Business Types & External Factors

This assignment analyzes different business types based on ownership, purpose, and structure. It examines the influence of stakeholders on business objectives and highlights how organizations adapt to environmental changes. The focus then shifts to Sainsbury, a supermarket chain, exploring its organizational structure and the impact of external factors like government regulations and consumer trends on its business operations.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P 1 Types of business, purpose and ownership of two business.................................................1
P2 Different stakeholders and their influence on purpose of two contrasting business .............2
TASK 2............................................................................................................................................3
P3. Evaluation of how two businesses are organised..................................................................3
P4 Describing various styles of the organisation that can help in fulfilling their purposes........4
TASK 3............................................................................................................................................6
P5 The influence of two contrasting economic environments on business activities within a
selected organisation...................................................................................................................6
TASK 4............................................................................................................................................6
P6 impact of political, legal and social factor on business activities and stakeholders..............6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
In this report it covers the topic of Business environment in which it is the sum total of all
the internal and external factor that influence the business. Further, in these report it will
compare the two organisation such as Sainsbury which is making company and on the other hand
NHS which is non profit organisation. And it will cover the comparison in terms of type,
purpose, ownership and stakeholders and also cover the organisation of two business and there
style of organisation. It will cover how political and social factor affect the business activity and
also the stakeholders as well as it will describe the influence of economic and environments on
business activity on the two above mention company.
TASK 1
P 1 Types of business, purpose and ownership of two business.
Sainsbury's is the second largest chain of supermarket in United Kingdom with 16.9%
share of the supermarket sector. Sainsbury was founded in 1869, by John James. Sainsbury is the
largest retailer of groceries.
 Type – J. Sainsbury plc, is a retailing industry, it operates through four segments such as
retail -food, retail – general Merchandise and clothing. Convenience store and
Supermarket are operated by the Sainsbury and also it facilitates many services such
online grocery and general merchandise operation and also provide electrical and
technology products. Sainsbury consider as a large retailing industry with 608
supermarkets and 815 stores that is very big figure to make the industry different from
other (Andriof and Waddock, 2017).
 Purpose – The first and foremost purpose of Sainsbury is that to ensure that to provide
the highest level of customers services and also to make sure that the quality of the
products satisfied the customers. And also to maximise the sales of the business by
improving its quality and attracting many customers and to become number one retailing
industry and also to be the first choice of consumer for food as well as delivering
products of excellent quality and also at the reasonable rate and also working faster and
in more innovative way and also work as a team.
 Ownership – J. Sainsbury is a public limited company this means that public can
purchase its share in the company through stock exchange and must have authorized
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share capital over £b£$£50,000 with £12,500 paid up to the company by the shareholders
(Bason , 2018). NHS stands for National Health Service it is the publicly funded national
healthcare system work without profit and also provide health care services to the
member. It was formed in 5 July 1948 and it is the largest single payer and funded by the
government with no profit maximization.
 Type – It is the health service system which operates independently and politically
accountable to the relevant government. It provides health care services and also provide
various other facilities to the member such as ambulance and other medical treatment and
infectious diseases and emergency treatment is free for everyone, including visitors
(Bouckaert, Peters, and Verhoest, 2016).
 Purpose – The main purpose of NHS is that to maximise the interest of the member and
work to satisfy the member and improve the condition of the member and also to ensure
that good health care services should be available and also to meet the need of each and
everyone that to free of charge and also available at any time and help the needy people
who don't have the ability to pay.
 Ownership – National healthcare is non profit organisation and it is publicly funded
national health care system for England. Its headquarters is in Richmond House, London,
England with 1.4 million employees. The main funding of NHS is from general taxation
and National insurance contribution and also follow tall organisation structure and it
helps NHS to smooth flow and quick decision making (De Vries, Bekkers and Tummers,
2016).
P2 Different stakeholders and their influence on purpose of two contrasting business
Stakeholders are the person who affected by the organisation or who hold official
position in the organisation and has run organisation with relevant interest. Stakeholders are of
two type such as internal stakeholder who participate in the organisation in the form of funding,
resourcing and coordinating on the other hand external stakeholder are the one who engage in
contributing the view and ideas and solving the issues (Hamilton and Webster, 2018).
Stakeholders are the individual and the group who have interest in the business and also
they are affected by the business. Different business have different stakeholders and also the
Sainsbury has many stakeholders which are affected by the company such as customers as they
want the company to improve and serve them the best quality of the services and also consider as
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the main stakeholder of the Sainsbury without it Sainsbury does not achieve anything and also
customers influence the business to the large extent (Hillary, 2017). The next stakeholder that
influence the business is suppliers who want quick payment and also they work with this
company who respect them. Employees also influence the company as they also feel proud of the
company which they are working for and if the company does not earn enough profit then it will
directly affect the bonus and salary of the employees so they work hard to achieve their goals
and objective.
On the other hand the major stakeholder in the health care system are patients,
physicians, employers, insurance company, pharmaceutical firms and government. As
government influence NHS as the government is funding health care and also want NHS to work
in the right manner. The second is insurance company that influence the NHS as currently rising
premium and strict requirement are keeping many people from obtaining health insurance. And
also there are various internal stakeholders who influence the NHS are trustees, Board committee
members, Public health manager, Research scientist, Head of Health Intelligence and
Information and also director of public health. As well as there are external stakeholders of NHS
who directly influence such as local authority , funders, media, special interest group, quality
assessors, service users, acute trusts etc. which plays the major role and also in the organisation
(Jones, Wicks and Freeman, 2017).
TASK 2
P3. Evaluation of how two businesses are organised
The two chosen companies are; Sainsbury and NHS and both have their unique structure
that organise their business. One is the for-profit organisation and other is non-profit organisation
Organisational structure
Sainsbury's have hierarchical structure in their organisation. Within the industry, there is
series of level of people and the top positioned people control lower level employees in the
industry. For example; senior manager of Sainsbury's is responsible for the line manager and the
line manager is responsible for sales assistants. The communication and information flow is in
control and low level employees only can communicate with their senior and the chain goes on.
NHS is publicly funded national healthcare system. They follow functional organisation
structure. The trust is managed by the Board of director of the company. The communication
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flow is open from consumers to voluntaries in the organisation. The system is mainly controlled
by the government.
Functional area
The functional department in the organisation deals with specific issues as per their
particular area. There are various functional areas such as; finance, production, sales, human
resource and customer service.
SAINSBURY
Sainsbury's have all the functional area in the organisation that is required to handle the
specific issue and that is organised and relatable decisions are taken by the board of director. The
finance department analyse and maintain all the expenditures and incomes of the organisation.
The marketing department is responsible for promoting the outlets and products and to aware
people about the brand. The Human Resource of the company are responsible for hiring, giving
training to the employees to drive the productivity and sales. The Service department focuses on
giving better service to the consumers that enhance their commitment and loyalty towards the
organisation and increase their profitability.
NHS
Consumer service department is the most essential functional area of NHS as they are
operating with the objective to serve the consumers effectively. The marketing department of the
organisation promote the good health in the society and keep aware to the mind of people with
the services of NHS. The sales department is responsible for managing the budget and all the
expenses and incomes. Whether they are not operating for profit, but evaluating all the incomes
and expenses help them to identifying the need of money in the organisation. There is no sales
department in the organisation as they do not sale anything for money in the market they only
give free service to the people.
P4 Describing various styles of the organisation that can help in fulfilling their purposes
Sainsbury have a structure in which it performs and concentrates over all those functions
that are known to the company. The Sainsbury provides the best services to its clients. Further, it
demonstrates its areas of feasibility and shows all the best things of its business operations as to
show the viability of its business areas and maintaining them with the company for long time.
In addition, the Sainsbury hierarchical style helps to forecast its future by preparing
various budgetary plans. It helps in developing more efficiency in the business operations.
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Sainsbury has developed publicizing bundle which is also helping the business in appreciating
the business since it says that they winding up is familiar with the consideration of clients, it can
develop an opinion that they can pay the debts of all the purchasers other investors so they can
change their perceptive towards the company and see the actual things and positions of the
business (Hamilton and Webster, 2018). This structure is helping the company in enhancing its
profitability and gathering more market share as well.
The core reason for setting the integration of the business is to develop the rely of clients
over the business. A business organisation must have a greater ability to know each part of the
market. This ability can enhance the profitability and overall capacity of the business. In this
regard, in can be analysed that the business style of the Sainsbury has helped the company in
enhancing its efficiency, achieving its set goals and fulfilling all the purposes of the business
operations as well.
The style of the organisation is professional and it tends to believe in an environment
where its employees are working professionally to achieve set goals and objectives. This helps
the organisation to achieve better results and create a dynamic atmosphere.
The organisational style of NHS is functional. It tends to provide the organisation with
required directions to achieve desired set of growth and development. The system is managed
and controlled by the government so the organisation is having freedom to operate as per its
requirement. An open environment tends to help the organisation in achieving its set goals and
objectives properly. It promotes the employees growth and employees working within the
organisation learns more and more from what is being taught to them. These efforts helps both
the employees and the organisation to gain profitability and maintain a good reputation along.
The functional style of NHS provides the organisation with a set of rules and guidelines
in which the organisation observes a variety of developments step by step. Effective teams are
made in the organisation to ensure that important goals are being achieved. These teams often
evaluates the major understandings and developments happening in the organisation and
performs accordingly to reach their particular goals. This enhances the teamwork and helps the
organisation to achieve growth and development.
The other important aspect of the function environment is that it supports the growth and
well-being of the people and its stakeholders. NHS values its people and stakeholders. The
functional style understand the needs and requirement of these stakeholders and prepares itself
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accordingly (Hillary, 2017). This promotes the organisational development and ensures that the
organisation is reaching to its objectives appropriately.
TASK 3
P5 The influence of two contrasting economic environments on business activities within a
selected organisation
There are majorly two influencing factors of the economic environment that have major
impact over the business activities of the Sainsbury i.e. budget and cost. The change in the cost
related factors of the economic environment can effect the cost to be incurred by the business. In
directly effects the financial condition of the company. Further, due to change in the cash related
factors, the range of investment also gets affected. It affects the ability of the company in raising
funds from the market for the purpose of smoothness in the functioning of its business
operations.
Furthermore, various factors of the economic environment of the country also affects the
efficiency of the budgetary control system of the company. Due to the change in the factors of
economic environment, the process of budgetary control may change. The managers of
Sainsbury needs to taken into account each change in the economic environment of the business.
If the managers ignores the change in the economic environmental factors, the budget prepared
by them may provide negative results to the company.
In addition, due to this ignorance at the time of comparision of the budget with the actual
performance, the efficiency of the business may be under or over estimated by the managers. It
can directly effect the development of strategies and plans by the managers through which the
the Sainsbury may suffer a huge loss.
In this regard, it can be analysed that the economic environmental factors have major
influence over the business operations of Sainsbury
TASK 4
P6 impact of political, legal and social factor on business activities and stakeholders
Sainsbury analyses of UK
 Political factor:- Its important to have political stability in the environment because it
affects the political environment of the Sainsbury such as this factor plays a significant
role with the long term profitability in particular country and market. Sainsbury operating
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in so many countries and expose itself with different political environment. From
political factors it directly impacts the attitudes of the customers on the conditions of the
Sainsbury. It creates so much pressure on the organisation. For continuing and running
the business in the market its important to have the stability in the environment. It
includes the tax rates and incentives(Kaur and France, 2018.).
 Social factor:- Sainsbury looking at the social factor. There are lots of factors which
have been included in the social factor of the UK such as population, society and
demographics etc. the way of changing the habits, taste and preferences affect the social
point of view. Sainsbury is currently promoting online store in the country which
provides the products in their engaged schedule. From thinking about more stores in the
country increase the numbers of customers. Legal factor:- legal factor affect the Sainsbury a lot. It is quite similar to the political
factors. It includes the laws and regulation of the government. This law is set the
customers from products because its important to aware and meet the level of safety. This
legal act applies and suppliers and aware the customers in right direction. This act affects
the procurement because it makes sure the suppliers are trust worthy and time to start a
new supplier(de Menezes and et.al., 2018.).
Sainsbury analyses of Hong Kong
 Political factor:- Political factor affects Sainsbury in china in different ways such as it
planned the economy because it gives communist it were not letting the international
business. There are no real opportunity for the private business. There was the removal of
barrier in the political factor which access the other independent business because the
system of the china tried to go more and it lowers the tax rate which is an important
factor for well working economy.
 Social factor:- Social factor affect the Sainsbury in China in so many ways such as the
culture of the china is totally different because adapting the activities which is suitable for
the external business environment. Sainsbury has wide range of food products and
different types of products. It also helps the government of the china because it recruits
the employees and decrease the unemployment.
 Legal factor:- The main important factor of the Sainsbury in the china is there are
different laws and regulation of the country which is for the protection of employees and
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organisation. It includes the wages, holidays, other working agreement which is related to
the organisation. The Chinese government is made the inspection in Sainsbury and check
the food which are selling to customers. Legal factor affects their human resources and
sales of the business(Kaur and France, 2018).
CONCLUSION
From the study of above assignment, it can be concluded that the business organisations
can be categorised in numerous types on the basis of their ownership, purposes and construction.
Further, there are some stakeholders that effects have potential influence over the purpose of the
businesses. Reasons is a general business that gives creative courses of action in information and
structures association for its customers, helping their relationship to react to outer portions.
Logics has in like way had the capacity to alter its business to grow gainfulness and endeavour
openings and Political, cash related, social and inventive changes all put weight on affiliations.
The study has also described the overall organisation of the Sainsbury and NHS. In addition, the
study has also concluded that there are some major external factors that are beyond the control of
the company, have major influence over the business operations of Sainsbury. Although, the
managers of Sainsbury have analysed all those factors and have developed the most effective
strategies as to eliminate their impact over the efficiency and effectiveness of the business.
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REFERENCES
Books and Journal
Andriof, J. and Waddock, S., 2017. Unfolding stakeholder engagement. In Unfolding stakeholder
thinking (pp. 19-42). Routledge.
Bason, C., 2018. Leading public sector innovation: Co-creating for a better society. Policy
Press.
Bouckaert, G., Peters, B. G. and Verhoest, K., 2016. Coordination of public sector
organizations. Basingstoke, UK: Palgrave Macmillan.
De Vries, H., Bekkers, V. and Tummers, L., 2016. Innovation in the public sector: A systematic
review and future research agenda. Public administration.94(1). pp.146-166.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Jones, T. M., Wicks, A. C. and Freeman, R.E., 2017. Stakeholder theory: The state of the art. The
Blackwell guide to business ethics.pp.17-37.
Kaur, L. and France, A., 2018. Strategic positioning of a supermarket.
de Menezes, M.C. and et.al., 2018. Individual and food environmental factors: association with
diet. Public health nutrition. 21(15). pp.2782-2792.
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