SWOT Analysis of Organizational Structures

The assignment involves analyzing the strengths, weaknesses, opportunities, and threats (SWOT) associated with different types of organizational structures. It includes a review of relevant literature on micro, small, and medium enterprises, as well as case studies from Kenya, Turkey, and Cyprus. The document also covers SWOT analysis techniques for businesses, including importance-performance analysis based SWOT analysis and nonconventional starter cultures using PESTLE. Overall, the assignment aims to provide a thorough understanding of organizational structures and their applications in various industries.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of organisation..............................................................................................1
P2 Size, scope of different organisations....................................................................................2
TASK 2............................................................................................................................................6
P3 Interrelationship between functional units and its link with objective and structure............6
TASK 3............................................................................................................................................7
P4 Positive and negative impact of macro factors on a n business organisational....................7
TASK 4..........................................................................................................................................10
P5 External and internal analysis of a business organisation ...................................................10
P6 Interrelationship of strength and weakness with macro factors of business environment .10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Business environment includes as all those factors that affect a business organisation
internally or externally. It includes factors such as legal factors, political factors, environmental
factors also it includes analysis of positive and negative factor of an organisation. The present
study is done on Sainsbury , a private company which is the second largest chain of supermarket
in United Kingdom , founded in 1869 by John James Sainsbury. Also a brief description is given
about size, scope and purpose of different organisation . A detailed study is done on PESTLE
analysis of Sainsbury. Strength weakness, opportunities and threat are also identified.
Organisational structure of Sainsbury has been analysed with its interrelation with different
functions. Also interrelation of strength and weakness with macro factors has been described in
respect of Sainsbury.(Goss, 2015).
TASK 1
P1 Different types of organisation
Public Organisation ~ Public organisation are usually owned and operated by the
government and its primary service is to serve the citizens and fulfil their social responsibility
and then to earn profit. In this BBC company is considered to be a public sector organisation as it
is a British public service broadcaster company engaged with the business activity and its
purpose it to provide services in the international market. Purpose of public company is to serve
the consumers well and enhance their satisfaction level. (Bharati and Chaudhury, 2015).
Private organisation ~ Private organisation are usually owned by the non-government
organisation or by privately owned individual and businessman to accomplish the goal to earn
profit. In this Sainsbury company is considered to be the private company and its main purpose
is to achieve the largest chain in supermarket to make the brand name of the company and also to
increase the share in the market. The main objective of private companies is to gain more profit
and establish in international market.
Voluntary organisation ~ Voluntary organisation means the group of individual to form a
common organisation to work as an NGO [Non Government Organisation] for the purpose to
help the needy people whose life got affected through natural calamities. In this OXFAM
company is consider to be a voluntary organisation company. (Atela, Gannon and Crick,
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2018.)The main purpose of this company is organise a charity function and also online selling of
products to directly help the needy people to balance their life.
P2 Size, scope of different organisations
Public, private, volunteers are several organisations that work for different purposes.
Criteria Public (BBC) Private (Sainsbury) Voluntary (Oxfam)
Background of
company
BBC is the leading
broadcasting firm that
broadcasts news
across the world. BBC
company was formed
on 18th October 1922
and it considered to be
the world oldest
broadcasting company
in UK. The fee of the
services which BBC
are providing is set by
the British
government and
which is agreed by the
parliament. Its
headquarter is in
Westminster, London.
Sainsbury is the
leading and largest
supermarket firm and
recently company has
more than 1415 shops
globally. Sainsbury
was founded in 1869
and considered to be
the second largest
supermarket chain in
UK with having
16.9% share in the
market sector.(Bharati
and Chaudhury,
2015),
It is charitable firm
that works for
removing global
poverty. It is non-
profit organisation
that was established
in 1942. OXFAM
company formed
with the mixture of
20 individuals to
focus on improving
the global poverty
and help the needy
people.
Product and services BBC company
provides services in
form of radio,
television and through
internet also and it
also serves to many
countries across the
Sainsbury company
has a retailer chain of
grocers, home
equipment and other
products and serve
across the world with
good quality and
OXFAM company
brings new online
technologies in the
market to improve
the condition of
global so that they
directly connected
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world. timely deliver of
goods.
with the people
through their online
services.
vision Vision of company is
to grow well and
provide best
information in faster
manner to viewers.
The vision and
mission of BBC
company is to provide
more useful and
important news which
helps the student,
senior citizens and
any other age to
entertain and inform
and update them
about the current
affairs in the country.
Vision of company is
to become trusted
retailer and serve
people best. It is
investing he amount
in order to provide
amazing shopping
experience to its
global consumers.
The vision and
mission of Sainsbury
company is to create
more trust among the
customers and also
encourage them to
engage with their
products and services
which they are
offering to their
customers.(Belás and
et.al, 2015.)
Vision of company
is to serve people
well and improve
their wellbeing. This
association is
governed by the
constitution, legal
documents which
govern the
association in the
company.
Objective The purpose of BBC
company is to inform
people and create
awareness about latest
situations of country.
Objective of the
company is to deliver
To expand into
international market
and gain competitive
advantage are main
objective of
Sainsbury. Objective
of the company is to
Objective of Oxfam
is to improve health
condition of people
ad make them able
to live healthy life.
OXFAM main
objective is to
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quality and trustful
services to the
audience and initiate
new and creative
ideas to engage more
people to the BBC
company.
create good marketing
polices in the Market
and increase the
policy to achieve
more profit.
expand their NGO
so that they can
minutely examines
the people and their
needs and demand
can be fulfilled
accordingly.
Legal structure Public companies are
mainly run by board
of directors and it is
essential for
organisation that to
sell its share on
London stock
exchange.
Shareholders of firm
receive all necessary
benefits in term of
dividend etc. The
decision in BBC
company is taken by
the Board of directors
in reference to the
government decision
and also issue shares
in the market.(Belás,
and et.al, 2015.)
It has separate legal
identity and it is not
necessary for private
firms that to sell its
shares in stock
exchange. All the
decisions are taken by
higher authorities
such as AGM etc. The
company is run by the
board of Director and
owners of the
company. It also has
its memorandum of
association and article
of association.
Such types of firm
generally come
under
unincorporated
association
structure, these
enterprises have no
separate legal
existence. volunteers
work together
without any legal
boundation and all
are personally liable
for any debt. Its
mission is to remove
the poverty from the
world and turn the
illiteracy into the
literate world.
Market size and
scope
Company has
employed 20916
employees and its
revenues in 2016-17
It has employed
186900 employees
across the world. In
the year 2018, net
In the year 2016-
2017 Oxfam has
invested
£336.9million in
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were 4.954 billion.
Total assets of the
organisation is
308.6million. also
have the net income
of £-129.1 million
and its scope is to
carry the BBC online
news channel to a new
level so that is may
cover different news
at one point.
income of business
was 309 million and
total revenues were
28.456 billion.
Sainsbury has scope
to establish itself as
global branch and
grow well in
international market.
order to conduct
charitable activities.
Furthermore, its
income in the same
year was around
£207.0 million.
OXFAM company
established 20 NGO
and also engaged its
services with 90
countries across the
world. Its scope is
expanded their
charitable
organisation in
many countries to
help the needy
people.
Shareholders Viewers, government,
employees are main
stakeholders of the
organisation.
(Phadermrod,
Crowder, and Wills, ,
2019).
Customers,
government,
shareholders,
managers, suppliers
are major stakeholder
of company.
Volunteers,
government, trust,
professionals are
main stakeholder of
Oxfam.
Sector It operates in tertiary
sector.
It operates in primary
and secondary both
sectors.
It operates in tertiary
sector.
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TASK 2
P3 Interrelationship between functional units and its link with objective and structure
Organisation structure
An organisation structure is a system that consist of many stages in the organisation. It
also includes roles and responsibilities of an employee in the organisation. Organisation structure
are of two types tall structure and flat structure.
Tall organisational Structure: A tall organisational structure consist of many stages in the
organisational has clear structure which shows an employee roles and responsibilities towards
organisation. Every stage consist of its own function.(Phadermrod, Crowder and Wills, 2019)
Sainsbury is a food retailer as well as financial service provider. In financial service
provider sector Sainsbury follow tall organisational structure. As Sainsbury is having different
levels in the organisation so every level have to interact with each other in taking decision for the
company. Sainsbury has a clear management structure from top to bottom and all the levels has
its own roles and responsibilities. Employees of Sainsbury are equally supervised.
Flat organisational Structure: In flat organisational structure there are less number of layers in
the organisation. The structure of the organisation is complex. As fewer levels are there in the
organisational structure so there is a less involvement of employees in the decision making.
Sainsbury food retailer department follow flat organisational structure as the food
department have fewer levels in the organisation structure. In food retailer sector its easy to
communicate with every employee for smooth working of the organisation. In retailing sector
there are lot of need of communication because of the availability of the product in the company.
Through flat organisational structure it will be easy for Sainsbury to manage the supply chain
activity of the company (Ervural And et.al, 2018).
Relationship between production and research and development department
Sainsbury research and development department plays an important role in the company.
Research and development department conduct a study on the projects and find out the new
product for the company. It has link with the production department as if research and
development department has done study of the product regarding its quality , specification then it
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will be benefited for the production department to get a quality product and fulfil customer needs
and wants. Through this company can also achieve the objective of customer satisfaction.
Relationship between Marketing and HRM department
Sainsbury Marketing department plays an important role in increasing the sales of the
company. As marketing department helps in increasing the sales which helps Hr department to
increase the profits of the company(Ervural, and et.al, 2018). By satisfying the customers also
the marketing department helps HR department to keep its employee happy. As customer is the
king of the market so company have to beat the competition so that it can earn more profit.
Attracting the right person also helps in increasing sales due to which profit can be earned.
Every company has an objective to earn maximum profit with minimum utilization of resources
that has fulfilled by these departments.
Relationship between purchasing and production department
If the purchasing department purchase the quality product then it will be benefit for the
Sainsbury to manufacture good product. The purchasing department plays an important role in
the company as the production department depends on it and helps to produce quality product for
the company. Availability of raw material also depends on the purchasing department so that
production department can produce goods on time. Sainsbury objective is also fulfilled by it of
producing quality product and customer satisfaction. (Singh and et.al, 2018.)
TASK 3
P4 Positive and negative impact of macro factors on a n business organisational
Political environment
Positive impact : Sainsbury will have a positive impact of political environment if it
does not involve in any corrupted activity also it follow all the rules and regulation of taxation
policy made by the government, pricing policy that means keeping minimum price as far as
possible , away from discriminating the consumers. Another political factor that have positive
impact on Sainsbury is political stability means if there is rule of same government then it do not
have to change its policy again and again and help it to carry out its business smoothly.(Singh,
and et.al, 2018.)
Negative impact : If Sainsbury is involved in unethical activities , unfair trade practices ,
blackmarketing , hoarding and corrupted activities and having political instability then it has to
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change its norms and procedure again and again this will disrupt the smooth functioning of
business and that can have a negative impact on its politcal environment.
Economical environment
Positive impact : it will have a positive impact on Sainsbury if the economy of UK is
stabilised means its exchange rates are in equilibrium, there is no inflation and deflation in the
economy , interest rate is stabilised , fiscal policy remains the same and there is no change in
monetary policy of RBI.(Zahari and Romli, 2018).
Negative impact : If rate of interest will increase than it will decrease the value of
currency and will lead to increase in prices of loan and because of that business operation will
become costly,ultimately it will decrease the purchasing power of consumer similarly if there is a
inflation in the economy , this will lead to increase in prices of the product, also increase in tax
and revenue of government will lead Sainsbury to increase price of its product.
Socio-culture environment
Positive impact : Changing in preferences and lifestyles of consumer should be taken
into account while Saisbury is forming its marketing policies and strategy that will trigger the
present demand of new consumer and helps in forecasting future demand(Zahari and Romli,,
2018.). Also it should consider the type of its consumer group, their attitude towards its retail
store . If Sainsburry's consumer has positive attitude towards its retail store then it means it has
positive image in the eyes of its consumers. Another socio cultural factor is demographics which
includes age , income level , occupation, birth rate, death rate etc. Consumer with high income
level will contribute more in generating profit level of Sainsbury. Also Sainsbury should
introduce goods for the customers who are under the age of 35, because demand among young
consumers are more than elder group. On the other hand geographic al location of Sainsbury
also affects business environment , if it has convenient stores then it can boost its sale from local
people.
Negative impact : If Sainsbury will not consider the taste and preference of consumer
then it can not survive in the long run . For sustainable business Sainsbury has to consider the
preferences of consumer and go with new trends, otherwise Sainsbury can have negative impact
of social factors on its business environment . Also if Sainsbury have large consumer with lower
income group then its profit level may remains constant or reduced. On the other hand if its
geographic location is not so convenient then it can not generate its sales from local consumers.
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Technological environment
Positive impact : For gaining competitve advantage Sainsbury should introduce
innovative product by using new technology . (Hillary, 2017).Adoption of new technology will
also help Sainsbury to capture larger market through online business. On the other hand if it
carry its business with automation rather than manual work then it can perform all its activities at
faster rate , also wireless communication help it in getting feedback from customer on the spot so
that they can answer their query spontaneously.
Negative Impact : It will have negative impact on Sainsbury , if it does not have
expertise human resource to run these new technology , and will lead to underutilisation of
resources and company will not be able to take advantage of new technologies. It will restrict
Sainsbury to enter into new market. For example it has adopted new technology but it does not
have provide proper training to run that new technology then its existing people will not be able
to access the new technology and Sainsbury will not be able to take advantage of the
same(Hillary, 2017. )
Ecological Environment
Positive impact : If Sainsbury take care of its ecological environment, means it should
take care of pollution that is caused by discharging of effluents, involve in green activities and
have proper waste management system in its organisation then ecological environment will have
a positive Impact on its business.
Negative impact : Causing harm to ecology is a severe cause in present era that can
negatively impact the business of Sainsbury, For example , if it is using any substance in its
product that cause harm to people and animals , this will lead to cause severe diseases nad can
decrease the image of the company. Another example if Sainsbury is providing plastic bag to
carry goods , that will cause harm to environment and that can have negative impact on business
environment.
Legal Environment
Positive impact :If Sainsbury follow all the law that are passed by court or government
like consumer protection law , employment law , health and safety law , and have legal
copyrights and patents then it will have positive brand image in international market.
Negative impact : If Sainsbury will not provide proper health and safety to its employees
like health and sanitation , proper ventilation , clean drinking water , crech facitity to women ,
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proper infrastructure then it may have a negative impact on Sainsbury.(Stavropoulou, De Vuyst,
and Leroy, 2018).
TASK 4
P5 External and internal analysis of a business organisation
Internal and extenal analysis of a business organisation includes its strength , weakness ,
opportunities and threats.
Strength
Sainsbury is the largest supermarket chain in UK , around 150000 employees and
workers are working in its retail supermarket, it has extremely experienced people in its
organisation , it has excellent branding and advertising in UK , it has total 600 supermarkets and
around 800 convenience stores in UK also it has approximately 30000 product line in which
20% are own label goods.Sainsbury is a listed company that is listed under London Stock
Exchange & FTSE Index. It has also sponsered many events like Paralympics.(Stavropoulou, De
Vuyst and Leroy, 2018.)
Weaknesses
The product price of sainsbury is really high as compare to local outlets of UK that can
shifts consumer to other stores rather than Sainsbury's supermrket, because consumer will find
more substitute that can decrease the profit of sainsbury.
Opportunities
Sainsbury is now entering into new markets through joint ventures and partnerships ,
availability of self checkout machines can help in Sainsbury's opening stores for 24 hours
which help Sainsbury in increasing its sales also it is expanding its business in new economies
like Africa , Asia.(Tsangas, and et.al, 2019).
Threats
Sainsbury has to serve best quality to its customer otherwise it will lag behind in terms of
competition, Sainsbury has many competitors like ASDA, Tesco, Boots, Morrison, ALDI,
Amazon Waltrose. To match these companies it has to continously provide innovative products
to gain competitive advantage because its competitors are providing good quality products with
low prices
P6 Interrelationship of strength and weakness with macro factors of business environment
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The strength of Sainsbury is that it is the third largest market in UK , so it has potential
to gernerate plenty of profit so that profit can be added in national income which can improve
economic condition of UK , it provide product with high prices , that can lead to inflation in the
economy and can cause disequilibrium in the economy.(Tsangas and et.al, 2019).
Also its annual profits have been declined in 2017 that leads to decrease in income of the
Sainsbury ulimately it will decrease the net disposable income of the country it will have a major
impact on economic factor of the business. Similarly its strength is that it is using new
technologies like self checkout machines which will help it in boosting its sales and from new
technology it can introduce innovative products in market.
CONCLUSION
From above study it can be concluded that every organisation has its own structure , size
and scope. Different organisation has different purpose .Also from SWOT analysis company's
positive and negative areas can be identified , also company's threats and opportunities can be
identified. From PESTLE analysis company's economical, cultural, legal factors and its impact
on business environment can be shown . Also different company has different functions that are
interrelated with each other . Also internal environment that is strength and weakness of an
organisation has a direct or indirect impact over its external environment .(Different Types of
Organizational Structure.2019)
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