Analyzing Sainsbury's, Walmart, and Wellcome Trust

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BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
LIST OF FIGURES.........................................................................................................................3
INTRODUCTION...........................................................................................................................4
LO1..................................................................................................................................................5
LO2..................................................................................................................................................9
LO3................................................................................................................................................13
LO4................................................................................................................................................18
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

LIST OF FIGURES
Figure 1: TYPES OF ORGANISATIONS......................................................................................6
Figure 2: ORGANISATIONAL STRUCTURE OF WALMART..................................................9
Figure 3: PESTEL ANALYSIS.....................................................................................................13
Figure 4: SWOT ANALYSIS........................................................................................................18

INTRODUCTION
A well- developed can only be established, when a suitable business environment is present.
Business environment refers to all the internal and external factors which affect the working of
the business. All the external factors which can’t be managed by the internal management or
authority of business make a business environment. In this report, three different companies’
scope, size, vision, mission, key stakeholders will be analysed (Hamilton et al., 2018). Various
functions of an organisation will also be defined and how these functions affect the
organisational structure. Different factors of macro environment will be discussed and PESTEL
analysis will be done to analyse the positive and negative impacts of these factors on
organisations. Strengths and weaknesses of companies will be discussed and how these
strengths and weaknesses are interrelated to factors of the macro environment (Projago et al.,
2016).
Three different organisations which are analysed in this report are; Sainsbury’s, Walmart and
Wellcome Trust. These are the example of public, private and voluntary organisations
respectively.

LO1
There are three different types of organisations namely the private sector, public sector and
voluntary sector.
PRIVATE SECTOR
Private sector organisations are run by individuals or in partnership or collaboration privately
with the sole aim of earning the profit. These types of organisations are not controlled by the
government. The private sector contributes to major part to GDP in many countries and gives
employment to many people who work with the aim of earning money (Blok et al., 2015).
Example of a private sector organisation is Walmart.
PUBLIC SECTOR
Public sector companies are the state-owned companies that are established for the welfare of
the general public. These companies are owned by the government or at least 51% of their
shares are owned by the state. The board of directors and higher executives are also appointed
by the government (Kearney, 2018).
Example of a public sector organisation is Sainsbury’s.
VOLUNTARY SECTOR
These are the organisations which are established with the sole aim of helping people. These
are non-governmental organisations which work on social issues faced by people. These
organisations raise and solve issues related to inequality, domestic violence, poor health care,
violation of basic rights, etc. The voluntary sector is also known as the non-profit sector or civil
sector because these organisations are for the benefit of people and not for the aim of earning
a profit (Heins et al., 2016).
Example of the voluntary sector is Wellcome Trust.

Figure 1: TYPES OF ORGANISATIONS
Source: (Muskett, 2017)
Details of organisations-
SAINSBURY’S
Background details: Sainsbury’s was started by the couple as a partnership retail store in 1869,
by John James Sainsbury’s and his wife Mary Ann in Holborn, London. It was started as a fresh
food shop and later evolved into the grocery store of packaged goods such as sugar and tea
(Sainsbury’s PLC, 2019). For the recognition of shops later a board with the name of ‘J
Sainsbury’s’ was placed in front of each shop. The then motto of Sainsbury’s was “good quality,
lower price”. Later Sainsbury’s became a private company with the retail stores all over London
and captured the market of London by becoming the largest supermarket chain (Muskett,
2017).
Scope and size: Sainsbury’s is the third largest supermarket chain behind Tesco and Asda. It has
almost 800 stores, supermarket and retail chains all over the world. Sainsbury’s ruled the UK
market for decades until it was defeated by Tesco and then Asda. Sainsbury’s run in the market
with the aim of providing customers with the better quality of products at a lower cost
(Sainsbury’s PLC, 2019).
Vision and motive: Sainsbury’s vision is to provide better quality products and fulfil the needs
of customers and become the most trusted supermarket chain by connecting to the heart of

people. They want to create a place where people can love to shop. Sainsbury's has reviewed
its sustainability plans in order to achieve its vision (Sainsbury’s PLC, 2019).
Legal structure: Sainsbury’s legal structure is of corporate governance. The board of directors
form strategies and plans for the development of the company and the benefits of the
shareholders and employees. The board is chaired by Martin Scicluna. The company follows the
principles of UK governance code. It also follows the sustainability policies and there are various
committees who look after the code of conduct of different sectors of the organisation
(Muskett, 2017).
Key stakeholders: The key stakeholders of Sainsbury's are customers. Customers want the
company to do better and provide them with the best facilities and quality products. Other
stakeholders of the company include suppliers, government, owners, shareholders who by one
mean or other are affected by or affect the workings of the company and help in the growth
and development of the company (Muskett, 2017).
WALMART
Background details: Walmart is an American discount retail giant that was opened by Mr Sam
Walton in 1950 at Bentonville, Arkansas with the name of Walton’s 5-10. Later Walton opened
different stores at other parts of Southern United States and later to different parts of the
world. Walmart was first established in 1964 with the establishment of one other store in
Rogers outside Bentonville. Now Walmart is one of the leading retail stores in the world
(Caraway, 2016).
Size and scope: Walmart is the largest company in the world with the estimated net worth of
$500 million and the largest private employer of the world with almost 2.2 million employees. It
has 11,368 stores all over the world (Walmart, 2019).
Vision and mission: Walmart works on the vision of saving people their money, no matter what
type of goods they purchase and to be in the hearts of the customers. The mission of Walmart
is the principle which was given by its founder that is to save people money to make them live
better. The company’s logo statement is also saved money, live better (Walmart, 2019).

Legal structure: legal structure of Walmart is a functional hierarchical structure. The company is
led by a board of directors and strategies and plans are made by meetings held by the board of
directors and decisions are taken mutually (Caraway, 2016).
Key stakeholders: Key stakeholders of Walmart include its shareholders, executives,
employees, government, investors, non-profit organisations, etc. Stakeholders affect the
company directly and indirectly (Caraway, 2016).
WELLCOME TRUST
Background details: Wellcome Trust is a non-profit organisation which was established in 1936
after the death of the American pharmacist and entrepreneur Sir Henry Wellcome. The trust
was made to manage the income of Mr Wellcome and to fulfil the wishes of him to help the
people and to research in the field of medicine (Wellcome trust, 2019).
Size and scope: Wellcome Trust is the largest non-profit organisation in the world. It helps
people by providing medicines and proper healthcare facilities throughout the world. Wellcome
Trust provides funds to researchers in the field of medicine to research and develop medicines.
It is planning on investing $29.5 million in research and development (Chrysikou, 2019).
Vision and mission: The vision of Wellcome Trust is to help maximum researchers in the field of
medicine in the middle and low-income countries. Its mission is to improve research and
development and provide proper funds to researchers and mentor students in the field of
medicine and research. (Wellcome Trust, 2019).
Legal structure: The legal structure of Wellcome trust is headed by a board of trustees and
these trustees take important decisions and make policies with the help of the advice from
experts and other important members also sometimes attend meetings of the board of trustees
(Chrysikou, 2019).
Key stakeholders: The key stakeholders of Wellcome Trust are BBSRC, Food and Rural Affairs,
Medical Research Council and other agencies which fund the researches (Wellcome trust,
2019).

LO2
ORGANISATIONAL STRUCTURE
Organisational structure refers to the structure of the organisation in order to maintain the
proper work environment and manage the working of employees in an organisation.
Organisational structures can be different for a different type of organisations depending on the
objectives and working of it. The Organisational structure of Walmart is a hierarchical functional
organisational structure (Caraway, 2018). All the employees in Walmart other than CEO have
senior head above them. The senior executives command the middle managers who in turn
manage the first line employees. The functional feature of this structure signifies that all the
employees which are mostly divided into the groups according to different function they
perform come in different sectors which are segregated according to different functions (Wood,
2016).
Figure 2: ORGANISATIONAL STRUCTURE OF WALMART
Source: (Wood, 2016)

FUNCTIONS OF ORGANISATION AND THEIR INTERRELATIONSHIP WITH EACH OTHER AND THEIR
IMPACT ON ORGANISATIONAL STRUCTURE
There are different functions of an organisation. Walmart also has these functions; they are:
Finance function: the finance function of an organisation is performed by the finance
department. In Walmart, finance department performs this function and make the budget of
the company, manage the salary of the employees, look after the cost of production and
maintains a record of the resources. The finance function is linked with all the other functions
as the salary is given to all the employees (Caraway, 2018). The budget set for the marketing
and production is also set by the finance team, therefore, the marketing and production
function is interlinked to finance function.
Marketing function: In Walmart, the marketing function and production function are directly
linked with each other. The needs and demands of customers are provided by the sales and
marketing department to the production team and the goods and services produced by the
production team are marketed by the marketing team and provided to customers. Marketing is
also linked to the financing function as all the cost of their work is maintained and provided by
the finance department (Wood, 2016).
Human Resource function: This is one of the important functions of Walmart. The HR team hire
all the competent and efficient employees which in turn become the part of the different
department in the company. But the salary of these employees is planned by the finance team.
In this way all the functions are interrelated (Caraway, 2018).
Production Function: In Walmart, the production function is performed by the production team.
Production and marketing are hugely interrelated. The production team look after the
manufacturing of goods and services in the company and the cost of raw material are all
maintained by the finance team. The production team is also interconnected with research and
development because R&D provides information for the production of innovative products
(Caraway, 2018).

MERITS AND DEMERITS OF INTERRELATION BETWEEN FUNCTIONS OF ORGANISATION AND
THEIR INFLUENCE ON ORGANISATIONAL STRUCTURE
The organisational structure is responsible for maintaining the functions of an organisation in a
systematic way. There are some pros and cons of interrelation between these functions which
are discussed below. Walmart follows a functional hierarchical structure and carefully consider
the cons of these interlinks and find the solution to them ( Maduenyi et al., 2015).
MERITS:
 In Walmart, the interrelationship maintains and coordinates a better work environment
and this coordination helps in doing work efficiently.
 Due to the interrelation between various functions, each department knew the work of
others and so repetition of work hardly occurs in Walmart, therefore, saving more time
and resources (Maduenyi et al., 2015).
 In Walmart due to the interrelation between the functions, all the departments share
innovative ideas with each other hence chances of increase in profitability arises.
 The interrelation helps in the better productivity and marketing of goods and services
and increases the chances of better growth and development.
 In Walmart, work is segregated according to the expertise of people in the respective
functions so there are better coordination and control on work (Maduenyi et al., 2015).
DEMERITS:
 Walmart is the largest company, these interlinks sometimes create an environment of
chaos as the ideas and thoughts of one department don’t match with others.
 It can also lead to the loss of control in some department as different functions are
interrelated and no department can take the decisions independently (Maduenyi et al.,
2015).
 In Walmart, there can be conflicts because of the decided workforce for a particular
project as not every department can have a similar thought process.

 As all the functions are interrelated, sometimes it can result in the misuse of the
information provided by some employee that can result in the loss of overall
organisation (Maduenyi et al., 2015).