Business Environment Analysis: Sainsbury's Report on Macro Factors

This report provides a comprehensive analysis of Sainsbury's business environment, examining its organizational structure, and the impact of various macro-environmental factors. The report begins with an introduction to the business environment and different organizational types, including private, public, and voluntary sectors, using Sainsbury as a case study. It then delves into the size and scope of different organizations, followed by an examination of the interrelationships between various organizational functions like HR, marketing, sales, finance, and production, and their impact on organizational objectives and structure. The report further utilizes PESTLE and SWOT analyses to identify the positive and negative impacts of the macro-environment and the internal strengths and weaknesses of the business. It concludes by synthesizing the interrelation of strengths and weaknesses with external environmental factors, offering insights into Sainsbury's strategic positioning within the market.

Business and The Business
Environment
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INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Different types and purposes of organisations; public, private and voluntary sectors and
legal structures.............................................................................................................................4
P2 Explain the size and scope of a range of different types of organisations.............................6
TASK 2..........................................................................................................................................10
P3 The relationship between different organisational function and their link with
organisational objectives and structure......................................................................................10
TASK 3..........................................................................................................................................11
P4 Identify the positive and negative impact which macro environment has upon the business
operations...................................................................................................................................11
P5 Conduct internal and external analysis in order to identify the strength and weaknesses. . .14
TASK 4..........................................................................................................................................15
P6 Interrelation of strength and weaknesses with external environmental factors....................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18
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INTRODUCTION
Business and business environment is a formative combination of all internal and external
factors that influence business operational functions thus, it is essential for companies to have
clear set of knowledge about these factors as to challenge them to get preferable results (Business
Environment. 2019). There are different types of business structure and all those have variance in
their legal structure. Present report has been based on Sainsbury, which is one of the largest
chains of Supermarket situated in provinces of London, UK. Company offers qualitative
products and services to consumers as to satisfy their needs in well effective manner. In this
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report formative discussion has been made on different form of organisation that is private,
public, voluntary. In addition with size and scope of diverse organisation or also covered in this
report. Along with this, report throws light on pestle and SWOT analysis with the help of which
organisation can easily able to evaluate strength and weakness and towards more developmental
path.
TASK 1
P1 Different types and purposes of organisations; public, private and voluntary sectors and legal
structures
There are different types of business organisation who perform their roles and
responsibilities in international, national and local level. All these forms of business
organisations effectively perform their function in order to provide satisfaction to customers.
There is wide range of business organisations namely voluntary, public and private those who
have different set of goals and objective which is defined below in a formative manner:
Private sector:
Private sector business organisations are owned and managed by legal authorities,
individuals, private people and firms. Organisation within this sector is also termed as sole
traders as they do the business on their own. Further major difference in between private sector
and sole traders are related to their structure, as in sole organisation sector structure is mini but
and in within private sector organisation they have their own define structure, size and shape is
according to hierarchical level. This organisation performs their functions with the motive to
earn more amount of profit. In addition with this, major source of funds in this section comes
from financial institutions, business entity and investors.
For example in the segment of private-sector Sainsbury is chosen as they have same
motive which is to serve customers and gain more amount of profit.
Public Sector:
Public sector organisations are those entities, in which major share part is undertaken by
government bodies and public agencies. Organisations within this sector operate their roles and
responsibilities with an aim to provide welfare to people rather than to increase profit. In this
kind of business organisation democratic rule is consist within which individual have own
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freedom to make sure about the decision making (Andersson, Forsgren and Holm, 2015). In
addition with this public sector organisation perform their roles and responsibilities as per
according to regulations that lad them towards smooth functioning.
For example in context with public organisation where decision making is mostly in the
hand of government, BBCC is chosen in this sector as in this same concept is exist as in this
government entities whole major rights.
Voluntary organisation:
Voluntary organisation it includes group of people and volunteers who are wilfully
combined to perform their roles as to offer welfare services to large group, individual and region
as to decrease the amount of any social cause. Major fund source of voluntary organisation
comes from voluntary units, private business as in this promotional purpose are linked with
private organisation. This organisation have long-term sustainable business structure, as they
support people and gain high level of loyalty from them which help them to increase their
business reputation and image in society.
For example Welcome trust is considered in this report as a voluntary organisation as
they offer their services towards human health along with protection of biodiversity and animals.
This organisation effectively perform their responsibility to provide welfare to all of them which
lead them towards contributing major part in development of social and Wildlife Protection.
P2 Explain the size and scope of a range of different types of organisations
There are different types of organisation those who perform their roles and responsibility
with an aim to provide satisfaction to customers along with gaining profitable amount. These
entire organisations have different size and structure. Mentioned below size and structure of
public, voluntary and private organisations are described with the help of which organisations are
effectively able to perform their role without any hindrance:
Sainsbury:
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Sainsbury one of the third largest organisations perform their business in retailing store
and offer wide range of products including groceries and other essentials that include financial
support, telecommunication and more. Company have diverse environment and culture which
help them to gain more shares in Marketplace.
Vision & mission:
Sainsbury effectively perform their functions with a formative vision which is to expand
their services around the globe in order to provide high level of customer satisfaction. In addition
with this vision of company is “customers’ first priority”
Size & scope:
Company perform their role in retailing sector and is one of the leading and largest
business organisations that perform functions in this segment as company employee more than
4000 employees in different stores of company in diverse location such as Scotland, England and
Ireland. In addition with this, company is looking forward to expand the business services in the
provinces of Europe as to effectively increase their profitability.
Organisation structure:
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Illustration 1: Structure of the Sainsbury
Sources: Structure of the Sainsbury, 2018
BBC:
BBC is one of the largest and leading broadcasting entity along with a financial
institution that engage in the service of providing services related to investment generation and
TV views to wide range of individuals, group and management Consultancy Services. BBC is
mainly known for their qualitative services which are offered by them in best effective manner.
Vision or mission:
BBC offers their qualitative services to large group and individual with an aim, which is
to make “People thought to be broadcast”. Along with this company hold a mission statement
which is to effectively expand their business profitability up to 20% in the next upcoming
financial years.
Size & scope:
BBC is one of the largest and leading organisations that offer services to wide range of
population. Company employee more than 12000 people and offer their services in domestic and
other related locations. Company have flat organisational structure within which different
functions of business are publicized.
Organisational structure:
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Illustration 2: Organisation structure of the BBC
Welcome trust:
Welcome trust offer welfare services which is related to conducted research in order to
protect human and animals in order to effectively relief biodiversity.
Vision & mission:
Company perform their welfare services with the mission statement which is to
“Contributes big efforts in human protection and wildlife protection”. In addition with this
organisation have mission which is to encourage individual towards human empowerment.
Size or scope:
Welcome trust have no particular structure, as in this any individual can contribute their
participation towards organisational objectives.
Organisational structure:
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Illustration 3: Organisation structure
Sources: Organisation structure of the Welcome trust, 2019
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TASK 2
P3 The relationship between different organisational function and their link with organisational
objectives and structure
Sainsbury is one of the largest and leading Supermarket chains of stores situated in United
Kingdom. Organisation has wide range of department who perform their work in diverse nature
but with the same aim which is to improve overall productivity and performance of organisation.
Different types of departments within Sainsbury include Finance Department, Human Resource
Department, operational department, development department, marketing department etc. All
these functions of these organisation departments are basically interrelated with each other and
serve a common purpose which is to sustain organisational growth for long duration of time. In
addition with this by formulating their roles in inter related manner there are some influence of it
on Sainsbury that affects overall business structure along with objectives that are described
below in descriptive manner:
Human resource and marketing department:
Major role that has been played by human resource manager of Sainsbury is to recruit
potential and talented candidates from external and internal business structure. For an instance in
order to fill job vacancy in organisation HR department perform their roles with the assistance of
Marketing department, in this regard Marketing department take advantage of numerous form of
Technologies such as email, social media in order to gain attraction of large base of candidates.
With the help of interrelation between human resource and marketing department Sainsbury
effectively perform their roles and objectives in a define manner (Georgescu and Popescu, 2015).
Sales department and finance department:
Sales department acts as a one of the major department in Sainsbury as they perform their
rule which is related to increase overall sale of business organisation. In addition with this sales
department effectively perform their roles in an interrelated manner with finance department in
order to ensure long term sustainability and profitability. For instance, if there is a requirement of
resources like manpower and fund as to effectively operate business activity sales department
ask for finance department this effectively lead towards achievement of business objectives in
well defined manner.
Finance department and production department:
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This department is life blood of Sainsbury as they operate their role which is related to
manage budget of overall organisational structure (Shenkar, Luo and Chi, 2014 ). As this
department are only authorised to make cash flow statements and other related financial
statements such as balance sheet in a well define and systematic manner as to ensure smooth
functioning. In addition with this production departments acts as an essential element as they are
responsible to produce products and services thus for this, for financial assistance Production
department concerns with finance department. These interrelations in between these two
departments effectively aid Sainsbury to gain more competitive edges in a market place and
ensure sustainable growth.
Organisation structure:
Organisational structure includes wide range of function such as supervision,
coordination and task allocation that effectively lead towards attainment of organisational goals
and objectives. In Sainsbury flat structure is considered as with the help of this organisation
allow each and every employee to formulate decisions in relation to business policies and
procedures. Department of organisation such as research and development, human resource
production and marketing take advantage of flat structure with the help of this long-term
sustainability and profitability of company is insured in well effective manner.
TASK 3
P4 Identify the positive and negative impact which macro environment has upon the business
operations
In order to operate business objectives in well defined manner it is essential for all
organisation to evaluate external environment as in this there are different type of factors which
are required to be overcome by entities as to ensure sustainability in their functions. Thus, in
order to analyse factors within external environment Sainsbury can take advantage of pestle
analysis with the help of which they can challenge this factors in order to gain positive outcomes:
Political factors
Political factors include elements which are linked with political condition and
government policies that affect performance of organisations on their daily basis activities. As
Sainsbury is one of the largest and leading organisations and offer their services worldwide.
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Thus, company may face problems in relation with government policies. Mentioned below there
are positive and negative impact of this on Sainsbury.
Positive impact:
Positive impact this is related to taxation policies and more. It has been seen that UK
current taxation policies are stable that will helps Sainsbury in a favourable manner with the help
of which they can operate their functions in well effective manner. Along with this company
have opportunity to expand the business in other region which they have proper support of
government policies.
Negative impact:
Brexit state condition affects Sainsbury and they may find difficulty in selling their
products and services in affordable manner.
Economic factors:
Economic factor factors within this is related with inflation rate, expenditure, income
level etc this directly affect upon buying behaviour of customers thus, it is essential for
Sainsbury to evaluate situations in well effective manner and offer their product as per according
to the price range. Mentioned below some of the positive and negative impact of economic factor
on Sainsbury include.
Positive impact:
Sainsbury is one of the largest organisations with having appropriate fund. Thus,
Sainsbury have scope to invest amount in market as to evaluate current prevailing situation with
the help of this taken over the product at reasonable price range.
Negative impact:
Rise in interest rate may lead towards decreasing buying behaviour of customer that may
affect Company sales ratio.
Social factors:
It includes beliefs, behaviour, culture and value of customers and Society. All these change with
age factor, educational background and cultural aspects (Botha, Kourie and Snyman, 2014 ).
Thus, it is the responsibility of Sainsbury to evaluate all these factors in well defined manner
and offer their services as per according to customer needs.
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Positive impact:
With the help of high brand image and positive Goodwill Sainsbury can able to satisfy
social expectation of customers.
Negative impact:
Value, believes and culture are different from region to region this makes Sainsbury to
face lot of difficulties in order to fulfil each and every region needs and want.
Technological factors
In this dynamic World Technology is changing with fast phase thus, it is essential for an
organisation to take advantage of innovation and ideas as to effectively of effective services to
customers.
Positive impact:
Sainsbury offer their services via online mode and offer facility of online payment to
their customers with the help of which overall effectiveness of organisation increase.
Negative impact
As technology is changing with fast phase there is a requirement of day to day updating.
This may impact on Sainsbury as it is hard to overcome changes on daily basis.
Legal factors
It includes acts and legislation that are enforced by parliament in order to protect interest
of individual organisation and employees. Thus, it is essential for Sainsbury to evaluate laws and
policies in order to effectively perform their function. Mentioned below positive and negative
impact of legal factor or define.
Positive impact:
Sainsbury perform their functions as per laws and legislation framed by government with
the help of which they gain high brand value and profitability.
Negative impact:
Change in legal laws and legislation on each and every aspect that lead towards affecting their
organisational smooth functioning.
Environmental factors:
It includes laws related to protection of environment and natural resources thus, it is
essential for Sainsbury to fulfil factors within this segment.
Positive impact:
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Sainsbury operate functions while reducing utilisation of carbon emission this helps them
to gain more Run image in Marketplace.
Negative impact:
Company perform their function in different location thus there are many stores that have high
amount of carbon emission that lead towards creating negative image in customers mind.
P5 Conduct internal and external analysis in order to identify the strength and weaknesses
In order to perform roles and responsibilities in well defined Manner it is essential for an
organisation to evaluate factors when is internal and external environment as with the help of this
they can evaluate strength opportunities that lead them towards gaining more benefits mentioned
below swot of Sainsbury and BBC are discussed.
SWOT analysis of Sainsbury
Strength
 Sainsbury is one of the strongest
organisation of United Kingdom which
specialise in selling of different
products such as home ware products,
clothing and food products.
 Sainsbury has their own brand level
which supports in attracting large
number of customers towards brand.
Weakness
 Sainsbury is facing a biggest
competition from many retail
organisation such as Tesco, M&S, Asda
and so on.
 Sainsbury has large presence in Europe,
United Kingdom but has failed to
operate in Asia and many other lace.
Opportunities
 Sainsbury has the chances to enlarge its
product segment in ethnic section.
 Expansion of many other area is also
consider biggest opportunities for
Sainsbury which will help them to
achieve long term goals and objectives
within given time.
Threat
 Sainsbury is not able to met with the
current trend of the clients in the
section of clothing.
 One of the main threat of Sainsbury for
its competitors in same market.
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SWOT analysis of BBC
Strength
 Major strength of BBC is their
qualitative cast and crew along with
attractive marketing ad methodology.
 BBC have prominent source of funding
that makes them one the highest
leading earning organisation.
Weakness
 Lack of diversity is main weaknesses of
BBC that lead towards decreasing their
performance.
 Marketing techniques that has been
adopted by company is also the
weaknesses factor.

Opportunities
 Company have opportunities to grow
their area of servicing in those
countries that are still untouched.
 Company by taking advantage of social
media can gain more opportunities.
Threat
 External interferences and social media
trends acts as an major threat element
for BBC.
TASK 4
P6 Interrelation of strength and weaknesses with external environmental factors
Every organisation performs their operations while having strength and weaknesses with
the help of which they can easily able to accomplish their goals and objectives within specified
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period of time. There are numerous forms of external factors that lead towards impacting
operation of an organisation
Political factor
Political factor mainly include regulations, policies and rules that impact on an
organisation performance. Thus, it is essential for Sainsbury to maintain positive business
relationship with government and abide all guidelines in order to gain more competitive
advantages.
Environmental factor:
By participating in numerous CSR activities company can lead towards building trust in
mind of the customers. Along with this company can undertake manufacturing of their products
in recycled way by using raw materials which is recycled as to effectively generate low waste
products through their manufacturing process (Kolk, 2016). This proves to be strength for
company and help them to gain more competitive advancements.
Social factor
It has been evaluated that customers buying nature with the UK keeps on changing in a
continuous manner. Thus, by evaluating their behaviour Sainsbury can effectively able to offers
product and services in well defined manner.
Technological:
Sainsbury invest huge funds in their technological aspects and take help of innovative
ideas this help them to serve customers with trending and best.
Legal factor-
As negligence of this factor, may be turned towards heavy loss for Organisation in future.
This factor proves to be strength for Sainsbury as company already operates their business in UK
provinces in a specific guideline framework and implement legal guidelines by government
related to health and safety environmental measures in the workplace.
Economical factor
Company have major share in market place this makes them strong while in the situation
of inflations and other economical turbulence.
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CONCLUSION
As per the above mentioned report it has been concluded that, business environment include
different types of factors internal and external environment that affect organisational operations.
There are different types of organisations who perform their sources with different aims and
motive these entire have different types of size, scope, mission, services and vision. In addition
with this report include interrelation of different types of element in an organisation with the help
of which organisation can effectively achieve their targets and well defined manner. In addition
with this SWOT and PESTLE analysis has been included in this report with the help of which
organisation can able to evaluate strength and weakness in order to overcome them as to gain
more benefits in a market place.
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Online
Business Environment. 2019. [Online] Available
through<http://www.businessdictionary.com/definition/business-environment.html>
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