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Pestle Analysis Business Environment: PDF

   

Added on  2021-01-02

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BUSINESS ENVIRONMENT

Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1 Different type and purpose of organisation.......................................................................1P2 Size and scope of different organisation...........................................................................2P3 Relationship between different organisation function of SAINSBURY.........................4LO 3.................................................................................................................................................6P4 Positive and negative impact of macro environment on SAINSBURY............................6LO 4.................................................................................................................................................8P5 internal and external analyses...........................................................................................8P6 interrelationship between internal and macro factors:.............................................10CONCLUSION..............................................................................................................................11REFERENCE.................................................................................................................................12

INTRODUCTIONOrganisation has different differ size, scope and capabilities which influence their decisionregarding expansion and diversification. This study describes different type of organisation andtheir purpose , it also gives detail about interrelationship between different functional unit oforganisation like finance, HR, and marketing department. Present study also give insight aboutthe way these functional units mutually contribute the organisation objectives. PESTLE is doneto know the positive and negative affect of external factor on SAINSBURY' business activities.SAINSBURY is the well know supermarket store, established in1869. Its is ranked as secondlargest chain in UK. This study also give idea about SAINSBURY different functional unit andtheir work.LO 1P1 Different type and purpose of organisation An organisation can be categorised on the basis of its size, purpose, structure, activities.This differentiation gives a brief introduction about organisation. For instance if a company hasPLC in the end of its name, then stakeholder can recognise it as private limited company andthey also correlate the characteristics of private limited with this organisation.Public sector organisation get its fund from government ,which is collected in the formtax, financial transfers and fees. All the business decision are taken by the government only.Main purpose of these organisations is to work for public interest and welfare. Public sectororganisation produce basis essential items to every section of society, it also makes extra effortfor weaker section so that they can fulfil at least their basic needs. Example of public sectorservice are Education , Infrastructure, Emergency Services, Gas and Oil, Public, Electricity theseorganisations are accountable to public because it uses their money. These can be find at threelevel I.e. central level, state level and local level. Public sector can make partnership with privatecompanies(PPP) to outsource some work or to maintain the quality of work and service.(Camisón. and Villar-López, 2014)Private sector :It is the part of the economy in which the organisation must be run by theindividual it would not be rather run by the government. The private sector organisation must berun with aim of the making profit and increases there business in the markets. There is a greatexample of the private sector Sainsbury organisation it is the second largest organisation in thesuper market limited which was engaged in grocery and related product. The name of the1

organisation is Burg-in Hall 921 limited but it was change in 1997 and named as Sainsbury. Thiscompany was founded in 1869 in London(Harper, C., 2015)Voluntary sector: Voluntary sector also known as community sector and third sector.These organisations are not controlled by government, it is kind of private organisation which donot have profit making objective. Prime purpose of this sector is to full fill the social care need,these organisations use its retain earning for acquire more sources, not to distribute profit instakeholders for instance an educational NGO have 10% profit in particular year ,it will use thisprofit to acquire new books, table, uniform to students. Government gives privileged as taxrebate and incentives because of their social welfare objective. Type of third sector are charities,foundations, advocacy groups, faith based organisations, Social Welfare Organizations,recreational sports, community group etc. it does not follow recruitment and selection as privatesector , it gets its staff as volunteers who have interest in social welfare. These volunteers workfor free or get minimum amount as salary. Voluntary organisations have high accountabilitytowards society(Mazzucato, 2015).Trustee makes vision and mission statement of voluntaryorganisation. Board insures that organisation's assets and financial resource are used as per theirsocial welfare objective not for personal goals. Board periodically checks charity activities arealigned with governing document and laws or not( Camisón. and Villar-López, 2014).CEOprovide leadership to staff. Executive board is responsible to make execution plan fororganisation vision and mission. This board work as bridge between trustee and voluntaries.P2 Size and scope of different organisationSize of organisation comprises its financial condition, market share, human capital andtangible assets like machine, land , manufacture units etc. if an organisation has large size it alsohas large scope to expend its market future, where a small size company can not expand itsbusiness after one limit because of lack of resources. It's not about reduces sometimeorganisation have resources but it can make expansion decision because of internal and externallimitation and government control over it. Organisation strength and weakness also affect thescope of organisation for instance BBC has old reputation and image which increase its scopefor diversification where SAINSBURY's global presence help it to expand its market.Organisation which have large efficient human capital have more chances to get success ratherthan large but inefficient human capital.(Harper, C., 2015)2

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