Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 1 Business Environment
There are two key differentiation between the types of the organisation such as Profit organisation, and the non-profit organisation. The private limited organisations are termed as the profit organisation those only work for their profit earnings. On the otherhand, the NGOs are the non-profit organisation those work for the betterment of the community in an effective manner. Here, the profit organisation has been selected as Morrison’s(Morrisons, 2016) and the non-profit organisation has been selected as 4 Children (Actionforchildren, 2016).
Purpose of Morrison’s: To off er the best quality product along with the best service to the consumers with the best offered lowest price to match with the affordability rate of the mass population in UK(Morrisons, 2016).
Purpose of 4 Children: The purpose of the organisation is to offer the better life to every children and the young with the help of the services such as Fostering, adaptation , support to the families., support to the children in need , and others(Actionforchildren, 2016).
In spite of the different in the type and the purpose of these two organisations, from the aspect of the operational activities, they have the internal link in terms of the support exchange. As per the presentsituation, the consumers use to prefer to do business with the ethically concerned organisations. In this aspect,Morrison is closely associatedin supporting the different NGOs to highlight their ethical consideration. On the other hand, the NGOs are dependable on the investmentand fund support from the supermarket like Morrison in an effective manner for the further development of the lifestyle of the children and the young people in the community with need(Gebauer, et al., 2013).
As per the view of Mellahi & Frynas (2015), the perfect organisation is the assembly of the different departmentsto operate in a smooth manner with their different functions. The perfect systematic approach use to be executed by the different departments. The different organisation structure use to depend on the culture associated with the organisation in an effective manner. The different organisation structure are: Divisional structure, Matrix structure, Mechanistic structure, Organic structure, and the team based structure. The chosen organisation for this section of the discussion Morrison’s use to follow the functional structure. It has been mentioned byFleisher & Bensoussan (2015)that in the functional structure, the experts and the leaders of the different functional departments are assigned to work with their own project as well as the projects led by the other departments. Thus the coherent transparent communication is effectively maintained in the functional structure organisation.
The key business functions of Morrison’s are as below:
Thus, the strong interrelationships between the different functional departments can be observed in Morrison’s. On the otherhand, if the functionalhead swill not performtheir task with greatimportance, then the interdependencywill get increased. This will give rise to the matrix structure. Thischange in the organisation structure may impose the negative impact as the employees will feel demotivated about their presence and due to the sudden systemic change in the organisation.
The positive impacts:The positive changes due to the macro business environment fact can be mentioned for the change in the social factor and the change in the technological advancement. The eradication system is likely to pose the opportunity to Morrison to attract more customers to them. This will result for the future consistent growth of the organisation. On the other hand, the technologicadvancementis sufficient enough to bring the competitive advantage. The socialmediainteraction to meet the query of the customers as el as the online presence of the shopping experience through Morrison use to boost up the consumer buying pattern. The hassle free shopping experience and the vast searching option with an ease use to facilitate the positive shopping experience in an effective manner(Anderson, et al., 2013).
The negative impacts: The political and the legal factors use to have a negative impact on the business oeorations of Morrison. The usage of the low Calorieingredients based on the health policy of UK government,Morrison is bound to use the low calorie rawmaterials for theirreadyfooditems to be offered to the market. In a contrary, the legal and the political factors use to create the obstacle to open up new business. Thus, this use to create the opportunity to Morrison to maintain the minimum competitors in the market(Cavusgil, et al., 2014).
Thus from the discussion , it is evident that the macro environment factor use to have a string influence on the business operations of Morrison and the organisation is able to cope up with the influence of the factors with efficiency.
The internal and the external analysis has been done with the help of the Porter’s five force analysis of Morrison as below:
There is a direct relationship between the strength –weakness factor and macro environment alanalysis.Thesefactors are the outcome of this macro analysis. The analysis of the threat factor use to shape up the business organisation to cope up with the change in the market. Thus, threat factor use to help to convert the weakness of the organisation to the strength factors with the perfect strategic steps. The perfect analysis of the PESTLE factors also use to shape up the business operations of Morrison. As an example, the legal aspects for not using the high calorie food ingredients has shaped up the innovative food processing strategy to bring the competitive advantage of the organisation and also to do e ethical business in an effective manner. Thus, the generation of the strength and the weakness factor use to help the business operations of Morrisonin a great manner(Agan, et al., 2013).
The PESTLE analysis is the perfect tool to identify the external environmental impacts in an effective manner.
Thus by analysing these factors, the management of Morrison is required to take the properdecisions to cope up with the competitivemarket.
The macro environment analysis has been done with the help of the PESTLE analysis and the Porter’s five force analysis in an effective manner. At the same time, the internal analysis has been done with the help of the SWOT model. It has been understood that analysis of these models were required to find out eh strength, weakness as well as the probe factors sothat the necessarystrategicmoves can be decided with the help of the proper decision making approaches.
The Porter’s five force analysis has decided the fact that the effective supply chain is the great opportunity to utilize in a proper manner to bring the sustainedcompetitiveadvantage, A the same time, by analysing the SWOT analysis, it has been understood that the low pricingapproach of Morrison is the key uniquesellingprice in thecompetitive UK market along with the presence of the other competitors such as ASDA, Sainsbury and Tesco. From the entire discussion , it also has been understood that the macro environmental analysis also is required to take the effective decisions for the firm in terms of the strategic planning using the low pricing, continuous innovation , upgrading the skills of the employees so that they will be able to meet the satisfaction of the customers.
The strength factors of Morrison are the low pricing strategy implementation and the effective supply chain with the maintenance of their own manufacturing firm so that they will be able to maintain the string competiveness inside the firm to cope up with the change in the market trend as well as to cope up with the change in the strategic moves of the competitors. The low expansion of the brand in terms of the limited geographical reach within UK only is one of the weakness of the organisation to add more competitiveadvantage in them. But,with the expectedgrowth of the firm,it is assumed to have the opportunity in near future to expand their market reach. Thus, the information & knowledge from the entire discussion lies on the fact that the perfect analysis of the internal and the external factors associated with any firm use to influence the decisions making process by the mangers and the leaders to reach the assigned goal or the objectives of any organisation in an effective manner. Thus, this analysis also has become the most effective tool to take the strategic move of any firm by using the effective decision making approach of themanagers by considering all the strength, weakness, threat, and the opportunity fact as well by considering thedegree of the internal and the external forces that the firm use to face as their dallychallenge
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