Business and Business Environment

Business and Business
Environment

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
TASK1........................................................................................................................................................3
P1. Public, private and voluntary sectors and its objectives and legal structures.....................................3
P2. Size and scope of different types of organizations.............................................................................4
The size, scope and structure of a private organization named Sainsbury’s and a selection of public
company which can connect to the objectives of business, their products and services provided by the
respective organization............................................................................................................................5
Business structures and the interrelationships of the diverse functions organization has been evaluated
critically...................................................................................................................................................5
TASK2........................................................................................................................................................5
P3. How the organizational functions are interrelated with objectives and structure of an organization. 5
TASK3........................................................................................................................................................7
P4. Micro and macro environmental factors and how it impacts the business operations........................7
TASK4......................................................................................................................................................10
P5. Internal and external analysis of Sainsbury’s...................................................................................10
P6. Objectives and Decision-making of Sainsbury’s are influenced by SWOT analysis.......................11
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................13
Books and Journals:...............................................................................................................................13

INTRODUCTION
Business includes several kinds of activities and functions which all are very beneficial to
an individual. With an intention to get source of revenue, an individual utilizes himself in some
productive activities in the business which can be known as business activities. As the time flies
there are many types business which can acknowledge in various forms and which havedifferent
functions in their organizational structure. Business environment refers to an environment
whether it is internal or external it affects the business operations and its profitability of a
business (Agbim, K. C., 2019). The report aims on Sainsbury’s Company which is a
multinational supermarket in the UK which deals and trades in groceries and other merchandise
in general. In UK, there are number of stores to operate in varieties of location. The report is
prepared to discuss the types and purpose of different organization either public, private or
voluntary with their legal structure. The report comprises with different types of organization
having different sizes and its scope. In context to Sainsbury’s, which is recognized as a private
organization discussing a structure, size and its scope, also there linked with the objectives,
products and services. The report outlines the various micro and macro environmental factors
and SWOT analysis of the respective company in order to examine the positive and negative
impacts of these factors on the business operations.
MAIN BODY
TASK1
P1. Public, private and voluntary sectors and its objectives and legal structures.
Private sectors:
Private sector organizations are those organizations whose motive is to earn profit only
and these organizations can be owned by government and private bodies or both. When an
individual plans to establish a private sector organization their main cause is to earn profit and
the growth and development of the business. Private sector organization generates their income
by making a contribution to the gross domestic product of a country (Barnett, M. L., 2019). In
the context to Sainsbury’s, it is a best example to understand private organization which works to
earn huge amount of profits for the business. The main purpose of the organization is to generate
more and more profit so that the company can grow and develop day by day.
Legal Structure: Sainsbury’s is a private sector organizations and acknowledged as the
second largest chain of supermarkets in the UK market. Business have different types which
functions with different legal structures in the present time. The respective company is a joint
stock company with distinct legal entity from the holders of the organization.
The legal structure of the organisation is mentioned in the following list:-
 Partnership: Partnership is a legal agreement which is done between two or more
persons who are mutually agree to share equal or pre-determined profit and losses.

 Sole proprietorship: It is a business in which a business is created by a single owner and
they have unlimited liabilities.
 Company: Companies has a separate legal entity which comes under the company act,
2013. It has two types of companies private limited company and a public limited
company.
Public Sectors:
Public sector organizations can be understood as an organization who is completely ruled
by government. These organizations are recognized to serve for the community and citizens with
delivering improved services to them and with no major objective to earn profit. The main
objective of such business is to deliver necessary services to the citizens or local public. These
organizations are sponsored by taxes which is deal in critical services such as housing, education,
social work, health and which is paid by citizens of a country. Virgin money is a public sector
company whose main purpose is to provide significance value by offering a positive contribution
concerning the society.
Legal Structures: Public sector organizations are usually owned by government bodies
and its legal structure is based on an enterprise which has distinct legal entity (Bastas, A. and
Liyanage, K., 2019). A UK Challenger Bank named virgin money has its concentration on
residential mortgages, savings accounts and credit cards.
Legal structure fix the boundaries of public sector organizations that they must stick to in
order to generate income and run competently.
 Central Government: These organizations such as department of international
development and environment agency are chiefly managed and controlled by the central
government. Legal structure of such type of organizations is framed by central
government.
 State government: Operation a business at a state level then the legal structure is
determined by State Government.
 Local government: These includes will municipal corporations or local government.
Voluntary sectors:
Voluntary sectors are those companies which will focus only to perform social activities
and their main aim is not to earn profit but to serve societies. These organizations are not ruled
by government and it is an establishment for the society’s welfare. The main purpose is to serve
various kinds of welfares to the society without earning any kind of profits. The chief example of
such type of companies are Cancer research in UK. The voluntary factors offers social services
by performing research and various kinds of campaigns which are allied to prevent cancer in the
society. This type of organisation can be better understood by nonprofit organizations, NGOs,