Types of Organization and their Impact on Business Operations

This document discusses the purpose and types of organizations, including public, private, and voluntary organizations. It also explores the relationship between different organizational functions and the positive and negative impact of the macro environment on business operations, using Sainsbury as a case study. The document provides insights into the size and scope of different types of organizations and how they navigate the challenges posed by political, economic, and social factors.

Business and Business
environment

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Purpose and types of organization.....................................................................................................3
P2 Size and scope of different types of organizations..............................................................................5
TASK 2..........................................................................................................................................................5
P3 Relationship across different organizational functions.......................................................................5
TASK 3..........................................................................................................................................................7
P4 Positive and negative impact of macro environment in context with business operations................7
TASK 4..........................................................................................................................................................9
P5 Internal and external analysis of the organization to determine strengths and weaknesses.............9
P6 Explain how strengths and weakness interconnect with external macro factors.............................10
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................13

INTRODUCTION
Business is considered as a constant movement which is done by a person with the main
aim of receiving profits. The main objective behind an organization is to get more and more
profits with the help of selling goods and services to maximum number of customers. It is
considered as the role and responsibility of a company to make certain changes which are
beneficial for an organization to the best possible manner (Bathula and Gaur, 2021 ). In context
with the business environment it is in relation with making certain plans and strategies by
determining all internal as well as external factors that affects an organization in both direct and
indirect way. The report is based on Sainsbury. It is one of the second biggest chains of
supermarkets in United Kingdom. The company was established in 1869 by John James
Sainsbury. The below report involves different types and purposes of organization, size and
scope of organizations, relationship between positive and negative impacts, functions of macro
environment, determining all strengths and weakness and internal as well as external analyasis.
TASK 1
P1 Purpose and types of organization
Organization is defined as different units of audiences which is structured as well as
organized to fulfill all goals and objectives of company (Wieczorek,2020). There are various
types of organizations which is further been explained as below:-
Public organization:- It is established by government and the overall decisions which are
made are done by government officers and top level executives whose main role is to
provide different products and services at low rate. It is considered as a self -funding
enterprise which offers various benefits to audiences along with the customer who
purchases it. They perform their daily roles and responsibilities with the collection of
taxes and offer all goods and services to communities. As per the current situation NHS is
been chosen as a public organization who mainly performs with the objective of
providing efficient services to communities rather than focusing on earning profits
(Cherunilam, 2021). They work with the aim of providing best quality health services
with the help of charging minimum price from all clients.
Legal structure of public organization:-
 Central government:- In terms of this the government is accountable to make certain
policies for complete nation so that all work is done by public departments in a
systematic and sequential manner.

 State government:- In context with state government they implement policy and create a
code of conduct which is followed by public companies who has their operations within
the boundaries of state. Local government:- The public organizations which works for small area like in terms
of cities and even towns all laws are followed in context with the local government.
Private organization:- In context with the current situation private organizations helps to
enhance the overall economy of the country. They are generated by owners that register
their organization and provide products and services which help in earning more profits.
The main objective of these organizations is to earn efficient amount of profits for their
businesses. As a private organization Sainsbury is chosen which is operating their
business around the globe. They offer unique and best quality products to all consumers.
Legal structure of private organization:-
Sole proprietorship:- In context with this a single person is responsible to organize all activities
of company and the profits and loss which occurs is hold by owner only.
Partnership:- In accordance with this there are two or more persons who work together in order
to activate overall business undertakings (Rao, 2021). Through this they share profits and risks
which support in expanding the business at international level. The business starts on an
agreement basis between partners in which all roles and accountabilities are explained.
Limited company:- It is defined as a structure in which businesses are operated as different
members. If a company face any type of loss then the owner would be responsible for only that
amount of money which is invested by organization.
Voluntary organization:- They are developed by different group of persons in which they all
contributes different efforts in order to achieve a specific goal which would be beneficial for
society. To enable a voluntary organization group management need to take permission from
ruling government in which all business activities need to be done.
Legal structure of voluntary organization:- In context with voluntary organization people who
are different from each other works together in order to provide benefits to society. It is further
been explained as below:-
Trust:- In the case of voluntary organization there are three elements which are involved and
these are trustees, society and donor. It involve lot of money so in accordance with this trust and
pledge provides a systematic procedure through which society get various benefits.
P2 Size and scope of different types of organizations
 Private organization:- In context with Sainsbury it is a largest organization who is
operating at multi-national level. Every company has diverse purpose through which their

scope and size is different from public and voluntary organization. In relation with
Sainsbury, they enhanced their company size by expanding the stores in different
countries .With the help of this company was able to earn more profits through which
they reached at the top level in there retail sector. There are around 770 convenience
shops in United Kingdom and many more countries (Hagoss and Youfu, 2021). In
accordance with all their products audiences need those products on daily basis. With
respect to this they have various growth opportunities to enter into rural market area also
and cover maximum number of customers through which efficient amount of revenue can
be earned. Public organization:- These type of organizations provide products and services to
whole communities. In relation to this they has to offer and deliver all products on large
basis. With the help of this better customer satisfaction gets built up. In this case NHS
provides their services in health sector (Ahmad and et.al, 2021). Due to this each
individual lives a healthy life as they offer services at minimum cost. There are around
more than one million employees working in their sector. In United Kingdom especially
in England they provide diverse range of services like long term health-care, dentistry
services and many more. An organization has large range of options in terms of their
scope as overall workforce is working with single public organization. Company also
provides free health services to low segment which defines the scope of a company
around the globe.
 Voluntary organization:- The Sainsbury family charitable trust is working in United
Kingdom. Their main focus is always on developing the community rather than just
earning profits. Due to the increased size of company all members are present around the
world. The main aim of company is to offer essential resources to low segment citizens
so that they can live in a comfortable manner. It also leads to the improved standard of
living of whole society. To manage the overall process of organization they implemented
hierarchical structure which helps to segment overall work as per company goals and
objectives .All tasks and activities which are performed by volunteers is done for the
welfare of society in which the most important element is considered as trust because
through this only all basis requirements gets fulfilled.
TASK 2
P3 Relationship across different organizational functions
In an organization there are various types of functions which help them in achieving
goals and objectives. It involves production, marketing, development and many more. In
accordance with the relationship it is further been explained as below:-

 Human resource and sale department:- In order to run an organization the most efficient
thing which is needed is human resource. To complete overall activities manpower
executes all their efforts in the process of organization which helps in achieving business
goals and objectives to the best (Staicu, 2021). In accordance with this human resource
department is responsible to hire best possible candidates for company. With the help of
efficient level of employees companies are able to produce best results which help in
increasing value for company products and services .In relation with Sainsbury, large
numbers of employees are required and manage their multi-national stores. They are
considered as a best resource which helps an organization to reach at the top level
position. Besides this, the management system of Sainsbury hires workers through which
they can earn competitive advantage with the best performance. It also helps an
organization to do all tasks within a limited period of time. Marketing and production function:- To sustain business for a longer period of time
both marketing and production is needed. In context with the phase of production
company manufactures their products and services for customers and the marketing team
promote about the specific products. The team of marketing also help management
department to make predictions about needs and wants of consumer and then tell the
production department in order to develop the product in accordance with building up the
customer satisfaction (Khuntia and et.al, 2021). In context with Sainsbury, all members of
marketing team make an analysis and predicting about demands of consumer which is
beneficial for overall production department .With the help of this all products get
developed so that they can match up will all objectives. In context with private
organization the procedure is very important because the main aim is to earn profits.
 Resource and development along with finance:- In order to do business expansion in
large sector the department of research plays a very important role as they explore all
business opportunities in industry. To enable this they require huge amount of investment
in order to find out exact need of customers. Through the finance department
management is able to manage sufficient amount which is needed to find out exact
demand of customers. It is the duty of finance team to provide economic resources in
accordance with diverse departments of organization so that all business operations can
be performed easily. In context with Sainsbury, they had to face competition from local
as well as international players who needs those resources on daily basis in order to
perform all business activities. When all such activities get completed the manager of
Sainsbury is able to fulfill all their business objectives and generate income with the help
of selling products that are managed by finance section of company. Structure which is
followed by Sainsbury under private organization is sole proprietorship whose main
focus is only on earning profits.

TASK 3
P4 Positive and negative impact of macro environment in context with business operations
Macro environment is mainly anxious with all external factors which directly or
indirectly affect the working of each organization (Borsatto, Buchanan and Pineault, 2021). The
main reason behind it is that it has become difficult for an organization to control all factors in
the best possible way but in case of decreasing the negative impacts of macro environment the
focus should be on analyzing all factors in best possible manner. With respect to Sainsbury they
made certain strategies in order to improve their present as well as future conditions. The
positive and negative impact of macro environment on Sainsbury is been explained as below:- Political factors:- In accordance with political factors in United Kingdom they had high
level of influence on the business performance of Sainsbury. .Due to this it creates an
impact on the customer attitudes and ultimately the overall business conditions influences
great force. In relation with Sainsbury they have to not only do their operations in these
market situations but also need to enhance the business on continuous basis (Patil,
Ghisellini and Ramakrishna, 2021). Though the political factors are not considered
satisfactory Sainsbury has been able to maintain their growth level with the help of
offering great quality products at competitive prices. The biggest factor which affected
company was Brexit. Economic factors:- In context with these factors they affect demands, prices, cost and
profitability. The two most crucial factors which affected Sainsbury was inflation in food
prices and growing level of unemployment. As per the current situation the government
as well as consumer debts are very high .Through this the demand for their products
would decrease which ultimately would reduce the production of their food products. In
accordance with this Sainsbury should do an expansion by entering into new markets so
that the globalization of company operations will enable it to manage all kind of risks
which are associated with the economic slowdown. Sainsbury has always been dependent
on road based transport in order to deliver all their products across whole United
Kingdom. In context with this the rising price of both diesel and petrol would definitely
increase the prices of products .The rise of super market chains across the globe has been
considered as one of the strongest economic factors for Sainsbury. All their competitors
like Asda and Tesco have been their competition since long period of time and as per the
current market situation new competitors have arise like Aldi and many more. Through
this pricing of products would increase and ultimately large number of customers would
be lost. Social factors:- As per the present situation all customers prefer to do one stop shopping.
In context with this they prefer to get all their necessary products under one roof only. In
accordance with this when Sainsbury introduced non- food products it was very much
beneficial for them and it was considered as a very good strategy. There were many other

social factors also like increase of female employees resulted into the reduced domestic
meal making. Through this there was an increased demand of specific type of products.
The main theme which company chose was being “Cook and Save” through which it was
been promoted about easy to cook all products and ultimately allowing all customers to
enhance their household budgets (Kir and Erdogan, 2021). The company main brand
revenue was in relation with sale of fast food products but maximum number of people
preferred to use healthy products only so with respect to this in order to stay at top
position they should make certain changes in their menu and involve some healthy food
products. Technological factors:- With the help of using best technologies it always create a
positive impact on the business operations. There is a crucial growth capacity in the web
based operations of an organization. Through online operations it enables a company to
enhance their potential level in context with the area of growing demand. In relation with
Sainsbury, their online food delivery service is doing the expansion at high level. As per
the current situation company’s new ecommerce store is very much helpful towards the
catering of tech friendly generation. If the company would start using modern data which
are based on analytical systems then it is better to properly understand about all
demographical needs of the customers. Legal factors:- Sainsbury has different elements of decision making in order to assure
that all changes which are been made don’t get delay by business structure. As the needs
of consumers gets changed the company also need to be on that position where all
demands can be met. If any delay would be done then it may lead to loss in their market
shares and at the same point of time it will become easy for competitors to create better
experience to the customers (Dabić and et.al, 2021). The government legislations as well
as different policies also create an impact on the business performance of Sainsbury. For
example when legislation implemented a new tax on advertising highly processed as well
as fatty foods. Sainsbury accepted the new tax by initiating certain modifications on their
products and also legislative requirements.
 Environmental factors:- Sainsbury produces huge level of carbon footprint which is
highly adversarial in terms of present environmental conditions. As per the current
climate change movement they received momentum throughout UK due to which they
need to assure that active steps are been taken by them. It involves fossil fuel based
transportation ways and high ecological cost. It also creates a pressure on company to
make quick changes and meeting customer demands.
Impact of PESTLE analysis:- If the management of Sainsbury is able to determine each and
every phase of macro environment in a systematic way then their performance would be
improved and enhanced .They need to initiate different strategies as per the rules and

regulations of United Kingdom so that chances of risk can be decreased. With the help of this
Sainsbury would also be able to achieve all short and long term goals in efficient way.
TASK 4
P5 Internal and external analysis of the organization to determine strengths and weaknesses
It is important for company to have a specific identification of strength as well as weakness.
Along with this it will benefits Sainsbury to be capable of giving higher competition to its
competitors which are available in corporate markets (Basco, Stough and Suwala, 2021).As
Sainsbury has amount of competitors which is present in retail markets of United Kingdom.
Because of this it becomes important for company’s management to systematically determine
positive as well as negative factors of external or internal analysis. So that Sainsbury could be
able to accomplish its competitive advantage in an effective manner. As according to new
strategies as well as ideas could be made in order to increase satisfaction level of customers. For
determining internal as well as external surroundings of company’s management could use
SWOT analysis in a proper or coordinated manner.
SWOT analysis of Sainsbury are as follows:
Strengths:
 Sainsbury is considered to be largest supermarket chain in United Kingdom.
 Company is having an experienced leadership team so that their work is carried in an
effective manner.
 Company is having high employee strength off over 1,50,000 employees.
 Sainsbury is having and capability of catering all types of customers in terms of their
retail store offerings (Azaved and Gogatz, 2021).
 Company is using various innovative promotion strategies in their operations that could
lead to create a brand image in competitive market along with dealing with competitors
effectively.
 Company is providing various coupons along with vouchers to their customers for
building a wide reach. Sainsbury is following a business philosophy of providing customer a quality service in
terms of products at low cost by using low cost strategy in their product category so that
they will be able to attract more customers to generate profits.
Weaknesses:

 There is a rise in food product prices which could create an impact on company for
selling their product at higher prices.
 Sainsbury is facing stiff and tough competition in every segment of their retail sector
business.
 Company is facing issue as well as risk of brand switching of customers. As with continuous grow in competition in retail sector company e is facing risk of low
margins in terms of having less customers in in low volumes(Vuong, 2021).
Opportunities:
 There is an opportunity for Sainsbury to enter in markets of emerging companies by joint
ventures for partnerships for expansion into new markets.
 There is a self-checkout machines which could be used by company that can help them in
opening their stores for 24 hours for boosting up sales.
 Sainsbury could expand their market in growing economies countries like Africa. Along with that Sainsbury could take the opportunity of expanding their market sector in
rural sector areas in order to build more profits.
Threats:
 There is a threat of increased globalisation which could be considered as a problem for
Sainsbury.
 As company e always have a source to best quality along with financially valuable
products from global world with various competitors.
 There is a high competition which is faced by Sainsbury in retail sector in order to
maintain their survival in corporates market.
P6 Explain how strengths and weakness interconnect with external macro factors
The strengths and weakness are interconnected with all macro factors. If an organization
is successful in knowing this then they would be able to take better decisions in order to achieve
all goals and objectives. The interrelation of macro factors with the strength and weaknesses is
been explained as below:- Political factors:- It is in relation with the trade rule which is enforced by the government
of the country. The main strength of Sainsbury is that they are doing their business
operations in various portions of the world and has also built up a stronger customer base.
In relation with their weakness they are unable to manage the work at all the outlets in
various parts of the world.

 Economic factors:- In terms of the financial position of a company they are at the growth
stage which is the main strength for the organization(Umboh, Kalangi and deRosari,
2021) .As Sainsbury would be able to accept new and innovative changes in order to
improve the customer experience. The weakness of economic factor is that they are
facing employee turnover as well as absenteeism because of low employee satisfaction. Social factor:- The organization is successful in implementing products and services by
considering all beliefs and values of customers through which they are able to gain the
trust due to which it became a strength for them. On the other hand customers were also
facing certain health issues so it became necessary for them to establish strategies and
various plans for maintaining the health of customers. It was done by providing them
healthy food products. It is also important for company to know about the paying
capacity of customers in specific market. With the help of this Sainsbury would be able to
attract more and more customers. Technological factors:- It is in relation with using best technologies so that enhanced
opposition can be given. The major strength was innovative plans for online shopping.
With the help of this Sainsbury is able to attract and maintain more and more customers
in a structured manner. On the other hand the weakness was that company was not able to
provide security to all their customers regarding the data privacy. The crucial information
of all audiences was not safe due to which business of the organization was getting
affected in a negative way. Environmental factors:- There are different methods taken by company to save and
conserve the environment. It involve making plans for recycling and reusing plastic
materials and implementing delivery vans which would be able to save fuel as well as
energy. It was considered as one of the main strength of organization. Besides this the
weakness was in relation with external environment which may include risks and
ultimately creates a difficult situation for company to accept such quick changes.
 Legal factors:- Sainsbury was unable to make plans as per the rights of workers in an
organization. It means that proper benefits and salary was not given to employees and
they were resigning from the job. Company was also involved in various law cases due to
which it became a weakness for them. The strength for them was that they were making
all products as per the demand of consumers.
CONCLUSION
From the above report it has been concluded that to achieve profits efficient plans are
needed for controlling and managing business environment. With the help of this each and every
element will be determined in a systematic way. There are various types of organizations like

private, public, voluntary and all have their own purposes. Each department of an organization
plays a crucial role in achieving the objectives of organization. With help of SWOT and PESTLE
analysis management would be able to take better decisions.

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