Business and Business Environment: Aldi and Sainsbury Analysis Report

This report provides an analysis of the business and business environment, focusing on Aldi and Sainsbury. It begins with an introduction to business as an economic activity and the comparison of the two organizations, including their purposes, types (private vs. public), sizes, and scopes. Sainsbury, a public limited company, aims to maximize its food and non-food business, offering a wide range of products. Aldi, a private organization, focuses on increasing market share and profit. The report then details the differences between the two companies in terms of their objectives, structures, and market presence, noting Sainsbury's larger market share. Furthermore, it examines the link between their structures, sizes, scopes, and the products and services they offer, aligning these with their business objectives. The report concludes with a list of references used to support the analysis.

PART 1 (A)
Business and Business
Environment

INTRODUCTION
Business knows as an economic activity.
Function is making of profit via selling and buying of
goods and services through manufacturing and other
actions.
The present research is based on business and
business environment.
Aldi and Sainsbury organizations are taking into the
consideration.

P1 and P2. Describe the purpose of each of the chosen
organizations and then explain the main different between their
types, purposes, size and scope
The private sector is the most important part
of economic system of a nation.
The intentions of these businesses are just
making profit.
The intentions of these businesses are just
making profit.

Conti….
Public sector is the part of the economy.
Focus over offering various governmental
services.
Several purpose of public limited companies
such as economic development, development
of backward areas, generation of employment
etc.

Conti….
Sainsbury PLC is a public limited organization and it is
one of the top retail firms of the UK.
It offers wide range of 30, 0000 goods and services to
its customers at various stores.
The purpose of Sainsbury PLC is focusing over
maximize the strength of food and non food item
business to make the lives of customers easier so that
end users can receive great products and services at
fair prices.

Conti…
Aldi is a private organization which is having
more 10,000 stores in 18 countries.
Estimated turnover of the organization is more
than €50 billion.
The purpose of cited firm is to increase market
share by generating huge profit.
Enhance brand image by improving the brand
reputation and raise the footfall of end users.

Difference between types of Aldi and Sainsbury
 Sainsbury is a public limited sector organization where
most of ownership of the business is under attained
through public funding.
 Operates the business to serve the local people of the
nation.
 While Aldi is a privately owned organization which
control and owned by individuals.
 It runs to earn profits from operating the business in
UK and other near as well as overseas locations.

Difference between purpose of Aldi and
Sainsbury
The aim of Sainsbury is to make the life of
customers easier by offering greater quality
of goods and services at fair prices.
Main focus of Aldi is on making profit without
considering the needs and requirements as
well as welfare of the end users.

Difference between size and scope of Aldi and
Sainsbury
The scope of private sector has very much
restricted and in this context, Aldi has able to
demonstrate the limited performance.
Apart from this, Sainsbury PLC has the wide
scope of to run its business at both domestic
and international market .

Conti…
Sainsbury has gained 16.5% market share of
UK whole retail industry.
 Aldi has only owned 6.2% market share. This
shows that Sainsbury has huge market size
but Aldi has limited.

M1 Describe and analyze the link between their structure, size
and scope and their offered products and services according
with the business objectives
 Business objectives of Sainsbury has offered great food
at fair prices, accelerating the growth of the
complementary non-food ranges and services, reaching
more customers through additional channels, increasing
supermarket space and active property management.
 Sainsbury has increased the numbers of stores at
domestic and international level.
 Number of services and products of enterprise has
enhanced.

Conti..
Aldi organizational structure has flat structure
where a proper hierarchy system follows.
It has made the communication process simpler and
clear to share information between different levels.
Aldi has a limited scope because there have various
regulations formed for such kinds of private
companies by government.

References
 5 Reasons why study of Business Environment is Important. 2017.
[Online]. Available through:< http://accountlearning.com/5-reasons-
study-business-environment-important/>. [Accessed on 23rd February
2017].
 Business Environment And Its Importance. 2017. [Online]. Available
through:< http://www.publishyourarticles.net/knowledge-hub/business-
studies/business-environment/940/>. [Accessed on 23rd February 2017].
 Business strategy and objectives. 2017. [Online]. Available through:<
http://www.j-sainsbury.co.uk/about-us/business-strategy-and-
objectives/>. [Accessed on 23rd February 2017].
 Business structure. 2017. [Online]. Available through:< http://www.j-
sainsbury.co.uk/about-us/business-structure/>. [Accessed on 23rd
February 2017].
 Corporate objectives. 2017. [Online]. Available
through:<http://annualreport2011.j-sainsbury.co.uk/businessreview/
corporateobjectives.shtml>. [Accessed on 23rd February 2017].
 Great products and services at fair prices. 2017. [Online]. Available
through:< http://www.j-sainsbury.co.uk/about-us/business-strategy-and-
objectives/great-products/>. [Accessed on 23rd February 2017].

Conti..
 How many products does Sainsbury’s Supermarkets sell?. 2017. [Online]. Available
through:< http://www.j-sainsbury.co.uk/extras/faqs/media/how-many-products-does-
sainsburys-supermarkets-sell/shtml>. [Accessed on 23rd February 2017].
 Private sector. 2017. [Online]. Available through:<
http://whatis.techtarget.com/definition/private-sector>. [Accessed on 23rd February
2017].
 Private Sector. 2017. [Online]. Available through:<
http://www.privacysense.net/terms/private-sector/>. [Accessed on 23rd February 2017].
 Public Sector. 2017. [Online]. Available through:<
http://www.privacysense.net/terms/public-sector/>. [Accessed on 23rd February 2017].
 Sainsbury’s remains out front as UK supermarkets record fastest growth in five
months. 2016. [Online]. Available through:<
http://www.producebusinessuk.com/insight/insight-stories/2016/03/08/sainsbury-s-
remains-outfront-as-uk-supermarkets-record-fastest-growth-in-five-months>. [Accessed
on 23rd February 2017].
 What are the Objectives of Public Enterprises?. 2017. [Online]. Available through:<
http://www.preservearticles.com/2012022823828/what-are-the-objectives-of-public-
enterprises.html>. [Accessed on 23rd February 2017].