Business Environment Report: Analysis of Sainsbury's, NHS, and Oxfam

This report provides a comprehensive analysis of the business environments of Sainsbury's (a private organization), the National Health Service (NHS, a public organization), and Oxfam (a voluntary organization). The report begins with an introduction to the business environment and then examines the purpose, legal structure, stakeholders, and products/services of each organization. It explores the size and scope of each organization, including their mission and vision statements. The report further analyzes the organizational structure, including the interrelation of departments like sales & marketing, human resources, and finance, and their impact on business objectives. Finally, it discusses the positive and negative impacts of the macro environment, internal and external analyses, and the interrelation of strengths and weaknesses with external factors for the chosen companies. The report concludes with an overall assessment of the business environments.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Purpose and type of organisation................................................................................................3
Size & scope of the organisation.................................................................................................5
Organisation structure and Functions..........................................................................................6
PART 2............................................................................................................................................8
Positive and negative impacts that macro environment has on businesses operations...............8
Internal and external analysis of respective organisation.........................................................10
Interrelation of strength and weaknesses with external macro factors......................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is defined as collection of entities, individuals and many other
factors as well that many be or not may be in the control of a company, but can impact on the
overall performance, growth as well as profit of an organisation. Business environment consist of
internal and external factors that impact both positively and negatively on business performance
and productivity level (Bruijl, 2018). It is important for an entity to focus on analysing the
factors which has influence on business activities so that improvement and strategy is developed
on time period. In the present report, Sainsbury's is taken into consideration which is a private
organisation. It is the second largest supermarket chain of UK, which was founded in the year
1869 by John James Sainsbury. The company has presence in more than 15 countries and has
1430 shops globally, which shows it has high market share and performance as well. Along with
this, National Health service is taken as a public company that was founded in year 1948. It is
mainly a public funded healthcare system that was established with a motive to provide free
health service to people. IN case of a voluntary organisation, Oxfam is chosen that was
developed with an aim to remove poverty and enhance the conditions of society. The report will
cover various types & purpose of organisations along with their legal structure. In addition to
this, there is discussion about size as well as scope of types of organisations. Further, relationship
among various organisational function and how it link to business objectives is covered.
Moreover, internal and external analysis of chosen company is describe along with their positive
and negative impact. At last, interrelation of strength & weaknesses with external factors is
elaborate in a proper manner.
PART 1
Purpose and type of organisation
Private organisation: It is any corporation, partnership, agency which main aim is to
earn profits. Sainsbry's is a private organisation which offer quality high quality grocery at
marketplace. In addition to this, it is the second largest supermarket that has more than 1430
shops globally (Damarwulan and Farida, 2018). It is analysed that the financial strength of
company is high due to which it is able to manager all its activities as well as operations in an
appropriate manner.

Purpose: The main objective of the company is to provide high quality products in
market that satisfy customer needs. In addition to this, the purpose is to attain competitive
advantage at marketplace and enhance their brand image in an effective manner. Moreover, the
higher authorities of company is expanding its market which help in attaining higher profits in an
appropriate manner.
Legal structure: Sainsbury's legal structure is based on the top level authorities such as
chief executive officer and board of directors of company. It is analysed that the company take
big decisions by considering laws and legislations so that all the activities is implemented
systematically and effective way. All the decisions within the Sainsbury's is taken by higher
authorities that is directly communicated to subordinates and staff members of company. It has
been indulge in formulation of laws and regulations in order to maintain integrity in the
organisation.
Stakeholders: It is mainly those people who are interested in an organisation and can
affected by the business activities (Fernandes, 2017). The stakeholders of Sainsbury's are
employees, customers, shareholders, government and many more. It is determine that the
behaviour of stakeholders is depend on the performance of company.
Products and services: Sainsbury's offer wide range of products from different mediums
that is online and offline which include convenience shops, hypermarkets, supermarket and so
on. It offer almost all types of groceries and also provide loan and other banking services by
Sainsbury's bank. The company also offer home delivery on time which assist in attracting large
number of people towards the brand.
Public organisation: It is a form of organisation which is fully owned and controlled by
government of a particular country. In relation to a private organisation, National Health service
is taken, which was founded in year 1948 in order to provide health service to people who cannot
afford it.
Purpose: National Health service was established with a motive to provide free health
service to poor people who did not have the capabilities to take better health service because of
insufficient money. The organisation mainly focuses on improving health conditions of people in
an appropriate manner.
Legal structure: In relation to National Health Service, their decision is made by state
and central government (Gaganis, Pasiouras and Voulgari, 2019). This taken decision are the

followed by senior authorities of NHS with a motive to perform activities in a systematic and
smooth manner. This way, organisation can eliminate the chances of infringement from
company's behalf in order to continue its goodwill in the market.
Stakeholders: It is analysed that stakeholders plays an important role as they are the one
who provide funds for carrying out activities in a proper manner. Herein, stakeholders are
government, financial institutions, trustees and many more.
Products & services: National Health service provide an effective and best health
service to people. In addition to this, it give frees service to individuals so that their mental as
well as health conditions are improved in a proper manner. Further, it is analysed that NHS also
offer other services such as primary care, emergency care and so on.
Voluntary organisation: It is defined as a group of people who are performing together
in order to achieve common goal. Such type of organisation is not managed as well as controlled
by government (Hamilton and Webster, 2018). Oxfam is a voluntary organisation which is
founded in year 1942 and consist of greater than 20 independent charitable trust.
Purpose: Oxfam main objective is to reduce the level of poverty from the country. In
addition to this, its objective is also to enhance the living standard of people which in turn assist
in social status of a person. It is analysed that Oxfam conduct different programs in order to
make improvements within the societies.
Stakeholders: Herein, stakeholders plays an important role due to which activities are
executed. The stakeholders of Oxfam are staff members, volunteers, funders, trustees,
beneficiaries and many more. Along with this, there are also other stakeholders such as sponsors,
project members, users and so on.
Products and Services: Oxfam is basically focus on bring a long-term change in
societies that is growth and welfare of poor people. In addition to this, it have volunteers that
perform all the activities so that conditions of society is improved. It is a part of global
movement change which influence an individual to raise voice & secure their future as well.
Legal Structure : In order to increase the living standard of people, it is important to
manage the stress of applicable laws and regulations in respect to voluntary organisation.
Therefore, it is a duty of a company to follow the legal structure provided by government in
order to maintain harmony and integrity. In addition to this, all the decision within this

organisation is taken by the trustees who play a major part and guide in implementing the
activities in a proper manner.
Size & scope of the organisation
Private organisation- Sainsbury's
Size & Scope: Sainsbury's have a wide scope as it provide quality offerings in market and
has high market presence as well. The company has more than 1430 shops worldwide and offers
products in more than 12 countries. One of the main reason of its higher growth and success is its
1,16,400 staff members who perform all the activities in a proper manner. Its subsidiaries are
Sainsbury's bank, Habitat, Argos, Nectar and so on. The revenue of Sainsbury's is
£29.007 billion as per 2019 reports. The company focus on satisfying requirements of customer
that help in enhancing number of loyal customers and profitability level of company. It is
determined that the higher authorities of Sainbury's conduct informal meetings with overall
employees so that they can gain insight about the issues that faced by them. It also assist in
retaining employees for longer time period.
Mission & vision of Sainsbury's : “To be the consumer's prefer selection for food and
quality and offering great service at a competitive cost” is the mission statement of company.
The vision of Sainsbury's is “To be the most trusted retailer in market, where people love to shop
and work as well”.
Private organisation- NHS
Size & Scope: National Health service consist of broad scope as company main motive is
to provide free and better health service to poor people (Hillary, 2017). For this, organisation
increase number of employees which is from 6000 to 12000 by the end of year 2017. It is
analysed that NHS has at present 18,000 employees along with it has revenue of $540 billion as
per 2019 data. NHS offered its services in approx 8 countries and is planning to expand more in
order to improve conditions of society. In addition to this, National health service organise
camps so that they can provide services to the poor people and those who in need. In addition to
this, it help in bringing improvements within the society in an effective manner.
Vision & Mission: The mission statement of National Health service is “To provide free
and better health service to poor people”. The vision of NHS is “To improve conditions and
lifestyle of people living in society”.
Voluntary organisation- Oxfam

Size & Scope: It has wide scope as organisation is working for removing poverty from
the country which is for the welfare and growth of people. In addition to this, Oxfam is
associated with more than 20 charitable trust & is also planning to expand more. It is analysed
that top authorities of Oxfam take decisions and develop effective strategies that is advantageous
for poor people of society. Moreover, Oxfam focuses on conducting those activities that decline
the poverty level and also help in the growth of people effectively.
Vision & Mission: The mission statement of Oxfam is “To aware people and provide
them justice so that they are treated fairly and equally in terms of colour, gender and many more.
The vision of company is “To make world free from poverty”. The managers of Oxfam is align
with global and local partners for fighting against discrimination and enhance living standard of
people (Katz and Green, 2018).
Organisation structure and Functions
Every organisation consist of various department which perform different activities in an
appropriate manner. It consist of departments such as marketing, human resource, finance, IT
and many more. With reference to Sainsbury's, it is the second largest retail organisation that had
presence in more than 13 countries. The organizational structure of respective organisation is
hierarchal as there is series of level of individuals & the level above controls the each level. For
instance, senior managers are responsible for line managers & line managers are responsible for
the sales assistants. The organisation have various departments that are interlinked and help
company to attain organisational objective. Interrelation of departments is given below in
relation to chosen company:

Illustration 1: Organisational Structure
(Source: Organisational Structure, 2019)
Sales & Marketing Department: The main role of marketing department is to create
awareness and promotes goods as well as services offered in the market. In addition to this, sales
department of Sainsbury's sells its product and services to customers and take feedback which
further communicate to the marketing department of company (Khajeheian, Friedrichsen and
Mödinger, 2018). This assist marketing department to build an effective strategies and fulfil the
requirements of customers that has positive impact on sales and profitability level of an
organisation.
Human Resource & IT department: One of the major role performed by HR department is
hiring of best candidate and maintain a record of employees prevailing in the organisation. IT
department of Sainsbury's provides updated and new software to human resource department that
assist in maintaining as well as evaluating performance of staff members. On the other side, HR
department assist in hiring skilled and talented employees for IT department. Such
interrelationship aid Sainsbury's to implement all activities in a systematic manner and enhance
the performance level of company.

Marketing and Finance department: Marketing department of Sainsbury's develop
advertising strategies, conduct marketing campaign, build customer loyalty programs with a
motive to attract large number of people and increase sales of company. One of the major role of
finance department is to focus on availability of funds for activities (Rupidara and Darby, 2017).
This interrelationship assist Sainsbury's to implement all marketing activities in a proper manner
that directly leads to enhancement of sales as well as profitability of company.
By analysing the interrelations with all department, it is analysed that it is significant for
higher authorities of Sainsbury's to focus on maintaining good relationship with all such
departments as it help in execution of activities in an effective and better way. In addition to this,
it aid organisation to enhance the level of market performance and attain higher profits as well.
PART 2
Positive and negative impacts that macro environment has on businesses operations
It is analysed that environment of an organisation is affected by external and internal
factors. Macro environment factors are those factors which is not in control of company whereas
micro environment factors is in the control of an organisation. For analysing the macro
environment and its impact on organisation, PESTLE analysis is adopt by higher authorities of
Sainsbury's. It is a framework that assist an entity to gain insight about external factors and its
impact on organisational productivity and performance as well. The pestle analysis of respective
organisation along with its positive as well as negative impact is given below:
Political Factor: This factor mainly involves taxation policy, political stability, rules and
regulations, laws, government policy and so on. In relation to Sainsbury's, it is a multinational
retail organisation that operates globally and its head office is located in UK. It is determine that
the government of United Kingdom supports companies to expand their business globally (Saleh
and Watson, 2017). In addition to this, it is analysed that change in government policies and laws
impact on the functions and activities of respective organisation.
Positive impact: The political stability of United Kingdom is good that impact on the
overall performance and profitability of Sainsbury's.
Negative impact: There are various terrorist attacks and wars take place that affect
negatively on overall activities of Sainsbury's .

Economic Factor: This factor play vital role on the overall performance of company and
involve factors such as inflation rate, disposable income and many more. With reference to
Sainsbury's, it is analysed that buying power of people of UK is high that aid company to earn
higher profits. In addition to this, economic position of United Kingdom is quite well that help in
generating more income and help company to attain competitive advantage at marketplace.
Positive impact: It is determine that people living in UK has high purchasing power
which assist Sainsbury's to earn higher profits.
Negative impact: The labour cost of UK is increasing that negatively impact on the
revenue earned by Sainsbury's.
Social factor: It is important for a company to consider all the social factors before
offering any product and service at marketplace and it involve elements such as beliefs, values,
perception, culture and so on (Saura, Palos-Sanchez and Correia, 2019). In disclosure to
Sainsbury's, it focuses on offering those goods and services that fulfils the requirements of
customer and develop positive brand image at marketplace.
Positive impact: It is determine that company offers high quality products in market that
attract large number of people living in society and enhance brand image of respective
organisation.
Negative impact: Sometimes social factors impose organisation to acquire CSR activities
that may affect on the overall functions of Sainsbury's.
Technological factor: Technology plays an important role as it impact directly on
consumer buying behaviour as it is analysed that people prefer to buy those goods which is
innovative and new at marketplace. In relation to Sainsbury's, its higher authorities focuses on
adopting new technology in order to give quick and rapid service to its customers.
Positive impact: Acquisitions of new technology help company to offer something new in
market which attract large number of people and enhance profit margin of Sainsbury's.
Negative impact: Using of innovative technology arise high cost to Sainsbury's and
impact on the revenue level in a negative manner.
Legal Factor: It is analysed that managers of Sainsbury's follows all the laws and
legislations formed by government that help in systematically implement all the activities of
company. In addition to this, company follows laws such as health and safety, equality act and so
on.

Positive impact: Sainsbury's follow all the laws as well as legislation that has positive
impact on its brand image and performance of organisation.
Negative impact: Formation of new laws by government affect negatively on activities
and operations of company.
Environmental factor: Nowadays, organisations are more focus towards protecting the
environment and develop those goods as well as services which did not harm the environment. It
is determine company highly contributes towards plastic waste crisis (Shageeva, 2017). In
addition to this, it also focuses on declining carbon footprints.
Positive impact: The company follow all the measures in order to deal with
environmental factors which in turn help in developing brand image at marketplace.
Negative impact: It is analysed that the cost of using Eco-friendly technology is high that
affect directly on the revenue and market share of sainsbury's in a negative manner.
Internal and external analysis of respective organisation
For conducting internal analysis, the higher authorities of Sainsbury's uses SWOT
analysis tool that is given below:
Strength Weaknesses
 One of the major strength of
Sainsbury's is its market presence a it
has more than 1400 stores worldwide.
 Another strength is its effective and
talented 1,50,000 staff members who
provide quality service to customer.
 The price charges by Sainsbury's is
quite high as compare to its competitors
and impact directly on its market
performance.
 Due to Brexit, the overall profit of
company is declined by 8% and has
impact on its market share also.
Opportunities Threats
 Sainsbury's have the opportunity to
expand its business and enter into new
market such as Turkey, Russia, Brazil
and so on.
 Nowadays, branded products are also
used in villages. Therefore, company
 The major advantage of Sainsbury' s is
its competitors such as Asda, Lidl, Aldi
and many more that impact negatively
on its performance level.
 There are many discount stores are
open in market and offer quality

have the chance to enter into villages in
an effective manner (Uluskan and
Godfrey, 2018).
products, this decline the overall sales
of Sainsbury's.
SWOT analysis of National Health Service
Strength Weaknesses
 One of the major strength of NHS is its
working as people take interest for
improving the societies that leads to
provide of better health care service to
poor people.
 The organisation has talented and
skilled volunteers who implement
activities properly that leads to increase
in performance of company.
 The organisation at present is not able
to reach large number of people, which
is consider as weakness of NHS.
 In addition to this, sometimes people
did not trust the services which are
given free to them as is weakness of
organisation.
Opportunities Threats
 National Health service has the
opportunity to expand its activities in
more countries in a proper manner.
 Along with this, by using digital
applications NHS can reach to large
number of people and make
improvements within the society.
 Due to health care services, the
company is not able to gain the trust of
people and is threat of National Health
service.
 In addition to this, the organisation has
less number of volunteers which enable
NHS to give service in wide areas.
Interrelation of strength and weaknesses with external macro factors
Basis Political Economical Social
Strength Sainsbury's managers
follow all the rules and
legislations that help
in implementing
Sainsbury's provide
fair salary to its staff
members which
motivate them and
The company offers
goods and services
after identifying
customer requirement