Business and The Business Environment

Business and The
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and types of organisation........................................................................................1
P2. Size and scope of the organisation........................................................................................2
TASK 2............................................................................................................................................4
P3. Organisation structure and functions with inter-relationship................................................4
TASK 3............................................................................................................................................6
P4. Positive and negative impact of the macro environment......................................................6
P5. Strengths and weaknesses of company.................................................................................8
TASK 4..........................................................................................................................................10
P6. Interrelation of strength and weakness with macro factors...............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment refers to the sum total of both external and internal environment
including customer needs, employees, government, technology, trends and so on. Apart from
this, there are various factors that helps in taking decision and also executed by company by
considering tax rates, exchange, governmental policies and many more (Okeyo, Gathungu and
Peter, 2016). It is identified that business environment is helpful in significant resources because
of that organisations tends to achieve higher growth and effective development for the overall
performance. To carry forward this report, Sainsbury's is undertaken which is the second largest
chain of supermarket in UK and also founded in 1869 by the John James Sainsbury and also
became the largest retailer grocery store. In terms of public NHS is considered that tends to offer
public healthcare system and its purpose to offer healthcare to people. For voluntary Oxfam is
undertaken as its objective is to reduce poverty and enhance the overall condition of society.
Moreover, the report is going to cover the comparison among the private, public and voluntary
organisations considering their legal purpose and structure. Additionally, size and scope of the
company is also discussed with significant inter-relationship. Moreover, both internal and
external analysis is organised with its strengths and weaknesses.
TASK 1
P1. Purpose and types of organisation
Private: Here, company include sol proprietorship, partnership and corporation and its
objective is to earn more and more profitability. Sainsbury's is the private association that tends
to provide high quality products within the market. It is the largest supermarket store and also
has global presence. Purpose: For this, company develop various essential products to customers at the low
prices that help them in order to enhance their profitability and sales (Strydom and
Rudansky-Kloppers, 2016). Furthermore, the purpose of Sainsbury's is to earn more
profit and achieve competitive advantage within the market.
 Legal structure: In terms of private sector, the legal structure is prominently relies on the
higher authorities of an organisation as they also have the right to take decision
considering the laws and norms of company. In terms of Sainsbury's, its Board of
1

Directors take prominent decision which is useful in communicating to all the employees.
For this, the decision tends to impact the overall functioning and operations of company.
Public: This type of company is owned and controlled by the government as the NHS is
undertaken which is established in 1948 with the purpose of offering best healthcare services to
people. Purpose: The prominent purpose of NHS is to offer best health services to individuals
regarding their living standard as it tends to offer best service to patients in terms of
enhancing the health conditions to their patients (Hamilton and Webster, 2018).
 Legal Structure: In terms of NHS, all the prominent decisions of public organisation is
owned by the state and central government. Therefore, all the decisions should be
followed by the higher authorities and workers of NHS in terms of performing their
activities in smooth and effective way.
Voluntary: It defines the collection of individuals who tends to work together in order to
achieve common objectives and goals. For this, company is not managed and controlled by
government. Oxfam is undertaken as the voluntary institution in 1942. Moreover, around 20 or
more independent charitable trust is linked with Oxfam. Purpose: Its objective is to eliminate poverty from the society and tends to support poor
and needy people in order to raise their living standard by enhancing their status. It also
tends to bring prominent change with the help of various programs and campaigns to
improve the conditions of society (Čepel and et. al., 2018).
 Legal structure: Oxfam is the voluntary company and take all the decisions considering
the norms and policies that are taken by the trustees of company. They also take decisions
that are good for the society and employees as well.
P2. Size and scope of the organisation
Private company – Sainsbury's Size and scope: Sainsbury's has wide scope in market as it tends to offer good quality
products and services to their customers. For this, company tends to operate within
around 15 countries as have 7000 stores at the global level. In regard of this, the reason of
the success of Sainsbury's is the prominent talent and human resource and the operating
profit of company is around 2.20 billion pounds. It tends to offer effective products in
market at he low rates and also attract large number of customers that prevails in market
2