Business and Business Environment Assignment Solution - Sainsbury

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations........................3
TASK 2............................................................................................................................................6
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................6
TASK 3............................................................................................................................................8
P4 Identify positive and negative impacts the macro environment has upon business
operations...............................................................................................................................8
TASK 4............................................................................................................................................9
P5: Conduct internal and external analysis of organisation to identify strengths and
weaknesses.............................................................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Environment refers to the sum total of all institutions, individuals and other
variables that are uncontrollable of firm but business still rely on them as it influences its overall
sustainability and performance (Business Environment, 2017). It is the surroundings in which
company perform all its operations and functions. In the present assignment, chosen organisation
is Sainsbury's which is a United Kingdom based supermarket chain headquartered in Holborn,
London. It offers grocery products to its customers. This report covers size and scope of
organisation as well as interrelationship of different functions of firm and their link with
structure. Apart from this, positive and negative impact of macro environment on operations of
company is defined. At last, internal strengths and weaknesses are identified and their
interrelation with macro factors are discussed in this project.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
In existing business market, distinct types of organisations are present, i.e., public,
private, voluntary and each one has its own purpose and legal structure. Every business firm
requires to follow that structure and need to work accordingly. Some organisations run with the
aim of society welfare while some are for earning high profits. Different types of firms and their
structure and purpose are defined below:
Private sector organisation:
This sector of country's economy is managed and run by private individuals or firms.
These are not the part of government and carry out their operations with the main objectives of
earning high profits (Avramenko, 2012). This sector highly contributes in economic growth of
country and offers innovative goods to customers for satisfying their needs.
Company Overview:
Sainsbury's is one of the private sector organisation that offers grocery products to
customers. It is a super market chain which is headquartered in Holborn, London, United
Kingdom.
Purpose:
1

Main purpose of the organisation is to offer high quality products to customers and earn
higher profits in competitive market (Bovee, Thill, and Raina, 2016).
Types of legal structure:
Partnership: It is the easiest form of business that can give additional managerial and
financial resources to company. Partnership firms are formed by mutual commitment of two or
more persons. A partnership deed is signed by all the partners that contains all the terms and
conditions of operating business collectively.
Sole proprietorship: This type of business is operated and run by single individual only.
The owner of company is solely responsible for all the profits and losses incur in business. Less
investment is required to establish the business.
Limited company: It involves two types of companies, i.e., limited by share and limited
by guarantee (Cavalcante, Kesting and Ulhøi, 2011).
Public sector organisation:
Public organisations are entirely run and managed by government of respective country.
Their purpose is not only to earn profit, but to work for development and welfare of society.
Public organisations raise money from public in the form of taxes and penalties.
Company Overview:
National Health Services is one of the public sector organisation which provides health
care services to domestic people of country as well as visitors. The institution is funded by
general taxation system and run by health department.
Purpose:
The purpose of NHS is to improve wellbeing of patient and enhance living standard of
society by care quality, professionalism and innovation.
Types of legal structure:
Central government: The primary responsibility of central government includes handling
affairs of entire nation. Tax collection and denomination printing are considered as the main
activities of central government (Hair, 2015).
State government: All the issues of a specific state are managed and controlled by state
legal authority. For instance: different policies are framed by state government to promote higher
education among people.
2