Understanding the Business Environment - Desklib

UNDERSTANDING BUSINESS ENVIRONMENT
1

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
TASK 1............................................................................................................................................3
Introducing SAINSBURRY........................................................................................................3
Sainsbury Operation....................................................................................................................3
Company Goal.............................................................................................................................3
Market Structure..........................................................................................................................4
Legal form of the company..........................................................................................................4
task 2................................................................................................................................................4
Stakeholder analysis....................................................................................................................4
TASK 3............................................................................................................................................6
PESTLE Analysis........................................................................................................................6
Porter five force...........................................................................................................................7
TASK 4........................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
2

INTRODUCTION
Business environment refers to the atmosphere which allow the operation to operate the
functions and execute the plans of action in effective as well as efficient manner. it deliver
assistance in encouraging the workers of the association for completing the task in appropriate
manner ( Voiculet, and et.al 2010). The present report is based on one of the leading enterprises
of UK Sainsbury in which report will examine the operation, market structure of the association.
Furthermore the report will demonstrate the objective of the association and the area of
improvement for the further success of the company.
Main body
TASK 1
Introducing SAINSBURRY
Sainsbury is one of the leading multinational retailers organisation which is renowned for
dealing in groceries and miscellaneous goods in domestic as well as international marketplace.
The company is headquartered in the United Kingdom and sells its products to satisfy the large
numbers of customer for the profitability. It is one of the the largest retailers in terms of returns
transactions in the international market. The organization has a large market share in UK and has
opened various stores worldwide and locally in to increase the productivity and profitability of
the company.
Sainsbury Operation
The company is primarily traded in the grocery market and caters to all customer needs related to
the brand. The organisation provides wide range of products along with unique product apart
from grocery that includes fixtures, decorations and electronics, household commodity
(Akpoviroro, and Owotutu, 2018). SAINSBURRY operates the largest retail sector and has high
sales in the UK's market area. Along with that the organization strives to outperform the
technology business to help drive growth. But it brings more income and it can be used to invest
in business food unit.
Company Goal
One of the 's main motives for SAINSBURRY is to enhance brand and transparency loyalty in
the market area so that it can attract more patrons and address their taste and preferences. The
company's other goal is to surge sales in the highly competitive market with the assistance of
digital technology. This is because it is the best plans of action to operate a new business for in
3

the era of covid 19. The companys aim to expand the purchaser base by lowering the purchase
price of products and increase the network all over the world. In addition, the company is
committed to responding to new market trends and preferences, attracting large customers and
reducing competition.
Market Structure
The company's market structure is oligopolistic and there is fierce competition in Market , which
uses the same method to operate a similar business model ( Matović,2020). For instance the
Tesco is also an organisation which utilized similar framework for increasing the approach in the
marketplace. In addition to the , the main advantage of such a market structure is that it is very
unlikely to lose patrons. There is a lot of competition in the market, but because of this customer
preference, the receives changes when the price of the product is low or high. Therefore, it is
significant that the organization adopts innovative strategies to keep its customers loyal. In
addition to this, Sainsbury trades to bring more business and reduce competition through
strategy. The organization seeks to offer a variety of high quality and standard products at the
company so that customers can make a better decision for purchasing the product. Therefore, the
organisation is able to secures customers according to this type of market structure of
SAINSBURRY .
Legal form of the company
Public Sector: This organization is operated by the state administration and all finances and
conclusions are operated by legal or ruler agencies. At the same time, the main goal of such an
organization is to practise resource efficiently and deliver benefit the public. For example, ESPO
is an organization of the UK Government sector that generally offers different products and
services. All of the company's revenue is invested in public services rather than utilized in
personal use ( Khajeheian, Friedrichsen, and Mödinger,2018).
Private Sector: It is managed and operated by an individual and its main purpose is to benefit
the organization. The provides essential services to its customers with little or no government
involvement. Such companies use innovative ideas to run Business and win customers.
Volunteer Sector Organizations: Their main purpose is to provide social welfare services to
their customers, rather than making a profit, as their main purpose is to develop society.
4