Types and Purposes of Organizations

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1: Types and purposes of organizations....................................................................................3
P2: Size and scope of organizations............................................................................................5
LO2..................................................................................................................................................7
P3: Relationship between different organizational functions.....................................................7
LO3..................................................................................................................................................8
P4: Macro environment of the business......................................................................................8
LO4..................................................................................................................................................9
P5: Internal and external analysis of specific organizations.......................................................9
P6: Strength and weaknesses interrelate with external factors.................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment refers the total of external and internal factors which enhances
performance of business. External factors are political, economical, technological, legal and
environment factors etc. Gives impact on organization performance. On other hand internal
factors are suppliers, competitors, employees, infrastructure, investors and customers etc. gives
impact in organization. Both factors plays significant role in organization and helps to achieve
organization goals. Another advantage of business environmental is that it leads competitive
advantage in business. It enables to examine their competitors and their action which can lead
positive and negative outcomes in business. It is important for manager because it supports to
create strategic plan and identify opportunity for business promotion in business market. To
understand business environment there is a good example of Tesco organization. Tesco is British
multinational groceries and general merchandiser retailer company. It worlds famous
organization because it operates in nine countries on wide scale.
LO1
P1: Types and purposes of organizations
There are basically three types of organizations called; private sector, public sector and
voluntary sector. It included three companies of the United Kingdom which are comes under
these three sectors.
Public sector company
Sainsbury's is a British supermarket retail company, Headquartered in Holborn, London,
UK. It is the third largest supermarket company in the United Kingdom (Self, 2016). The
company was founded by the John James Sainsbury in year 1869 with a small shop in London.
Sainsbury's become the largest supermarket retailer company in 1992, but in 1995 the Tesco
taken that first position from the company and become the largest supermarket retailer company
in the United Kingdom. Then in 2003, Walmart's subsidiary company ASDA took the second
position in the chart of the largest supermarket retailer companies in the United Kingdom. So,
currently the Sainsbury's is the third largest retailer company after the Tesco and ASDA. Mike
Coupe is the chief executive officer of the company in current time. The company also operated
their subsidiaries named; Sainsbury's Bank, Argos, and Nectar etc. The company believes on
business formula called; Quality perfect, price lower. In which company also try to provide best
of the best quality products and services to the customers on the reasonable or favorable prices.

People in the United Kingdom are really satisfied with the products and services of the company,
and on the basis of this reason the Sainsbury's currently holding great market reputation or
goodwill in the UK's retail industry (Burbano and Ostler, 2018). Company was generated over
£28.456 billion revenue in year 2018 with £309 million net income in the same year. The
company has approx 186,900 number of employees in their organization for the purpose of run
all business activities in effective way. The distribution channel of the company is also very
productive on its work. Currently the company has 13 regional centres of distribution for supply
chain operation. These centres always try to deliver products on the decided time period. The
aim behind distribution centres of the company is to provide quick products and services to the
customers with no delay. With the effort of the company, customers are able to purchase each
product what they want in the company's supermarket on time.
Private sector company
Iceland also is a British retailing company, Headquartered in Deeside, Wales, UK. The
company offers frozen food, prepared meals, vegetables, and dairy products etc. to the
customers. Iceland currently holding approx 2.2% market share in the food industry of the
Intuited Kingdom. The company was started their business in 1970 by Malcolm Walker with
began the first shop in Leg street, Shropshire, England. In 1983 the company was purchased 18
stores in the UK, and was helpful deal for the company growth on that time (Xu, Loi and Ngo,
2016). With this step, the Iceland company able to boost their brand in the UK's market. The
company run many marketing campaigns on their starting stage of business to promote their
products and services. On that time one scheme by the company was become productive for the
company to gain huge people attention towards brand. The basis theme of that scheme is to 'Buy
one and Get one free'. This was new thing in the market, and highly impressed people in the
market. The company still using this marketing scheme in their business environment to gain
more customer base. In 2006, the company also employed one more business strategy in their
work culture called; home delivery. This was also attracts many customers towards brand,
because many times customers are not able to come at store to buy something, in this case the
company take the advantages from this situation of the customers (Bilgeri, Wortmann and
Fleisch, 2017). The company started taking orders from home to the customers and then deliver
that products to customer's home. This strategy was really impacted the business environment of
the company positively. Currently the company has many stores in other European countries too