbusiness runs with less than 10 employees, small enterprises 50 employees, medium-sized 250 employees with several functions and revenue management (Billis and Rochester, 2020). A sole proprietorship business operates by a single person and different professionals make partnership business.

3.2 Interrelationship of function on organization structure

Any kind of business farm has its own structural function. The main functions businesses operate generally are Purchasing, Production, Human Resource Management (HRM), Research and Development (R&D) Marketing (sales, promotions), Accounting and Finance. And these are divided into several departments (Sharma et al., 2020). Every function within a business farm depends on other functions. Suppliers play a vitally important role in the progress of the business. Employee management and solving various issues turning into conflicts are the most important functions by the manager. Productions with optimum quality maintained can ensure the proper sales and promotion. Thus interrelationship between different structures of business is established.

The structure of a business organization can be formed as functional, classical and matrix system, Horizontal/Flat Structure, Divisional Structure, Network Structure, Team-based Organizational Structure, and Line Organizational Structure etc. and all types of structural function within the workplace are interdepended and interrelated (Donald and Waters, 2019).  The HRM department makes a bridge between the functions of different management and department and they set the objectives of the functions. This activity actually organizes the bonds between the workforces within a business.

3.3 Impact of internal and external environment on business operations

According to Morrison (2020), the environment of a business ensures the success of the business and at the same time falls off the business. The business environment generally comprises the factors that influence the business directly or indirectly (Singh and Gupta, 2020). Thus the factors are internal and external. The business environment is actually the collection of factors like employees, supply and demand, customers’ demands and expectations, clients, management, suppliers, social trends, owners, economic changes, activities by government, innovation in technology, market trends, etc. Besides, the external environmental factors consist of demographic, global, economic, political and legal, social, competitive, and technological sectors that impact the business much. These factors are summarized by the scientists and theorists by SOWT and PESTLE analysis. These analytical tools can explain the actual causes and effects of several factors impacting the business………………………………….

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