How Business Operates

This presentation provides an overview of how business operates, focusing on the types and structures of private and public sector organizations. It discusses the impact of the local, national, and global economic environment on businesses like Sainsbury. The presentation also covers the factors that influence business operations, such as political, economic, social, technological, legal, and environmental factors.

HOW BUSINESS
OPERATES

Cover Content
 Introduction
 1.1 Various types and structure of private and public sector organisation
 1.2 The different structures within the businesses of UK and various reasons
for the variation
• 1.3 The local, national and global economic environment impacts on the
sainsbury business
• Conclusion
• References

Introduction
Business environment is a collection of factors which impacts on
operations, growth and sales performance either internally or
externally. From these elements, some are under control of
management while others are far behind. Therefore, in order to
operate business in a perfect manner management need to analyse
these attributes in a proper manner.

1.1 Various types and structure of private and
public sector organisation
There are distinct type of organization concerns which operates their
operations in the industry with distinct objectives, structures, size
and their scope. The public sector organization are running by Govt.
authority where as private sector organization are by the individuals.

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Sole proprietorship – It will consist with business that are form by
person for investing their financial assets and manage raw material
in order to practice with the business in more appropriate way.
Partnership – A partnership business can define as arrangement where
various partners and parties agree to engage with changes with their
mutual understanding and interest.

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State Ownership – This elements includes organisation which
determine management required for making terms and create
functional system as per the provision of state in better manner.
Local government – It comprise with entities which are developed and
formed through individual to conduct practices and using effective
resources, thus they will supply efficient services and facilities
regarding social welfare.

1.2 The different structures within the
businesses of UK
Functional structure: According to the functional structure the
organizational an organization's reporting relationships are grouped
based on speciality, or functional area. In Functional Organization,
people are grouped by areas of specialization. For instance,
marketing professionals are grouped under marketing department,
human resources professionals are grouped under human resources
department, technical people are grouped under IT department etc..

Functional structure

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Divisional structure: The divisional organizational structure
organizes the activities of a business around geographical, market,
or product and service groups. Thus, a company organized on
divisional lines could have operating groups for the United States or
Europe, or for commercial customers, or for the green widget
product line. Each such division contains a complete set of
functions.

Divisional structure

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Matrix structure: A matrix structure aims to combine the benefits of
decentralisation with those of co-ordination.
It usually requires employees from various departments to form a
group to achieve a specific target.
They require dual reporting to managers and the diagram shows a
mix of product and functional structures.

Matrix structure

1.3 The local, national and global economic
environment impacts on the Sainsbury
business
Political factors: These factors are related with the Govt. rules and
regulation in a country which affect the business operations. So
nationally, globally and locally these factors affect the business of
sainsbury.
Economic factors: The economic factors include the various economic
changes of Govt. Which includes, taxation rates, interest rates,
economic growth, inflation-deflation rates, etc..

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Social factors: These factors are related with the values and culture of
the society. Sainsbury follows the whole social trends which make it
effective.
Technological factors: These factors include the modern processes
and techniques of production by which new variety can be
produced.

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Legal factors: Sainsbury’s is in the boundaries of legal forces locally,
nationally, globally. These are very close to the legal enforcements
in which firms operate.
Environmental factors: These factors includes the changing in
weather and climate. With major climate changes occurring due to
global warming and with better environmental awareness this
external forces is becoming an important issue for Sainsbury’s to
consider.

References
Adjei, H., and et. al., 2014. Assessing the Corporate Social Responsibility
Activities of Atwima Kwawoman Rural Bank Limited and its Impact on
the Communities it Operates. European Journal of Business and
Innovation Research. 2(4). pp.36-47.
Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of
business model design. Strategic Entrepreneurship Journal. 9(4).
pp.331-350.
Bernstein, M. H., 2015. Regulating business by independent commission.
Princeton University Press.

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