Business Environmental Analysis

Business Environmental
Analysis

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.Purpose and legal structures of Public, Private and Voluntary sectors ....................................3
2. Size and scope of different types of organization ...................................................................4
3. Relationship between different organizational functions .......................................................6
4.Macro Environment impact on business ..................................................................................7
5.SWOT Analysis......................................................................................................................10
6. Interrelationship between strength and weakness .................................................................11
CONCLUSION ............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is defined as the process in which all the aspects of business which
are working in the organization consisting of all the external and internal forces and other factors
which defines the growth and development of the company or organization (Pereira, 2018). The
report will explain the purpose of public (NHS company), private (Sainsbury company) and
voluntary organization (Red cross company) along with its legal structures, size and scope of
different types of structures in an organizations, the interrelation between different organization
function and how they link to different organization structure, positive and negative impact of
macro environment has upon business operations, internal and external analysis to identify
strengths and weaknesses of Sainsbury organization and how it interrelates with the external
macro factors. Thus, the report will help in analysing all such factors which are the basic parts of
the organization so that the organization works effectively and efficiently to achieve goals and
targets that are set by the company or entity.
MAIN BODY
1.Purpose and legal structures of Public, Private and Voluntary sectors
Public Sector – Public sector is defined as the portion of the economy composed of all
levels of government and government controlled enterprises (Fugini, Bracci and Sicilia, 2016).
The purpose of public sector is that it helps the government to enforce social control on
trade and policies for ensuring equitable goods and services to the general public. All the public
services that are rendered by the government to the general public ensures that there is smooth
functioning in the rules and regulations and that they are followed by the public.
The legal structure of public sector is an incorporated business which is run by the Board
of Directors and has an Annual General Meeting at which shareholders vote on certain key issues
relating to the company. As NHS being a public sector organization, it focuses on the
legalization of all the functions which takes place within the organization as the government
rules and regulations are to be followed by the company which are under direction of
Government.
Private Sector – Private sector is defined as the part of economy that is run by
individuals and companies for profit (Van Zyl, Mathafena and Ras, 2017).

The purpose of private sector is concerned with making more money and provide
employment to workers in companies. Private sector companies work for the products and
services to be efficient enough so that the company is engaged in producing more profit along
with generating sales.
The legal structure of private company is a type of joint stock company where the
business has a separate legal entity. Sometimes, the company is run by family, small businesses
which are owned by shareholders. Sainsbury being a private company cannot invest shares in the
other company but sells its shares to the public companies. Each shareholder has limited liability
for the company's debts. The company is run by the Board of Directors and this is headed by the
chairman. The legal documents of the company are formed to take in important details which are
mentioned.
Voluntary Sector – Voluntary sector is defined as the organizations whose primary
purpose is to create social impact rather than profit.
The purpose of voluntary sector is to shape and enhance the society by providing services
through NGO's which helps in the growth and development of such organizations and the
operations of these organizations works smoothly and effectively. Thus, voluntary organizations
work at grass root levels to provide services to the poor sections of the society.
The legal structure of voluntary organizations consist of Trust, Unincorporated
association, company limited by guarantee, Charitable incorporated organization and other
additional sectors within this legal structure include Community benefit society, Co – operative
society, Community interest company, Royal charter bodies. Redcross through these different
legal structures that constitute the organization work accordingly by proving the efficiency and
effectiveness on the society. This charitable trust that is categorized in the voluntary sector
define the working of society for the purpose of not creating profit and implementing proper
functioning.
2. Size and scope of different types of organization
MICRO ENTERPRISES SMALL AND MEDIUM
ENTERPRISES
LARGE ENTERPRISES