Business and Business Environment: Sainsbury's Case Study

Business and Business
Environment

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY............................................................................................................................................3
TASK 1....................................................................................................................................................3
P1. Public private and voluntary sectors and its purpose and legal structure...................................3
P2. Size and scope of a range of different types of organizations......................................................4
M1. Size, structure and scope of different organisations link with the objectives, product and
services which is offered by organisation..........................................................................................5
TASK 2....................................................................................................................................................5
P3. Interrelationship between organizational functions and its objective and structure..................5
M2. Advantages and disadvantages interrelationship between organizational functions.................6
TASK 3....................................................................................................................................................6
P4. Macro environment and its positive and negative impacts on business operations....................6
M3. PESTLE Analysis...........................................................................................................................6
TASK 4....................................................................................................................................................7
P5. Internal and external analysis of specific organisation................................................................7
P6. Interrelationship of strengths and weaknesses with micro factors.............................................8
M4. SWOT analysis influence decision making..................................................................................9
CONCLUSION.......................................................................................................................................10
REFERENCES.........................................................................................................................................11
Books and Journals: ........................................................................................................................11

INTRODUCTION
There are various functions included in the business which has lots of benefits and get
by an individual. Business activities can be understood with those operations or activities
which are done by an individual in order to get a source of income in the business (Aka-
Wolugbom, A.). Business has different types, structure and forms. Business environment
have internal and external factors, which highly affects business functions and its profits. It
embraces with customers which may be a person or a group, legal legislations, competitions,
management, media and so on which are working in external world. It influences the decision
of organisation whether it is directly or indirectly it influence the business. The report is
based on Sainsbury's which is a London's second largest supermarket chain. The company
founded by John James Sainsbury in 1869. It has three divisions Sainsbury's bank,
Sainsbury's supermarket Ltd. as well as Argo.
MAIN BODY
TASK 1
P1. Public private and voluntary sectors and its purpose and legal structure.
Private sectors: Private sector organisations are those organizations which are owned
by persons, shareholders as well as investors whose main objective is to earn profits from the
business. When a private sector organisation grows and develops, it shows that are earning
huge profits and give tough competition to the rivalries. They make their contribution in the
GDP of a nation (A.Akhmedov, F. V., 2018). Sainsbury’s is one of the best example to
identify private sector organisation which run their business to earn huge amount of profits.
The main objective of private sector organisations is to create an enhanced profit in order to
grow and develop their business day by day.
Legal structure of private organisation:-
 Partnership: It is a legal agreement between two or more persons in order to share
equal or predetermined profit and losses.
 Sole proprietorship: A business which is owned by single owner and have unlimited
liabilities.
 Company: In the companies act, the companies can be understood as a separate legal
entity which may be private limited company or public limited company.
Public sectors: Public sector organisations work under the government. These
organisations are work for the citizens and community while providing enhanced services and
with no major intention to get profit. The main purpose of public sector organisation is to
provide essential services to the local public or citizens. They are worked with the support of
taxes which is deal in serious services such as education, health, housing, social work and
which is paid by the local citizens of a nation (Diamond, M. and Mattia, A., 2017). Virgin
money is one of the public sector organisation whose main intention is to offer significance
worth by delivering a positive contribution to show concern about the society.
Legal structure of this type of organisation is to work competently and to earn huge
amount of revenue in order to serve to society:-

 Central government: Organisations such as environmental agency or department of
international development which mainly organized and controlled by the central
government.
 State government: When the business is operated at a state level then state
government is determined its legal structure.
 Local government: This involves municipal corporations and local government.
Voluntary sectors: Voluntary sectors comes are those organisations which are working by
choice or with an intention not to earn profit but to serve societies. The main focus of these
type of organisation is to perform social activities and which is not ruled by government,
mainly concentrated on welfare of the society (Elias, R. and Mwakujonga, J., 2019). Cancer
research in UK is one of the best example of voluntary organisation. The main objective is to
serve different types of welfares to the society without earning any type of profit. Cancer
research offers their services by conducting different types of research and campaigns are
organized to aware about cancer in the society. This type of organisations can be referred as
third sector organisation, non-profit organisation, civil society organizations or NGO which
are owned by those individuals who are not salaried for their contribution.
Legal Structure:-
 Unincorporated associations: These are the type of voluntary sectors in which two
or more persons are involved with a same intention.
 Trust: It is a non-profit company which is outlined by trustees on behalf of their
members in which responsibility are assumed.
P2. Size and scope of a range of different types of organizations.
Sole proprietorship: A business which is run by an individual person or have a single
which have not any separate legal entity can be termed as sole proprietorship. It is described
as a business where a single owner enjoys all amount of profits as well as bear losses all
alone. Employees can be hired if necessary for the growth and development of their business.
The scope is limited for the sole proprietorship and there is no need to get higher investment
for the business.
Partnership: When two or more individuals are come together mutually with a
certain terms and conditions as well as to share predetermined profit and loss can be termed
as partnership. In comparision with sole proprietorship, the partnership business includes
shared profits and losses by partners, where liabilties are also distributed among the partners.
Partners have limited liabilities and this type of business are managed by partners where they
understand that they are responsible for debts and obligations.
Joint Stock Company: Joint stock company is a business in which shares are
purchased and sold by the shareholders, where they are free to transfer the shares to the other
indivduals. It has separate legal entity from their owners. The owners are liable up to face
value of their shares (Fonseca Braga, M., 2017). The company has wider scope while having
large size in the market. In the past years, when these are not incorporated, the liablites are
unlimited for debts. It has higher amount of investment pf capital in which shares are alloted
to public.