Impact of Environment on Organizational Working

This assignment examines the profound impact of both internal and external environmental factors on organizational functioning. It delves into how micro and macro environmental influences shape working conditions within organizations. The importance of managerial adaptation through tools like SWOT and PESTLE analysis is highlighted to effectively navigate challenges and achieve organizational goals.

PART-A

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK1.............................................................................................................................................4
P1. Different types of organisation and their impact on growth of international business.........4
P2. Size and Scope of different types of organisations...............................................................7
P3. Organisation structure and functions in order to accomplish objectives..............................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Business environment plays an vital role in changing dynamic market. Change in
different types of technology, suppliers, government, legal regulations and market trends alert
every business to use latest gadgets and technologies in order to remain sustain in corporate
culture. It is utmost responsibility of managers to considers all the factors and elements which
affect the strategic policies, procedures and working environment of organisation(Babatunde and
Adebisi ,2012). Under this assignment three companies are pre-freed I.e. Coca-cola as profits,
Save the children as non profit and UNICEF as non governmental organization in order to show
all the impact coming from different types of business environment in corporate world and their
side effect on working culture of workforce. Further it discuss about the various types and
purpose of enterprise, scope size, relationship between various function of enterprise and positive
negative impact on daily operations of business.
TASK1
P1. Different types of organisation and their impact on growth of international business
In external market there are different types of companies who perform their daily
activities with the objective of earning profits and satisfy the needs of customers in order to
maintain the sustainability in market. The main vision of organisation is to uplift the living
standard of people and increase the revenue of economy. Here is the difference between public
and private sector which stated below:-
Basis for comparison NGO Not for profit For profit
Meaning NGO can be defined
as non governmental
organisation whose
major objective is
social welfare and do
good things for kids
and poor people who
unable to fulfil the
basic necessities of
business. For example
Non for profit is
defined as such
organisation in which
business is granted tax
exempt status by
international revenue
service and they free
from taxes because the
profit earned by these
association is
This type of
organisation is
generally established
with the objective of
earning profits through
their goods and
services within in
market place. For
example coca-cola is
one the top most

UNICEF one of the
best example who
engaged in this type of
work.
generally for donations
and the best example
for this save the
children that promotes
children's right and
provide support, relief
to children in rural
areas.
industries in soft drink
sector originated in 19
century comprises of
large employees with
huge market share.
Area of operations It is expanded on large
basis in different
countries.
Here the area of
operations is limited at
particular countries.
If company earn huge
revenue then the
management can
planned to diversified
their business
operations at various
countries.
Objectives The main objective of
UNICEF is to develop
the society in such
manner that it enhance
their living standard
and also contribute in
the development of
whole economy.
Under this main target
of save the children
association is to work
wholly for the
promotion of art,
science and commerce
and the profit they
earned can be used for
the welfare of poorer
children.
Main objective of
coca-cola is to earn
huge amount of profits
and become the top
most brand by
satisfying needs of
target audiences.
Three factors are important can be described below:-
Public sector:- This sector is large in sized and basically framed by government of
particular country and all the rules and regulation are enforced by management on the consent of
local bodies (Cantwell , Dunning and Lundan ,2010). Apart from it, is comprises of large

employees because of which speculation is seen generally in these types of organisation. For
example Marks and Spencer which engaged in retail sector who generally provide goods and
services for working class individuals.
Purpose:- basically this kind of association are established with an motive of developing the
economy in that respective country and focus on the welfare of backward classes people and
provide employment to many people.
Private sector: These type of organisation are wholly owned by the person who
established it. All the vision, objectives, legal regulation and recruitment process formulated by
them only and worked is done on the basis of their organisation structure. Under this, case
related to Waitrose which is MNC based offer their services and administration all around the
world.
Purpose:- The main goal and objective of organisation is to observing all the needs and
demand of customers and provide goods and services on the basis of requirement raised by target
audiences which leads to earning high profits. The main priority of these firm is to maintain
standard quality in their respective products.
Voluntary Sector:- these organisation are generally formed on voluntary basis whose
main objective is to work for social welfare and monetary variables. Case of Amnesty
International who main objective is to inspiring people to take step against all the injustice in
order to bring world close to human right and dignity.
Purpose:- Main purpose is to aware people about human rights and enhance their education level
in respect of laws and rules especially enforced for the benefits of society.
Legal structure of the sector
Private sector:- under this it is divided into two categories that described below:- Sole proprietorship:- This business can be defined as such firm whose policies, strategies
and business operations are ruined by one person only. He or she only responsible for all
the losses and profit incurred by company. Partnership:- it is formulated by combination of two or more person in which
partnership deed are established which tell about the profit sharing, capital ratio and
duration of firm.
Public sector:- Their are different number of government bodies that covered under it and
described below:-

 State government:- This is one the local bodies who established laws and regulation in
that particular state where they run their administration. Local government:- these kind of authorities generally work for essentials factor in local
commodities along with providing welfare to society.
 Central government:- under this sector all the administration are handled by central part
and also regulate the working of local and state government.
P2. Size and Scope of different types of organisations
There are various types of organization which are formed on the grounds of size,
structure and working conditions. Therefore, it is divided into small, medium and large sized
organisation. Size and scope are described below:- Micro Scale:- This kind of division are mostly small in size and operate with the
objective to earning such minimum amount of profit that help in livelihood of person.
Basically these kind of association consist of small employees and turnover is very low
and it is operated by single body only (Carroll and Shabana , 2010).For example Orion
Electrotech limited, softwire etc. Small scale:- these kind of association are generally large in size as compare to micro
enterprises and consist of minimum 50 employees and the earning generated by them is
not less than 5 million dollars. Although it is expanded on different market place since
from their operation. For example Wiser,ensoft firm, Roc search firm and equilibrium
management etc. Medium scale:- This kind of organisation consist of 250 to 500 employees and revenue
recorded should be around 5 to 23 million dollars and major example used under it
related to Exponential-e which engaged in digitalisation so that covered under this
category. For example Crawford healthcare,Harvey water softeners,Hunter Macdonald,
NPW Gifts etc. Large Scale:- these company consist of large employees base more than 250 and
generate the revenue of all around 250 million dollars. Best example covered under it is
CADBURY who provided their products internationally and thus having more than 1000
employees working within company. For example John Lewis Partnership and IPMG,
Stemcor, Swire company etc.

Objectives differentiation:
Micro Small Medium Large
The major objectives
of micro enterprises is
to such sufficient
amount of profit which
help in satisfying
customer need for
maintaining
sustainability in
society.
Under this kind of
organisation main
focus is given on
maintaining the living
standard of people and
regular scanning of
environment in order
to grabbing
opportunities and
remove threats in their
corporate culture.
At the time of
establishment of this
kind of association is
to diversified their
business activities
nationally as well as
internationally.
This kind of firm
basically concentrate
on structuring the
whole economy and
maintain the
sustainability in
particular society
where they
established.
Scope of different types of organisation:-
Micro scale:- these are very small in size and expansion is possible in same city or town.
Small scale:- these types of businesses use different types of tools and techniques in order to
enhance the scope and level of business by expanding more than one place.
Medium scale:- level of scope is very high in nature and also plan to expand their business
globally and take the permission of government in the form of license.
Here Coco-cola is taken for defining all the terms like market share, growth rate and
sustainability of business so better analysis is possible.
Market share meaning:- It can be described as term which discuss about the portion of market
which has been enjoyed and controlled by particular company.
Revenues: It has revenues of around $7.51 billion.
Market share: It has market share of approximately of around 48% which is greater than previous
years.
Growth rate: The rate at which the growth of business increase in the form of profits and market
and market share.
Previous it's growth is not at rapid speed and now it is growing at fast speed. It has
approximately 6% growth rate.

Sustainability: This term can be described as process in which all the economical, political and
social condition must be consider in such manner that protect the resources for both present and
future generation.
For surviving in market for longer period of time Coco-cola can create different attractive
messages through social networking sites such as Facebook and twitter. They can also show their
customers methods and ways in which they are performing their activities and tasks. This helps
in capturing more users.
Large scale:-
They easily get the scope of acquiring the different economics in which they are not able
to establish their foot due to diversified economic conditions and various legal issues.
Transactional company:-
Transnational organization is an immense organization which have their business
activities in different nations and even their income is significantly more high then some
economy of the nation. From the above articulation one might say that transnational organization
has coordinate impact on the conservative state of a particular nation.
P3. Organisation structure and functions in order to accomplish objectives
In every organisation business is not run on single working style but they have to perform
various types of functions in order to operate their business operations properly(Chavis , Klapper
and Love ,2011) Although every organisation followed definite types of organisation structure
which allows workforce to accomplish their daily targets effectively in appropriate manner.
Various functions that must be performed by particular organisation in context of M&S are
stated below:- Human resource department:- this department basically work for recruiting selecting the
best candidates for vacant job positions. Different methods are used I.e. internal and
external source in order to fill empty position and also established policies related to
appraisal, compensation and training development of employees. Marketing department:- Under this department whole marketing team formulated their
strategic marketing policies and procedures in order to promote the goods and services of
company. For example if M&S wants to increase their market share by 25% in coming
one year then they have to focuses on the marketing of their goods and services. For
example marks and Spencer used this functional area in their structure by using different

marketing promotional tools like roadshows and social networking in order to aware
customers about their products and services. Finance department:- Basically this type of organisation basically formed in order to
maintain the whole finance department of company. Planning for arranging adequate
finance for upcoming projects of organisation. The main objective is to reduce the cost
and wastage of resources. Production and operation:- This section of Marks and Spencer plays a vital role in order
to make high profit. Manufacturing of products and services is being done under this
department. This sub section stays inter connected with sales department in order to make
any sort of modification if it is required. Objectives are being easily attained through
healthy relation in between managers of these two department and this may lead firm to
enhance its sales. Research and development:- Marks and Spencer's marketing has impacted positively on
performance of it at marketplace of United Kingdom and in other countries as well.
Strategies are being made under this department in order to gain competitive advantages.
This department stays connected with marketing department where managers of this
department evaluate all the needs of consumers and deliver information to marketing
section so that to grab good and competitive advantages.
Organisation structure:- It is consider as systematic procedures through which business carry
out their all operation activities in order to manufacture the products to final consumers. Further
M&S follow flat organisation structure because it comprises of few or no level of middle
management between staff and executives and it discuss about the how many department in
organisation are their and how many mangers controlled it and M&S used it because of large
workforce working in different department and structure is divided in following manner:- Function based:- under this the task is divided on the basis of functions performed by
them which segregate on HR department, finance and marketing divisions. For example
M&S comprises of different department and they divide their structure on the basis of
specialisation among person in different departments. Consumer based:- Choices of consumers always changes according to modern trends so
there is a need to make innovative changes in products for maintaining sustainability. For

example M&S must establish such superior quality of products and services which reduce
carbon footprints and give utmost satisfaction to costumers. Product based:- Segmentation is done on the basis of product offer by firm to its
customers. Company indulge in the production of different product segment like clothing
and grocery store which must be developed according to recent choices and preception of
consumers. For example M&S provide large variety of products such as clothing, foods
and cosmetic things (Chow and et. al. ,2012). Centralised organisation structure:- Under this type of structure all the decisions,
policies and rules regulation are established by strategic level only and decisions are
taken without the consent of middle and lower level. Flat structure:- This type of structure has followed in all multinational company where
decision and regulation regarding all internal and external activities and strategies are
made by the strategic level on the opinion and view point of middle and lower level. Divisional structure:- Under this work is allocated to different employees in various
department according to their specialisation and interest areas. Matrix organisational structure:- It can be described as structure in which reporting
relationship are set up in a grid or a matrix instead of traditional hierarchy. Further in this
structure both the product and functional manager indulge in the work for the
accomplishment of objectives effectively. Product based:- It is that type of organisational structure where the task and activities are
divided into goods and services that facilitates coordination among management and
leads to rational decision making. Transactional organisation structure:- This type of structure has been followed at the
time when business operated at national and international boundaries in such case there is
need to organise all the activities in systematic manner that means achieve integration
either within various product categories within that geographical boundaries and for
maintaining this transactional operation professional mangers has been appointed. For
example M&S has face various complexities at the time of transecting business at
different places due to ineffective communication and background. International organisation structure:- This structure has been followed at the time when
business conducted internationally in such case strategies made by organisation in such

manner so that international transaction has been conducted in proper manner. But many
time organisation face hurdles because of network problems and ineffective logistics
system at the time of delivering goods and services.
 Global organisation structure:- when any business conducted their business activity at
different countries which allow them to expand their stores and increase profitability.
M & S vision: Vision of M & S company. They are-
 To be standard against which other are measured. For example M&S require to formulate
such type of strategy which help them in maintaining their finance and establish such
image that help them to keep quality standard for products and services.
Mission: Mission of M & S are-
 Main purpose of Marks and Spencer is to develop good and superior quality of products
so that they can inspire other rival firms.
Objectives: There are various objectives-
 Hire effective employees: Marks and Spencer wants to select qualified and highly skilled
employees so that all activities run in effective manner. It results in improving
performance of staff members.
 Organizational objectives: It wants to become leader in food and clothing by providing
superior quality of food and clothes to users.
 Sales objective: They have to increase their sales so that they can earn huge returns and
can increase market share.
Functional area of M&S may be related to sales and marketing in which they use different
promotional marketing strategies like roadshows, exhibition and social media through which
they aware and communicate customers regarding the products and services given by M&S.
Marketing functions:- In which whole marketing team prepare strategies through which they can
promote products through advertising and maintain effective communication with target
audiences.
CONCLUSION
It has been concluded from above mentioned project that change in business environment
affect the working operation of small, medium and large scale organisation so they need to scan
external market in order to satisfy the requirement of organisation. Apart from it, enterprise has

various factors and structured which are interlinked with each other and in order to maintain
quality in target market M&S has to concern on different divisions.

REFRENCES
Books and Journals
Babatunde, B .O. and Adebisi, A. O., 2012. Strategic Environmental Scanning and Organization
Performance in a Competitive Business Environment. Economic Insights-Trends &
Challenges. 64(1).
Cantwell, J., Dunning, J .H. and Lundan, S. M., 2010. An evolutionary approach to
understanding international business activity: The co-evolution of MNEs and the
institutional environment. Journal of International Business Studies. 41(4). pp.567-586.
Carroll, A. B. and Shabana, K .M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management reviews.
12(1). pp.85-105.
Chavis, L. W., Klapper, L .F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chow, A.T. and et. al. ,2012. Computer readable medium with embedded instructions for
providing communication services between a broadband network and an enterprise
wireless communication platform within a residential or business environment. U.S.
Patent 8,155,155.
Harmon, P. and Trends, B. P., 2010. Business process change: A guide for business managers
and BPM and Six Sigma professionals. Elsevier.
Hilton, R. W. and Platt, D .E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Klapper, L., Lewin, A. and Delgado, J .M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan, London.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2-3). pp.172-194.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp.125-134.
Online:-
SWOT Analysis of Marks & Spencer.2017.[Online].Available
through:<https://businessteacher.org.uk/swot/marks-and-spencer.php >.

PART-B

Business and the Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK2.............................................................................................................................................4
P4. Identify the positive and negative impact that macro environment on business operations.4
P5. Conduct internal and external analysis of specific organisations in order to identify the
strength and weaknesses.............................................................................................................6
P6. Explain how strengths and weaknesses interrelate with external macro factors..................7
CONCLUSION................................................................................................................................8
REFRENCES.................................................................................................................................10

INTRODUCTION
Business environment consist of different factor that affect the working operations of
business therefore it is important for all the businesses to scan the environment in such way
which enable them to grab the market opportunities and also remove all the risk of rivalry
associated with company(Al-Debei and Avison ,2010). Under this assignment the company
which is pre-freed I.e. Sainsbury's which is UK based retail supermarket dealing in different
types of goods and services in retail sector. Further it focuses on SWOT, PESTLE and Tows of
business and shows positive negative impact of business environment on different factors of
business operations.
TASK2
P4. Identify the positive and negative impact that macro environment on business operations
Every organisation has to considered all the factors of environment which affect on the
management operations of business. At macro level if company wants to establish their goodwill
and brand value then they need to maintain the quality standards for their goods and services.
Sainsbury's is a largest supermarket of United Kingdom which deals in homewares, electricals
and groceries also(Boons and Lüdeke-Freund ,2013). Therefore it is vital for organisation to
evaluate all the positive and negative attributes of macro environment which provide competitive
advantages over competitors. In order to understand all the impact their must be macro analysis
of Sainsbury's in definite manner which stated below:-
Basis Strength Weakness
Political:- Under this scenario
all the political conditions
related to administration, rules
regulation has great impact on
the performance of Sainsbury's
so they need to make proper
arrangements in order to
complete task on time.
Positive impact:-
 It is very helpful in
Most important impact of
macro environment is basically
due to corporate tax which
falls from 30% to 27%. This
alert them to work properly in
order to attain effectiveness.
The major limitation is
basically related to all the
modification coming in
policies and strategies of
management so chances of
earning profits and outcome is
more.

order to maintain
stability in working
style of business. Sainsbury's easily
complete task on time.
Negative impact:-
 Create different for
Sainsbury's business
due to change in
political conditions and
regulations.
 Affect negatively on
the sales of company.
Economical: This is basically
related to all the economic
situation like change in foreign
exchange rate, inflation and
recession. United Kingdom's
economical condition plays
vital role under this factor and
can put both positive or
negative impact on profit
margins and on conditions as
well.
From economic point of view
UK is developed country
where if company established
their business then get more
chances of earning profits.
Profit margins can be
improved and heavy revenue
can be made if economical
condition will stay strong of
countries where Sainsbury is
doing business.
The major problem which
company facing is the
regulation of Brexit because of
which many organisation has
to wind up their operations
from UK and this will create
situation of depression because
many individual loose their
job. Along with this, 2007 year
when recession took place
which raised the rates of
products which impacted badly
on profitability of this
organisation.
Social:- These are basically the
culture trends and belief of
society that affect the working
In order to earn the profit and
enhance the growth
Sainsbury's has an opportunity
Sometime social aspect
become dangerous for
company it heart the

operations of business.
Therefore, it is essential for
Sainsbury's company to create
new feature in products and
services according to the
background and culture of
people which help them in
establishing better brand image
and goodwill.
to communicate with customer
in order to know their demands
and trends.
sentiments and emotions of
particular society.
Technological:- these are
basically concerned with all
the modification in the
techniques in the form of
digitalisation which require
every business sector to
maintain latest working style
in their operations so targets
can be achieved.
In order to create brand image
all over the world company
establish official website from
where they do their online
business so that each and every
customer easily reach to the
products. The main objective
of firm is to enhance sales and
profitability.
Advancement in technology
sometime create fraudulent
activity in the business
operation which leads to heavy
losses to organisation in the
form of goodwill and brand
image.
Environmental:- It is basically
concern with all the activities
that affect the environment in
both positive and negative
way. Therefore it is major
responsibility of manager to
adopt such techniques which
are environment friendly.
Company using their less
carbonated factor so that
pollution in environment
become less and also
supportive in managing profit
margin of business.
Sainsburry uses their livestock
material at the time of
operating business carefully.
Using such types of machines
which affect environment
negatively leads to heavy
penalty on company.
Legal:- It is basically related to
all the legal legislation and
rules regulation which
enforced by UK government
Compliances of all legal laws
and ethical practices in
business environment allow
organisation to enhance
Sometimes due to complex and
hard prodecures at the time of
expanding business create lot
of issues and problems in the

on the legal policies of
companies.
goodwill and brand value. goals and objectives of
company.
Therefore, Sainsbury's must considered all the above factors and elements in order to run the
working operation of business which allows them to grab all the opportunities arises from
changing environment.
P5. Conduct internal and external analysis of specific organisations in order to identify the
strength and weaknesses
Company need to analyse all the factors of macro environment in order to frame better strategic
policies of business (Chesbrough ,2010). In order to execute all the operations it is vital for
management to understand all the strengths and weaknesses properly for better decision-making.
Following are the corporate targets of company for growth and development are described
below:-
 Maximise the sales by 10%
 Expand the outlets of business internationally so that customer base increased by 15%
 To operate 100 more stores all around the globe.
In order to satisfy all the above objectives company need to investigate all the internal and
external related activities in context of Sainsbury's which described below:-
Strength
Sainsbury's consider as one of the big four supermarket chains in UK. Consist of highly
experienced leadership team and comprises of more than 150000 people. Enjoying excellent
branding and advertising. Company having 550 supermarket and operate their business stores
over 350 area in UK. The main USP of company is to provide quality standard of goods and
services which attract customers. These strength of Sainsbury's allow them to create good brand
image in external market. One of main strength of this organisation is that they have organised a
whole different department which looks into all the needs of consumers where feedbacks are
being taken from customers and try to resolve them for maintaining the sustainability for a
longer period of time.

Weaknesses
Rising in food prices have negative impact on Sainsburry sales which create high prices also.
High competition in each segment of every retail sector. Less products are offered by company
as compare to their rivals. Therefore, it is vital for Sainsbury's to remove all the shortcomings
arises in their business to maintain better position in external retail environment.
Opportunities
It can expand their business through joint venture, strategic alliance and partnership in order to
explore new markets. Starting their business through online stores for 24 hours allow them to
enhance their sales. Company need to concentrate on tapping the customers of rural market so
that they also aware about all the goods and services offered by Sainsbury's. Because of
providing goods at affordable prices they easily establish good position in rural sector. Therefore
it is very essential for Sainsbury's to come under these types of strategic alliance so they know at
global level and increase their market share.
Threats
Increasing globalization is also challenging fact for company because of various rivalry. Has to
always provide the best quality and financially viable products over competitors. Their are
different risk and threads for Sainsbury's in supermarket like M&S, TESCO which affect their
sales and profitability. In order to gain the advantages of external macro factors Sainsbury's
required to formulate such tactics and apply in their product services that help them to remove all
the risk factors of rivalry.
Porter five models of Sainsbury's
 Competitors rivalry:- In business sector retail market is very competitive because of
various rivalry and different business try to go on non food sectors because of
competition. Apart from it has market share of around 14.9% and also focuses on
restructuring of business also. Further bank and various socities compete with Sainsbury
bank but it was not core business of Sainsbury's.
 Barriers for entry:- there is huge barrier in entry in food sector because of different
competitors so there is need to maintain sophisticated market and need various funds for
brand development at global revel. Apart from it they need local knowledge of food taste
of that population which become difficulty for foreign firm to adjust.

 Threads of substitute:- This factor seen less in food industry because consumer at global
level but they have to face huge competition in internal sector. For example Sainsbury's
has threads of new competitors in supermarket which coming with more innovative and
goods products.
 Buyer power:- Power of buyer is high in this industry because of presence of different
rivalry which selling same type of products. It is only differentiated their products on the
bases of price, quality and loyalty of customers.
 Supplier power:- Power of supplier is usually more complex and it is very difficult to
recognise it. It is depend upon the mutual understanding of both buyer and suppliers. It
has been well acknowledge that if supermarket not sell their products effectively then
customer shift to other market and relationship depend on brand image of company.
P6. Explain how strengths and weaknesses interrelate with external macro factors
Company require to identify all the internal and external factors in order to complete all
the working operations in effective manner. At the time of launching any new products
organisation wants to know feedback of target audience so that they examine the opinion,
thoughts and viewpoints of them in order to understand all the good and bad things in their
products for further improvement. In dynamic changing environment changes are done at very
fast speed which enable all the big company to match with market trends in order to beat all the
challenges of external rivalry. Below are the interrelation of strength and weaknesses with
external factors which are described below:- Political factors:- Political conditions and rules enforced by government are considered
as strength for particular economy. For example currently in UK because of customer
and government debts are high will impact on customer attitudes and create big pressure
on business conditions are weakness for Sainsbury's. Although the political conditions
are not favourable for Sainsbury's but due to huge growth and long heritage because of
providing standard quality of product at competitive price give better outcomes in future. Economic factors:- These factors plays an essential role in every industry and it will
impact on cost, price and revenue also. Heavy fluctuation in external market leads to
economic slowdown and create negative impact by increasing unemployment and
inflation in food prices are the two important economic factors that impact Sainsbury's
business also. For example Sainsbury's can reduce all the risk associated with business by

expanding their business in new emerging markets which indirectly enhance their market
share and productivity also. Social factors:- In today business environment all the customers want convenient
shopping I.e. prefer every products under one roof and Sainsbury's is one the largest
supermarket where all the goods and services are available to target audience at one place
which is consider as strength of company (Commander and Svejnar ,2011). Although
frequent changes in customer demands leads to heavy expenditure by adjusting product
according to consumer needs consider as weakness. Therefore, management team need to
coordinate all the factors elements in such way which leads to huge profits and
efficiency. Environmental factors:- In order to maintain sustainability in business environment
organisation and company require to act in socially responsible manner to keep the
environment pollution free. For example, Although Sainsbury's take an initiative in the
area by reuse, recycle approach that automatically manage waste, recycling and
packaging and also help in reducing carbon footprints. Technological factors:- Technological advancement is very beneficial for the operations
of business because it provides significant growth in the online and web based operation
things. For example, Through advance online channels enable Sainsbury's expand their
business by providing items online and develop online food delivery system also which
consider strength. Although many rivalry come with new methods and techniques
become riskier for already established organisation.
 Legal factors:- Adherence of all legal laws and regulations enable organisation to carry
out their business operations in good manner. For, example Sainsbury's although strictly
compile with ethical principles which enhance their brand image. On the other hand at
the time when company planning to expand operation in other countries face difficulties
because of complex legal procedures enforced by that particular country.
CONCLUSION
It has been concluded from above assignment that both the micro and macro factors of
environment affect the working conditions of organisation. Therefore it is utmost responsibility
of manager to scan external environment in order to make all the mandatory changes in their
organisation structure in order to beat all the challenges of rivalry. Further in order to examine

the actual position of company they need to do SWOT and pestle analysis so that interrelate with
internal and external factors of environment. Proper management of each operation allows them
to accomplish objectives in better way.

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Online:-
Business Environment. 2017[Online]. Available
through:<https://www.slideshare.net/NikhilSoares/business-environment-
featuresmeaningimportanceobjectives-porters-model>