Swot Analysis of Sainsbury PDF

Added on - 04 Oct 2020

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Business and the BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1 Different types and purposes of organisation with their purpose..........................................1P2 Size and Scope of different types of organisations................................................................3LO2..................................................................................................................................................4P3 Relationship between various organisational functions and their link with organisationstructuring and objectives...........................................................................................................4LO4.................................................................................................................................................5P4. Positive and negative impact of macro environment on business........................................5P5. Swot analysis of Sainsbury...................................................................................................7LO4..................................................................................................................................................8P6 Interrelation of strength and weakness with external factors of retail industry in UK..........8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness is the activityof generating revenue by producing and selling the goods orservices. It can be termedas a process of manufacturing, marketing and selling of products toearn revenue.The surroundings in which the organisation or trade operates is an importantattribute that affects the execution of activities on a higher scale. A supporting environmentassist the firm to perform their operations in an effective way. The present assignment covers thedetails of business conditionsin UK based retail entity, Sainsbury. It is headquartered in Londonand is third largest retail service provider. Besides this, it also offers banking and agriculturebased products. Report is going to cover the information about types and purposes oforganisation with their size and scope. The relationship of different organisational functions andtheir link to structuring and objective is evaluated. With addition to this, the positive andnegative impact of macro environment is analysed. Internal and external assessment foridentifying weakness and strengths is provided with their interrelation with macro factors.LO1P1 Different types and purposes of organisation with their purposeIn a market a range ofenterprises operates which affects extent of business operation to agreater level. They perform a variety of operations as per their scalability and size and thisaffects the organisation on a greater scale. Each entity has a purpose and thus, operatesaccordingly to it. The firms operates in various sectors or industriesand has the operations andfunctionality as per their customer base (Virglerová, Dobeš and Vojtovič, 2016). The majortypology of of different firms with their legal structuring and purpose is as follows:Public sector firm:This are the organisation or service providers firms which are owned andoperated by the government and offers facilities to citizens or public. Most of the enterprises inpublic sector do not target for profitability. As they are owned by national authorities, it isfunded through unconventional methods like taxations, fees or provincial transfers by localgovernment. The federal level corporations provide the services which are widely used bypeople. Followed by the Great Recession in 2009, the public sector firms have seen a greatdecrease in UK. They operates in many sectors like education, medical and health care,electricity, infrastructure development, law enforcing, public transportation, gas and oil etc. Themajor purpose of federal sector is to serve people and provide them with basic amenities andfacilities. Their main aim is to ensure the well being and contentment of citizens of country.1
They sometimes operates with the private sector firms in collaboration making themhybrid enterprises. This supports them to provide more quality based and efficient services totheir customers. It assists in improving their scales and ability to cater more and more customersin an effective way.The legal structure of organisations in this sectors is Public LimitedCompany (PLC).They have a Board of Directors (BOD) and can offer their shares at stockexchange. Example of public sector company in UK are British Broadcasting Corporation(BBC).Private Sector firm:This are the enterprises which are an essential part of a nation's economyand are owned privately by an individual or group of people. It is established by forming a newcompany or privatising an existing public sector entity. They are established with the intention ofprofit making. They uses the personal assets or loans from banks and resources from shareholders or investors as the source of funding to run their operations. They are an important partof free economies. As they make more profits compared to public sector firm, they employsmore workers to sustain the profitability. Their major purpose or aim is to manufacture highquality products or services and generate a decent amount of revenue (Keating and et.al., 2015).It consists of sole proprietors, partnerships, SME's and trade unions and large MNC's.They might have two types of legal structure based on scalability of operation and sectorsthey operate, separate legal entity (SLE) or Limited liability corporation (LLC). They share theirprofit with stake holders or investors in form of dividends at end of a financial year. The exampleof private sector firm are like Hilton Group, Apple Inc., Sainsbury etc.Voluntary sector firm:These are the enterprises which works for the welfare and benefit ofsociety and operates with or without the motive of profit generation. They can have agovernmental support but mostly perform as a non governmental organisation (NGO). They aimsto give back to the society and their purpose is to focus on creation of social wealth rather thanmoney. Firms in this sector runs many integrated programs and activities for the welfare andbenefit of people. They mostly comprises of charities, community centres, faith basedorganisations and social welfare foundations. They may vary in size and scope and are ownedand run by volunteers (Hedger, 2016).The Example of Voluntary sector firm is British Red Cross Society, Bill and MelindaGates Foundation etc. They have a legal structuring of Trust or Limited by Guarantee or Shares.2
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