Types and Purpose of Organisation and their Legal Structures

This report discusses the different types and legal structures of organisations, their size and scope, and the interrelationship between organisational functions. It also identifies the positive and negative impact of macro-environment on business operations.

Business and business
environment

Table of Contents
Introduction .....................................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1Different types and purpose of organisation public, private and voluntary sectors and legal
structures.................................................................................................................................1
P2Explain the size and scope of a range of different types of organisation ..........................3
M1Analyse how the structure, size and scope of different organisation link to the business
objectives ...............................................................................................................................3
TASK 2............................................................................................................................................4
P3Explain the relationship between different organisational functions and how they link to
organisational structures ........................................................................................................4
M2Analyse the advantages and disadvantages of interrelationship between organisational
functions and its impact upon organisation ...........................................................................5
TASK 3............................................................................................................................................6
P4Identify the positive and negative impact the macro-environment upon business operations
................................................................................................................................................6
TASK 4............................................................................................................................................8
P5 Internal and external evaluation of organisations in order to determine strengths and
weaknesses.............................................................................................................................8
P6 How strengths and weaknesses interrelate with external macro factors.........................11
M2 Apply SWOT/TOWS analysis and justify how they influence decision making..........12
CONCLUSION..............................................................................................................................12
REFERENCES.............................................................................................................................13

Introduction
The word business environment always shows the aggregate total of every people,
organisation and other forces that are outside from the power industry but may affect production
of company. The business environment also provides assistance in understanding the threats
which are likely become happens in future. Also, environmental awareness can assist managers
to identify several threats as a future warning signal. Due to environmental study, this assist to
reveal success of any enterprise that is closely bound with several changes within environment.
Apart from this, a business environment is a combination of internal and external factors and
forces that is particularly influence the several operations of every business. Also, the business
environment comprises an internal and external environment (Panibratov, 2020). Now, in the
context of company Sainsbury plc is a trading company that is second largest chain of
supermarket in UK. The company is founded in 1869 by John James Sainsbury and company
become the largest retailer of groceries in the year 1922. So, in respect of company Sainsbury as
an assistant business analyst to investigate different types and sizes of businesses that company
have to compete with. This should include its legal structure, size and scope and their key
stakeholders that will be discussed further in context of report.
MAIN BODY
TASK 1
P1Different types and purpose of organisation public, private and voluntary sectors and legal
structures
The company is referred to an enterprise that engage many individuals that are
interconnected to increase goals for achieving profit as well as revenues. The main aim and
objectives of company is to fulfilling needs as well as demand of specific customers for
enhancing profit and better outcomes within business and also for social welfare. Now, according
to question there are explanation of various types of business will be is as follows;
Public sector company; A public sector company generally defines to that type of
business that is protected and helped by government on behalf of public. The main goal of public
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sector company is to providing welfare to society and individual because their improvement in
standard of living. The NHS is taken as an example of public sector company this company is
considered as major leading company of healthcare industry that provide service to its patients.
The main objective of this company is to provide different healthcare services to common public
by innovating several services.
Legal structure;
central government; The legal structure is mainly defined as that structure who
contribute funds from peoples and public in relation of income tax. This type of structure assist
to control every other government parties for offering several advantages for people.
Local government; A Local government company is liable to manage funds by
contributing communal charges that is primarily referred as tax of council. This local
government is only responsible to control a local area and its region (Hori, 2020).
Sole proprietorship; This sole protectorship is mainly defined as types of business is run
by single owner for providing its product and services for fulfilling needs and desire of
customers to enhance some amount of profit. In sole proprietorship there is a need to take license
from local government within several types of business that is interconnected from transportation
, health and so on.
Partnership-; in sole partnership business there will be involvement of two or more than
two individuals in opening of business by the help of sharing profit and losses by the help of
agreement ratio which is generally become decided by partnership deed. In partnership business
there is an agreement which is signed by its partners in which they are responsible to pay all
debts and also for doing future investment within company.
Limited liability-; This type of limited liability business comprise of two types of
company that are public limited company and private limited company. In addition public
limited company capital is collected by the help of general public as well as private limited funds
are collected by the help of its shareholders by enhancing high amount of profit for company.
Voluntary company; This type of companies is generally referred as the common
interest as well as group of individuals that will come together within an agreement as volunteers
without any intentions to earn profit. In addition, the main motive of voluntary company is to
perform effectively towards its society as well as do motivates to another company for keep
contributing in several social welfare programmes (Elashkar, Aldeek and Shoukry, 2020).
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P2Explain the size and scope of a range of different types of organisation
There are several types of companies which is refereed as micro, small, medium
enterprises. The several business aim and objectives that occupies various scopes as well as size
of company that are as follows;
Sainsbury; sainsbury is a multinational company and also the second largest chain of
supermarket, that is based in UK with a 16.0 percent share of supermarket sector.
Background; sainsbury is a British multinational retailing customer product company
that have its headquarter in London. This company is founded by John James in 1869 sainsbury
shop in Drury lane. The company become largest retailer of groceries in the year 1922.
size; The company Sainsbury is second largest U.K grocery chain with 16.5 percent share
of market. The company operates around 600 supermarkets and 800 convenience stores , every
stores is established in UK with 90 percent of sales implemented by supermarket
scope ; The company Sainsbury scope is to work with the carbon trust to identify an
ambitious scope. That mainly requires the reduction of absolute GHG emission by 30 percent. In
addition,this supermarket also focused to fulfil the targets of carbon reduction.
National health services ; The company national health services provides health care for
every UK citizen on their need for medical care. They are also focused to provide services to
those patients who are not capable to pay amount of treatment.
Background; The national health services is an umbrella terms for the publicly funded
systems of healthcare. In the year 1942 Beveridge cross-party established the principles of
national healthcare which has implemented by the Labour government in the year 1948.
size; The NHS is carrying a size of 1.6 million employees and having turnover of 13.67
billion.
Scope; The company is do focused on scope of charity that generally supports the
individuals who are not capable to pay the particular amount of treatment. The NHS is generally
focused to work with disable persons on their problems that are most important for them and
their objectives. For raising awareness, change of beliefs and attitudes and influence on policies
of government (Calotă, Ristache and Tănase, 2020).
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M1Analyse how the structure, size and scope of different organisation link to the business
objectives
The structure size and scope of every organisation are interconnected with main goals and
objectives of every business organisation. This has been seen that any organisation is a set of
long targets as its objectives only when they comprises a good organizational structures. If the
organization have not much people within its organizational structure and do not have knowledge
about in relation of their roles this is not possible to reached to its specified targets. In addition, if
any business organisation set its objectives that is based on its size, the size of that organisation
is large and will invest huge amount of money, then they have to set its big target to accomplish
its business objectives. Therefore, every organisation has some common objectives that is related
to serving its customers and to earn profit, but sometimes the level of profit will be differ
because of organisation Size (Bellandi and Santini 2020).
TASK 2
P3Explain the relationship between different organisational functions and how they link to
organisational structures
There are several different business functions within organisation that is interconnected
with each other in a direct or indirect way. As sainsbury is a private company that needs a
systematic support in between every department of an organisation. The every section of
department have to do its assigned duty and management of resources. Now in respect of
sainsbury relationship between the several departments is as follows;
IT and finance department- As finance department that mainly responsible to organize
all the finances and financial securities within an organisation. In addition, IT department also
provides benefits in gathering the appropriate information on proper time basis. These IT
department are interconnected because of its finances is used for collaboration within department
for managing every resources on proper given time. The company sainsbury could innovate both
of things for proper utilising of marketing resources and gathering of information from across the
world (Litvinova, Golubovskaya and Beresnev, 2020).
Purchase and research department- buying of raw materials in appropriate quality as
well as implementing them in an effective manner is really essential for company. Also, the
research and development helps company Sainsbury in having an eye on marketing practices as
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well as new trends. These departments assist company Sainsbury to determine the future
possibilities that could helps to enhance productivity of company.
Marketing and HR department- The marketing department is an important function of
company that assist company in making an effective strategy for the products as well as services
of company for attracting more and more customers. In addition, the human resources
department comprises the skilled employee which assist company Sainsbury to enhance its
productivities. By the help of skilled as well as talented workforce, it could provide the sainsbury
company to generate profit and competitive advantages and increase in revenue. In company
Sainsbury, there is an appropriate human resources and marketing unit that could accomplish its
goals in an effective manner (Kamp, 2020).
Organisational structure; This is framework that is mainly a system that outlines how some
activities are become directed to achieve the objective of an organisation. These are the activities
that can mainly become include the rules, roles as well as responsibilities. The organisational
structure also assist to determines how the information will flows between different levels within
company. This is a framework that is designed for determining out the working practices or
having the allocation of task in compliance in an achievable manner for having a better
foundation that can set the standard of operating process and its routines. The sainsbury company
is having its own structure that works within a company for keep improvement in work and
enhance flexibility by each and every department that could have its role and responsibilities.
However, company is using its divisional product organisational structure to run its business
practices (Zehir, Karaboğa and Başar, 2020).
M2Analyse the advantages and disadvantages of interrelationship between organisational
functions and its impact upon organisation
The interrelationship between every department of sainsbury could be helpful in
increasing its productivity and its increased of sales. This will impact on productivity as well as
profitability of company. This can only happens with appropriate arrangement of functional
department. That could lead within increase of sales within company as well as it could create an
impact on share of market that is beneficial for company. Apart from this, appropriate co-
ordination among every department could assist company for the development of loyal base of
customers and influencing more customer towards product and services of company. There is
also a negative aspects of functional department that could impact on companies poor growth. In
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addition, there is an important arrangement of functions that provides inflexibility that impact on
distribution of department within workplace. Sometimes it can also impacts on performance of
employee due to their decrease in level of motivation.
TASK 3
P4Identify the positive and negative impact the macro-environment upon business operations
The macro environment is a situation that will applied not only in a limited sector but
within a economy. The macro-environment is analysis is done by applying and performing the
PESTEL analysis. This is determined in a way in which marketer for monitoring the external
aspect that can affect on company operations. In addition, in terms of company Sainsbury,
PESTEL analysis of company can be done by determining its positive and negative aspects of
company.
Political factor- these are the factors that mainly deals in laws as well as decisions that is
taken by government. This mainly involves taxes and various policy that could impact upon the
operations of Sainsbury in both positive and negative aspect of company.
 Positive impact- There will be the political stability in most of the countries that will
mainly creates a positive impact on sainsbury company to run its practices of business in
an effective manner. Apart from this, there will be a growing of free trade relations which
is being continuously rising and this could be taken as an advantage for sainsbury to run
its business operations in an effective manner
 Negative impact- there are some political issues that is being increasingly being
occurred within the foreign countries that mainly generates a negative impact on
sainsbury company. In addition there will be an increase within intervention of
government that could generates a growth difficulties within business for expanding its
practices of business and its performance
Economic factor; These are the factors that assist in various decision-making factors
within a company. That is mainly associated with financial economy of company as well as
country. The economic factors sometimes involves and changes in various rates that is related to
economy of company.
 Positive impact- There will be a high growth of developing countries that could lead to a
positive influence on sainsbury company in running its business practices within
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developing countries. Apart from this, economic sustainability of developed counties
could benefit company in determining the rates of interest within company.
 Negative impacts- This is identified as when there will be rise in wages within
developing countries that provides a negative impact on company sainsbury. In relation
of labour supply chain for proper manufacturing of products as well as services. Apart
from this, there are various changes that can be occurred in selling the products of
company which could affect the operations of company (Sadchenko, and et.al 2020).
Social factor; These are the factors that is related and effects the lifestyle of customers.
The social factors mainly consist of education of peoples, populations as well as the another
aspects that can affect the surroundings of company
 Positive impact- There will be a high growth of developing aspects like rise in
consciousness and enhancing the behaviour of environmentalist countries that may affect
to a positive influence on sainsbury in running its business practices for development of
company. So, that company is capable to make more profit. Apart from this, social
stability of developed countries could provide several advantages in analysing the interest
rates and other growth factors of company.
 negative impact- as sainsbury is serving to its customers globally so as an result the
company have to face the different societal values of several cultures as well as demands
that could negatively impact the practices of business within company.
Technological factors; these are factors that states in making the changes within
technology that affects the business practices in both positive as well as negative manner in its
surroundings of business. The technological factors states to analysing the technological
advancement that is being carried within company.
 Positive impact- There will be a growth within business automation that is an
opportunity for sainsbury company in terms of influencing within a positive way for
doing its business practices in an effective manner. Apart from this, customer is mainly
requires its product as well as services with its latest technologies. That will assist
sainsbury in its growth and development.
 Negative impact- There will be a research and development of investments which can be
negatively affect on company sainsbury as this could costs high expenditure for
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enterprises. Apart from this, there is reducing cost of transportation which is based on its
technological capabilities that could affect the practices of business.
Legal factor; These are the aspects of business that is said to be the external components
that could manage with several laws and regulations that could impact business of sainsbury.
These factors comprise the various laws and regulations which are followed by company in an
appropriate manner.
 Positive impact- There is some of constituent like gain in difficulties of environmental
regulations and transformation of global patents law. That could be handled as positive
possibility for sainsbury in order to cover up its creation in their product as well as
services from being theft.
 Negative impact- There are some health and labour laws that will be changing on
frequent time basis. This can create a negative influence on performance of sainsbury and
its workforce capabilities. When laws and regulation will be not followed in an effective
manner.
Environmental factors; These aspects generally depends on internal as well as external
nature of company. These are factors are interconnected with environmental change that could
consist of climate and other changes within business.
 Positive impact- according to present market situation there is development within
business environmentalist as well as business efforts on its sustainability that can create a
positive impact in performing practices of business of sainsbury in relation of handling
the changes in environment.
 Negative impact- These factors are related from the environmental changes that can
affect on operations of business of sainsbury. In terms of transportation and innovating of
its products and services for fulfilling the needs and demands of customers.
TASK 4
P5 Internal and external evaluation of organisations in order to determine strengths and
weaknesses
In terms of internal and external analysis of all organisations, SWOT analysis has been
initiated in order to identify all their strengths and weaknesses. With respect to the chosen
company and another business organisation, it is described below: -
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SWOT Analysis of Sainsbury: -
Strengths: -
 Right expansion: - One of the main strength of Sainsbury was that the company built up
the effective expansion from being a small grocery store to high supermarkets through
which all needs and wants of consumers was efficiently fulfilled. The company is now
one of the 2nd largest supermarket chain of United Kingdom and also carries high market
share.
 Promotion strategies: - In order to attract maximum number of customers, it is important
for a business organisation to apply effective promotion strategies in comparison with
other competitors (Ruël, 2020)
 . Sainsbury also used innovative methods to do promotion of all the products such as they
indulged the method of brand match promotion in which each product which was sold by
them used to get compared with other companies and was offered at less prices.
 Marketing: - It was considered as the effective strength of the company because
Sainsbury made the usage of several social media channels and print media through
which all consumers used to get attracted. Besides this, the company also used to provide
cards which allowed all individuals to earn points and get several benefits.
Weaknesses: -
 High competition: - Sainsbury always faced high competition with respect to all the
products which they offers (Seetharaman, 2020). It becomes a weakness for the company
because consumers gets easily switch to other brands which creates difficulty for a
company to attract audiences.
 Increment in prices: - In the present scenario of COVID-19 pandemic, Sainsbury
increased their prices because they had no other choice to enhance growth. Due to this,
customers didn't purchase the products at such high price and ultimately their sales got
decreased.
 Reputation: - Sainsbury also faced high disputations like avoiding the tax rates, fixing up
prices due to which their brand image got affected. It became a weakness for them
because their reputation was continuously decreasing.
Opportunities: -
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 24 hours service: - Sainsbury had a great opportunity to provide 24 hours service to all
audiences so that their problems could be easily solved (Almazrouei and et.al, 2020).
Besides this, they also had an opportunity to implement self-checkout machines which
would make the procedure more efficiently and will increase entire sales.
 Growth in villages: - The company had a great opportunity to open their store in villages
also because at present time period, people living in villages also prefer branded products
so it was a good opportunity for Sainsbury to establish their store in that locations also.
Threats: -
 Competition: - In united Kingdom, there are large number of supermarkets already
available in the market so it was a biggest threat for Sainsbury to manage their position in
the marketplace.
 Globalisation: - It is considered as both opportunity and threat for the business
organisation because almost every company is expanding their market in order to become
a multinational organisation and besides this, each country carries their own legal laws
and regulations so on the basis of this, if Sainsbury is not able to expand their market then
it becomes a threat for them.
SWOT Analysis of TESCO: -
Strengths: -
 Biggest grocery retailer: - It is considered as one of the major strength of the business
organisation as TESCO is one of the biggest grocery retailer in United Kingdom. It is
involved with highest revenue in comparison with other supermarkets.
 Diversified stores: - As per the chosen organisation, the company established different
varieties of stores such as Tesco extra, One stop and many more. Besides this, they also
provide several range of products like clothing, telecom services and so on.
Weaknesses: -
 Low cost techniques: - TESCO initiated the strategy of low cost which states that
consumers would be offered products at low prices but at the same point of time, it was
considered as a weakness for them because due to low costs, their profits were also
decreasing.
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 Weak operating performance: - Though TESCO has implemented their organisation in
various countries but at some of the locations, their operational performance was not
much good due to which their marketing department was getting affected.
Opportunities: -
 Investment in research and development: - In context with chosen organisation, doing
investment in new technologies and research for innovative products was the biggest
opportunity for them (Portovaras and et.al, 2020). It could help them offering new and
inventive products to all existing as well as new customers.
Threat: -
 Seasonal variations: - Due to variations in seasons, the demands of people also get
changed which creates a threat for a company. In context with chosen organisation, they
also faced such threat which affected both their planning and implementation of their
projects.
P6 How strengths and weaknesses interrelate with external macro factors
PESTLE Analysis of Sainsbury
Factors Strengths Weaknesses
Political As per the implementation of
UK laws, it creates an impact
on their business organisation
in a positive way. Due to this,
the company doesn't need to
spend high amount on all
formalities.
It became hard for Sainsbury
to take loan in some of the
countries and the reason
behind this was high interest
rates.
Economic The organisation had positive
effect due to growth rate in
UK in terms of increment in
entire sales.
Due to high inflation rates, the
purchasing power of people
was getting reduced which
created a negative impact on
the profitability.
Social In context with chosen
organisation, they opened their
The consumers were not
having knowledge about
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stores in those countries which
was matched up their lifestyle.
technologies which were used
by Sainsbury which was a
weakness for their organisation
(Sharma and et.al, 2020).
Technological Sainsbury had lot of
opportunities due to the
technologies which they were
using.
There were some countries
who were not engaged with
such techniques due to which
the image of Sainsbury was
getting reduced.
Legal All legal policies and acts were
properly being followed by the
organisation which created a
positive effect on a company.
There were several import and
export policies which were not
favourable for Sainsbury and
was not leading the firm to
achieve profits.
Environmental Sainsbury always focused on
environment and climatic
conditions which was
becoming a strength for them
and was increasing profits.
It is impossible for company to
follow each and every
environment policy of
different countries which
creates a negative impact.
M2 Apply SWOT/TOWS analysis and justify how they influence decision making
IN context with swot analysis of Sainsbury, they carries strong brand image and uses
effective research techniques that helps them in establishing a new product. On the other hand,
swot analysis of TESCO, they always focused on initiating skilled workforce and removing the
chances of unbiased contents and negative images.
CONCLUSION
From the above report it has been analysed that it is mandatory for every business organisation to
analyse its business environment. Therefore, they could be capable to handle its survival in
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marketplace by enhancing profit for organisation. It is required to evaluate the surrounding of
business. So that there will be an ease in making strategies of business as well as policies that
could be made according to the external requirements of surrounding and internal capabilities of
business. This report also comprises about business environment of sainsbury which has been
analysed by carrying out the PESTEL and SWOT analysis with their impact on these operations.
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