Business and Business Environment: Analyzing the UK Supermarket Sector

Business and Business Environment

Table of Contents
Introduction......................................................................................................................................3
LO1: Explain the different types, size and scope of organizations.................................................3
1) Different types of organizations. (P1).........................................................................................3
2) Size and scope of the organizations. (P2)....................................................................................7
LO2: Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure................................................................................................8
3) Organization structures and functions (P3).................................................................................8
Part 2 – The UK Supermarket sector.............................................................................................10
LO3: Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations...........................................10
a) Using PESTEL model, identify the positive and negative impacts the macro environment has
upon the UK retail sector. (P4)......................................................................................................10
LO4: Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors................................................................................12
b) Conduct internal (SWOT/TOWS analysis) and external (Five forces model) analysis of a UK
Supermarket to identify its strengths and weaknesses. (P5)..........................................................12
c) Explain how strengths and weaknesses interrelate with external macro factors. (P6)..............14
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15

Introduction
Business marketers are highly concern about assessing the market potential of the business
through the analysis of the internal as well as external factors present in the business
environment, which are affecting the business. Further, the scope and business success also
depends upon the type, size and purpose of the business. Therefore, the organizations must
assess the feasibility of the organization type and scope, aligning with the purpose and the
environment, where the business is running. Business marketers use several key marketing and
management tools for assessing the business environment, including internal and external
factors, influencing the business growth and development. For instance, in order to assess the
external business environment, the marketer should consider the key factors like political,
economic, socio-cultural, legal, environmental and legal factors and their impact upon the
business; it would help the marketer to identify the key opportunities and threats for the
organization within the market, where the business is running. On the other hand, while
considering the internal environment, the organization should analyze the impact of key internal
factors like human resource, supplier, communication, interpersonal relationship, supply chain
etc, followed by identifying its strength and weaknesses. All these factors would be
demonstrated in the following assignment.
LO1: Explain the different types, size and scope of organizations
1) Different types of organizations. (P1)
 Differences between profit, not for profit and non-governmental organizations (NGOs)
 Business purpose and supply of goods and services
The business organizations differ significantly according to the legal structure, purpose and
supply of goods and services. According to the legal structures of the organizations,
TYPES PUBLIC PRIVATE VOLUNTARY
Definition The organizations are
owned by the
These organizations are
privately owned by non-
This business organizations
are usually operated by a

government agencies,
and the organizational
activities are controlled
by the government.
government marketers. One
or more people can share the
ownership through stocks.
group of people, who are
working in a collaborative
environment, to meet a
common goal, through
signing an agreement related
to the business objectives.
Purpose
.The key purpose of
this organization is to
offer public service and
working for social
welfare for the citizen
of the country.
The key purpose of these
business firms is to gain
financial profit through
business activities and gain
increased market share by
overwhelming the growing
competition in the market
Chelladurai et al,.2017).
The key purpose of this
business organization is to
increase the social economy,
in spite of focusing upon
individual organizational
profit.
Examples
Network Rail is a key
example of public
organization, which is
serving the UK citizen
by offering public
service related to
transport services.
Virgin Atlantic, European
metal recycling, Marks &
Spencer, Tesco, Sainsbury,
Asda etc. Are privately
owned companies, which
are continuously focusing
upon profit gain and
enhancing their market
shares in the business.
Welcome Trust is one of the
key organizations, which is
voluntary in nature. It is
world’s second largest trust,
which is serving the society
through biomedical research
facility provision.
TYPES For profit Not for profit NGOs
Definition A for profit organization
is usually privately owned
organizations, focusing
upon making profit from
the business.
These organizations are
dedicated to address a
social cause or advocate
for a shared point of
view.
Non-governmental
organizations are the non-
profit organizations, mostly
international organizations,
which are mostly activated in