Business and the Business Environment: Overview of UK Retail Industry and Internal Departments of Sainsbury

BUSINESS AND THE
BUSINESS
ENVIRONMENT UNIT 1

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction over the UK retail industry.....................................................................................1
Discussing over the three types of organizations in the market..................................................2
Business functions in Sainsbury along with creation of company chart to identify
interconnection between different functions...............................................................................4
Analyzing work of various internal departments for Sainsbury in order to achieve set goal....5
Impact analysis of various business structures............................................................................6
PESTLE analysis to monitor positive and negative impacts of external factors along with its
impact on business......................................................................................................................7
SWOT analysis:..........................................................................................................................9
Impact of micro and macro factors that affect the growth of the Sainsbury company.............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment has been prepared by combining two specific words such as
business and environment. According to the concept of business, it has been evaluated that it is
an activity in order to acquire profits with the help of buying and selling of goods and services.
And environment states that all the internal as well as external factors surrounding by the people
are considered for the involvement into the business actions. This actually represent a set of
circumstances or conditions which affects and influences the functioning of the enterprise within
the outer environment (Kasim, Haracic and Haracic, 2018). It consists of certain features such as
it is dynamic in nature, different from country to country along with based upon inter
dependence conceptualization. It is significant to study as it helps to develop broad strategies in
order to make sure on the aspect of sustainability.
This report will elaborate the concepts related to business environment by describing
overview of the UK retail industry in general, evaluating different types of companies, business
functions, the ways in which internal departments work together to meet objectives along with
their impact analysis. Apart from this, the study will also highlight concepts by discussing
PESTLE, SWOT and their critical evaluation by considering both micro and macro
environmental factors.
MAIN BODY
Introduction over the UK retail industry
Retail is a type of business which deals under which the sellers sell their products and
services to their consumers according to their requirements and desires into most appropriate
manner. It consists of various retail stores according to which the retail business enterprise
primarily deals with sales volume in competition with other business entities. The retail industry
plays a vital role in the economy of the United Kingdom as it comprise 5.5% of the UK's overall
gross domestic products in recent year along with 9.5% of the overall employees of the UK in
previous years. This particular sector provides livelihood to various people which is around three
million people (Grenčíková, Kordoš and Sokol, 2019). Although with the introduction of
pandemic situation, the retail sector have faced prolonged period of turbulence.
There are various factors which affects the whole industry includes the customer
behaviour towards the business entities, increased level of internet shopping trends and
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challenges regarding economic conditions plays a primary role in order to change the ways
through which retailers operate and engage with their consumers. The pandemic situation does
impacts the sales volume which lead towards the store closure as well in some locations.
According to the data which has been collected through local data company has been found that
20% of retail premises were vacant in 2020 and hence a lot of people also become redundant
because of the stores' closure (Brotspies and Weinstein, 2019). Thus, now government are
adopting certain strategies and work upon the industry by promoting investment for skills and
productivity expansion, better coordinate with public policies along with protects the United
Kingdom single market area.
Discussing over the three types of organizations in the market
Profit Non-profit NGO's
Purpose It is set in order to
generate profits and
usually operate in the
private sector which
means that they are
closely-held by
individuals or grouped
entities. The revenue
that is being generated
by these
establishments is
usually reinvested into
the business again to
ensure its sustenance
and remaining profits
distributed among
business investors.
There primary purpose
is other than just
gaining profits. The
firms work for public
benefits rather than
private profits
(Rădulescu and et.al.,
2020). The profits
never gets distributed
among their members.
They generally operate
into religious,
educational and
scientific sectors.
Their purpose is also
providing services that
are beneficial for the
society. It usually
involved development
based projects and
receive funds through
state funding.
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