The Business Environment of Sainsbury’s

Business and Business
environmnt

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1 .............................................................................................................................................1
Different types of organisations and their purpose and legal structure......................................1
TASK 2 ...........................................................................................................................................4
Organisational functions and their interrelationship with organisational objectives...................4
Task 3...............................................................................................................................................6
The positive and negative impact of Macro environment on Business.......................................6
Task 4...............................................................................................................................................7
Internal and External analysis of Organisations..........................................................................7
Strengths and Weaknesses interrelate with external macro factors.............................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is refers to marketing that all internal and external factor is affect
the ability of business. It is directly impact on the decision making power of organization.
Business environment is affect the business decision making power there are different factors
which affect the ability and helps to build the and enhance the customer relationship with using
the different marketing strategy(Gaganis, Pasiouras and Voulgari, 2019).
Business environment is a total of external and internal factors, both this factor is affecting
business. They can be forces of economic, social political and technological factors.
Business environment includes specific forces such as customers, competitors' investors and
suppliers. This factor can affect business in the day to day working.
Business environment is largely uncertain to predict what happen, especially when environment
changes are most common.
Business differs from country to country and region to region for example in India sarees sales
are highest then France witch almost doesn't exist.
Early identification of opportunities is an advantage for the enterprise to be first explored them
instead of losing them to competitors.
Business include gross national products, inflation rates , interest rates corporate profit ...etc
The report will discuss the business environment of Sainsbury’s. It is the third largest
chain of supermarkets and type of public limited company. Its provide variety of products to the
customers such as hypermarkets, supermarkets, superstores, convenience shop etc.
The report will describe the different types and purpose of organization such as public,
private, voluntary,and sole traders, small and medium and there legal structure. Furthermore,
study will lay emphasis the relationship between various organizational functions. Therefore,
report will discus the positive and negative impacts of macro environment on business
operations. Furthermore, report is describe pestle and swot analysis of Sainsbury’s.
This report is including different type and size in an organization, also positive and
negative influences on the impact of macro environment in business operations.
Task 1
Different types of organisations and their purpose and legal structure.
Because of Post-Brexit Sainsbury is uncertain of the sales because of the weak pound.
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Business group was announced sort delays at ports and borders risk, cause huge problems in
supply products all across the continent, as well Sainsbury risk to buy food limited and at highest
prices. Anything that encumbers that has two effects detrimental effects on fresh products and
added costs.
Sainsbury is an organization very good planned with professional employers and at the moment
the costs are lower the Tesco for examples they are keeping down prices as strategy to keep their
customers.
Organization
As a manager I will explain different type of organization in business exists more types of
organizations:
Sole traders - It is the simplest businesses structure. It is easy and inexpensive business that is
easily set up by any person who want to enter in the business. The purpose of the sole traders is
makes profit for short term period(Eling and Schaper, 2017). is most common form in business.
Small and medium enterprises - It is the organization that is set up on small levels and they
fulfilled there requirements of fund by taking loans. The main purpose of SME is launch the new
and innovative product in the market to expand the profit. To set a sole trader business you don’t
need paper work, and you can make decision quickly.
The most important things in the profit is going to, be only to the sole trader, that’s mean
you don’t have to share whit somebody. This being a big advantage. A disadvantage is the sole
trader has to make own decisions of course work long hour to prepare a good strategy.
Private company - private company are those firms who owned either by non government or by
shareholders of the firm. Private company cannot sale their share on general public and its
regulated under the laws. The main purpose of the firm it is that they generate high revenue for
long tern period,
Companies: the company it is owed by shareholders who gives the approval to the director as he
can give the right direction to the business. This does not mean he has to do everything, above
him will be the executive chief being the senior who will make the big and important decisions.
Here can be to type of companies:
Public company –this included share shares to the public and financial institutions.
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Public limited company - It is the strictly regulated by the government. The share of the public
limited company is traded on stock exchange and one can buy and sale the securities. Main
purpose of the firm it is that they provide the helps to the public in difficulty situation.
who have Ltd. after their names. The private company are usually smaller then public
company. This type of company they only sell and buy with permission from directors.
Partnership company -A organization partnership is a exclusive kind of legal relationship
formed by the contract between two or more individual companies to take on a business
activities for generate profits. Main purpose of the company it is that they makes high profit to
run the business(Hillary, 2017). this type of organization can be between 2 and 20 partners. In
this type of organization people can work together, share skills knowledge and ability. This
organization you can make it only whit witnesses and solicitor because they have to stabilize how
the profits and losses will be shared between them legally.
Voluntary company - voluntary company are those firm company who provide the help to the
people in any situation. Main focus of the firms it is that they save the people life. usual this is a
nonprofit organization; it makes it voluntary to help different type of cases.
Global company: is the company who has business in at least one country, and has possibility to
expand in as many countries as they want once they have success when start
Multinational company: is the organization which own production of products in at least one
country apart from the original country.
basis Sole traders
(Humming
bird
bakery)
small and
medium
enterprises
(Talent
plus)
Private
company
(jack will)
Public
limited
company
(Sainsbury’
s)
Partnership
company
(John lewis
partnership
)
Voluntary
company
( Oxfam )
legal
structures
This is the
American-
style bakery
famous in
Talent plus
provides
business
solution to
Jack will is
privately
owned
company(El
It is the
largest chain
of
supermarket
It is the
partnership
firm and
this is
Oxfam is a
voluntary
organisation
consist 20
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London.
Founded in
2004. now it
has six
branches in
London and
Surrey. The
legal
structure of
the firm it is
that firm is
follow all
the legal
aspects and
they liable
for their
liabilities
and profits.
the
individual
and
company.
They follow
all the rules
and
regulations
of the
government.
ing and
Schaper,
2017).
Provides the
clothing
products to
the
customers.
The
shareholders
of the firm
is main
owner and
company
follow all
the national
and
international
laws to
expand the
business .
Company
legally
registered in
companies
act.
s. This is the
Type of
public
limited
company
the legal
structure of
the firm it is
that they full
controlled
by the
government
the rules and
regulation
ate strictly
followed by
the firm.
employee-
owned UK
company.
Operates
supermarket
, bank and
financial
institution.
the legal
structure is
that it is a
legal
agreement
between two
parties and
they share
their profit
and loss
equally.
Firm
generate the
£421
million
revenue
independent
charitable
organisation
which
provide
services to
people for
reduce
global
poverty.
Legal
structure
drives from
corporate
governance
community
which looks
after the
trusts that
they are not
prohibited
any of the
laws and
follow
international
polices
while
serving the
society(Praj
ogo, 2016).
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Scope Scope of
bakery is
that they
operate
branches in
London and
surrey
Scope of the
firm is that
they provide
the services
in national
or
international
market.
Scope is that
they serve
their
product in
United
Kingdom
Ireland
United
States
Singapore
Hong Kong
Macau
Kuwait
United Arab
Emirates
Lebanon
The scope
of
Sainsbury’s
is covers the
all over
globe as
there
branches
and outlets
are
spread all
over
worldwide.
The scope
of the firm
is that they
distribute
their
products and
services in
all over the
world
The scope
of Oxfam is
that they
provide their
services in
all over the
world.
objectives To serve
their
customers
by fresh
bakery items
with
simplicity.
In
order to gain
customer
satisfaction
To serve the
highly
advisable
services in
all over the
world.
To create
new
strategies
for success
in order to
expand
its business
and the
market
share in all
over the
world.
Objective is
that
provides the
best product
and build
good
relationship
with the
customers
for increase
customer
base.
objective is
to promote
the best
financial
services and
business
practice in
whole world
.
To ensure
that they
provide the
best services
in all over
the world to
ensure that
they reduce
the poverty
in whole
world.
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Sector Primary Tertiary Secondary Secondary Secondary Tertiary
Size It is the
independent
firm . The
number of
employees is
25 to 30
This is small
enterprises
who works
independent
ly. The
number of
employees
is 200 to
250
It is the big
company
and there
has a huge
number of
employees it
is 1130.
It is the
largest chain
of
supermarket
. Therefore,
firm has
186900
number of
employees.
the
It is the
partnership
company
and there
number of
employees
is 83000
Oxam is
charity type
of comapny
which
provides
helps to
people. The
number of
employees
is approx
73000.
MICRO ORGANISATION: - is usual defined as small business being employed 10 people
or fewer and having balance sheet less than a certain amount.(e.g 2 million euro or PhP 3
MILLION EURO). This business is grow only if something happen to change their lives and
they need a large income.
Small organization: - is usual the company who has not more then 50 employees who has
annual turnover not more than £6.5 million, the balance sheet total must be not more than
£3.26 million. Is the organization who has profit and loss account, a full balance sheet signed
by a director,
Medium size: - Is an independent firm which employ fewer than a given number of
employees. The most organizations have around 250 employees.
LARGE COOPERATIVE: is the type of organization that is owned and controlled by its
members, who also happen to use the services and products of the cooperative. In this
organization needs to be sets specific outcomes that the membership wants their enterprise to
achieve on their behalf. Is to intervene in a specific market place in the suitable interests of its
members. They promise little or no benefit to members such benefits only arise when
collective power in the market is exercised on the members behalf. This organization it finding
the better ways of doing things that result benefits.
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There are different types of stakeholders such as customers, suppliers, employees, process
and . Theses all stakeholders influence the decision of Sainsbury’s.
There are two different types of factors internal or external can affect the business of
Sainsbury’s.
The customers, suppliers and shareholders influence the decisions of business. Therefore,
customer are most important for the business because the changes of preferences is affect the
business of Sainsbury’s. Therefore, the changes in unexpected, and firm are make changes
according to needs of customers.
The internal factor is employees which also affect the decision power of company
because when employees are not satisfy with the work they are not performs well and also they
not make good product. So to enhance profitably, company make sure that they provide benefits
to employees to encourage and motive them.
The stakeholders are the customers, suppliers, shareholders and general public.
In every business are uncontrollable forces who can affect our business they are: -political=> the
government can influence the economy.
- economic factors: =>this include economic grow or decline and changes in the inflation and
interest rates.
-technological factors=> this include technology awareness automation and services and products
- and social factors => include emerging trends demographics and population analytic.
There are 2 type of factors which can affect our business: external factors: -the politics, economy,
competitors, customers and the most common the weather are the uncontrollable factors that can
influence our business. Changes are inevitable the flexibility to deal with unexpected market
mutation, we have to be ready to adapt on the situation because this are external factor and we
never know what going to happen next.
The internal factors are the staff, company culture, processes, and finances. Every company must
have staff and procedures to learn the new code. The staff have to be honest and trustful and they
have to be motivated on what they are doing like that they will be more implicated in the job are
they doing.
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TASK 2
Organisational functions and their interrelationship with organisational objectives.
Sainsbury was founded in 1869 by John James and his wife Mary Ann. Their mission was
‘’consumers are first’’ to have outstanding quality and great services, as well to be competitive.
In our days to make all this thing you need to be a faster and skilled worker.
Here in Sainsbury the senior manager is responsible for the line of manager, and the line manager
is responsible for sale assistant.
Sainsbury is the major British supermarket expanded in so many places, our jobs is to provide a
range of quality products, to offer a good team in the supermarket which is dedicated a skilled.
The customers benefit from the helpful team in a store, so we have to select people very carefully
do the best thing for our shop. Recruiting skilled people, we going to grow in business.
CSR encourage a positive impact trough activity on the environment, consumers, employees,
stakeholders and community.
Good things and advantages on Sainsbury are we employ all type of genres, color and
background, we are not resisted, we employ on everybody skills and knowledge.
As well we are working with HRM, they are helping as to select people on the right place to the
right job. We select people from theirs people from their skills and ability as well HRM is
helping as to offer to the employers possibility to grow giving a competitive salary. It is very
important the relationship between HMR and employees that make them felling more important
giving them value in the organization.
On our company we have work force planning is absolutely necessary in every organization
because that helps identify skills while satisfying the career and life style goals of our employers.
We understand the employer needs and we take care of everyone depending of the situation and
case.
Our work force planning is to select with HRM help the wright people for the write job. HMR
will give training and will recruit the persons with skills and knowledge on the job are they
doing.
Most important thing is to provide strategy between human resources and interest, to ensure HR
programs and services. We have to make sure the organization has the right people whit the right
skills and price.
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Organizational function is that they set all the activities within each departments of the
firm. This functions operates the each department that Include operations, Purchasing
department,
Finance department, Marketing department, Human Resources department and Distributions &
logistics departments etc.
 Finance department – Finance departments is interrelate with marketing functions of the
Sainsbury’s. Finance department is one who provides the proper fund to each
department. without enough funds marketing departments cannot preform their work
properly because they needs funds to implement the new strategies for success the
business. This department also interrelate with HR department because they gives the
funds to HR departments to conducting the proper interviews to select the
candidates(Saleem, 2015). Therefore, finance departments is helpful to achieve the
objective of the company by manage all the cash flows activities ,
 Purchasing department – Purchasing department of the Sainsbury’s is interrelate with
finance departments because to purchase any raw material department need to funds so
finance department is provides the funds to run the business. Therefore, Purchasing
department communicate with marketing department to making the new products.
Therefore, it is satisfy the customer needs by produce the quality product for the
customers.
 Human resources department - This department is interrelate with each department of
the firm. Therefore, Every function of Sainsbury’s needs to employees for generate
production in each departments whether it is Production, finance, marketing or
purchasing etc (Eling and Schaper, 2017). Therefore, this department is helpful to
enhance the performance of the firm in order to achieve desired objectives and goal of the
firm.
 Marketing department – Marketing departments is one of the essential department of
the Sainsbury’s because this department implement the new strategies in the business to
achieve the goal of the firm. Therefore, each departments of the firm can follow the
strategies to complete the particular task of the department. This mainly interrelate with
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distribution department Marketing is done through advertisement and promotion activities
which increase the sales of the firm.
 Distributions & logistics departments – distribution and logistic department of
Sainsbury’s is interrelate with purchasing department because without full fill the need
of raw material the logistic and distribution department cannot supply the product.
Further, the production department also not easily produce the product due to lack of raw
material. Therefore, distribution department is helpful for increase the supply because
they timely provides the product to the customers and it helps to increase the customers
base.
Task 3
The positive and negative impact of Macro environment on Business.
Pestle analysis- It is the tool which identify the external environment of the business. There are
different types of factors which influence the company internally or externally.
POLITICAL : is the extent determine by government who is influence the economy, example
government may introduce new tax or duty and the structures in the organization might
change. Political factors include tax fiscal policy and trade tariff and the government may levy
around the fiscal year and can affect the business environment to a grate extend. This factor
contains the different government rules and regualtions, political stability or instability,
corruption, foreign trade policy, tax policy, labour law, environmental law and trade
restrictions etc.
ECONOMIC: this are factors determinate of economic performance impact direct with a
company and resonate long term for example race of the inflation rate in the economy this all
affect company with their price service and production. Over old that it will affect the power of
consumer and change demand models for economy. Economy factors include inters, rate,
inflation rate, interests rate, foreign rate, economic grow. This factor expain the differenrt
economy conditions it contains inflation rate, excahhne rate, interest rate, employemnt rates
ets.
SOCIAL: the social environment determine cultural trance populating analytic and
demographic. This factor is describe different attributes of the consumers. It includes,
population growth rate, age distribution, income distribution, career attitudes, lifestyles etc.
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TECHNOLOGICAL: this factors pretimed to innovation that can affect operation in the
industry and market. This refers to research development automation and the technological
awareness in the market. This factor is descibe that firm use this to improve their performace.
It contains such as level of innovation, research and development in the business etc.
LEGAL: this have internal and external factors. Here are certain laws which is affecting the
business depending of the police in that company. Both of this chart out the strategy in light of
the legislation as example are safety standards labor laws and consumer low. Legal factor is
descibe the different government rules in includes the different laws such as copyright and
patent laws, employment laws, consumer protection laws etc.
ENVIRONMENTAL: these factors include the influence and the determinate surrounding
environment. Pastel is crucial for industries for example farming agriculture and tourism
factors of business environmental include but are not limited to weather geographical location
limited v climate and global changes in climate. This factor is include the environmental
factors such as weather, climate, environmental offsets and climate change etc, this factor
affects the performace of business.
 Brexit issues is affects the uk policies because it reduce the employment because many
peoples leave the country so its creates the negative impacts on the uk(Dutta and Dutta
2019). In other side, European market have gather many opportunities of employment
because many new companies like Sainsbury’s enter in the market to establish their
business in European market.
 The sudden impact on the economy of uk is creates the high losses because the main
sources of income is tax that is discontinue. So, it is negatively impact on the uk
economy. Therefore, it reduce the national British income and Sainsbury’s not generate
the income. Hence, the European economy is build their economy by taking different
opportunities such as improve their currencies it creates the positive impact on the
European economy so Sainsbury’s can enter in the new market to establish the business .
 The issues of Brixit is reduce the customer of Sainsbury’s because peoples are not
interest to purchase the UK company products (Bah, E.H. and Fang, L. 2015). In other
side, sainsbury’s improve their customer base to provide the product according to the
needs of European market it helps to attract the European customers.
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 Brixit is create positive impact on the performance of company because company uses
the new technology to enhance the profitability it generate customer base. In another side,
it also create negative impact because other companies also use the new technology is
increase the competition in the market.
 Brixit issues is negatively impact on the performance of the company because all rules
are change. So its difficult to follow the new rules and regulations. The different rules
and regulations is also positively impact on the performance of the sainsbury’s because
customer are trusted when they purchase the products because company follow all rules.
 Brixit is provide the positive impact on the sainsbury’s because it reduce war between
peoples it helps to maintain the suitability and increase profitably. There are also a
negative impact because firm concentrate on fulfil the needs of UK customer it leads to
create dis-satisfaction among the people.
 Sainsbury impact from the post Brexit will remain uncertain because of the external
factors, we reported a slight fall in sales. One of the costs rises was caused by the week
pound, the group was working hard to keep prices down.
 Our strategy in this period is to expand vegetables range, and to reduce promotion.
disadvantage can be some of the British farms could drive Sainsbury out of business. Like
that the import will be produced to different standards, they will sell the products maybe
at double prices, more expensive how was before Brexit. When Brexit will be decided the
farms can make their own price and they will select their customers according on who
will give them more money.
 As well Brexit will affect negative Sainsbury because their contract with UE will stop
they will not receive any more products and Sainsbury may bankrupt.
An advantage can be the hourly payed rate it will increase from 8£ to 9£. This situation will
happen only if the Brexit it will be hard. In case is going to be soft Brexit it will be same like
now, only little changes but the marketing will remain with any Loses.
Task 4
Internal and External analysis of Organisations.
As in every organization Sainsbury have weaknesses and strengths. In Sainsbury from small
grocery in the limited range of products they expand to convenience stores witch later become
supermarkets. The business philosophy Sainsbury is to help customer to live well. They have low
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costs strategy, all products category which attract more and more people. Another thing is the
opportunity to have all type of customers, selling products from different country.
Sainsbury have most of the strategy to adopt promotion cheaper the other shops, from here comes
competition.
We have weaknesses as well this mean the aria where we need improvements. Some of the
weaknesses are brands switching. Another weakness is the retail space, and online retail.
Sainsbury tried to cut down costs as well keep prices lower the competition. As well growing
costs, the retail needs to spend on shopping especially for highest income stamens.
In my opinion the strongest weakness which can cause lose customer is the technology. The
uncontrollable organization started to replace people with machines this being a very good
problem because they will lose lots of customers. For example, the machines are not working,
and in al the market is only one person who you can talk to but in the cute are 200 customers, of
course nobody will wait. They will leave the products and they will go somewhere else. That
uncontrollable things can make big problems in any organization.
STRENGTH
 Good brand image
 Cultural diversity
 Systematize process
 High market share
WEAKNESS
 High turnover
 Competition within every segment of
the retail sector
OPPORTUNITY
 Enter in new market such as European,
Asian
 Establish branches in all over the world
THREAT
 Increasing globalization
 Increase competitors
Strengths and Weaknesses interrelate with external macro factors.
Technological factors- The strength is that sainsbury’s use the online platforms to
expand their business in all over the world . Furthermore they use the different advertising
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techniques such as using the online platforms to promoting the product. it helps to lead the sales
and also helps to generate the high profitability (Bah and Fang, 2015).
The weakens is that, Sainbury has invest huge money realted to new technologies it leads
high turnover expenditure. For this new technology company need to give training to their
employees about give knowledge for how to use the new technology. Therfore, it create high
expenses as well as also it can spend more time.
Interrelationship with external macro factors:
Sainsbury is keeping add new products what are accepted from the organizations because have
new technologies which it helps as to reach customer easily. Sainsbury receive feedback on the
quality products, this can be negative or positive depend on the preferences of every customers.
WEAKNESS
Sainsbury has to invest more in the technology related to macro environment because need better
condition. For this technology they will spend money and time on training and lead to
innovations.
CONCLUSION
Business environment is the terms of marketing there are different factors which
influence the ability and decision making power of business. Business environment is a total of
external and internal factors, both this factor is affecting business. They can be forces of
economic, social political and technological factors.
Hence, report is based on business environment of Sainsbury’s. Hence. The project
report has been outline the different types of organisations and its purpose and legal structure.
Furthermore, the Report has been highlight the size and scope of different types of organisations.
Moreover, The study has been described the Relationship between different organisational
functions and there interrelationship with organisational objectives and structure. The report has
been showcase the positive and negative impacts of macro environment on business operations.
Moreover report has been explained the SWOT analysis. Lastly, the report has been described
the interrelationship of strengths and weakness. business with the macro factors. As well is
concluded by scope type size of the organizations.
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REFERENCES
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change scenario-a study.ZENITH International Journal of Multidisciplinary Research.
9(4). pp.171-183.
Eling, M. and Schaper, P. 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research.258(3). pp.1082-1094.
Fabuš, M. 2017. Current development of business environment in Slovakia and Czech
Republic.Entrepreneurship and Sustainability Issues. 5(1). pp.127-137.
Gaganis, C., Pasiouras, F. and Voulgari, F. 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries.Economic Modelling, 78, pp.275-292.
Hillary, R. ed. 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Prajogo, D.I. 2016. The strategic fit between innovation strategies and business environment in
delivering business performance.International Journal of Production Economics,171,
pp.241-249.
Saleem, S. 2015.BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Online
SWOT ANALYSIS 2017 [Online]. Available through
:<https://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-
analysis.html>
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