Sainsbury's Business Environment: Types, Factors, and Analysis

This report provides a comprehensive analysis of Sainsbury's business environment, examining various organizational types, their purposes, and sizes, with a specific focus on Sainsbury's as a case study. It explores the interrelationship of organizational functions like research and development, accounting, production, and sales, highlighting their importance in achieving business objectives. The report further delves into the positive and negative impacts of external factors such as political, economic, social, technological, legal, and environmental influences on business operations. A SWOT analysis is conducted to assess Sainsbury's internal strengths and weaknesses in relation to these external factors, offering insights into its market position and strategic considerations. The report emphasizes the importance of adapting to the business environment to enhance performance and generate revenue, concluding with the interrelation of strengths, weaknesses, and external factors.

Business environment

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P.1 Various types and purpose of organization......................................................................................3
P.2 Size and scope of different types of firm...........................................................................................4
P3 Relationship between organisational functions.......................................................................................5
TASK 2.......................................................................................................................................................6
P4 Positive and negative impact of external factors on business environment.........................................6
P5 Internal and external analysis to know strengths and weaknesses....................................................8
TASK 3.....................................................................................................................................................10
P6 Interrelation of strengths and weaknesses with external factors.....................................................10
CONCLUSION.........................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Business environment is the environment which consists of all the different internal as well as the
external factors (Al-Swidi and Al-Hosam, 2012). Thus as a result company has to create various plans
and policies so that they can easily adopt the factors and they can easily perform better. Thus as a result
they can easily enhance their performance and services. Thus they can generate more revenues. Hence
firm can easily expand their operations. Assignment describes about the Sainsbury company. It was
found in U.K. Report explains about the different types and sizes of organization. It further explains
about the interrelationship of various functions in the firm and their relation to the organizational
structure. It further explains about the various examples to show the positive and negative impact the
macro environment on the business operations. It also explains about the internal strengths and
weakness of specific business and their relation with the external macro factors.
TASK 1
P.1 Various types and purpose of organization
Various types of firms are performing the different functions (business environment, 2018). Thus
they can perform all tasks according to needs and wants of the society (Bryman and Bell, 2015). There
are various changes in the organization and the environment. Thus as a result they can easily enhance
their performance. The differences are:
Basis Profit NPO NGO
Meaning These are the firm
which only runs fpor
profits. They can
evaluate demand and
needs of society.
These are the firms that
do not have objective to
earn more profits. Thus
as a result they can
enhance the market
share. There is
involvement of
government.
There is a non govt
organization whose
objective is to serve the
society. It can be
performed by ,mutual
understanding of many
people.
Area of operations It can be small or large They have wide area of
operations and thus
they can deliver various
facilities.
Their area is small and
they can easily provide
services so that they
can fulfill needs and
wants of people.
Objectives Their main aim is to
enhance more revenues
The revenues earned by
the company and then
They have different
factors so that they can

and they can easily earn
more profits. They can
be done through great
promoting various
brands.
it has to prove different
benefits to society.
influence business in a
different manner. These
companies try to reduce
to sufferings in the
society.
Objectives of various organizations are:
Private sector: It is the firm whuch have objectives to earn more profits. In this sector there are many
firms and thus there can be increase in competition (Christopher and Holweg, 2011). It is one of the
most important factor and thus there can be effective factor through which they can easily perform all
activities. Various staff members are there that can easily enhance the activities and operations. They
can perform business at partnership, individual and firm’s level. Hence as a result they can easily
enhance their operations. Main objective is to help the firm. It is crucial so that they can enhance the
profits and can increase the market share.
Public sector: The companies are controlled by government. They can be done with the help of political
party and their objective is to provide facilities to people. They are managed by central and local level.
Their objective is to enhance the status level and they can give different changes in the people. This
helps the firm in increasing their standard.
Voluntary sector: They are the company that can help to other people that are living in the society. For
example reduction in the poverty and child education and they are the main reason behind the
company. Revenues can be earned due to the particular purpose (Onetti, and et. al.2012)
.
Main objective is to create different strategies so that they can improve the effectiveness of all people.
P.2 Size and scope of different types of firm
All objectives for all organization are very different types of organizations. There is a unique reason that
a firm can work each of all activities and operations. It is crucial that company can perform tasks in a
better manner.
Private company: Sainsbury is a good example fir this company. Thus there is less of interference of govt
sector. They can give competition to other companies and they can change their plans and policies. They
can give steps so that they can take some corrective actions. 2 individuals are required in running this
company. Maximum is the 50 people. They have to create plans and policies.
Public company: This is the company whose objective is to provide services to all people so that they
can give different benefits to all people. It is more reliable and they do not adopt changes in a rapid
manner. Hence there is no competition (Cross and Miller, 2011). Minimum is 7 people are required to
operate this company.

Voluntary organization: They can run through effort’s of different individuals. For example there is an
Oxfam company.
Micro Small Medium Large
It is the unit which is
smallest. It is started at
the initial level. This is
created so that basic
facilities can be fulfilled.
They can be influenced
by changes in external
factors of the firm. Due
to lack of money the
business cannot be run
for longer period of
time.
It is run at higher level
and thus it is small as
compared to micro
level. This company do
not have lack of finds
and thus can run all
their activities in a
proper and effective
manner. They can be
affected by the bug
organizations and
resukts can be any
either positive or
negative. In this firms
involve 2 or more
persons.
There are many big
companies and there is
competition from other
big companies. Thy
continuously evaluate
the changes that are
made in the
environment. They can
directky improve the
standard of living. They
can also affect activities
and operations of the
firm. They have good
reputation in the
industry.
This is the biggest form
of organization. Thus as
a result there are
various different places
and they can create
various polices
according to different
locations. Many staff
members are instructed
by the top level of
management. The
companies can be
changed as there can be
change in various
policies and plans. Firms
can et influenced by
changes in business
strategies. Operations
can be run at a larger
scale. And thus
objectives can be
accomplished.
P3 Relationship between organisational functions
Sainsbury is big brands in market and it is vital to perform activities in better manner.
There are possibilities that firm has to manage all sectors simultaneously to get best
consequences ( Dibrell, Craig and Hansen, 2011). There are many actions which have to be done to
provide satisfaction to people. In business, it is not vital business environment remain constant
for lifelong so regular check has to be done and convey appropriate orders for concern
section .There are many departments in Sainsbury in which work to give satisfaction to society.
Research and development- This department plays significant role and scope of this has
is increased these days. This helps business to know what changes are taking place in society and
what need of buyers is so production section starts giving focus on it. Research department helps
to enhance sales and know what society thinks about it. They are:
Accounting section- They keep all the records of monetary related data. It is vital to
perform events in a better manner, so cost decreases and this helps to know how much has to be

expanded and what, so various divisions are concern about application of funds and optimal use
is there (Nishitani, and et. al., 2012)
.
Production department- This department is related with various sections such as accounting,
purchase, operations, sales, research, etc. So it is vital to perform activities which help in proper
production as per need. There must not be over and dead stocks (Gharajedaghi, 2011).
.
Sales Department- In this department there are many meanings which help in enhances
profits of business. There is condition of proper policies through which sales can be improved.
There are various types of firm’s structure which help in know roles and duty and proper
communication helped to perform tasks in effective way. Some of the organizational structure is
described below-
Line structure- In this structure there is no alteration in hierarchy and all employees are at
same levels.. The structure is also known as flat culture. There is equal roles and duty to workers
which does not create dissatisfaction among workers.
TASK 2
P4 Positive and negative impact of external factors on business environment
Basis Positive Negative
Political There are different approaches
which are encircled by
government and it is
fundamental for relationship
to tail them. Political elements
imply government related
component which are related
with business. These are not
straightforwardly related with
business but rather to improve
strategies in and viable way.
According to prerequisite,
Because of overabundance
meddle, there are potential
outcomes of negative effect on
picture of association. As
customary contact may
occupy administration of
Sainsbury's from
accomplishing focuses in
compelling and effective way.

they need to utilize market and
afterward take activities which
help to accomplish targets
Economical This is most part organization
to run business. There is
necessity of assets through
which moves can be made in
viable and effective way.
While raising assets,
organization needs to improve
their money related position in
way. Through which they
assist organization with
attaining objectives. There are
different wellsprings of rising
assets through which moves
are additionally made
legitimately on the grounds
that there is need of
reimbursement of advances.
These elements have negative
perspectives as well. If there
should arise an occurrence of
augmentation in financing cost
of advances, at that point it
influences benefits for
organization. In the event that
assets are not promptly
accessible, at that point it
makes leap in normality of
business. Monetary angles are
additionally related with
mechanical as it might
influence necessity of
machines
Social Sainsbury's is big association,
which works in different parts
of organization, so it is basic
to discuss change in requests
moreover. Sainsbury's needs
to investigate market and after
that take activities. as there is
change sought after, so if chief
of Sainsbury's remembers then
it makes great picture in
Because of social factor,
association needs to
remember, varieties sought
after. Here and there to make
attire all perspectives, it isn't
conceivable to fulfill all
request. Now and again
because of progress in
requests stock moves toward
becoming passing and it is

showcase. This is
advantageous as it
accomplishes focuses in better
and powerful way.
wastage of post.
Technological
Legal
Environmental
P5 Internal and external analysis to know strengths and weaknesses
Internal analysis identified with each one of those practices that assistance in seeing every one of
those components that assistance in examining all the quality and shortcomings of organization
(Kolk, 2016). Further, this will assist association with knowing the genuine position in outside
market which give them thought for the upgrades any required. Here the Sainsbury's FMCG
based organization chose to direct SWOT examination based on which real interior conditions
are watched and by considering results approaches systems are surrounded for better gainfulness
in future Swot analysis of Sainsbury’s is described below: -
Strength
Sainsbury has Picture separation as for Brand
name
The client to representative proportion is low
Staff is exceptionally prepared and client
centred
Steadfast client base
A fascinating, differing and new 'item' offered
by a confided in specialist organization and
Built up system of outlets.
Weaknesses
Rising sustenance costs over the world have
affected on Sainsbury's offering at higher
costs.
Hardened rivalry inside each portion of the
retail division.
The association is one of the four driving
general store chains in the UK with a
nationality of over 10 years and still it has as
of late shut 16 stores and there has been a fall
in its deals.
The reason could be ascribed to the absence
of publicizing.
This would confine the association from

One of the enormous four grocery store
chains in UK.
Has a representative quality of more than
150,000 individuals.
It has a to a great degree experienced
authority group.
Incredible marking and publicizing.
It has more than 550 markets and more than
350 accommodation stores crosswise over
UK.
Each store regularly stocks around 30,000
lines of which around 20% are possess name
products.
fortifying its budgetary position. Sainsbury's
media spend is down around - 4%. Sainsbury
'has restricted convincing effort to beat the
opposition against the recently presented
discounters.
Opportunities
Sainsbury's can enter the business sectors of
rising organizations through joint endeavours
or associations to investigate these new
markets.
Self-checkout machines could help in
Sainsbury's opening stores for 24 hours which
may help support deals.
Sainsbury’s is planning to Venturing into
developing economies like Africa, Asia and
so on.
Threats
Waiting impacts of the droop in economy.
Cataclysmic event, for example, he ongoing
Icelandic volcanoes ejection.
Profoundly focused industry.
Expanding globalization, shows a test and in
addition a chance to Sainsbury's.
Needs to dependably source the best
quality/fiscally suitable items from world over
opposite its rivals.

TASK 3
P6 Interrelation of strengths and weaknesses with external factors
From the above discussion of PESTLE and SWOT examination plainly these are two
acknowledges which are identified with inward and outer components of business (Li and et. al.,
2011). To roll out improvement in plans a d approaches, they need to work with representatives
and other inward segments. Because of progress in innovation, representatives may get
influences and this influence business tasks in antagonistic way. Be that as it may, as a similar
time, if directors of Sainsbury's offer inspiration to specialists, they can show signs of
improvement comes about as result to others. On the off chance that preparation is given
promotions per parts everything being equal, at that point this is valuable for them, and in
addition association (Meiners, Ringleb and Edwards, 2014).
Quality and shortcoming off Sainsbury's is identified with outside elements. There are risks in
business objectives and destinations then this must be conveyed to specialists so they
additionally take activities according to prerequisite. Society is the place which is most basic
segment. In CSR exercises, organization needs to pay back best society as they utilize
characteristic assets. Administrator needed to inspire workers to give their best to accomplish
targets. This can be clarified with idea of advancement of business implies fulfilment of their
needs. There are different ideas of outer business which h help to accomplish targets, so it is
essential to deal with their requirements. Client is the key of business, so it is essential to fill in
as their fulfilment. There is change sought after, so association has to modify their plans
arrangements. Research and development bureau of Sainsbury's realizes what changes are
occurring in business and in what manner can be actualized in business activities. It isn't
conceivable to acknowledge all progressions so alternatives which are best according to
prerequisite are chosen. Benefit is ye primary rouse of association, which can be picked up by
decreasing expense. Approaches of contenders likewise must be investigated, so better
methodologies can be accomplished in better way (López-Gamero, Molina-Azorín and Claver-
Cortés, 2011). In the event that business keep running in moral lawful route, there is no questions
on its execution by partners. Be that as it may, in the meantime, available for later case picture
gets influenced and this makes them disappointed. Subsequently, inner and outside elements are
connected with each other, however outer components are not responsible for administration of
Sainsbury's.
CONCLUSION
It can be concluded from above report that business environment is crucial to every business.
Thus as a result they can easily earn more revenues. Various internal and external factors can
affect company. Thus firm can create different strategies so that they can create various policies.

REFERENCES
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Online
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