Business Environment Analysis: Sainsbury's Retail Operations Report

This report provides a comprehensive analysis of Sainsbury's business environment, examining various organizational types such as public, private, and voluntary sectors, along with their purposes and legal structures. It explores the size and scope of different organizations, including micro, small, medium, and large scales, and their differentiation based on objectives, market share, and growth strategies. The report further delves into the relationship between different organizational functions like human resources, finance, operations, marketing, and sales, and how they interlink to achieve organizational objectives. It also discusses the impact of market forces and economic operations, such as supply and demand and income elasticity, on business operations. The analysis includes an overview of Sainsbury's market position and strategic approaches, offering insights into its operational dynamics within the competitive retail landscape.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations.......................................................................1
TASK 2............................................................................................................................................4
P3 Relationship between different organisational functions and its link with objectives ..........4
TASK 3 ...........................................................................................................................................6
COVERED IN PPT.....................................................................................................................6
TASK 4............................................................................................................................................6
COVERED IN PPT.....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment includes various forms of organisation and different factors which
impacts on operations. This assignment is based on Sainsbury which is popular retail store
established in London. Different variety of food, home, health, beauty and many other items are
provided by company. This report defines different types and purposes of organisation which
vary with each other in respect to size and scope (Bahand Fang, 2015). Every firm and functions
have relationship with each other which help management accomplish objectives. Internal and
external analysis provides information to senior about positive and negative impacts of macro
environment. This also benefit executive to identify strengths and weaknesses; thereby interrelate
with external macro factors.
TASK 1
P1 Different types and purposes of organisations
Public, private and voluntary are various organisation which are present in market. These
are different firms which have variance capital and objectives. Business operations are executed
by subordinates for welfare of society and achieve objectives. Apart from this, market have
various enterprise which are started by individual to generate adequate profit. Different kinds of
organisation which exist in market are stated beneath (Buğra and Savaşkan, 2012):
Public Sector: This segment comprises firms which are owned and controlled by government.
Barclays is public sector firm which executes financial services and provide different instruments
to people.
Purpose: Public sector includes organisation with aim of providing items and services for
welfare of society. These firms even increases employment opportunities for people to gain
adequate amount for regulating their livelihood.
Private Sector: This aspect includes enterprise which are established and managed by an
individual or group of persons. Variety of items and services are provided by Sainsbury to give
options to customers and make them purchase things in according to their taste and preferences.
Purpose: Private sector comprises firms which are started by individual with goal of
generating profit. Apart from this, executive deliver different products to enhance market image
and goodwill in respect to competitors (Cai and Yang, 2014).
Voluntary Sector: This segment is also defined as community sector which includes organisation
which are incorporated by people to independently execute activities and gain money to deliver
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appropriate things and services for needy ones. NSPCC is firm which is started by individual to
raise funds for young adults and children which are ill-treated and misused.
Purpose: This sector includes firms which carries aim of providing things to earn
appropriate money for execution of activities and not as profit.
Legal Structure: This is description of public and private sector organisation which follow
instruction and plan as formulated by seniors (Craig and Campbell, 2012).
Public sector: Local government: Primary and secondary education, library, council housing, social
services, sport facilities and parks are various services which are managed and controlled
by local regulatory bodies.
 Central government: Defence, social security, national health service, police, universities
and prisons are various things which are regulated and monitored by authorities.
Private sector: Sole Trader: Accountant, hairdresser, painter, plumber and many more are business
which are executed by individuals to generate adequate revenue for their livelihood.
 Partnership: More than two individuals sign agreement to conduct activities and deliver
appropriate things to people. Profit or loss is shared by all members which is distributed
in respect to their capital share and involvement (Hamilton and Webster, 2015).
P2 Size and Scope of various types of organisations
Each and every firm such as micro, small, medium and large which are present in market.
These are organisation which differs with each other in respect to objective, size, scope and
structure. Availability of funds and manpower determine goals and targets set by executive.
These are aspects which determine business operations conducted in according to objectives are
stated below:
Small scale: This type of organisation which is bigger than micro, as around 50 to 70
staff are available with administration which help them gain approx 6 million dollars of revenue
(Hilton and Platt, 2013).
Micro scale: This aspect includes firms which are started by individual to utilise funds
and members to deliver appropriate things to customers. This help executive to manage standards
and livelihood; thereby get financially secured.
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Medium scale: Business person expand branches in same city and also in various other
nations. For this, approx 200 subordinates are available which help management generate 10 to
20 million dollars.
Large scale: This form of aspect comprises enterprise which have number of branches in
same city and in different nations. Sainsbury target different market segments to enhance sales
and profitability. There are around 250 to 500 employees which benefit administration to mange
outlets (Portugal-Perez and Wilson, 2012).
Differentiation:
Basis Micro Small Medium Large
Objectives Prime goal of this
sector is to
conduct adequate
business activities
and generate
appropriate
revenue form
business.
This kind of firms
main focus is to
provide variety of
items and services in
respect to needs and
wants of people
(Prajogo, 2016).
Main motive of
this sector
organisation is to
enhance market
reach which help
management to
have large
number of
customers.
This sector
includes firms
whose prime goal
is to develop
competitive
advantage to
position company
higher than
competitors.
Market and
profit share
Micro scale firms
have very small
market reach and
revenue gain, as
enterprise has only
one outlet.
Small enterprise has
limited market share
and profitability
which is due to
amount of resources.
Medium scale
firms market
share and revenue
is lower than
large but bigger
than small.
Large
organisation are
established in
different nations
so there is high
market share and
profit.
Growth and
sustainability
Micro firms
require to enhance
customers by
opening new
These form of
enterprise have goal
to increase outlets to
enhance customer
Medium
organisation
require to expand
business and open
This segment
includes firms
which require to
maintain position
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outlets in same
city.
base and sales
volume.
branches in
different nations.
and reputation in
market.
Scope of Different types of Organisations:
Public sector: Barclays institution aim is to enhance market reach by enlarging firm in
same city and other countries.
Private sector: Executive of Sainsbury firm goal is to expand business in different
segments and increase type of items. Along this, another objective is to open new outlets in
different nations and increase customer base (Savrul, Incekara and Sener, 2014).
Transnational Company: Sainsbury is multinational enterprise which has outlets in more
than one country which help administration to have large customer base. This help company to
improve sales volume and generate adequate profit from business.
Market forces and economic operations: Organisation and its business operations are
affected by market conditions. Government, customers and competitors are various components
which indirectly influence activities. These are various tactics which are taken care by Sainsbury
are stated below:
Scarcity and Choice: Sainsbury is supermarket which provide different variety of food
items and other things. For this, management require to use resources efficiently and deliver
products in respect to market trends.
Supply and demand: Sainsbury require to have adequate products available in store
which help administration to provide things in according to taste and preference of people.
Income elasticity: Public purchase products in respect to amount of money available with
them. Sainsbury provide different range of items which help firm to grab attention of large
number of customers (Sodeyfi, 2016).
TASK 2
P3 Relationship between different organisational functions and its link with objectives
HR, finance, operation, marketing and sales are various department which are present in
each and every organisation. These segments require to function in connection with each other,
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so that appropriate items and services are given by Sainsbury. This help administration enhance
market position and accomplish goals and objectives. These is description of different
organisation function:
Human resource: Recruitment, selection, compensation, training and development are
various practices that are performed by employer. This help Sainsbury to have adequate
workforce which help management to provide appropriate information to people about items.
Finance: This department responsibility is to frame financial statement that is profit and
loss, balance sheet to have complete information about income and expenses of Sainsbury.
Besides this, each segment is given adequate funds to execute activities effectively (Welford,
2013).
Operation: This unit manufacture items and provide appropriate services to customers.
Sainsbury is retail store which require to have adequate variety of products to provide choice to
people and make them purchase things in according to their demands.
Marketing: This department of Sainsbury uses promotional techniques such as online
advertising, social media and personal selling to inform public about items to attract people and
establish competitive advantage over rival firms.
Organisation structure: Functional structure: Finance, HR, operation, marketing, R&D and sales are various
department which are formulated by administration to distribute workforce and provide
them duties in according to their skills and abilities (Bahand Fang, 2015). Divisional structure: This form of tactic define that organisation manage activities in
respect to geographical area covered by them. Along this, market and products are two
aspects used by management to organise business. Strategic Business Unit: This form of structure define large firms which function as
independent company. Administration have single range and variety of things that are
provided to customers.
 Matrix structure: This tactic specifies that management selects members from each
segment to accomplish projects.
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TASK 3
COVERED IN PPT
TASK 4
COVERED IN PPT
CONCLUSION
From the above report, it can be comprehended that business environment has different
organisation that is private, public and voluntary. These firms differs with each other in respect
to size, scope, objective and structure. Micro, small, medium and large are various scale of
enterprises which are present in market. Organisation function have relationship with each other
which help administration accomplish goals and objectives. PESTEL and SWOT analysis are
technique used by management to identify positive and negative impacts of macro environment.
With interrelation of strengths and weaknesses with external macro factors helps seniors to
design system and make it function in according to market conditions.
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REFERENCES
Books and Journals
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Buğra, A. and Savaşkan, O., 2012. Politics and class: The Turkish business environment in the
neoliberal age. New Perspectives on Turkey. 46. pp.27-63.
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics. 151. pp.131-145.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Portugal-Perez, A. and Wilson, J. S., 2012. Export performance and trade facilitation reform:
Hard and soft infrastructure. World development. 40(7). pp.1295-1307.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Sena Ferreira, P. and et. al., 2012. Framework for performance measurement and management in
a collaborative business environment. International Journal of Productivity and
Performance Management. 61(6). pp.672-690.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. International Journal of Economic Perspectives. 10(2). pp.146-
150.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
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