Business Environment Report: Sainsbury's Business Environment Analysis

This report provides a comprehensive analysis of the business environment, with a specific focus on Sainsbury's. It begins with an introduction to the concept of the business environment and its significance for organizations. The report then delves into different types of organizations, including public, private, and voluntary sectors, and examines their scopes and sizes. It explores the relationship between various organizational functions and their objectives and structure, using Sainsbury's as a case study. Furthermore, the report analyzes the impact of the external macro-environment on a firm's activities, followed by a detailed SWOT analysis of Sainsbury's. Finally, it examines the interrelation between strengths and weaknesses with macro factors, providing a holistic understanding of Sainsbury's business environment. The report concludes with a list of references.

THE BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................2
P1)Different types of organisation.........................................................................................2
P2) Scope and sizes of different organisations.......................................................................8
Public sector-..........................................................................................................................8
TASK2...........................................................................................................................................11
P3) Relationship between different organisational functions with objectives and structure.11
TASK3...........................................................................................................................................14
P4) Impact of external macro environment of firm's activities............................................14
TASK4...........................................................................................................................................16
P5) SWOT analysis of Sainsbury.........................................................................................16
P6) Interrelation between strength and weakness with macro factors.................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
Business environment is a surrounding and all those circumstances where an organisation
performs its activities and functions. In terms of the economy “Business” is an activity that is
been done by human being, which include several operations such as buying and selling,
manufacturing- conversion of raw goods into usable or for further process. “Environment” is a
set or group of various things that are related to to economy, politics, legal, social, and cultural
factor. These are surrounded to a business any fluctuation occurs in this whole organisation has
to bear that (Aterido, Hallward-Driemeier and Pagés, 2011). This concept is very important to
understand by business person as to perform all its activities and operations in effective and
appropriate manner.
Sainsbury Plc is one of the biggest supermarket in London marketplace. At present it has
become third largest retail company and is very effectively carrying out its operations. It is
introducing more store around 1200 all around world and employees in numbers will be 16500.
large number of customers are served by it. Vision of Sainsbury-
 It wish to serve healthy food.
 Avail qualitative items.
 Providing opportunities of employment.
 Safe guard environment.
 To grow in competitive market.
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TASK1
P1)Different types of organisation.
Notes:- Different types of organisations that are present in market to perform different activities.
They all are having their own values, views and purpose. Some firms are focusing for earning
maximum profit for its survival whereas there are many who are working as for welfare of
public. Organisations and companies varies from each other as they have different structure,
surrounding, cultures, values and belief.
2

Notes:-
Public sector are those organisation where government has authority to govern all activities and
functions of a business. The legal aspect of public sector is that central government of a nations
is paying for goods where as local government of the country is responsible for paying upon
services that are get provided by Council tax.
For instance- McDonald is an American organisation which lies under this sector. This is a very
recognised organisation in whole world as it is availing its products and services in most
effective manner. Its hamburger is very much known to all and are preferred much by every one.
Purpose
 McDonald's purpose is to serve its customers in right and good manner.
 Quality is most concern of them.
 Satisfying customers with their hardship and efforts.
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Notes:-
Private sector organisation is not under control of government. Products and services to
customers are provided by individual person who is whole sole responsible for carrying out each
and every aspect of this. These firm are more concern to earn profits and want to maximise their
wealth for its sustainability. There are number of legal functions that are present and important
for private sector firms, it basically depends upon category in which this sector is lying. Most
important aspect that must be followed while establishing a firm in private sector
MOA(Memorandum of association) and AOA(Article of association) is very essential to get
registered in Company Act,2013.
For example- Virgin group is a investment company which is leading in a global market. It is
performing its activities in around 50 countries and is having 5000 employees. It is a private
sector firm which does not have any governing authority from the department of nation's
government.
Purpose
 Its main objective and purpose to establishment is to serve customers appropriately so
that they can be able to get maximum profit out of them.
 It also want expand its business at those area where it haven't yet tapped.
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Notes:-
Voluntary sector is an organisation where an individual initiates to get into an activity for a
particular purpose. There are number of voluntary organisation that are performing some or the
other activity mostly for welfare of society. These are established so that to only serve customers
rather that earning profits.
Example- Diabetes UK is a voluntary based organisation. It was established in 1939, at present
era 350 groups are there which are very actively performing operations and functions for
society's welfare.
Purpose
 Its purpose of establishment is to concern more for customers and to develop them from
facing crises.
 Non profit organisation.
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6

Notes:-
Sole proprietorship- A sole proprietorship is the least difficult and most normal structure began a
business. It is a unincorporated business claimed and keep running by one individual with no
qualification between the business and the proprietor. You are qualified for all benefits and are in
charge of all your business' obligations, misfortunes and liabilities.
Features:-
 It is very easy to establish.
 Its activities are performed in very confidential and safe manner.
 Resources are very limited.
Partnership- It is a plan in which at least two people share the benefits and liabilities of a
business wander. Different courses of action are conceivable: all accomplices may share
liabilities and benefits similarly, or a few accomplices may have constrained obligation.
Features-
 Unlimited liabilities are there with the partners of the firm.
 There is very high risk in diffusion.
 Availability of capital is very high at time of formation.
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Government company- This business is an association that has the majority of the accompanying
attributes: 1)It is a different legitimate substance with the ability to contract in its own particular
name and that can sue and be sued. 2) It has been designated the money related and operational
specialist to bear on a business.
 These are established with the government.
 51% shares of capital are provided by nation's government.
 Government are whole sole liable for managing and controlling operations and functions
of this company.
Cooperatives- It is an association of people joined intentionally to meet their basic financial,
social, and social needs and goals through a mutually possessed and fairly controlled venture".
 The membership in this sector is open as any one can get into its operations and function.
 Interest on capital are very limited.
 The surplus are availed to the required members so that benefits can be provided in the
society.
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P2) Scope and sizes of different organisations.
Public sector-
This offers help to social gathering and they play out their exercises to address the issues
that confronted by individuals. They work to upgrade the solid and standard condition for the
social welfare. This part association performs corporate social duty action with the goal that they
can give help to individuals. Government assumes imperative part in the development and
advancement of such firms since this sort of business element offers help to the development of
country. The market range of open segment association is expansive as correlation with private
part.
Size of McDonald's: There are more than 4 Lack representatives are working in around 120
nations and around 150 outlets are opened by this business with the goal that they can give
products and ventures to its clients.
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