BUSINESS AND BUSINESS ENVIRONMENT TABLE OF CONTENTS INTRODUCTION 1 P1) Background of Sainsbury and Iceland 1 P2) Size and scopes of business entities 4 M1) Analysis of organisational structures 8 M2)

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1) (a) Background of Sainsbury and Iceland............................................................................1
P2) Size and scopes of business entities.....................................................................................4
M1) Analysis of organisational structure, size link with its objectives......................................8
P3) (c) Organisational functions and its structures.....................................................................8
M2) Critical evaluation on interrelationships between organisational functions and its impact
on structures..............................................................................................................................10
PART 2..........................................................................................................................................11
P4) (a) Impact of macro environmental factors upon business operations of Sainsbury...............11
P5 (b) Internal and external analysis for identification of its strength and weakness...............12
P6 (c) Explanation about the strength and weakness which is linked with the external factor 13
M3, M4 Description about the Pestle and SWOT model with respect of Sainsbury................13
CONCLUSION..............................................................................................................................16
REFERENCE.................................................................................................................................17

ILLUSTRATION INDEX
Illustration 1: Sainsbury...................................................................................................................4
Illustration 2: Difference between public and private sector organisations.....................................8

INTRODUCTION
Business environment is composition of internal and external factors that affect
productivity and profitability of entity. In this regard, internal environmental factors are
controllable like; management of business operations etc. While, external environmental factors
are uncontrollable for including political, legal, socio-economic etc. The present report is based
on understanding different environmental factors as well their impacts on Sainsbury plc. It is one
of the largest supermarket chain of UK that provides groceries and food items services to a
million customers worldwide. In this regard, structure and scope of public, private and voluntary
sector organisations are to be described. Moreover, different departmental functions of entity
including structures is to expressed through this assignment. However, internal and external
environmental factors including SWOT and PESTLE analysis can be presented that influences
profitability and competitive strategies of Sainsbury. Thus, students are able to understand
several aspects of business environmental factors that are related with further business operations
through this report.
PART 1
P1) (a) Background of Sainsbury and NHS
There are large number of entities in UK that operate in different sectors like;
manufacturing and operations, production, retail, IT and so on. However, some organisations
belong to private and public sectors that is linked with its business operations and decision
making process regarding activities (Lewis, 2013). For instance; decisions related to business
operations are made according to policies created by government for public sector. While, on the
other side, private sector entities are free from regulations in business operations. In this regard,
general background public and private sector entities can describe as below:
Public sector organisations: Under this sector entities, government plays essential role
in business operations also creates policies regarding business activities. However, these
organisations are mostly linked with public welfare and also accomplish government projects.
For example; water supply, school, colleges, healthcare entities etc. There are large number of
entities who work in under public sector of the country in different industries (Pancoska and
Carr, 2014). For instance, Tesco, Sainsbury, Morrisons, Marks and Spencer, NHS etc. In order
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to this, general background including product services, purpose, legal systems of NHS can be
understood as follows:
General background:
It is one of the wide spread health and social care organisation of UK which provide
medicals and treatment services in wide range. However, it is spread all over the world for in
social and health care sector also provide proper hospitalisation (Cantwell, Dunning and Lundan,
2010). Including this, it is also considered that million of people take advantage of its services
globally also getting increased on larger scale in health care and hospitalisation.
Purpose:
Objectives of public sector organisation can be understood as:
 To maximize social welfare and building up society's trust with hospitalisation of NHS.
 To contribute in increasing government fund on large scale for nation's development. To following on rules and regulations made by government regarding business
operations.
Legal status:
It is public sector organisation therefore, it has to follow on some rules and regulations
amended through government policies of UK (Snieška, 2015). However, provisions presented
under government policies are followed on regarding hospital entity and its operations. In order
to this, restrictions on production and distribution of goods are also mentioned that remains
suitable for social welfare and country's social development.
Private sector organisations: These are those entities which are free from restrictions
and regulations regarding business operations. However, director and managers of the
organisation make their own decisions regarding activities for production of goods and
innovations in its quality services (Tibbetts, Jeremyand Danika, 2013). Examples of private
sector organisations in UK are such as; River Island, Iceland, Primark etc. who operates in
different industries.
 Establishment and general background:
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Sainsbury plc is a private sector organisation which works under retail sector. It is one of the
largest supermarket chain of UK with 16.9% shares known for grocery retailer. It spreads across
UK and globe. It is establishment in 1869 headquartered in London. Its chairman is David Tyler
and CEO is Mike Coupe who take decisions regarding management of entire business operations
(Reinalda, 2013).
Product services:
Sainsbury plc is grocery and food retailer of UK that provides its quality services to
customer at maximum level (Hamilton and Webster, 2015). Including this, it also provides online
delivery of goods as per customer convenience.
Purposes:
Objectives of Sainsbury as private sector organisation can be expressed as:
 To maximize sales revenue and profitability of Sainsbury.
 To improve quality services of the organisation increasingly. To expand business entity across the country as well internationally.
Product services: It is private sector retailer of groceries and frozen food items. Including
this, it also known for providing fresh goods to a million people globally has as well has good
reputation (Wetherly and Otter, 2014).
Legal status: It is private sector entity for which decisions related to business operations
are taken by top level managers and main operators. However, government interferes less in
business operations of Sainsbury. Therefore, strategies and planning regarding activities are done
at own level mostly (Willems, Boenigk and Jegers, 2014).
P2) Size and scopes of business entities
Sainbury: Number of employees: Employees are the basic asset of organisation, Sainsbury focuses
on recruiting the best and skilled staff which basically focuses on two major factors that
are efficiency and effectiveness of employees. It is one of the largest chain of
supermarket industry that is why its centre of attention is on maintaining the quality of
staff. According to recent analysis Sainsbury has 162,700 employees working for the
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