Detailed Report: Business and Business Environment Analysis and Impact

This report provides a detailed analysis of the business environment, focusing on various organizational structures, including public, private, and voluntary sectors, and their legal frameworks. It explores the size and scope of different organizations, using Sainsbury as a case study to illustrate key concepts. The report examines the interrelationships between different organizational functions, such as marketing and HR, and marketing and finance, highlighting how these departments work together to achieve business objectives. It further delves into the positive and negative impacts of the macro environment on businesses and conducts internal and external analyses of specific organizations, considering how strengths and weaknesses interact with external macro factors. The report concludes with a comprehensive overview of the findings, emphasizing the importance of understanding the business environment for organizational success and competitive advantage. References are included for supporting the report's arguments.

Business and Business
Environment

Table of Contents
Introduction......................................................................................................................................2
Main Body.......................................................................................................................................2
LO1..............................................................................................................................................2
Types of organisations; public, private and voluntary sectors and legal structures....................2
Size and scope of a range of different types of organisations.....................................................4
LO2..............................................................................................................................................6
Relationship between different organisational functions............................................................6
LO3..............................................................................................................................................7
Positive and negative impacts the macro environment................................................................7
LO4..............................................................................................................................................9
Internal and external analysis of specific organisations..............................................................9
How strengths and weaknesses interrelate with external macro factors....................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................14
1

Introduction
Business environment involves various internal and external factors which can affect the
performance of the company in the marketplace. There are various forces which constitute the
environment of the business like competitors, suppliers, government, economic conditions,
government etc. on the basis of which various activities are formed by the company. To achieve
the competitive advantage in the market it is important to analyse the business surroundings
because it helps in improving the services of the company in the marketplace. Aim of every
organisation is to earn more profit as compared to other companies so that long term survival of
the business can take place. If the business will able to identify its internal and external factors
then it will easy for the business to operate in the economy. if the services of the company will
not be improved in the economy then it can create a risk factor for the business due to which its
demand in the market will also get affected. Sainsbury is biggest supermarket chain in the world
it provides the variety of goods and services to the customers which helps in satisfying their
needs. It was developed John James Sainsbury in 1869 (Manni, 2020). In different countries it
has 1428 shops due to which its profit in the market is more as compared to other supermarket
industries. This report will cover the various sorts of association with its size and extension.
Diverse authoritative capacities, positive and adverse consequence of the large scale climate.
Outer and inside investigation of the association, strength and shortcoming of the organization
which interrelate with the full scale natural elements.
Main Body
LO1
Types of organisations; public, private and voluntary sectors and legal structures.
Association structure is the idea which propose how the assets of the business ought to be
used so objectives of the organization can be accomplished viably. It helps in creating
appropriate administration in the business so that working of the organization can be improved.
In each business different structure on the basis of which decision are taken by the management.
There are various types of organisational structure which are given below:
 Private organisation: These are the organisation which is owned by the individual with
the aim of earning profit and increasing their market share in different marketplace.
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These companies basically focus on the growth of the company in the market. Legal
structure of the business is given below:
Sole traders: They run their business by their own and perform their functions as a solely person.
Individual invest their own capital in the business to perform the various activities which are
taking place in the business. They take decision in the business independently without depending
on other. Risk and losses should be beard by the them only no other person will be responsible
for it. Profit is also not shared among the people because they are does not involve the other
person in the business. They mainly involve cafes and restaurants in the business so that various
activities can be performed accordingly (Beck, 2020).
Partnership: It is also known as private organisation because their aim is to generate more
revenue in the business. In this profit and loss is shared equally among in the members of the
business. For example BMW and Louis Vuitton are in partnership.
 Private Limited: Private Co., Ltd is a corporate administration with set number of
investors. These sorts of organizations have a restricted measure of offers that can not be
sold available for market utilization. These associations don't permit promoting during
dynamic. They permit the main representative, family and friends during decision-
making and business activities. For example, JCB, Walmart for these types of
organizations.
 Public company Limited: These are active companies in different markets with
motivation to provide customers and services to customers. Sold or buys the shares in this
organization. During decision-making, the company participated in all persons to share
their views and ideas. In addition, freedom in these organizations is present and each one
may like it during the decision-making process. Sainsbury appears in these types of
organizations that provide customers and services to customers with the motivation of
profitability and customer satisfaction (Haibing, 2020).
 Public organization: This organization is managed, managed and operated in accordance
with government rules and regulations and their permits. The main motive of these
organizations is to provide public services to the citizens of society. They usually include
gasoline, shelters, water companies, etc. Companies such as the HSBC holding company
fall into the category of public institutions. It is the UK's largest bank and provides
customers with financial services such as debit cards and loans.
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 Voluntary organization: A voluntary organization is an organization that performs all its
functions and operations for the purpose of performing social welfare. They support the
citizens of society. They generate capital for a company from lenders, banks,
businessmen, etc. of funds. The legal structure that these organizations should follow is:
 Trust: A trust is basically an organization composed of shareholders, contracting
institutions, and so on. This includes a group of people who manage this association.
Therefore, multiple organizations operate their businesses according to their legal structure. The
legal structure of all organizations looks different.
Therefore, every organization has different types of legal structures, and depending on choice, by
following the proper legal structure, a company can hire the right one for its business.
Size and scope of a range of different types of organisations.
Zero in on size and degree so association can comprehend the measure of capital and assets it
needs to work together. Each organization has a heterogeneous mission or objective that assists
them with arriving at their objectives in a given timeframe .
Private sector organisation: The matter of a private restricted organization expects to create
benefits and benefits on the lookout. They have objectives, missions, dreams and objectives that
they ought to follow. They have their own principles, guidelines and arrangements made by the
head. JCB is a British privately owned business that produces in excess of 300 kinds of
apparatus, farm trucks, diesel motors, and so forth and is sold in excess of 150 nations all
throughout the planet. Presently, there are around 11,000 representatives working (Frig, 2020).
 Mission: JCB's central goal is to give our clients an assortment of items at rapid,
proficiency and decency. The organization offers deals offers to sellers. The obligations
of HSBC are expected to offer clients monetary administrations. Administrations like
advances, charge cards, Mastercards, and so forth .
 Vision: The organization's vision is to give clients relentless items. Vision is to turn into a
phenomenal master of a bank bunch, which of obligation to help individuals
 Purpose: The motivation behind the organization is to give clients service agreement and
administration concessions to all PCs gave to sellers. This gives clients the significant
serenity that their speculations are being made securely. To meet these assumptions,
organizations guarantee that their administration contributions are cost serious, yet
additionally what are viewed as the main administrations available size of a large bank.
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Since there are 3,900 offices in more than 65 territory ads throughout Asia, Africa, North
America, South America, Europe, V.V. Has. HSBC takes place in four business groups
such as the bank and the global market, commercial bank, commercial bank and global
private bank.
 Scale: The organization has 22 plants in the UK, Brazil, India and China. The
organization utilizes in excess of 12,000 individuals and sells its items in excess of 150
nations through in excess of 1,500 seller stores.
 Structure: The organization has a fitting hierarchical construction where all supervisors,
like the top managerial staff and the executives, have made every one of the approaches
and guidelines that all workers of the organization ought to follow. Banks for hierarchical
structures indicate that all decisions are made by supervisors. Banks for hierarchical
structures indicate that all decisions are made by supervisors.
Public sector organisation: these companies involve public shares that were purchased as well as
sold accordingly. Public organizations like American express company are perhaps the biggest
bank in the United Kingdom. It offers its clients monetary administrations.
 Mission: The mission of American express company is to provide the world best services
to the clients so that needs and requirements of the economy can be satisfied effectively.
 Vision: Vision is to provide the differentiated services to the clients so that they can
achieve aspiration.
 Size: America express company has 63,700 employees it has many branches in different
countries around the world. Its operates in more then 160 countries.
 Structure: This company for hierarchical structures indicate that all decisions are made by
supervisors. .
Voluntary organizations: Voluntary organizations are organizations that act as motivations to
help the citizens of society. The UK is made up of various organizations that operate in voluntary
organizations. NHS services, cancer research, etc.
 Vision: The vision of a malignancy research organization is to treat individuals
contaminated with disease.
 Mission: The organization's central goal is to save everybody's life and ensure their
wellbeing with the nature of the prescriptions offered (Ojansivu, 2020).
 Goal: Protecting people's lives through the Research Center.
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 Size: The organization is considered the most useful company and consists of 300
employees and volunteers.
 Structure: In this type of organization, businesses use the most flexible structures because
they adopt vertical and horizontal forms of structure.
In the above discussion, all companies and organizations stated that they were of different scope
and size. Explain that the management strategy is adopted accordingly because it depends on the
size and scope of the company. Missions, visions, goals and scales are briefly discussed by
several companies. company can also reduce errors through a deep understanding of missions
and goals.
LO2
Relationship between different organisational functions
In the organisation there are different department which are responsible for the various
functioning of the business. In sainsbury different departments are linked with each other with
the goal that objectives of the business can be accomplished viably. Different office needs to
arrange with one another so usefulness of the business can be expanded and appropriate usage of
assets occur.
 Marketing and HR office: Human assets branch of the business helps in expanding the
income of the business in the commercial centre. By providing training to the employees
which further enhance their knowledge and skills. Marketing department of the company
increases If the hr department will not hire the well skilled employees then marketing
department will not be able to perform its functions. Various strategies which are planned
by the HR department which should be followed by the marketing department because
Hr provides various training problem to the employees of the different which increases
their confidence level depending on which they are able to perform effectively which will
helps in increasing the profit of the company (Ogrean, 2020).
 Marketing department and finance division: The part of money office is to give the
satisfactory assets to the showcasing office since they helps in advancing the
administrations of the organization in the commercial centre. Various promotional
techniques are used by the marketers for reaching to the target customers which requires
high amount of funds without capital companies cannot achieve their targets in the
business. This will also provide the competitive advantage to the other companies.
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Marketing helps in proving the product to the potential customers through the use of
various in the Finance department helps in managing the funds so that productivity of the
business cannot get affected in the marketplace and more profit can be earned.
 Finance and HR department: These department plays a vital role in the business it helps
in achieving the targets of the business more effectively because Hr department provides
the well skilled employee to the organisation which increases the growth chances of the
company in the marketplace. For hiring the well skilled employees in the business
sufficient funds are required which finance department provides to them. Finance
department are responsible for providing the funds to the HR department so that
recruitment process can be done effectively. Managing the inflow and outflow of the cash
helps in managing the funds of the business in the marketplace. arranging the training
program for the business requires funds in the business on the basis of which company
will able to perform its activities in the marketplace.
 Sales and It department: The responsibility of the sales department is to sell the
company's products and services, and the responsibility of the IT department is to update
all computer systems used by the company. When a sales department sells a product or
service to an end customer. Customers occasionally pay online and occasionally offline.
Therefore, for online payments, company needs to update the computer software. IT
departments need to keep all software and hardware up to date. Therefore, the customer
did not experience any problems. Sainsbury's two divisions function and responsibilities
accordingly. This helps businesses achieve their goals and deal with customer comments
and complaints. Solving customers' problems and problems can get customers'
satisfaction (Saprianto, 2020).
Sainsbury has many varieties that function effectively and efficiently in the work
environment. It is essential to understand the roles and responsibilities of mangers of all
kinds there. This makes it easier to achieve goals and objectives. It also helps to achieve
organizational goals because all kinds of different functions are interrelated. This also helps
to reduce errors and mistakes.
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LO3
Positive and negative impacts the macro environment
There are many factors in the macro environment that affect the business environment.
Analyzing the external environment can help in identify threats and opportunities for the
company PESTEL analysis can be used to perform external analysis of the company. various
factors of the pestles analysis is given.
PESTEL Analysis: It is used to determine macro environmental factors, it can identify factors
that can be transformed into business opportunities and threats. It is considered time consuming
as it takes time to collect and collect market related information. In the context of Sainsbury,
they use this framework to analyze external factors.
 Political Factors: Political factors like Brexit vulnerability. The UK has chosen to leave the
European Union. This makes it hard for stores to import labour and products abroad. On the
other hand, as the cost of foreign products increases, they may be offered to end customers.
This shows that the Sainsbury organization needs to work hard to ensure that its customers
continue to spend as much as possible. Thus, the company's profits and profits are
maximized. This can adversely affect the company.
 Economic Factors: Economic factors such as fuel cost increase and salary increase are the
biggest problems for the company. Rising fuel and diesel prices lead to increased product
and operating costs. Therefore, an increase in diesel prices leads to an increase in
transportation costs. And this automatically reduces Sainsbury's profits. After that, an
increase in employee salaries also occurs in the market. A rise in price can have a negative
impact on this company as it can lead to losses for the company (Graafland, 2020).
 Social factors: Social factors, for example, good dieting can be the accompanying variables
that can impact the efficiency of an association. Since now bothersome food and inferior
quality sustenance are not, now considered or bought by customers. Associations need to
make sound eating routine changes as opposed to changes dependent on patterns. This can
positively affect the organization by changing to a solid eating regimen framework various
clients have distinctive taste based on which association need to make its item and
administrations in the commercial center in the event that the association won't foster its
administrations appropriately, it can influence the administrations of the organization in the
economy.
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 Technological factors: Technological factors, such as new analyzes of the principles of
artificial intelligence, enable companies to learn more about their operations. With regards
to Sainsbury, the organization is utilizing trend setting innovation to fabricate precise
models that save time and exertion. This additionally expands benefits. This can
emphatically affect organizations in light of the fact that by utilizing present day innovation,
organizations can keep away from squander and amplify benefits. It is additionally now
proposed to empower web based looking for clients through the organization's site and
applications. Utilizing the development innovation in the business will helps in making
advancement in the organization so that more piece of the pie of the organization can get
expanded and income can expanded. Advancement helps in drawing in the consideration of
the clients with the goal that its administrations in the commercial center can be expanded.
 Environmental factors: Factors, for example, plastic waste and carbon dioxide
emanations can influence the business climate. The present organizations are centered
around decreasing the utilization of carbon dioxide emanations. Sainsbury is focused on
turning into a harmless to the ecosystem organization and limiting the environmental
harm brought about by its activities. This can emphatically affect the business climate.
 Legal Factors: Legal factors, for example, agreements and agreements instituted by law.
In the Sainsbury association, the organization oversees and keeps up the legitimate parts
of its organization in the correct manner. Legitimate legally binding arrangements assist
an organization with having associations with insiders and outsiders.
LO4
Internal and external analysis of specific organisations
An interior investigation is performed to dissect the qualities and shortcomings of the
organization. This should be possible through SWOT examination. SWOT addresses qualities,
shortcomings, openings and dangers. This is finished by the manager so they can settle on the
right choices. Sainsbury breaks down every one of the components of SWOT investigation and
keeps a steady situation in the marketplace.
 Strength: A significant piece of Sainsbury's is legitimate development developments. The
organization offers numerous items and administrations to its clients. The organization
believes it to be the biggest general store chain on the planet. It is one of the fourth store
brands in the UK. The following organization will have the chance to oblige a wide range of
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clients to offer an assortment of items and administrations. The right extension helps the
organization stay competitive in a rapidly changing environment by moving it at the right
time. Various philosophies help improve the organization's knowledge of current customers
and market trends and reduce production costs (Ojansivu, 2020).
 Weaknesses: Weaknesses are internal failures of the organization that need improvement.
Therefore, the organization can effectively achieve its goals. Sainsbury faces various
internal flaws in the organization. As Sainsbury faces the risk of a rebranding, the
organization must strengthen the promotion of its products and implement various loyalty
programs. Online retailers collide with their respective organizations affecting the amount of
margins. To attract customers, organizations have reduced production costs and set lower
prices for their products. Organizations face a variety of challenges to maintain a customer
perspective.
 Opportunities: Opportunities work to the advantage of external environment-related
businesses. These opportunities provide organizations with multiple opportunities to
increase productivity and profitability and remain competitive. The partnership allows
Sainsbury to take advantage of the emergence of other companies to expand its business into
new markets. Each organization can grow its business by opening stores in growing
economies such as Africa and Asia. Advances in automation and technology help
organizations eliminate unnecessary expenses that increase sales. The growth of the village
area is also an opportunity for organizations to open stores in these areas where the level of
competition is very low.
 Threats: Threats are several factors that exist outside the business but can influence the
growth and related activities of the business. This is the last element of the SWOT analysis.
The main threats to rivals Sainsbury are Asda, Aldi and Resco. These organizations can
change the rules and activities of the market. Increasing globalization is an opportunity and a
challenge. Various regulations and new technologies developed by Sainsbury competitors to
create a challenge for the organization (Giwa, 2020).
Therefore, SWOT analysis is very useful for Sainsbury to evaluate all the factors that affect an
organization in a positive and negative way. All weaknesses and threats need to be carefully
analyzed and effective strategies are developed to eliminate these threats. Similarly,
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organizations take the opportunity to empower themselves to grow their businesses and stay
competitive in each environment.
How strengths and weaknesses interrelate with external macro factors.
Internal factors, such as the strengths and weaknesses of a particular organization, are related to
external factors. This means that depending on the circumstances, these external factors will
affect the organization's activities. In some serious cases, direct and indirect macro factors
affecting the decision-making process of organizational management cannot be analyzed, so
external macro factors help the organization to analyze these. Macro factors positively and
negatively affect the Sainsbury organization. PESTAL analysis evaluates all these external
factors and helps to facilitate organizations in finding appropriate ways to overcome challenges
and enhance opportunities. PESTAL Analysis helps Sainsbury understand all the factors that
influence organizations, both internally and externally, including technical, legal, political,
environmental and social factors. Some issues related to these factors are government regulation,
policy, technological progress and social barriers. The strength of is the efficiency of internal
control of the organization, and the weakness is business failure that does not utilize the available
resources to achieve defined goals (Ikram, 2020).
Therefore, analysis of Sainsbury's intrinsic and extrinsic factors helps the management
department to make appropriate decisions. Various rules and regulations are changed according
to BREXIT's proposal to help the company's operational activities. Because each organization
has a strong loyal customer base, the organization uses its popularity to expand its business by
opening new ventures in developing countries. It has a strong brand image and less competition
in the early stages of developing countries, making it easy for each organization to attract new
customers and retain existing ones at . Organizations are faced with the challenge of coping with
current trends in the market, and in order to reduce the impact of this problem, management must
engage with key distribution organizations to conduct business. Organizations will be able to
adopt the latest technological elements from their processes to increase operational efficiency,
which will help them understand recent market trends. The macro environment is associated with
external factors that influence activity at the external boundaries. These factors can have a very
high level of impact on organization and increase its market share. These elements are beyond
the control of the organization itself, but the organization modifies policies to eliminate these
effects.
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