Business Environment and Enterprise Growth

The provided assignment is about the business environment and its effects on enterprise growth. It discusses various aspects such as corporate social responsibility, business model innovation, and competitive strategy in the context of entrepreneurship and economic development. The assignment also touches upon the importance of business process engineering and the impact of the business environment on the business creation process.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 and P2.....................................................................................................................................1
Covered in PPT...........................................................................................................................1
P3 Relationship between organisational functions and its objectives.........................................1
TASK 2............................................................................................................................................4
P4 Positive and negative impact of macro environment on different business operations.........4
P5 SWOT analysis of organisation.............................................................................................6
P6 Interrelation of strength and weaknesses of company with their external macro
environment.................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
In current scenario, manager of an enterprise mainly concentrate on formulating and
developing sound environment in the company and maintaining efficiency and performance of
employees for increment. Along with this, there are different factors that directly affect on firm
and their staff members in proper manner. With the help of this, it is necessary for analyse and
evaluate the entire causes by using various methods and techniques (Aterido, Hallward-
Driemeier and Pagés, 2011). This project is based on Sainsbury which is multinational retailing
company and it is situated in united kingdom. It is second largest chain of supermarket and its
market share is around 16.9%. in addition to this, maintaining relation with organisational
functions and objectives will be described. PESTLE and SWOT analysis method can be
identifying internal and external environment of organisation.
TASK 1
P1 and P2
Covered in PPT
P3 Relationship between organisational functions and its objectives
SAINSBURY is very famous grocery store which is established by two brothers and put
their maximum efforts for make such firm, one of the leading brand in the united kingdom
marketplace. The main aim of these two partners is to expand their business operations and its
functions in all over the world. For satisfy customers needs and wants, so they will gain
maximum profitability in proper manner. They have around 10000 stores within 18 countries and
also offer different goods and items for fulfilling all needs and requirements of potential
customers (Bryman and Bell, 2015). Basically, Sainsbury is large organisation which will
perform various number of functions for gaining their setting goals and targets in effective
manner. Therefore, there are number of roles and duties which can perform by whole staff
members for satisfying all requirements of domestic as well as international customers. Most of
the functions and activities are interconnected with each other and success of an enterprise which
id depend on doing correct working of each department. There are different factors of Sainsbury
that includes Human resources, financial team, promoting, Research and Development and some
more.
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The selected company will play an important role in gaining capacity in appropriate and
powerful manner. All these capacity work for achieving target goals and objectives of the
company (Carroll and Shabana, 2010). After analysing all such things it has been concluded that
developmental rate and share market of firm is higher then its major competitors for doing
unique way of working. For increasing deals, a hierarchical structure is useful assess in chief and
employees play important roles and responsibilities in effective and better manner. The major
goal of business help in improving deals, survival, advantages level and fulfil all requirements
and demand of customers. There are some interrelationship of elements of company along with
all capabilities that are described as under: Marketing – As per this elements, it has been analysed that it is one of the important role
which will play by marketing department for promoting effective products and services
for an organisation at large marketplace by using different methods and tools. Along with
this, the main objective of this marketing division is to increasing the sales of firm by
gaining attention of more customers in proper manner. There are different business
activities and functions which assist in achieving by doing such things that includes
pamphlets, brochures and use different other changes for enhancing in gaining
profitability for the company (Charter, 2017). This will support in establishing positive
reputation of the organisation at large market area. Human resource – It is one of the major role which has perform by Human resource
team of SAINSBURY company is to select talented or skilled employees which gain
required information for particular job. The main motive of this department is to fill
vacancy of the company according to the requirement of specific position. The main
responsibility of HR manager is to manage and maintain coordination between whole
employees which help in getting desired targets and goals in appropriate manner. It is
another duty of HR manager is to make sound and friendly working environment. They
are answerable for conducting different motivational programmes for motivate their staff
members towards personal and professional goals or targets (Chesbrough, 2010). Finance – Capital is demonstrate as backbone of entire organisation because all major
activities or functions are executed with using correct funds. Without availability of
accurate money, it is not easy for performing major functions of the corporation. So
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creditors and investors presented as essential player in getting growth and success of the
company. Research and Development – SAINSBURY will play an important role in collecting
necessary data and information that is used by them at the time of making appropriate
decisions. Research and development department assist company during production
procedures so it will help in understanding the taste and preferences of various other
group of customers (Commander and Svejnar, 2011). Therefore, after acquiring aware
about demand of different customers, manufacturing team can easily designing
appropriate commodity for considering this.
 Production department- The growth and success of corporation is totally depend on
manufacturing team as they are responsible for producing unique and creative goods for
offering different types of goods for their domestic as well as international customers.
After designing all qualitative products according customer choice, preferences and
current trends of an enterprise which can easily reducing their firm sales.
Therefore, it can be analysed that above activities and functions will play an essential role
in developing company growth as per their efficiency and effectiveness. In addition to this, it is
evaluate all these above functions which are interlinked with each other and also their work are
totally depend on each other. There are various kinds of organisational structure which are
addressed as under: Geographical – As per this type, work can be categorised on geographical basis and can
be organised in different areas for gaining attention of large number of customers from
large market place. Based on different functions – This can be consider as one of the most common
structure and according to this company manager can assume the position of employees
as per performance or work (Craig and Campbell, 2012). There are some basic functions
of different divisions such as marketing, finance, HR and operational which are totally
distributed from each other. Merchandise organisational structure – In this component, construction will be
unionised by the assistance of particular products and their features.
 Based on customers- The organisation business is totally depend on customers and also
perform their business functions or activities as per their choice or preferences.
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This has been concluded that above information and data which shows that there is huge
connected between organisational activities and functions with their targets and objectives and
their structure due to their important roles or responsibilities (Dahan and et. al., 2010).
TASK 2
P4 Positive and negative impact of macro environment on different business operations
Macro environment is that term which demonstrate all external factors which are not
control and manage by an enterprise but it directly affect on growth and development of the firm.
Business environment of organisation can be divided into different parts such as internal or
external which major impact on success or growth of entire association due to fluctuation in
single components which affect on whole ventures. It is very necessary for SAINSBURY is to
identify positive and negative impact of macro environmental factors on the firm. Thus, an
organisation analyse PESTLE and its major effects which are described as follows:
Political factor- The government authorities of specific country is always coming up with
different type of rules, norms and regulations that are applied in entire corporation because the
main aim of this factor is to make a nation free from any discrimination or exploitation. It
directly impact on different functioning of Sainsbury in various ways that are described as
under: Positive- Introduction of rules, norms, regulations which assist buyers and sellers both
have different sources such as price of some products which are fixed in their packages
that are determined by authorities which has been taken place. By this result, it protect
from both parties from several losses (Drucker, 2017).
 Negative- Sometime regulation or rules of advisory bodies act as restriction while
exchanging products or services in all over the world. There are large number policies
and strategies which need to be follow while trading with international buyers.
Economical- According to this component growth of firm which mainly affected in different
ways. Currency rate, taxation rate and different other things are falling under economy of
country. Impact of economy which is given as follows: Positive- Emergence of different companies at large market place help in developing
and formulating economy of country by this removal of employment. In addition to this,
it can assist in increasing living standard of people for offering desired various products
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and services to their customers.
 Negative- Taxation price and fluctuation rate is directly affect the business contract of
SAINSBURY which impact on sales.
Social factors- This includes changes in lifestyle of society, social mobility, increment of entire
community by this introduction of large number of desired products and services in effective
manner (Fernando, 2011). Society will play an essential role in developing and formulating
whole country. Therefore, it directly effect on social elements which are described as follows: Positive- This assist an enterprise for understanding the choice of different customers
with the assistance of various factors and it help company while producing several
goods and services in proper manner.
 Negative – Always alteration in consumer taste and preferences which make or create
issues or problems for SAINSBURY manufacturing team while designing commodities.
Technological- The growth of modern technology will motivate company managers for
selecting company towards adopting advanced techniques and methods for achieving different
business functions and activities in more appropriate manner (Trkman, 2010). The impact of
technology is described as follows: Positive- Decreasing in cost and value by using modern technology for completing
transaction procedures in an effective way.
 Negative- Rate of technology assist in reducing due to rapid changes in advanced
techniques and complex for understand by limited talented employees.
Legal- Legislation authorities are mainly responsible for enacting various laws and rules which
are followed by firm while establishing their branches in particular places. This involves
taxation, employment law, rights of various consumers, etc. which is required for adopting all
such things while smoothly running their business operations and its functions in better manner
(Hamilton and Webster, 2015). Impact of legal factors are described as under: Positive- Exploitation of employees, unethical practices and workers as well as different
other wrongful activities or functions which get removed by the legal authorities.
 Negative- Sometime it will create issues at the time of smoothly running business due to
large number of laws and also it is very long process which can consume huge time
period.
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Environment- Resources are acquired by external environment which is necessary for firm to
perform their business operations and activities in more effective manner. Impact of such
components are given as under: Positive- Necessary for analysing environmental condition or situations for delivering
effective products on accurate duration.
 Negative- Ruined the natural resources create and make various food products.
P5 SWOT analysis of organisation
Internal factors are mainly consider as micro environment where those aspects are
included which are wholly managed and controlled by enterprise according to their needs and
requirements (Klapper, Lewin and Delgado, 2011). The assessment of SWOT is also conducted
by SAINSBURY team which help in identify the hidden points and issues that directly affect
firm performance in different manner. Managerial division of selected company will use such
strategy for evaluating the nature and try to implement changes as per market demand and
requirements. So, SWOT analysis of SAINSBURY are described as follows:
Strength- Addressing desirability and capability of company:
 SAINSBURY having string brand name which is varied from their rivals.
 They have large number of branches in around 18 nations with their 10000 stores in
different regions for maximising their customers demand.
 Therefore, they are seen as international firm at corporate level.
Weakness- Identifying concealed disadvantage of organisation:
 Improper communication between employees that impact on success of firm.
 Less skilled employees hampers all business activities and its performance.
 Absence of optimum resources (Osterwalder and Pigneur, 2010).
Threats-
 Alteration in currency price
 Instability in economy rate
 Maximisation in competition due to emergence of other substitute by different rivals
Opportunities:
 Growth of large number of modern technology assist in gaining desired goals and
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objectives
 Online advertisement of effective goods which is useful method for promoting desired
products
So, after analysing internal aspects of SAINSBURY, managerial team can easily design
and create new products according to the demand of customers.
P6 Interrelation of strength and weaknesses of company with their external macro environment
Micro and macro environmental factors have a major relation between each other due to
fluctuations in any single element are impact on other components in different manner which are
totally inter connected with each other. Shortcoming and potentiality of business venture are
related with external elements of environment along with their roles and responsibilities towards
developing corporations (Scheer, 2012). Managerial department of company compare with their
internal factors along with macro surroundings that includes political, social, technological.
Economical, legal and environmental. The interrelationship between strength or weaknesses of
firm with macro environment that are mentioned as under: Economic factors- This includes exchange rate at market place, alteration in interest rate.
For example, if an organisation having limited reserves or fund then currency of any type
of agency can not affect their business. Political or legal- As per this elements, legal rules and regulations are address which has
been followed by organisation while smoothly running the business. So availability of
skilled and expertise people which assist an enterprise for dealing with different ega
challenges. Social and cultural- While overcoming with social issues and challenges, company
require to select talented and skilled employee who have sufficient fund and gain
optimum resources (Shigang, 2010).
 Technological factors- When selected business required to adopt modern techniques or
methods then they can easily achieving allot some task or business activities in minimum
time period.
CONCLUSION
According to above mentioned report it can be analysed that there are three major kind
of enterprise such as public, private and voluntary sector. There are three main type of
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organisation such as private, public and voluntary sector with their legal structure and also their
motive can be defined in correct way. For satisfy customers needs and wants, so they will gain
maximum profitability in proper manner. The major goal of business help in improving deals,
survival, advantages level and fulfil all requirements and demand of customers. Macro
environment is that term which demonstrate all external factors which are not control and
manage by an enterprise but it directly affect on growth and development of the firm. Internal
factors are mainly consider as micro environment where those aspects are included which are
wholly managed and controlled by enterprise according to their needs and requirements.
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REFERENCES
Books and journals
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp.609-647.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
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.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Dahan, N.M. And et. al., 2010. Corporate-NGO collaboration: Co-creating new business models
for developing markets. Long range planning. 43(2). pp.326-342.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Fernando, A.C., 2011. Business environment. Pearson Education India.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
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 UK.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Scheer, A.W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science. 6(11), p.64.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp.125-134.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Online
What SWOT Analysis is in simple words. 2017. [Online]. Available through:
<http://pestleanalysis.com/swot-analysis-examples/>.
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