Business Environment and Sustainability

The given assignment is focused on business environment and sustainability analysis. It presents a comprehensive list of references related to this topic, including articles from journals like 'Journal of Cleaner Production' and books such as 'Business Ethics: Managing Corporate Citizenship and Sustainability'. The references cover various aspects of business ethics, sustainability, and the impact of socio-economic factors on small business success.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different kinds and purposes of public, private and voluntary sector organizations and
their legal structure .....................................................................................................................1
P2 Define the scope and size of a range of different organizations ...........................................3
TASK 2............................................................................................................................................5
P3 Define the relation between various organizational functions and their link to
organizational objective and structure .......................................................................................5
TASK 3............................................................................................................................................6
Identification of positive and negative impact on macro environment on business environment
.....................................................................................................................................................6
TASK 4 ...........................................................................................................................................8
P5 Conduct internal and external analysis of an organization to identify their strengths and
weaknesses .................................................................................................................................8
P6 Discuss how weaknesses and strengths interrelate with macro factors while analyzing
business environment .................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is referred to the sum of all people, institution and varying forces
which are not in the control of an organization but still businesses depends on them due to their
impact on sustainability and overall performance of the firm. Different forces which formulate a
business environment are its competitors, government, investors, technologies, trends, market
conditions, customers, suppliers, consumers and other institution which are working externally
(Agarwal, Grassl and Pahl, 2012). This assignment is written in context with Sainsbury's which
is a Britain based large supermarket chain, headquartered in London, UK. Company was
established in 1869 and at present successfully operating at more than 1400 locations in global
context. This assignment report is going to cover about various kinds and purpose of
organizations operating at different sector along with their size and scope. Beside this,
interrelation in different organizational functions and their linkage to objective and structure of
organizations are discussed. At last, impact of macro and micro environment on business is
identified by analyzing their strengths and weaknesses.
TASK 1
P1 Different kinds and purposes of public, private and voluntary sector organizations and their
legal structure
Sainsbury's organization is treated as the oldest food chain in United Kingdom.
Management in Sainsbury's wishes to have close partnership in their value distribution networks
and supply chains. In this context different kind of business organizations and their sectors are
mentioned below:
Public sector organization: The public sector involves public enterprises and public
services. These kind of organizations are owned and managed by governmental authorities.
Different public services like military, police, infrastructure, public transit came under public
sector. Main objective of these companies is to offer welfare to the citizens. In this context, NHS
is a public sector organization, headquartered in UK. Company offers social and healthcare
services in global context.
Objective of NHS: Main objective of NHS is to provide basic healthcare facilities to the
people of UK. They develop and maintain their strategies in accordance with the requirements of
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people mainly the poor & marginalised section. NHS also contributes in the financial and social
growth in united kingdom by offering standardised services.
Legal structure:
 Local government: This government operates at local level. They formulates rules &
policies for small locations and regions like districts, town and cities.
 State government: The state government create laws & policies for a specific state. The
regulations which are implemented by these government are followed by people residing
in that state. They provide welfare to the people at state level (Boons and Lüdeke-Freund,
2013).
 Central government: This government regulate and formulate laws at national level.
The state and local government is completely accountable to central government for their
actions.
Private sector organization: These business firms are run and managed by individuals
with the objective of attaining high revenues and profits. Due to the working of these
organisations, high employment opportunities are given to people. These companies offers good
& services to the residents of region to satisfy their demands in a proper manner. These
companies benefits in enhancing economic growth in UK. For example, Sainsbury's is a food
retailer in UK and its main office is situated in London. Company provide daily use products,
foods, financial services and other basic products to their customers.
Objective of Sainsbury's: Main objective of the company is to became the most trusted
retailer where people will prefer to buy products and work to earn livelihood. Company aims to
provide high shopping experiences to their customers so that they can became market leader in
food sector and earn high revenues.
Legal structure:
 Partnership: It include all those business organisations which are handled and run by at-
least two or more than two persons. People involved in business are required to sign a
legal contract and they bear profits and losses in accordance with their shares. All
partners are included in decision making (Chetwood and et. Al, 2014).
 Sole trader: In this organizational structure, business is managed by a single individual
so that high profits and revenues can be earned to live a standardized life. Small
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businesses such as groceries, departmental store etc. came under this kind of legal
structure.
 Small and medium enterprises: It is a business with less than two hundred fifty
employees and annual turnover of 50 million pounds. These organisations makes around
99% business in United Kingdom due to which they are very important for maintaining
the economic growth of UK.
Voluntary organisation: This sector cover those companies that offers welfare and help
to marginalised people in UK without considering their personal benefits. In general, there are
three types of voluntary firms like profit, hybrid and non profit that works to provide support to
poor people. In this context, UNICEF is a children fund that is situated in New york.
Organisation provides support to mother and children (Crane and Matten, 2016).
Objective of UNICEF: Organisation has the objective to protect and secure the rights of
children & mothers by giving them needed aid and assistance. organisation conduct business
operations to eradicate poverty and deal with problems like terminal illness, discrimination,
chronic illness and violence that faced by mother and kids. This organisation also come under
tertiary sector.
Legal structure:
 Association: This is an unincorporated structure that is given favour by new and small
groups. Here, different people works together to attain a common goal. It involves those
members that delegate their authority and power to a committee to perform activities and
operations.
 Trusts: This traditional structure is for charity and it is governed by the trust deed that
offers object and administration to the trusties. In this kind of voluntary organization, no
membership is required.
P2 Define the scope and size of a range of different organizations
Different organisations have varying size and scope. With the help of these aspects, a
business firm is differentiated from another business. In this context, scope and size of different
kind of organisations are discussed below:
Public organisations: NHS is a public firm in united kingdom which provides health
related services and emergency treatment to the people of UK. This public institution provide
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services and facilities such as critical medical care to the people in free. Some of the services or
facilities which is provided by National health service are long term health care service, dental
care, ophthalmology, eye and ear tests and many more.
 Size and scope: In current situation, NHS has more than 220 healthcare and clinical
commissioning groups and around 1.5 million service and care providers work under this
organisation (Gharajedaghi, 2011). NHS is a tertiary organisation which is run and
owned by UK government and officials working in this field spend around 112 billion
pounds per year. Scope of company is very wide and company operates so that free and
basic services can be given to the marginalised and poor people in UK.
 Vision and mission: Major mission of firm is to formulate associations by including
people which want to provide care and facilities to needy people. Vision of firm is to
improve the life and condition of patients. Organization also provide services to the
needy people in other countries.
Private organization: Sainsbury's is a leading retailer in UK dealing in food sector. This
is a public listed company which is registered with LSE. Company provide food items and other
basic products to the customers so that their needs and demands can be satisfied in a proper
manner.
 Scope and size: Company is one of the biggest retailers in UK which operates in global
context. Company operates at more than 1400 geographical locations and employees
around 186,000 people worldwide. As company is operating in different countries mainly
European countries. Scope of company is very high. This organization operates under
tertiary sector as they offer products and services to people.
 Vision and mission: The main vision of company is to became a most trusted and
successful retailer. Mission of company is to satisfy the needs of customers so that
competitive advantage over rivals can be achieved (Gilboy, 2016).
Voluntary organisation: UNICEF is a renowned no-profit organisation which provide
welfare services to helpless kids and mothers worldwide. Company aims to provide justice to
mothers and children that are the victim of discrimination, violence and disease. This company
also came under tertiary sector.
 Size and scope: Organisation is successfully presented in 192 countries and offers
advocacy to the children. Firm is given support by voluntary funds and other trusts.
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Government offers two third funds to the organisation for managing required activities.
Rest of the amount is invested by individual owners and private groups.
 Vision and mission: The main mission of company is to fight against violence which is
faced by children and females. Also, vision of UNICEF is to increase the way of living of
society by using strategies to deal with problems (Gupta, 2013).
TASK 2
P3 Define the relation between various organizational functions and their link to organizational
objective and structure
 HR and Marketing department: Role of HR department is to recruit and select right
candidates for company so that organizational objectives can be attained properly. For
this, marketing department in sainsbury's helps them in posting and advertising about
vacant position. To perform business activities desirably, marketing team need talented
workforce which is recruited by HR department. Hence, these departments are interlinked
with each other. This benefits the company in achieving their organizational goals and
targets in a proper manner (Hilton, and Platt, 2013).
 Production and sales department: The role of production department in Sainsbury's is
to produce products which are offered by company to their customers. Work of sales
department is to sold the products to maximum number of people so that high revenues
and sales can be achieved. Sales department acknowledge production department about
those products which are in high demand due to which customers are satisfied in a proper
manner whereas production depart prepare products in a timely manner due to which
employees in sales department can work work in a proper manner. Due to this company
is able to achieve their objectives in a timely manner.
Organizational structure: Sainsbury's can adopt either a divisional or hierarchical
organizational structure to manage their work and tasks in a proper manner. In divisional
structure, work will be allotted to different departments and employees will be give work as per
their expertise. In Hierarchical structure, upper department will give order to lower departments
and they will be required to follow the orders given by upper department and management so
that work can accomplished in a desired manner (Li and et. al., 2011).
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Figure 1: Divisional Organisation Structure
(Source: Divisional Organisation Structure, 2018)
TASK 3
Identification of positive and negative impact on macro environment on business environment
To acknowledge positive and negative impact on the external business factors, PESTLE
analysis is used. This will allow the Sainsbury's to acknowledge about social, political,
technological and other aspects in a detailed manner. In context with concerned company,
PESTLE analysis is mentioned below:
Political factor: These factors help in determining the extent up to which a government
can impact the organisations and their businesses. These factors involve fiscal policy, tax and
tariff rates etc. At present in UK, customers and government debts are high due to which
customers attitude about products changes as per their preference.
 Positive impact: Low tax rate and government stability in UK will benefits the company
in achieving desired growth and success (Saleem, 2017).
 Negative impact: As UK government has formulated strict norms and regulations for
businesses operating in retail sector. Due to this, profit margins of company can suffer.
Economic factors: These factors include GDP, growth rate, saving, interest and inflation
rates. These factors helps in acknowledging the economic performance of company and impact
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them for a long term. UK has a growing GDP which will benefits retail organisations like
Sainsbury's in achieving high profits.
 Positive impact: Due to high disposable income of people, operating in UK will benefits
the company in achieving high growth.
 Negative impact: At present, Inflation rate in UK are high which can reduce the
purchasing power of people. Due to this, sales of company can decrease considerably.
Social factor: These type of factors are concerned with the lifestyle and culture of people
living in a particular region (Sekaran and Bougie, 2016). As people in UK are open minded and
prefers to live a comfortable life and modern life, Sainsbury's have high opportunity to became a
market leader.
 Positive impact: Company provides high quality products in moderate rate due to which
UK demographics is going to make high purchase. Due to this, sales of company will
also rise along with profits.
 Negative impact: Needs and demands of people changes at fast pace. If company fails to
provide products as per changing demand, customers will shift their preference towards
products of other companies.
Technological factors: These factors are highly concerned with the innovation in
technology and machines so that complex work can be accomplished in a timely and accurate
manner. Technological awareness will benefits Sanisbury's in acknowledging and satisfying the
needs of customers in a proper manner.
 Positive impact: Investing in technology will allow the company to advertise and
promote their products in a proper manner.
 Negative impact: With the help of advanced technology, rival competitors and
companies can grab the attention of customers in a desired manner. Due to this, profits of
concerned company will reduce (Türetken and et. al., 2011).
Legal factors: These factors are concerned with the legal laws and regulations which are
formed by UK government. It is important for Sainsbury's to follow laws and procedures which
are formulated by the central government of country where company is operating.
 Positive impact: Following legal laws will benefits the company in satisfying the
expectations of employees and customers in a proper manner. Due to which it will be
easy for company to achieve their objective.
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 Negative impact: Avoiding legal norms can dissatisfy the customers and employees due
to which reputation of company can reduce which can results in loss of revenues and
profits.
Environmental factors: These factors are related with the environmental and other
policies which are formulated by government of a region. To sustain a strong presence in UK
economy, Sainsbury's is needed to follow all the environmental laws and policies which are
formulated by UK government.
 Positive impact: Following these policies will benefits the company in creating a
positive image in the mind of customers due to which their sales and revenues will
increase in a considerable manner.
 Negative impact: If company is not going to follow these laws and procedures in a
proper manner, it will degrade their market reputation due to which customers will not
prefer to buy their products (Vaiman, Sigurjonsson and Davidsson, 2011).
TASK 4
P5 Conduct internal and external analysis of an organization to identify their strengths and
weaknesses
To carry out internal and external analysis of the company, manager in sainsbury's can
use SWOT analysis. This analysis will benefits the company in identifying their weaknesses and
strengths along with potential opportunities & threats so that right decisions can be taken.
Strengths Weaknesses
 Company has diversified business and
help consumers in living well by
spending less. Due to this, brand
reputation of company is high.
 Organisation posses more than 800
convenience stores and 600
supermarket chains in UK.
 Sainsbury's has excellent advertising
and branding across UK by online
 Company faces a high risk due to brand
switching. Even having high reputation,
retaining customers for long time
period is difficult for organisation.
 Company faces difficulty is choosing
skilled workforce which can work
confidently in difficult situations.
 Another weakness of company is that it
relies mainly on UK market due to
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campaigns, TVCs, print ads. which they earn limited revenues.
Opportunities Threats
 Company posses wide opportunities by
increasing their online presence as most
of the customers prefer to shop online.
 Company can expand into economic
regions like Asia and Africa which
promises large customer base.
 Competitors such as ASDA, TESCO
are giving tough competition to
Sainsbury's.
 Increasing globalization, posses a great
threat to the popularity and growth of
company.
P6 Discuss how weaknesses and strengths interrelate with macro factors while analyzing
business environment
Strengths and weaknesses which are identified with the help of SWOT analysis can be
interrelated with macro factors so that business environment for Sainsbury's can be identified in
a proper manner. In this context, interrelation is mentioned below:
Political factor
Strength: In UK government is supportive and stable due to which company is operating
its 800 convenience stores and 600 supermarkets in a successful manner.
Weakness: Due to support from government, company mainly relies on UK market due
to which large oversees revenues and profits are compromised.
Economic factor
Strengths: As economy in UK has high growth and company offers products to
customers in moderate rate, high sales can be achieved by company without facing much
complexity.
Weakness: Because of high inflation rates, retaining customers for a long time period has
became a difficult task for company (Wack, 2017).
Social factor
Strengths: People in UK are modern and advanced due to which appropriate marketing
and advertising will help in increasing sales on company.
Weaknesses: As UK has more elder population in comparison with young population. It
is difficult for company to find skilled and talented workforce in an easier manner.
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Technological factor
Strengths: Due to investment in technology, company can use social platforms to grab
the attention of customers due to this sales and revenues of company will increase considerably.
Weaknesses: Advanced technology can allow the customers to switch their preference
towards the products offered by other companies.
CONCLUSION
From above mentioned report, it has been concluded that there are various type of
business organisations which deals in different sectors. These organisations have different
products, services, scope and size. Different departments of a company are needed to work in a
coordinated manner so that work can be accomplished in a timely manner. With the help of
PESTLE and SWOT, macro and micro environment of business can be identified in a clear
manner. This assists in taking right decisions so that company can achieve high success and
revenues.
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REFERENCES
Books and Journals
Agarwal, R., Grassl, W. and Pahl, J., 2012. Meta-SWOT: introducing a new strategic planning
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Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
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Cengage Learning.
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