Business and Business Environment Contents INTRODUCTION

Business and Business Environment Contents INTRODUCTION 1 TASK 11 1 Types of organizations 1 2. SWOT and Porter’s five force8 CONCLUSION 10 REFERENCES 11 INTRODUCTION Business environment is the function which operates by the organization in the way of making business success. TASK 1 1 Types of organizations In the world there are many kinds of companies that run its businesses by having various types of functions and activities.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1 Types of organizations..............................................................................................................1
2. Size and scope of enterprises...................................................................................................2
3. Structures and functions of organizations................................................................................4
TASK 2............................................................................................................................................6
1. Pestel analysis..........................................................................................................................6
2. SWOT and Porter’s five force.................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is the function which operates by the organization in the way of making
business success. Business refers the human activity in company such as extraction or purchase,
production or sales of goods and services that performed to earn profit or money. Thus, at the
other side environment reflect wealth and success of firm businesses and its growth. It defines
the external and internal elements that causing a business activity, it influences the whole
working structure of firm and also to its management functions (Wetherly, 2014). Productivity,
production, trading are the activity of successful company business. Workers and clients are the
center of industry business environment through supporting and give feedback about the
facilities of products.
In this report will discuss about the different types and size of companies. It defines its
various functions and structures will help to understand their services and activity better. In this
study will also use PESTEL, SWOT and Porter's five forces to identify the strength, weakness,
threats etc. about the company.
TASK 1
1 Types of organizations
In the world there are many kinds of companies that run its businesses by having various
types of functions and activities. All these firms are divided into three sectors: private sector,
public sector and voluntary sector, they all are working with different purpose, size and scope. It
will also define as profit, non-profit and non-governmental industries in business world.
Profit/ Private Organizations: Private companies is owned and controlled by the private
enterprises or individuals (Morgan, Ensor and Waters, 2016). The aim of these companies is to
increased productivity and money or profit in its businesses through supply goods to people.
Iceland is one of the biggest private companies in UK; it is a British supermarket chain base in
Wales. They supply frozen foods, prepared vegetables and meals and also non frozen items like
meat, dry or dairy products to people. Firm is profit making international organization that used
different techniques and tools to make the best goods which increase their earning cost more than
the other companies. The main purpose of Iceland industry is to raise its business growth and
production functions more than now. Expanding its business functions by successfully operating
cost of organization in effective way is the aim of this company. It also involved in retail
business market and has its own shares or funds with valuable production structure.
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Private organizations run their business on the purpose of making money which make their
position higher than the others. Iceland independently manage their operation and take decision
according to the situations.
Non for profit/ Public organizations: Public companies are owned by the government
and consist by the publicly funded enterprise, agencies and other entity that supply public
products and services. These companies are giving its facilities to people without making any
profit in its businesses. Outsourcing process of firms will engage private industries to deliver
products and facilities to its citizens. NHS is the example of Public Sector Company, it is a
nonprofit making government department based in England and founded in 5 July 1948. They
give their healthcare services and facilities in society and also to other states of people’s. The
main purpose of this sector is to provide free health and social care facility like free dental and
optical that improved the conditions of permanent residents of UK. It builds its other good
healthcare service centre in many states of country with the aim of making healthy environment.
NHS is the private organization that have multiple objectives which they need to grab for
increasing profitability. They operating in many sectors within financial frameworks set by
legisalation.
Non-governmental/ Voluntary organizations: Voluntary sector organizations are a
social welfare firm who has the rights of human and environmental protection group. British Red
Cross is based on charity function, it also called as non-profit and non- government sector. This
society is based in UK and founded in 1870; they give its services to citizens without earning
money (Edwards and Hulme, 2014.). The motive of this center is to supply bloods to people who
need it in its health care. It helps people in problems without knowing any details about them;
they run their services successfully in all over the world. Red Cross operates its functions and
health facilities without following any governmental structure of making profitability. It supplies
bloods in hospitals, private health care centers and small or big clinics. They have a lot of
volunteers that support in running its services and facilities successfully at everywhere on
required time.
2. Size and scope of enterprises
In business or market place every organization has various scope and size in its businesses
structure. It includes many functions and departments that making profit and growth in sell areas.
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Micro size enterprises: Micro companies are a small business that occupies petite
number of worker’s. It generally operates its production functions with 10 people and gets
started with few amounts of funds or assets. They are capable for supply their products and
services in local areas because having low funded begets. Micro business scope is quite infinite
covering a broad range of functions required low sophisticated techniques or technology. Glass
wells are known as one of the micro enterprises in UK that run their products making activity
successfully in business world. They made sofas, carpets, bedrooms tools and other home
furniture’s for customers. It needs funds for its business success and growth through taking loans
by the banks according to its terms.
Small size enterprises: Small size enterprises do not have high level of sales and staff
members more than 15 in companies. Some of these are governed and operate by sole
proprietorships and partnerships. In UK some of enterprises are bound by monetary measures
such as balance sheets totals, net profits, annual sales and value resources. Better Placed Ltd is
small size company that lead in market place through its recruitment services. It introduces HR
and marketing professionals to industries across a high range of companies.
Firm lead its business functions in London and Manchester successfully and placed better
growing company which has an effective customers list. It sustainable to introduce great
worker’s to biggest business across marketing and digital world. Small companies ear over 250 k
per year through selling and buying goods and services to other industries.
Medium size enterprises: Medium size organisation is non-subsidiary and independent
enterprises which utilize few employees more than 100. Hunter MacDonald’s is medium size
company that deliver its IT services and solutions for many of largest and prestigious companies
in the world. It generates 3.2 million per years by giving its best facilities to customers. They
increase their business by innovating and creating new types of products and services in firm that
attract people towards them. They have to focus on its department’s functions and productions
system that raise its position in business world. Through make successful business growth and
sustainability it gets increased its market share more than the other companies.
Large size enterprises: Large size enterprises spread its branches in all over the world
successfully. Through their businesses they can generate more profitability and productivity by
selling their good quality goods and services. Marks and Spencer is one of the biggest and
famous companies across the world. Firm make grocery products for its potential and other
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customers in UK. They get increase their sales by making clothes for men, children’s and women
in country. In their facilities of production they get include home furniture’s tools and other
service to people. Company operation impact on society and environment both a global and local
level. At every year they sell three billion product to tens millions clients in overseas and UK.
Their service supply chain is long, diverse and complex, but effective than its competitors. They
need to lead their business sector in way of goods and sustainable consumption by providing
customers great value, services or products and high quality. Through this process they can raise
its growth and profit share more than other companies.
3. Structures and functions of organizations
Each and every company has different functions and structures in its businesses and perform
activity according to it. Divisional, functional structure and matrix are the kinds of structures that
are related to organizations scope and size.
Matrix structure: Matrix enterprises structure is an organisation body in which reporting
connection are set up as matrix and grid, more than in hierarchy traditional. Largest industries
apply this structure in its business functions to increase profitability and productivity smoothly.
In this structure project and individual work during team as well as in their own management
function and departments. Through this process company improve communication and
conventional department barrier across the whole organisation. By having this function firm can
motivate its team members and other staff people as well.
Functional Structure: Medium and small size organisation apply functional
organizational structure in its business. It is less costly and highly effective that increase business
growth and productivity more than its competitors. It is the most ordinary organisational bodies
that control its employee according to similar task and roles. Thus, all companies used this
according to their size and scope which raise its position and make brand image in marketplace.
Less management level with high effective work is the function of functional structure. Under
this process employees are supervised by functional leaders and managers with skilled and
knowledgeable in same field. In this step it includes many positions of firm like president,
finance department, vice president, sales level and consumer service. Head are the main centre of
this function that control or operate each and every departments of its section. Development and
continuously enhancement of employee’s skills and knowledge can increase the working
productivity and efficiency to raise sales.
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Divisional structure: Divisional structure is a way of designing company that is split
into semi-autonomous team called divisions. It is usually applied in large size companies that
manage its business functions internationally. It also organizes the functions of industry business
across geographical, product and service or market groups. Thus, all the divisions contain a
perfect set of activities, green widget separation handle their accounting system, marketing and
sales, production, engineering and so forth. It works so well in business where there is a huge
deal of competitors in market competitive environment.
Complexions of global, transnational and international organisation structures
Global organisation structure: Global companies face issues in its business structure and
trading process because they have huge supply function (Rootes, 2014). They have many
complexions in trading and productivity process that might be decrease its production and
business growth. According to company delivery structure of products and services they have
many management departments. Thus all these levels are making difficulty in operating in proper
way that rises down the success in market place.
Transnational organisation structure: According to this stage company run their
productivity and other departments successfully. The main issues faced by organisation are
transitional body that is biggest complex in business growth and success. It is a hybrid and
combination strategy among multi-domestic and global strategies. Transnational companies have
high degree of management with low control disseminated throughout companies that is the
biggest complex situation. Environmental damage and economic vulnerability is the
disadvantage of transnational structures. This function is very complex and unbalanced with a lot
of difficulty in completing the requirement and needs of different products and functional of
stakeholders.
International organisation structure: International Company’s structure has many stages and
managements departments that operate each function. Thus, by having these levels organization
cannot handle it successfully that impact on its working performance and productivity.
Operation, marketing, human resource etc are the levels of this structure which is complex to
operate.
Organisations mission and objectives:
Iceland (Private organization): Every company has its own vision and mission in their
business and every function. Iceland firm offer their foods products to its citizens according to
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their needs and demand will increase its business growth. The vision of this company is to build
their business more successful than the other companies. They need to build more effective team
of employees that give their high performance working. Thus, it mission is to become the
unrivalled quality and provide all over the world. it want to develop its goods and services with
aim of being preferred Nordic supplier within office goods and IT providers. Objectives of this
industry are to complete its distribution solution and support to its consumers and help vender for
gaining their full potential.
NHS (Public Organization): National health services are the best healthcare service
centre in the world. The objective of this structure is to give dignity and respect, compassion,
everyone counts in the economy. NHS mission is to provide good quality of people health care to
every person daily. They are trying to achieve this activity as soon as possible for making people
more comfortable in their lives. Thus, on the other side their vision to deliver best heath, better
care and value to country citizens.
British Red Cross (Voluntary organization): British Red Cross is voluntary organisation
that gives their services to people through donate bloods. Vision of this sector is to deliver better
health and social care facilities and mission is help million people in their healths. Through this
they can improve social factor and other areas of economy.
TASK 2
1. Pestel analysis
PESTEL analysis is a tool or framework used by organisations to monitor and identify
external market environment factors that has impact on company (Mkude and Wimmer, 2015).
The result of this element is used to analyse political, social, technological, legal, economic and
environmental factors.
Political factors
Political factor influence on the work performance of Sainsbury in United Kingdom.
Government and costumers debts are very high in UK which impacts the consumer attitudes and
business situation experience huge pressure. Company has to not operate their business market
situation but also have to improve its other functions continually. Thus, if the political factors are
not in their favour they cannot run its productivity and increase profitability.
Economic factors
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This elements play their effective role in Sainsbury industry, it affect needs, prices, costs
and profit margin of organisation. Economy of United Kingdom is constantly decreasing due to
affect of Brexit on it. It define that organization will have more challenge in advance as
suggestion of Brexit will be impact operations of Sainsbury’s. In light of economy reduce speed,
inflation in food costs and growing unemployment are two central factors of economic elements
which impact on company significantly. Rising prices of fuel is the biggest economical stage
which can also be impacts on firm. It directly effect on supply chain of products and causing the
good costs to increase.
Social factors
In current market the consumers tend to refer one-stop shopping, it defines that it prefers
to have all available goods under one stage. Company by introducing non-food goods have
largely benefited from this policy. Sainsbury’s is occupied in charities, raise money for many
causes and arrange social, activities and many more. This will shows that Sainsbury’s is
subsequent the responsibility for its surroundings and society. Through supply products and
services to citizens according to their needs or requirements they can build positive image. It also
impacts on effective operational functions of Sainsbury’s.
Technological factor
Technological factor has a positive and impact on the company business operation. By
using new techniques in firm Sainsbury’s can increase their sales more than its competitors.
Through market research they can get all the knowledge about other companies and understand
consumer needs better than now. They need to make strategies and effective plans to control its
management functions according to new technologies.
Environmental factor
Companies affect the environment in both direct and indirect way. Environmental factors
have pressure on management and organizations to act in economic responsible manner to make
it safe. In order to establish environmental cost of organization where they are need to examine
market situations that will be helpful to Sainsbury in designing goods. Thus, developing of
services and products accordingly will highly in meeting the clients requirement at right time.
Legal factors
Legal factors define the policies and rules that is made by the government to control
organisations and economy structures. Sainsbury has to follow a regulation that helps its business
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and increased it profit margin and market shares. Legislation policies directly impact on
company performance, through this process they run and raise its productivity more than others.
2. SWOT and Porter’s five force
Strength
Sainsbury is the biggest retailers in UK.
They have 16 % market share and over 80 million clients a week.
Diversify business with strong profit share.
Weaknesses
Lack of management functions.
Individual operation market
Low profit margin food business.
Opportunities
International market growth by online connection and collaboration.
Convenience stores channels and online groceries of future growth.
Sainsbury used technology analytic to improve and help customer’s insights.
Threats
New entries in business market are the biggest threat of Sainsbury.
Rising labour cost in country is another threat of company.
Intense struggle in retail and grocery segment.
They supply low fat foods to people according to need that increase brand popularity.
Sainsbury do not have extension strategies and plans.
Good place to work at with worker’s diversity.
Porter’s Five Force
Porter’s five forces is form that analyzes and identifies five competitive stages that shape each
industry and helps to determine an organisations strengths and weaknesses.
Competitive rivalry: Competitive rivalry conditions occurs many organisations business
work performances thus, for this firm need to research market (E. Dobbs, 2014). This will help to
know the about its business competitors in marketplace.
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Figure 1Porter's five models
Source: Sainsbury's suppliers and Porter's Five Forces. 2017
Bargaining power of suppliers: Bargaining power of provider of goods and services
directly impact on business growth and success. It analyzes the power of suppliers over all the
functions and its potential to increase its goods prices.
Bargaining power of consumers: It defines the power of clients that effect on costs and
quality. It decreases the prices of products and facilities which firm give to people. They need to
identify needs and demands of customers and made according to it, that increase its brand image
in positive way.
Threats of new entrants: Threat of new entries is the biggest weakness of Sainsbury
business. Competitors in market place give tough competition to company and decrease its
growth. Through research they can analyze new entrants and make their strategies that beat the
other companies.
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Threats of substitute’s goods and services: All organisations compete in huge sense
with other business areas where substitutes are formed. These substitutes impact on Sainsbury in
negative way, company can affair by introducing the other products in economy.
CONCLUSION
In this report it has been concluded that business environment impact on many different
types of organisations. It explains the various kinds of companies with difference of size and
scope. In this study SWOT, PESTEL is the best way to get the detail about organisations external
and internal environments. At the end of this report it concluded that Porter’s five model help to
improve firm situation and weakness.
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REFERENCES
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analysis templates. Competitiveness Review. 24(1). pp.32-45.
Edwards, M and Hulme, D., 2014. Non-governmental organisations-performance and
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Rootes, C., 2014. Environmental movements: local, national and global. Routledge.
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Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
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Wickert, C., 2016. “Political” corporate social responsibility in small-and medium-sized
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Online
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