Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1 Different types of organisation and and growth of international business............................3 P2 Size and Scope of various types of organisations.................................................................5 P3 Interrelation of various function and their applicability to accomplish objectives................6 TASK 2............................................................................................................................................7 P4 Identify the positive and negative impacts the macro environment has upon business operations....................................................................................................................................7 P5 Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses............................................................................................................9 P6 Explain how strengths and weaknesses interrelate with external macro factors.................10 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................12
INTRODUCTION Business environment is one of the important tool and component that affect the overall operation of business. Further, in dynamic external environment changes were coming in the thinking, perception and attitude of person that induce the company to come with new and innovative techniques in their goods and services that attract large number of customers which help increasing the sales and goodwill of business. Apart from it, there are various factors and elements that need to be modify in respect of organisation structure which allow them to beat all the challenges of rivalry(Björklund ,2011). Under this assignment the company which is preferred i.e. Sainsbury's which is UK based retail stores engaged in clothing and grocery products items and also deal with different diversified sectors according to the culture and perception of target audiences. Apart from it, this project discuss aboutdifferent types, size and scope of organisations, interrelationship of various organisation, various organisational functions and conduct of internal external factors for the purpose of accomplishing objectives. TASK 1 P1 Different types of organisation and and growth of international business Business is consider as the mixture of different activities whose main objective is to provide standard quality of goods and services to customers that help in satisfying all their needs and desire at optimum manner(Chow and et. al.., 2006).Every kind of organisation have their own purpose and objective in respect of their products and process that allow them to gain best results or outcome in future. Apart from it, the legal structure of business has been maintain in effective manner so that ethical code of conduct and morale of employees has been maintain at the time of accomplishing daily targets of business. Therefore, it has been properly said that when any association is working at wider level then growth and development of business is possible through the effectiveness and efficiency of business. But for the proper working they need to scan environment on daily basis and mostly there are three types of company whose description given below:- TypesOverviewPurpose Themostimportantkindof businessispublicsector enterprisewhosemain Famouscompanyknownas crownprosecutionservices whichhasopenrelationship On of the main objective and purpose of crown prosecution services is that they offer legal
objective is to serve the whole society in order to enhance the living standard of communities and make an efforts to remove all types of issues that society hasbeenfacingforlonger periodthatleadtogood outcomesandentitiesget controlbylocal,stateand central government. withUKandworkingfor controlling criminal activity in EnglandandWales.Itwas enforced its working in year 1986 and comprises of 6000 representativesintheir workforce. The main aim of company is to reduce all type of criminal offences that exist insocietysothatbetter working is possible. and adequate compensation to all the person who are suffer becauseofcriminaloffences and also investigate the whole caseandexecutethewhole proceeding for legal actions. Anothercompanywhich runningfreelyinwhole businessenvironmentare comeunderlimited companies.Thesetypeof company are limited by debt, liability and also at the time of subscribingsharesandthese areincludinginbothpublic and private enterprise and have lesspoweranddirectionas compare to public firm. Sainsbury'sisfamousretail store privately run in UK and it is limited by liability kind of organisation in which member hasnoliabilitytowardsrisk and loss of business. But it is necessary for them to register under companies act, 1998 in order to regulate the business in retail sector at the time of engagingdiverserangeof products and services. Privatelimitedcompany havingutmostobjectiveto earn huge amount of profits by offeringvariousgoodsand services. Similarly Sainsbury's anotheraimistodeliver standard quality in respect of their items in order to remain in competitive market place by makinginnovative modification to beat challenges of rivalry. Thirdsectorortypeof businessentitywhich operatingunderthissector knownascharityandthese companyarenotforprofits purpose but their activity are running with an aim of uplift British heart foundation one of thefamouscharity organisationinUKand enforceditsbusinessinthe year 1961. Their main business istoprovideheartcare servicestopeoplewhoare Themainpurposeforthe establishment of this kind of organisation is to resolve and freethesocietyfromheart relateddiseasesandthey require to work by analysing differentheartrelated
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the standard living of people byprovidingthembetter infrastructure and help needy anddisablepeoplesothey developtheirlively-hoodin better way. suffering from the heart related diseases which help in curing the people from the stage of mental tension. problems along with their cure. P2 Size and Scope of various types of organisations In every organisation there are different kind of companies which are differ in respect of size, structure and divide their type of business in different categories like micro, medium and large enterprise and the description regarding the size and kind of companies are describe below:-ď‚·Micro scale:-This kind of organisation are generally small in size and main purpose of their establishment is to fulfils the basic needs and lively-hood so that they carry business smoothly. Further this company comprises of few number of employees and total turnover is very low and running business by single individual only(Haksever ,2010).ď‚·Small scale:- Under this kind of division business are generally large in operations as compare to micro enterprises and they comprises of employees around 50 and their capacity of earning revenue is about less than 5 million dollars. The main characteristics of this kind of business is to accumulate large amount of market share and they usually plan for larger expansion at different place of countries.ď‚·Medium scale:- Under this kind of business approx 500 to 250 employees are working and the revenue they earned is about 5 to 24 million dollars. For example Exponential-e which is digitalisation based organisation fall under this category.ď‚·Large scale:-It consist of around 300 workforce who carry out their operation on large scale at different countries and the revenue or profit they generated is around 250 million dollarsandsuitableexampleisSainsbury'swhichareoperatingtheirbusinessat international level and consist of around 1500 employees. Objectives differentiation: MicroSmallMediumLarge
The main purpose of thiskindof organisation is to earn that sufficient amount throughwhichthey satisfytheirbasic needsandensure financialsecurity within society. Under this main aim of thiskindof organisationisto maintaingoodand healthyrelationand betterlifestylewhich helpingrabbingall typeofmarket opportunitiessothat they gain extra amount of profits. The main objective of thiskindof organisationisto diversified and expand theirstoresat internationallevel whichenhancetheir brandimageand market share. The main focus of this kind of organisation is properstructuringof wholebusinessthat leadstobetter sustainabilityand bringproperstability in overall organisation structure. Scope of Different types of Organisations: Micro scale:- This kind of business generally have less chances of expansion because of limited procedures and open their stores at limited marketplace within the cities or region. Small scale:- under this they use different kind of tools and mechanism which are been utilised in order to enlarge the whole scope so that business has been shifted from small scale to medium scale business which also wider their scope. Medium scale:- Level of scope is very high in nature and due to which company can go at global level easily and this can be done if the company has license of operating up the business in which approval of government is mandatory. Large scale:- They carry out their operation at huge scale in which they got an scope of acquiring the whole economics in which they are unable to establish their mark in particular country due to complex legal issues. Transactional company:-Transnational organization is an vast organization which have their own 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 nation. P3 Interrelation of various function and their applicability to accomplish objectives Every organisation is not based on single working style but they have to deal with diverse range of functions and procedures. Further, it is essential for them to understand all the function
properly and manage it accordingly(Kaplan and et. al., 2013). With the proper assistance and working of these function management easily accomplish all the goals and objectives with optimum manner. It is clearly define that every business has proper organisation structure on the basis of which duty and responsibility are assign to various workforce that leads to better productivity and efficiency. Other function which must be performed by Sainsbury's are describe below:-ď‚·Research and development:- This department plays an important role in conducting the research of business under which investigator carry out research in respect of particular market issue and different trends liked by customer in respect of retail sector. Whatever the data and information collected by organisation must be analysed properly and those they consider relevant and essential will be used at the time of making innovative invention in respect of goods and services.ď‚·Human resource division:-This division generally work for hiring and recruiting the able and professional employees for vacant job position under which they need to formulate different policies and tactics through which they select the source of recruitment whether external and internal on the basis of suitability and financial position of company through which they execute all the procedures related to selection process. Sainsbury's one the famous retail company in which through advertisement and social media advertise in whole public regarding all the vacant job position through which large number of participate apply for recruitment procedures and company has different alternatives in which they select which is best suited to them. ď‚·Finance department:-This department is appointed in order to maintain all the data related to financial matters. Their main aim to maintain the financial position and prepare the budget in which they evaluate whether the revenue earned by the company is sufficient in order to meet all the expenses or not. For example Sainsbury's finance department compare the actual budget with standard one and if any deviation is arises then it will be meet by taking corrective action for it for the purpose of adequate performance.
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TASK 2 P4 Identify the positive and negative impacts the macro environment has upon business operations Every organisation deal with different type of market at macro level where they need to focus on individuals in order to earn huge amount of profits and leads to optimum satisfaction to customers. Further, it will help in accomplishing their goals by providing standard quality of goods and services to their target audiences which facilitates the option to manage properly all the things at proper manner(Mohamed and Lashine ,2012). But at macro level there are huge changes coming in taste, choices and perception of customers which require all the company to make modification in their organisation structure so that company able to fulfils all the needs and requirement of customers. Therefore, it is essential for Sainsbury's to observe all the positive and negative impact of macro environment in respect of their business and on the basis of which they gain competitive advantage over competitors and for the proper macro analysis of Sainsbury's that need to assess properly for which strategies are made for managing all the work at macro environment which describe below:- BasisStrengthWeaknesses Political:- It is basically related to maintaining all the political conditions which are related to government policies, standard and different principles which needtounderstandby companies. Majorpositiveimpactin macroenvironmenton companyisrelatedto corporate tax which has been decreased from 32% to 28% thathelpinmaximisingthe effectiveness of business. Rapid changes in policies and political instability cause many negativeimpactonoverall operations of business. Economical:-Itstateddown alltheeconomicconditions relatedtoinflation,deflation and fiscal deficit policy. UK company has lot of options of doing job in good manner becauseofwhichcrisesare low and purchasing power of individualishigherwhich increasethesaleof Sainsbury's. Negativeimpacton economical basis is due to the Brexitunderwhichmany company are winding up their operations from UK and that create the issue of depression whichleadstoproblemof
unemployment. Socialfactors:-Basically related to emotion, culture and sentiment of society. Sainsbury's diverse their retail business at different countries that facilitate them to provide productstocustomer according to their taste. Using such type of marketing campaignwhichhurtthe sentiments and detrimental to theinterestofparticular societywilldiluteimageof company. Technological:-Thismainly discussaboutallthe technologicalandinnovative invention coming in the form of goods and services. Sainsbury's launch such type ofapplicationunderwhich they showcase their outlets and productsonlinesolarge customer avail services. Usingcrticalinnovativeand digitalise technique will lead to confusion in the mind of target audiences. Legal:-Underthis compliancesofallrules regulation ensure ethical code of conduct. Properadherenceofpolicies andlegalstandardenhance brand image of company. Noncompliancesleadsto heavy penalty to Sainsbury's. Environmental:- those method and mechanism used will leads tolessdilutionof environmental beauty. Lessuseofsuchmachinery equipmentthathelpinemit such pollution which less than range define by government. Carbonfootprintshasbeen increasedwhichdamage natural beauty of environment. P5 Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses In order to evaluate properly the internal position of company Sainsbury's conduct the SWOT analysis in which they know properly all the strength, weaknesses, opportunities and threats of company and following is the description which stated below:- Strength ď‚·One of the biggest supermarket chain in UK. ď‚·Itcomprisesthewholeemployee Opportunities ď‚·Sainsbury'scan easily enter into the marketofemergingmarketthrough
strengthofmorethan150000 employees. ď‚·Effectiveleadershipalongwithtop branding and advertising.ď‚·Havingmorethan550supermarket chains and 350 stores across UK. joint venture and strategic alliances. ď‚·Digitalise machines allow Sainsbury's to opening their stores for 24 hours. ď‚·ExpandingtheirbranchesinAfrica, Asia. Weaknesses ď‚·Huge rise in the price of food over the worldalsoincreasethepriceof Sainsbury's products.ď‚·Biggestplayerandrivalryinevery segment of retail sector. Threats:- ď‚·Enforcementofglobalisationisthe biggest challenges and opportunity for business. ď‚·Need to provide high standard quality ofproductsinordertobeatthe challenges of rivalry. Therefore, it is essential for Sainsbury's to analyse properly all the above SWOT through which they easily understand what changes they need to make in respect of different products and services that allow them to take take competitive advantage over rivalry and easily increase the profitability and efficiency in market place(Poon ,2011). P6 Explain how strengths and weaknesses interrelate with external macro factors Internal and external analysis both are important methods and tools which are interrelated to each other so that better and effective outcomes can be made in respect of their operations. Sainsbury's whole management need to examine all the factors and elements of both macro and micro component on the basis of which strategies and policies are made for getting better suitable gain. Various factors consider in order to define interrelation of strength weaknesses are discuss below:-ď‚·Political:-Government main strength is to make their business more gainful and visit changes in government meditation limit nation regards to development and advancement. Most important strength of Sainsbury's is to establish good relationship with government authorities.ď‚·Economical:-Another area is basically economy of nation that need to be decide before executing activities. Although UK is not going good because of exist or debate with
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European union. Further company require to implement all the activities in legitimate manner so better working condition is possible. Further condition related to inflation, deflation and other economic crises that affect business operations therefore, it is necessary for Sainsbury's to understand all the economic condition of various countries where they establish their retail stores and if changes needed take corrective steps for it.ď‚·Social:-Various social factors like culture, sentiments and emotions of people that need to consider at the time of running marketing campaign in which different tools and techniques like advertising, social media and roadshows are used in order to aware large audiences regarding the new features they offer in respect of products and services which satisfy needs and wants of particular society(Quinn and et. al., 2010) ď‚·Technological:-Factors like digitalisation and new innovative techniques reflect positive reflection and company also increase positive outcomes and gains by utilising upgrade technologies through which they easily facilitate all the services to customers at better and efficient manner. Provide customer online platform of payment at the time of purchasing from retail stores. CONCLUSION It has been concluded from the above assignment that analysis of business environment is very important in order to address all the problems and issues that organisation faced due to drastic changes in the needs and wants of customers due to new technologies and innovative ideas that coming in market that offers wide range of varieties to target audiences at affordable price therefore it is important for Sainsbury's to plan for expansion in term of product portfolio and strengthen the segment of product line that help them to establish top most position in retail industry that help them to enhance their market share and accomplish all the objectives and goals in good and coordinate manner.
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