Business and Business Environment Introduction

Business and Business
Environment

Table of Contents
Introduction .....................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of organisation with their purpose and legal structure .................................1
P2 Size and scope of different types of organisation. ................................................................4
Task 2 ..............................................................................................................................................7
P3 Relationship between different organisational functions and how they link to
organisational structure and objective.........................................................................................7
TASK 3 ........................................................................................................................................9
P4 Positive and negative impact of macro environment upon business operations ...................9
PESTEL Analysis .......................................................................................................................1
TASK 4............................................................................................................................................3
P5 Internal and external analysis of Sainsbury in order to identify strength and weakness. .....3
P6 Strength and weaknesses interrelate with external macro factors. .......................................5
CONCLUSION................................................................................................................................6
References ......................................................................................................................................7
.........................................................................................................................................................8

INTRODUCTION
Business Environment is a combination of internal, external factor and some forces
which company cannot control but still business depend on them as they influence or impact
business functions or operations. The forces which affect business positively or negatively are
suppliers, competitors, government, economic condition, market structure etc. Thus business
environment is an important aspect of company as it enable them to identify the challenges and
make use of opportunities in order to expand the productivity (Aithal, Shailashree and Kumar,
2015). Apart from this, every organisations are described as groups or structure which is
established with the purpose of achieving certain goals or objectives i.e. private, public,
voluntary, sole proprietorship etc. In context to Sainsbury, second largest chain of supermarket
in the world which is established in the year of 1869. It is situated in United Kingdom. This
research covers the different types of organisation along with their purpose, legal structure and
scope, interrelationship between organisational function and their impact on organisational
structure, analysis of business environment by using PESTLE and SWOT.
TASK 1
P1 Different types of organisation with their purpose and legal structure
Business Environment is basically a combination of internal and external factors or forces
which impact the company's productivity or profitability. It includes several factors which is
dynamic in nature. Those factors are of different type and also effect the company in different
degree. Among them certain factors have favourable influence on business while some factors
adversely affect the company. Thus, business environment is a complex nature . Business are
established on the basis of various forms or types. It can be constituted and managed by an
individual, group, government and other parties (Aithal, 2016). Each department contain unique
purpose and legal structure which directs them towards achievement of organisational goal. So,
on the basis of ownership and management organisation are divided into different types which is
described below:
Private Company.
Private company are those whose ownership are held by private members and operate as
a distinct legal entity to its directors and shareholders. (Akter and et. al., 2016). In this context,
Sainsbury one of the UK leading private retailing company in the world which was founded in
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the year of 1869 . They have an effective purpose and legal structure which enables them to
attain maximisation of profit effectively. However, Sainsbury's operate in territory sector as it
does not manufacture product but they provide effective service to customer and also to other
business who pay to them. The valuable purposes and legal structure of Sainsbury are as
follows:
Purpose
Sainsbury's are determine to provide high quality of service and exceed the satisfaction
level of customers by the optimum utilisation of resources. By this they can easily attain
maximisation of profit and capture the market effectively. Apart from this they are also
concerned in reducing the environmental impact products in order to bring healthy atmosphere
which enable them to add value to their goal.
Legal Structure
Sainsbury's legal structure which is described below:
 Sole Proprietorship: This structure is unincorporated business and it is owned by one
person i.e. sole trader. It does not require government and owner is responsible for all
debts of the business. This business ends up with the death of the owner.
 Partnership: Partnership is a combination of two or more individual in which each
partners equally share duties, rights(Articles of Association), profit and liabilities of
company.
 Private Limited Company: This structure has separate legal entity as it is an incorporated
company. Mostly private limited company are small, family run business and that are
owned by shareholders (Al-Saleh and Mahroum, 2015). Each shareholders have limited
liability for company's debt and it is run by Board of Directors.
Public Company
Public company is a company whose securities are traded on a stock exchange and can be
bought and sold by anyone. In relation to this, The Child Support Agency is an executive agency
of Department of Work and Pension who is responsible for administrating or managing the
system of child maintenance (Arasti, Zandi and Bahmani, 2014). It is commenced in the year of
1993 and headquartered in Britain. The productive purpose and legal structure help company to
achieve their goal successfully. Thus, Child Support Agency deal into territory sector as they
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facilitate the financial support to children. The effective purpose and legal structure of Child
Support Agency are as follows:
Purpose
Child Support Agency are dedicated to promote responsible parent after divorcing or
separation. This system are obliged to support the child maintenance in which non-resident
parents are required to pay for the upbringing and support of their children. Along with this, their
main focus is to build loving relationship between parent and child and make parents to
contribute towards the child's development.
Legal Structure
The legal structure of Child Support Agency are as follows:
 Local Government: Local Government have only control over particular geographic
region and can elect officials, enact taxes and can do several activities. But they have no
right to enforce laws as it affect the wider areas(Bah and Fang, 2015).
 State Government: State government is government which makes and enforce laws for
the state. The role of this government is to promote state economy and take operational
control over most government programs.
 Central Government: Central government is the one who has a full political authority
over the entire nation. It is responsible for administrating the functions of
executive(President,Vice president), Legislative( Parliament, LokSabha) and
Judiciary( Supreme Curt, High Court).
Voluntary Structure
Voluntary sectors are those organisation whose main focus is to benefit and enrich the
society without having a motive of profit earning. They usually invested back into community
development. In context to Oxfam, one of the global organisation who work for eliminating the
poverty from country and raise the standard of living of society or community(Berkup, 2014.). It
is formed in the year of 1942. Therefore, Oxfam is regarded as territory sector as they
concentrate on providing valuable service for the improvement of society. The purpose and legal
structure of The National Trust are as follows:
Purpose
Oxfam a charitable organisation who are dedicated to eradicate the injustice and poverty
from society and improves or changes the lifestyle of community.
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