Types and Purposes of Organisations: Sainsbury's Case Study

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Explanation of types and purposes of organisations.............................................................1
P2: Details about size and scope of organisations......................................................................2
TASK 2............................................................................................................................................3
P3: Relation between functions of organisation and their link with structure and objectives.....3
TASK 3............................................................................................................................................4
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.................................................................................4
TASK 4............................................................................................................................................6
P5. Examine internal and external analysis in order to identify strengths and weakness of an
organisation..................................................................................................................................6
P6. Explain interrelation between strength and weakness affect macro factors.........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A combination of factors which influence the working pattern of an organisation is
known as business environment. They affect the functioning of the company directly or
indirectly. Sum of these factors influence the environment and situation of the business. For this
report, Sainsbury's has been selected which has a product line of groceries and general
merchandise. In this project, types of organisations, interrelationship of various functions in
organisation structure have been covered (Draijer, 2020). Additionally, influence of macro
environment on operations of business and interrelationship of SWOT analysis with macro
factors has been analysed.
TASK 1
P1: Explanation of types and purposes of organisations
Types of organisations include profit, not-for-profit and non-governmental. An
explanation about all these organisations is as follows-
Profit organisations are the one whose main aim is to earn profits by providing goods and
services to consumers. Profit organisations are Private organisations. These enterprises derive
their main income by sales and form a vital part of the free-market economy (Aithal, 2016).
Sainsbury's which is a British groceries and general merchandise provider is an example of a
profit organisation.
The purpose of Sainsbury's is to provide a wide variety of goods as it is a chain-based
supermarket in United Kingdom. Its business model is based on providing the customers with a
wide choice of goods and services to choose from. It provides quality products to the consumers
so that their satisfaction level is maintained. It wants to stay ahead of its competitors in the
market and become market leader in supermarket business in U.K. Sainsbury's provides products
such as groceries, own-brand food products, premium-quality brand products and specific food
items according to customer's needs. It is a private limited company.
Not-for-profit organisations are the one that do not aim to earn profits and all its surplus
revenues are used for further the purpose of organisation. These are mostly government
organisations. An example of not-for-profit organisation is BBC which is a British television
channel.
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BBC acts in the interest of public and informs, educates and entertains people. Also, it
aims to news and information, supporting learning for people of all ages and shows the most
quality content to its viewers. It provides people with national and local radio stations and has
maintained a detailed website. It is a public ltd. company.
A non-governmental organisation is the one non-profit organisations which does not have
government intervention in operations (Guiyua nd Yang, 2016). Oxfam is the example of non-
governmental organisation which was founded in U.K. and aims at alleviation of global poverty.
It is a global movement of people who are fighting inequality to fight poverty together. It is a
not-for-profit organisaton.
The purpose of Oxfam is helping to remove the injustice to many people which is caused
by poverty. It aims to help people out of poverty level, advocated equal rights for genders, saves
lives and ensures supply of food. Additionally, it aims to provide equal resources for all people
and increasing funds for basic needs and requirements of poor. The services provided by it
include education and healthcare facilities for all. Also, it helps people to get out of poverty and
takes care of their basic needs and requirements.
P2: Details about size and scope of organisations
Enterprises can be classified into many types on the basis of their size and scope such as
micro,small, medium and large. Details about these enterprises are given as follows-
Micro enterprises are very small businesses employing not more than 9 people. An
example of micro enterprise can be Boss Brewing Company which is a brewery in U.K. Boss
Brewing company is a micro enterprise. It has a wide scope in brewing industry. The market
share of organisation is very low and the profit share is also low because of intense competition.
The enterprise has decent chances of growing its operations in the future and aims to sustain its
operations against its competitors (Hakanen, Helander and Valkokari, 2017).
Small enterprises are those businesses which employ not more than 250 people. An
example of small enterprise can be Airdri which is a world leader in hand dryer development. It
is a small enterprise. It has a good scope in the hand dryer market where it stands ahead of its
competitors. The market share of organisation is small because of presence of other small
companies in the market. It has excellent chances of growth in future and can sustain itself
against market forces and competition.
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