Business and Business Environment Analysis: Sainsbury & Iceland Report

This report provides an analysis of the business environments of Sainsbury and Iceland, focusing on their organizational structures, functions, and strategies. It explores how both companies operate within the retail industry, considering internal and external factors that impact their performance. The report examines the purpose and size of each firm, highlighting how organizational functions contribute to achieving their objectives. It delves into the positive and negative impacts of macro factors, as well as the internal and external analyses conducted to improve company performance. The report also compares the hierarchical structure of Sainsbury with the functional structure of Iceland, discussing the advantages and disadvantages of each approach and how these structures affect their operations and market strategies. The report also includes an overview of the organizational functions in different departments like administration, marketing, human resources, and research & development and how they are interconnected to achieve the goals of the company. The report also discusses the scope of both firms, considering potential growth opportunities and market expansion strategies.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
A. Covered in PPT..................................................................................................................3
B...........................................................................................................................................12
C...........................................................................................................................................14
TASK 2..........................................................................................................................................16
A...........................................................................................................................................16
Section 1...............................................................................................................................16
Section 2...............................................................................................................................17
Section 3...............................................................................................................................18
Section 4...............................................................................................................................19
B...........................................................................................................................................20
CONCLUSION ..........................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
Organizations perform their operations in the business environment. There are some
internal and external factors in the environment that can affect the performance of the firm.
Customers are the external factor that highly impacts the growth of enterprise because they are
the one who will buy products from the entity. So, in order to increase their profits, the manager
should identify demand of the consumers and offer products according to their need. There are
some other factors that can affect the performance of the business organization and these are
suppliers, government, employees, environment and so on. The present report is based on
Sainsbury and Iceland (Carroll and Shabana, 2010). These both companies perform their
operations in the retail industry and provide grocery products to satisfy the needs of the
customers. These retail industries offer their services throughout the world so that they can
improve their brand image and attract more customers as compare to other competitors. The
below mentioned report is based on the purpose and size of these firms. Along with this, they
also explain that how organizational functions help them to achieve its objectives and goals.
Further, it also identifies positive and negative impact of the macro factors on the business
operations. Firm also conducts an internal and external analysis to improve the performance of
the company (Chavis, Klapper and Love, 2011).
TASK 1
A. Covered in PPT

They also sells Indian and Chinese food including vegetarian and non vegetarian. The
organization offer some goods like cheesecake, fudge cake, onion rings and so on. On the other
hand, Sainsbury also offer variety of products according to expectations of people. They offer
approx 30,000 products including food such as grocery products and non food items such as
mobile phones.
The purpose of Sainsbury is to improve customer services by following the strategies
that can fulfil t changing need of people. In order to attract more users the firm provide the
quality services at valuable prices as compared to its competitors. The enterprise is more focused
on their consumers and they listen to their review to improve the services. They also give
opportunities to their staff members by providing them training related to their work. Through
these activities, their workforce will be trained and they will be able to provide quality services.

The purpose of Iceland is to give healthy and safe products to their customers so that they can
attract more loyal people. They are more focused on corporate social responsibility that deliver
economic, social and environment benefit products to their service users. The firm provide
quality products at the equivalent prices as compare to other competitors. They also provide
innovative products.
Sainsbury have their retail stores in different countries like London, Drury Lane and this also
offer their services worldwide to improve their brand image. They also perform different types of
promotional activities to attract customers from different locations. Iceland offers its products
and services in UK and in some different countries. They are not able to create a strong customer
base as compare to the other competitors. Their international image is not as good as Sainsbury.

Scope of Iceland:
The firm can offer its products globally and they can open new outlets in some countries to
increase international growth of the firm.
The firm can also offer beauty and health products because people are more conscious for their
health.
Iceland can promote their products and services on the basis of their quality.
They can launch new innovative products to attract more consumers.
They can also enter into the new markets to increase their growth in the market.
Scope of Sainsbury:
Sainsbury can enter into the new markets through joint ventures and partnerships in order to
explore the market.
The firm should expand its business operations in new economic market like Africa.
They can also open new outlets to increase their sales.

Hierarchical structure is a traditional approach which is based on the level of management. It
shows the hierarchy of commands that is given by the higher authority to their subordinates and
all employees have to follow the decisions that are made by the superior. In this structure, there
are three levels top, middle and bottom level. It is the responsibility of the top level executives to
make the decisions and they can also involve middle level managers in the decision making but
bottom level people are the labours who have to follow the instructions. Through this approach
the enterprise will be able to achieve all its objectives because all managers perform their
functions at their own level. In functional approach there are different departments like human
resource, finance, marketing, production, operations, research and development. This approach

help the retail industry in order to achieve all the objectives that are set by the Iceland. This also
ensure the smooth functioning in the business environment. Through this approach the manager
will be able to achieve all the goals on the basis of their functional unit.
These organisations offer similar kind of products and services on the basis of their vision
and mission. Both the firms follow structures in order to ensure the smooth functioning in the
business environment. Through these they will be able to achieve all their objectives and goals
that are set by the board of directors of the company. They provide products to the people on the
basis of their need and demand. In order to identify these changing need and demand the firm
can conduct a survey in the market.

B.
The organization functions helps the management to achieve its targets which are set by
the industry. The organization function are important to determine the objectives and they are
related with other departments. The organization functions are relate with different departments
like administration department, sales department, marketing department, human resource
department etc ( Grimpe and Kaiser, 2010).
In administration department, the function of the organization is to keep the records in
electronic forms, to make the arrangements for events, interviews etc. In human resource
department, the organization function of Sainsbury is to provide development training and train
new recruiters to handle the job vacancies properly. In marketing department, the organization
has important functions because this department attracts customers to increase their sales and
achieve targets. The organization function in marketing is promoting the products and through
variety of advertisement like televisions, radios etc to promote the brand image of the company