'Business Environment'

Individual Report
'Business Environment'

Table of Contents
INTRODUCTION ..........................................................................................................................1
BUSINESS AND PURPOSES .......................................................................................................1
STAKEHOLDER MAPPING ........................................................................................................3
MICRO AND MACRO INDUSTRY ANALYSIS ........................................................................5
CONCLUSION ..............................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
The term 'business environment' connotes external forces, factors and institution that are
beyond the control of organisation and they affect functioning of business enterprise. These
involves customers, competitors, suppliers, government and social, political, legal, and
technological factors etc. Along with this, some of these factors or forces may have direct impact
over the business firm, others may operate indirectly (Adeoye and Elegunde, 2012). Moreover,
business environment is multi-faced, complex and dynamic in nature and has a far reaching
influence on survival and growth of business. Moreover, there are various types of organisation
(private, public, voluntary) and each organisation differ from each other in terms of their
purpose, size and scope. In context to this report, the considered firm is Sainsbury which is the
third largest supermarket ranging from groceries, clothing, home ware, electricals and many
more. It is commenced in the year of 1869 and it headquartered at London, UK. Their main focus
or vision is to become the best and trusted retailer among industry, for attaining the same they
are well known for adopting business opportunity and accepting challenges or threat in order to
gain competitive advantage (Boons and Lüdeke-Freund, 2013). This report covers differences
between several types of organisation and their purposes, application of stakeholder mapping to
analyse stakeholders position in achieving business objectives. Finally, evaluating micro and
macro business environment with the usage of PESTLE, SWOT analysis and Porter's five force
model.
BUSINESS AND PURPOSES
The term business is understood as the organised effort or contribution of an enterprise to
supply consumer with best quality of good s and services for a profit. Each businesses vary in
size, as measured by the number of employees or by sales volume. But all businesses share same
purpose and i.e. to earn profit (Cadle, Paul and Turner, 2014) However, business environment is
defined as total surroundings, which have a direct or indirect bearing on the functioning of
business. In business there are various types of organisation and it is categorised by different
kinds of ownership which is described below:
Private Sector
Private sector is a business which is not controlled or operate by government but runs by
an individual and these business are driven by profit. They are financed by private money from