Business & Business Environment Assignment : Sainsbury

Business & Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisations and their legal structure..........................1
P2. Explantation of the size and scope of different types of organisation.............................3
TASK 2............................................................................................................................................6
P3. The relationship between different organisational functions along with their organisational
objective and structure............................................................................................................6
TASK 3............................................................................................................................................8
P4. The positive and negative impacts of the macro environment has upon business operations
................................................................................................................................................8
TASK 4..........................................................................................................................................10
P5. Internal and external analysis of specific organisations in order to identify strengths and
weaknesses...........................................................................................................................10
P6. Interrelation of strengths and weaknesses with external macro factors.........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is the collection of all individuals, entities and other factors which
may or may not be under the control of the company but affect the performance and growth of
the organisation. It can be sum of all internal and external factors such as employees, supply and
demand, management, client, suppliers and others and these all influence the business and
business environment of a firm (Business Environment, 2019). Sainsbury is the second largest
chain of supermarket in the UK with 16.9% share of the supermarket sector. This company is
founded by John James Sainsbury in 1869 with a shop in Drury Lane, London. This company is
split in to three divisions such as Sainsbury's supermarkets Ltd, Sainsbury's Bank and
Sainsbury's Argos. This report includes different types, purposes, size and scope of organisations
along with their business objectives or products & services which are offered by them. The
relationship between different organisational functions and their impact upon the organisational
structure will be explained. Further will be discussed about the positive and negative impact of
macro environment upon business operations by using PESTEL analysis. To identification of the
strengths and weaknesses, SWOT analysis will be conducted and the interrelation of strengths
and weaknesses with macro factors will also define (Andersson, Forsgren and Holm, 2015).
TASK 1
P1. Different types and purposes of organisations and their legal structure
To run a business successfully, there are various types of organisation such as private
public and voluntary. These organisations are different in every aspects such as types, purpose,
size scope and in services which are offered by them. The different types of organisations are as
following:
Private organisation- These kind of enterprises are run or owned by individuals and companies
rather than the government. These firms are an important and essential part of a country's
economic system and the motive of these organisations to earn profit and achieve the
organisational goals in given period of time. Sainsbury is a private sector company which deals
in retail sector and it operate its business worldwide. This company is currently engaged in the
tertiary and secondary sector because it provides services such as bank services, sell food and
others (Ayios, 2018).
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Purpose- The purpose of this company is to provide good quality products and services
according to the consumer's choice at a competitive cost (Botha, Kourie and Snyman, 2014).
Legal structure- For private sector organisation, the legal structure is as following:
Private limited company- It is type of enterprise which offer limited liability or legal
protection for its shareholders but there are some restriction its ownership. These restrictions are
are defined in the company as laws. Regulations and policies of the firm. It is good or flexible
structure for shareholder because there are limits the number of shareholders to 50 and they are
restricted for trading of the shares publicly.
Sole Trader- It is person or an individual who set up and owns their own business. The
business of sole traders are depend on their own resources so the business is generally on a small
scale basis. This an essential structure for those people who run their business by own or small
scale and also for entrepreneurs who start their business at small level.
Partnership- It refers to a form of business where two or more people share their
ownership or their responsibilities for managing the company and the profits and losses which
are generated by the businesses. It is a lawful agreement and this structure is beneficial for
middle and large companies.
Public organisation- It refers to those organisation which are owned, run or operate by
government to provide services to the citizens. National Audit Office is an independent
parliament body in the UK which is developed by UK government in 1983. This organisation
engaged with Tertiary sector because they provide auditing services.
Purpose- The main purpose of NAO is to audit central government departments,
government agencies and non-departmental public bodies and carries out value for money audits
in to administration of public policy.
Legal structure- It is lawful structure where companies are operate its business according to the
developed regulation. This structure is as following:
Central government- It is parliament authority which has power to make laws or
regulations for the entire nation in contrast with local government. They are responsible for
national environmental policy directed to contributing to sustainable economic development and
to the health or safety of citizens by improving and managing the quality of the environment
(Charter, 2017).
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