Interrelation between Organisational Functions at Sainsbury’s plc

This report explores the interrelation between different organisational functions at Sainsbury’s plc and how they work together to achieve business objectives. It discusses the advantages and disadvantages of this interrelationship. The report also includes a Pestle analysis of Sainsbury’s, examining the impact of political, economic, social, and technological factors on the company.

Marketing and Marketing
Environment

Table of Contents
INTRODUCTION .........................................................................................................................3
LO1..................................................................................................................................................3
P1- Type in purpose of organisations .........................................................................................3
P2- Size and scope of the range of different type of organisation...............................................5
LO2..................................................................................................................................................6
P3- relation between organisational function and how they are interlinked...............................6
M1 – How structure scope and size of different organisation link the business objective and
product services offered by organisation.....................................................................................8
M2- Advantages and disadvantages of Inter relationship between organisational functions.....8
LO3..................................................................................................................................................8
P4 Pestle Analysis .......................................................................................................................8
LO4................................................................................................................................................10
P5 Internal and external Analysis..............................................................................................10
P6 How strengths and weaknesses interrelate with external factors..........................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
The marketing environment conclude the internal factors like customers, retailers and
distributors, employees and shareholders, similarly external factors like political, technological,
social, economical factors have huge impact on the marketing operations of the company.
This report will cover case study of Sainsbury plc which second largest chain o
supermarkets in the United Kingdom. Sainsbury’s is an second largest retailer organization
within the supermarket sector with 16% shares in UK market. This company operate
Supermarkets, superstores, Forecourt shop etc.
This report will explain the purpose and types of organization including their size and
scope. It will explain the different type of functions at the workplace of Sainsbury’s plc and how
they are interrelated with each other. this report will identify the positive and negative impact of
macro Environmental factors through the PESTEL analysis and it will also conclude external
and internal analysis of the specific organization in order to identify the signs and weakness. in
the end of this report will explain how strength and weakness interrelate with the external macro
factors.
LO1
P1- Type in purpose of organisations
Public company
The term public sector or the enterprise refers to the government owned companies or the
nominees are by the government side represent the interest of the government on the board of
public sector enterprise. the public sector enterprise usually compete with the private sector
enterprise and the domestic as well as international markets. There are various type of
organization not have different way of doing their business and different goals and objectives.
mainly cover public private voluntary and legal structures, data type of organization. National
health Services (NHS) is the best example of the Public companies. They provide free health
care and social care services to the people within the UK and there are three systems with make
up the NHS Scotland, Wales , Health and social care in Northern Ireland was created separately.

Private sector organisations
A private sector organization are the part of economy that run by the companies or the
individual to earn the profit and they are non- state controlled. This kind of companies are
independent and mainly and to earn profit and grow their business effectively. Owner of the
business take all the decisions, and they are responsible to select board member of the company.
Sainsbury’s plc the example of the private company who are operating their business on the
international market. Their main motive is to sell their product and services to the customers to
earn profits.
Voluntary
Voluntary forms are non profitable organisation who are only work to provide benefits an
help the society. this type of bodies get donations from the people and government organisations
and they gave their support toward the society. Organisations within this sector can provide
services like Helping children’s, or old age people and people who don't have home or money
(Cusimano, S. and Sterner, B., 2019). It can include NGOs, civil society organizations and 3rd
sector organisations. British heart foundation Is the charity organisation in United Kingdom who
Raised a fund for people who are suffering from the heart problems and can't afford their
treatments. this kind of organisation help people through the charity.
Legal structure
Legal entities are various structures under which people may create a Corporation like
soul traders, private limited company and partnership.
Sole traders
Sole traders are the businessman who self-employed or own the business with their own
product and services. A sole business Do not have any legal entity separate to its owner, leading
me to say that as sole trader they are only the business. Sole traders put their own capital within
the business to start a new business, and they only share all losses and profits Which their
business is making.
Partnership

A partnership is the arrangement where the two parties or more than two partners agree to
cooperate to advance there mutual interests (Kotler, P., and et.al., 2017). Be partners in a
partnership may be individual, interest based organization, business, school government and
combination of others businesses.
Private limited company
A private limited companies are the type of entity where the owner of the company have
full rights and control over the organization. their main goal is to maximize their business
profitability and expand their business in other countries to grow their businesses. May
normative of companies too sell their product and services to earn probability in their business
and achieve success. all the profits a shared by the McCallum Walker who is the owner of this
business. the net income of this company in year 2019 was around 157 million pound.
P2- Size and scope of the range of different type of organisation
`Each and every organisation have their own size and scope that provide benefit to them
and help them to grow their business. Entrepreneur scan start their business according to the
scope and size and type of their business. Here are different type of organization including their
size and scope.
Company type Size Scope
Public company Public organizations have huge
scope and business because
they get charity from the state
government an employee who
are working within the
company can get the surety of
their jobs. They walked toward
the public welfare and their
main motive is to fulfil needs
an demand of the customers
and add some value in their
In term of scope NHS is fully
owned by the government
bodies so if they suffer from
the losses then government
will help them to recover from
the losses and in terms of side
NHS has created revenue
around £1,916,960 . there are
around 1.4 Million employees
are working for the company
in year 2019 and their asset

life. value is around £829,614
Employees- 1.4 Million
employees
Turnover- £1,916,960
Asset Value- £829,614
Private company Private companies within the
United Kingdom has huge
scope because millions and
billions of people having their
own private company where
they are all owners and share
the oil profits. they do not need
to share their profits with
others and expand business
without any problem (Gupta,
C.B. and Nair, R., 2020).
Size of these organizations,
private organization can
expand their business globally
an employees limits can reach
around 250000 Employees.
Their are around 116,400
employees are working for the
Sainsbury’s plc and this
company is generating revenue
around £29.007 Billion.
Operating Income £312
Million and Net Income - £219
million in year 2019. Currently
Sainsbury’s asset value is
28,166.
Employees- 250000

employees
Turnover- £29.007 Billion
Asset Value- £ 28,166
Voluntary company Besides end scope of the
voluntary company is limited
because their main motive is to
satisfy the needs and demand
of the society by helping them
and fulfil their basic needs like
food, shelter and their
treatment of diseases. This
kind of companies work to
help society, and they are non-
profitable, and they're all
charity money goes to the
society for their welfare.
British heart foundation is an
Voluntary organization who
has 3000 employees, and they
generate $434.88 million by
sales and asset value is around
£629,614.
Employees- 3000
employees
Turnover- $434.88
million
Asset Value- £629,614

LO2
P3- relation between organisational function and how they are interlinked
Each and every function within the workplace of Sainsbury’s plc are interlinked with
each other, some important functions of the company are marketing, operations, human resource
management, finance Department, sales and production Department. this all functions work
together to provide benefits to the organization and help them to grow effectively. They all are
interlinked to each other and here is reason how –
Marketing
Marketing is the most important part of the organization, that help Sainsbury’splc to
identify their customers who can buy their product and services and satisfy their needs. finding a
customers means expanding a business for the Sainsbury’s plc. Marketing Department is also
interlinked with the other Department of the company like human resource Department,
production, finance etc (Saura Palos-Sánchez and Cerdá Suárez., 2017). For example- When
finance manager unable to find the sources of find for the company then they take help of the
marketing Department because they're having all information about the market And also having
a good relation with the investors who can invest for their company.
Structure and objectives- marketing team of the Sainsbury’s plc helps to achieve
objectives by advertising the products to the customers by using various tools.
Finance Department
Finance Department is the Department who provide fund and budget to each and every
Department within the organisation, finance Manager is responsible to identify the sources of
funds for the company, and they make budget according to the needs of every Department within
the Sainsbury’splc. this shows that this Department is interlinked with other important
Department of the company.
Structure and objectives- Finance department follow the structure by flowing the cash
within each department from the top to down and providing a enough budget to the department
help Sainsbury’s plc to achieve their objectives.

Sales Department
Sales Department is responsible to sell the product and services to the customers so
companies can earn profitability and grow their business. This Department is also interlinked
with the other functions of the company like marketing, marketing help the sales Department to
identify the customers , which increase the sales of the company and company can achieve their
sales target (Toklu., 2018). sales Department work is to sell the product to the right customer
and selling of goods means Achieving the objective for other important function of the
company.
Production Department
Marketing Department and production Department are helpful for each other because
marketing Department collect the information from market related to the interest of buyers.
Operational Department interpret the necessary information and use that information to develop
new product and services according to the needs and demand of the customers.
This is how both Department are interlinked with each other and helpful for each other to
achieve their goals and objectives. They are interlinked with the structure as well because
marketing team give customers information to the R&D team and R&D team interpret the data
and provide the meaningful information to the production team.
M1 – How structure scope and size of different organisation link the business objective and
product services offered by organisation.
The structure scope of the different organizations are interlinked with the business
objectives and service because the main aim of the organization is to Unprofitably a company
can only earn profitability if they are selling their product and services and able to satisfy the
needs and demand of the customers. In exchange for product and services company earned
profitability, which is there main objective (Petrunia And at.al., 2019). When finance manager
unable to find the sources of find for the company then they take help of the marketing
Department because they're having all information about the market And also having a good
relation with the investors who can invest for their company.

M2- Advantages and disadvantages of Inter relationship between organisational functions
All the functions of the organisations are interlinked with each other and help each other
to achieve their goals and objectives. There are some advantages and this word advantages of the
Inter relationship between those functions. advantages of the interrelation between the function is
that it help company to achieve success in their business on the other side disadvantages off
interrelationship between those function is, if any of the function failed to achieve their objective
than it also affect the other function of the organisation (Gollay and etc.al., 2016). It is necessary
for the company to work all the function of the company equally and they have to achieve their
goals and objectives to make their company successful.
LO3
P4 Pestle Analysis
Pestle Analysis of Sainsbury’s
Political- In political factor Sainsbury’s gets affected by political conditions of UK significantly
because it’s mainly dependent on UK. Certain factors that affect Sainsbury’s include rules and
regulations of UK Government do not impact of international political conditions.
Economical- Economic factors that have impact on Sainsbury’s include increasing cost of
operations as well as increasing fuel cost. Increase in fuel cost affects overall cost of Sainsbury’s
because transportation is one of the important activities in operations of Sainsbury’s. In addition
to this rising salary is also affecting Sainsbury’s economic condition along with inflation rate
(Nandonde, 2019). Sainsbury’s is mainly dependent on UK and reducing purchasing power of
population in UKcan also affect success of Sainsbury’s.
Social- Cultural factors that have impact on Sainsbury’s and its activities include increasing
demand for healthy eating and vegan food products. In addition to this increasing interest in
online shopping is also included in this factor.
Technological- Technological factor effective Sainsbury’s include increasing focus of
competitors on developing and enhancing in store experience of customers through effective

application of technological innovation. Along with this online sale of food is also included in
this that affects Sainsbury’s.
Legal- Legal factors that have impact on Sainsbury’s include different types of rules and
regulations that govern organisational operations.Along with this, regulations and standards for
food is also included in this.
Environmental- Environmental factors that affect these include increasing environmental
consciousness of customer who is looking for environment friendly products. On the basis of
government regulations regarding environment it is also required to reduce its carbon footprint
and also work on practices of waste management.
Pestle Analysis of NHS
Political- NHS is a public organisation and this is why gets significantly affected by political
environment of the country (Powell and et.al., 2019). Increasing emphasis of government on
healthcare services is an opportunity for NHS to improve its practices. However Brexit has also
affected NHS and its operations.
Economical- Economic factors involve several elements affecting NHS and these includes
impact of economic downturn and in addition to this several economic regulations also affect
NHS negatively. In addition to this lack of resources also is a threat for NHS. However increase
in budget allocation is an opportunity through which NHS can improve its practices and
performance.
Social- In this increasing average age of people of UK is a challenge for NHS in which it
requires to ensure it is capable for fulfilling requirements of population regarding healthcare
services. Along with this increasing diseases like Cancer and Diabetes are also increasing and is
a challenge for NHS.
Technological- Technology in healthcare is continuously improving and having a very strong
impact on quality of healthcare. NHS have also improved its technology that have improved its
quality of services (Goldacre and et.al., 2020). Along with this, with help of technology
education also has improved and this is also an opportunity as it will be able to have competent
manpower for healthcare services.

Legal- Legal factor involves regulations that govern NHS and its activities and in addition to
this, unhappy patients and taking their grievances to legal platforms and this is a threat and
challenge for NHS.
Environment- This is concerned with impact of activities of NHS on environment and because
it operates in medical industry it contributes to highly toxic waste and this is why there is strong
pressure on NHS and other medical institutions to deal with this.
LO4
P5 Internal and external Analysis
Internal and external analysis is concerned with analysing factors that exist within organisation
for all concerned with organizational effectiveness. Internal analysis also helps in identifying
what opportunities and threats are there in external environment of organisation. With the
purpose to identify strength and weaknesses of organisation SWOT analysis can be utilised.
Swot analysis of Sainsbury’s is as follows-
Strengths
Wide range of product offerings- Sainsbury’s offers several products and because of this
company Can attract customers from wide range of segments.
Innovation in promotional strategy- promotional campaign and marketing practices are very
important for success in present business environment. Sainsbury’s has effective practices for
marketing and promotional campaigns of Sainsbury’s are also innovative and appealing to its
customers (Fisher, 2018).
Strong brand recognition- Company has a strong brand recognition in UK and this is very
important for long term success of organisation.
Varied format of stores- this is another strength of Sainsbury’s in which company offers
different format of stores like Hypermarket/Superstore, supermarket, convenience shop and
forecourt shop.
Effective connect with customers- this means that undertake several practices to maintain
constant touch with its customers. This is also important strength of organisation.

Weaknesses
Limited global presence- Sainsbury’s have strong position in UK market but in context of
global market it has Limited presence. On the other hand some of the competitors of enter has a
strong presence in global market (Woo, 2018).
Increasing cost of operations leading to increase overall cost of the company
Low margins, this means that profit margin of the company is low
Rising food prices of food- This increases price of products being offered by Sainsbury’s
Opportunities
Global expansion- This means that it has strong opportunity in which it can expand its
operations in global market. Strong image and students of UK can favour it in a global
expansion.
Acquisition of small organisation- This means that Sainsbury’s can acquire small
organisations. These acquisitions will help in increasing its presence and will also reduce its
competitors.
Increasing its presence in online market- online marketing getting very strong and customers
on online market are also increasing. Because of this it has a strong opportunity in online market.
Increasing demand for natural and vegetarian products- increasing demand of natural
products is also an opportunity to attract customers towards Sainsbury’s (Vlados, 2019).
Threats
Economic recession- recession has a strong threat for Sainsbury’s because it has affected
purchasing power of customers.
Frequently changing consumer behavior- frequently changing consumer behaviour is also a
threat for organisation because it creates challenges in coping up with consumer behaviour.
Increasing and intensifying competition- competition in Retail Industry is increasing and
getting more in intensified. In such competitive environment it has become very difficult for
organisations to survive and grow (Phadermrod, Crowder and Wills, 2019).

SWOT Analysis of NHS
Strength
 No strong competition for NHS is there because of its scale of operations and because of
its position in medical industry
 Strong trusts that patients have on NHS and its services in emergency and accidents
 Very suitable for treatment of chronic diseases like cancer, diabetes
 Continuous growth and expansion of NHS
Weaknesses
 Difficulty to cope with increasing demand of health care services because of population
getting older and increase in chronic diseases (Woo, 2018).
 Ineffective management and turnover of staff leading to difficulties in managing effective
performance of NHS
Opportunities
 Increasing and working on getting private investment
 Working on employee satisfaction practices to ensure competent staff remains with NHS
and do not leave organisation
Threats
 Impact of Brexit and economic downturn
 Increasing demand for healthcare services and high staff turnover
 Negative impact on image of NHS
P6 How strengths and weaknesses interrelate with external factors
Strength and weaknesses of organisation has significant interrelationship with external
factors. This is because external factors offer opportunities and threats and in order to avoid
impact of threats organisational strength can very important. Along with reducing impact of
threats it is also important to have identified strength so that organization can utilise

opportunities that are there in external factors and enhance organisational performance. In
context of Sainsbury’s it has an opportunity in form of expansion of if operations in international
market. This opportunity can be utilised with its strength to perform with varied format of stores
and also by it effective marketing practices and promotional campaigns (Dandage, Mantha and
Rane, 2019). However there is an opportunity for a start to grow its business in online market but
because of limited technological development within organisation this opportunity cannot be
effectively utilised by Sainsbury’s. This means that weakness of organization can affect its
ability to utilise opportunity and also create difficulty in realisation of opportunity. Weaknesses
of organisation can also increase impact of threats that organisation has in IT external
environment. It is very important that organisations by identify strengths in its external
environment develop strategies to avoid or reduce their impact. Strengths can also help in in
reducing impact of threats such as even though consumer behaviour is frequently changing but
strong brand recognition of Sainsbury’s can help it in retaining customers of organisation. In
order to understand relationship between internal and external factors of organisation TOWS
Matrix can be utilised. Application of TOWS matrix for Sainsbury’s is as follows-
Internal Factors
External
factors
Strengths Weaknesses
Opportunitie
s
Wide range of product offering
and global expansion
Brand image and brand
recognition and global expansion
Extensive product offerings
and brand recognition can
reduce impact of critics
Opportunity in online
marketing can be affected by
limited technological
development of organisation
Threats Effective marketing practices can
help in dealing with increasing
competition
Wide range of product offerings
can help in dealing with
frequently changing customer
behaviour
Critics can enhance impact of
threat from increasing
competition
Limited global presence can
also increase impact of
recession affecting financial
condition of organisation
This Matrix suggest that factors of internal and external environment are strongly related to each
other and also contribute in either in enhancing impact of positive factors and also so in

increasing impact of negative factors (Mugo and et.al., 2017). Strength and opportunity are
complementary for each other and having right strength to utilise opportunities can be very
beneficial for an organisation. On the other hand weaknesses and threats can significantly
unfavourable for Sainsbury’s because these elements together can cause difficulty for
organisation.
CONCLUSION
As per the report has been explained the purpose and types of organisation including their
size and scope of various organizations. it has been discussed about the different type of
functions at the workplace of Sainsbury’s and how they are interrelated with each other and help
each other to achieve success for the company. this report has been identified the positive and
negative impact of macro Environmental factors through the PESTEL analysis and it also has
been concluded external and internal analysis of the specific organisation in order to identify the
signs and weakness. In the end of this report has been explained how strength and weakness
interrelate with the external macro factors.

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