Business and Business Environment: Sainsbury PLC Report and Analysis

This report provides a detailed analysis of Sainsbury's business environment. It begins with an overview of different organizational structures, including Public Limited Companies (PLC), Private Limited Organizations (PVT. LTD.), and Community Interest Companies (CIC), with Sainsbury's being a key example. The report then analyzes Sainsbury's operations, market position, and organizational structure using an organizational chart. Part 2 delves into a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting the company, along with their positive and negative impacts. Furthermore, a SWOT analysis is presented, identifying Sainsbury's strengths, weaknesses, opportunities, and threats. The report concludes with a critical reflection on the findings and how they influence decision-making processes within the company, providing a comprehensive understanding of Sainsbury's business environment.

Business and Business
Environment
TABLE OF CONTENT

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1................................................................................................................................................3
Overview of the business organizations and growth of the business organization in the
international markets:...................................................................................................................3
Analysation of the different chosen organizations:.....................................................................4
Organizational chart of the firm showing the various functions in the context of “Sainsbury”:.5
Part 2................................................................................................................................................7
Pestle analysis of the firm with the positive and negative impacts in the context of
“Sainsbury”:.................................................................................................................................7
SWOT analysis of the firm in the context of “Sainsbury”-......................................................10
Critical reflection and how they influence the decision-making process:.................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
An organization refers to a place or the setup where people at different levels of
organizational structures play their part to fulfil various business functions. Business
environment is defined as the entity in which various commercial activities take place related to
the business operations in accordance of revenue generation and brand expansion of the business.
The following report will be covering the explanation of 3 different types of organizations. The
report will be showing about the inter relationship of various business functions in the relation of
a particular one of the business organization of the three firms with the help of organizational
chart including portfolio of fact sheets (Mainrai, and Mohania, 2020). Further, in the second part
of the report it will be showing positive and negative impacts of macro-environmental factors on
the one chosen business organization. The report of the organizations will also be determining
about the internal-external aspects of it through different models followed by a critical reflection
of the findings of the report.
MAIN BODY
Part 1
Overview of the business organizations and growth of the business organization in the
international markets:
Public limited company and organizations (PLC):
The public limited business (PLC.) organization or firm is that type of corporate firm where the
ownership is presented on behalf of the public. The interested people who like to have a personal
tendency or interest in buying market shares in this kind of company can easily purchase the
portion. The person investing in a public limited administration becomes the key stakeholder and
it is liable for the profits and losses since the amount invested is as per the interest of the investor
itself (Mbogo, 2021). One prime example of this kind of organization is UK based Sainsbury
company. It is a public limited company operating in the retail sector.
Private limited organization (PVT. LTD.):
The private limited organization is outlined as the type of the organization of which complete
ownership is in the hands of only few members that are the key stake holders of the firm. These
kinds of business firms are not found on the stock markets because they are owned and managed
by the private sector. As the name shows, the commercial liability and number of company's

shareholders are also in limited terms in privately owned company. For example, the pent land
group is a privately owned organization in the retail market of sports, outdoor and fashion sector.
Headquartered in Finchley, London, England.
Community interest company (CIC):
The term community interest companies means the companies that are set up for the sole purpose
of contributing towards the beneficial purpose of the community without any profit making
things in mind. These organizations work on the basis of the gathered funds from the businesses
that can be distributed among the society, to those who are in actual need. Example of this firm is
a UK based Community Interest Company 'Culture and sport Glasgow trading' (Mason, 2020). It
is a community-based company that uses its profits and revenues generated for charitable
reasons. The firm currently operates at Glasgow, united states.
Analysation of the different chosen organizations:
Sainsbury: the firm operates as the second largest supermarket chain of the United kingdom.
The company provides with around 14.9% of market share of the super market sector. The firm
was founded in 1869 by John James Sainsbury in Holborn, England, United Kingdom.
Organization is the largest retail operator of groceries. The organization is divided in the various
sector like Sainsbury supermarkets, Sainsbury banks, and Sainsbury Argos. The firm was over
taken by the Tesco by making the organization rank on the third or fourth number in the business
run. The organization was lately taken over by the Asda (Guo, and Wang, 2019). Business
operations of the firm is facilitates with the help of the 180000 employees. The company serves
the firm with various products like hypermarket, supermarkets, convenience store and forecourt
shops. Business of the firm generates the revenue of around 29 billion euros. The firm was listed
on the London stock exchange and constituent on FTSE 100 indexes. The major share holder of
the firm is sovereign of the wealth fund of Qatar that holds around the 14.99% of the major share
in the company.
Pent land private limited organization: the business organization is the privately owned firm
operates in the sports, outdoor and sports fashion sector. Organization is the major holder of the
JD sports, that operates in the around 19 countries with 2420 stores. The group owns the speedo,
berghaus, canterbury of new Zealand, endura, boxfresh, etc. The firm also have the UK licence
of footwear and joint venture with the Lacoste footwear. The firm operates with around 50000
people and generates the annual sales of 6.4 billion euros. Their business was awarded by the

international institute for management development. Organization mainly operates in the textile
and foot wear. The firm was founded in the Liverpool, United Kingdom in 1932 as the Liverpool
shoes company. Founders of the firm are Berko and Minnie Rubin. The firm is serving the
worldwide area. Products provided by the firm is mainly apparel, shoes, trainers, and sportswear.
Culture and sports Glasgow trading company: the company is the community interest
company incorporated on the 22/12/2006. The company's headquarter is located at al bion street
Glasgow in United Kingdom. The existing organization that not only keeps in their customers
engaged and attracted but also serves the society with greater purpose of humanity by extending
the main services by helping to those who are in need of help and support. The current status of
the company is active and the firm is registered charity. Company's principal objective works on
the advancements of the arts, culture and science, heritage, participation in sports, education and
health, and citizenship and community development with the provisions of numerous facilities
and other different services contributing towards the well-being. Company operates with the
nature of other business support services activities that are not classified elsewhere.
Organizational chart of the firm showing the various functions in the context of “Sainsbury”:
There are various functions that are present in within the business organization that plays an
interdisciplinary role in the working and other business operations of its business environment.
The thing that describes the organization is the organizational chart and it is diagram that focus
on the visual message conveying about the internal structure of the company by detailing the
roles, responsibilities, and the different relationships of the various groups and individuals of the
company (STAFF, C., 2019). The organizational chart shows out the structure of the business
organization, government and the other organizations. The organization chart of the firm shows
the various uses and the structure of the firm that can be used in many different ways. This can
be used as a management tool of the firm facilitating help for the planning, personnel directory
and purposes.
These functions might range from the Human resource department to the finance or advertising
segment and sales and marketing segment. Organizations operating like the Sainsbury functions
with the several internal and external business functions that operates by interacting with each
other on different basis that is shown as under:
Production HRM/HRD Research & Finance & Sales &

Functions and
management
Functions and
management
Development
Sector Functions
Accounts
department
Marketing
department
1. Sainsbury's
organization
production
function works on
the lean
manufacturing
model and it
produces its edible
goods in its own
factories.
1. The human
resource
management
function at
SAINSBURY'S
deliberately deals
with hiring and
recruiting a
diverse and
strategic
workforce
personnel and
categorizes their
job positions o n
the basis of
individual talents
and skills.
1. The research
and development
department of the
retail organization
is participating
with the task by
perpetually
upgrading its
technologies in the
modern ways.
1. The accounting
and finance
department is
employed with the
task of
maintaining
record statements
of the business
transactions.
1.
SAINSBURY'
S marketing
sector
primarily
focuses on its
promotional
sales aspects
along with
giving it a
competitive
advantage
through the
low-pricing
sales strategies
followed by
the firm.
2. For instance,
products like
groceries and
other items are
made and stored
in its production
centres and other
go downs which
reduces
operational costs
due to major space
2. Sainsbury's HR
department plays
an important role
in the
organization's
business units and
operations by
giving the
instruction and the
directive measures
to the employees
2. This business
segment or the
authorities are
vital role players
as it consistently
searches and
investigates
applicable
technological
elements to
determine that the
2. This section
functions in key
areas of the
business where it
collaborates for
the other
departments such
as PR, sales and
advertising to find
out their income
flow statements
2. Another
interactive role
of this function
is to derive and
maintain the
different prices
for categorized
products that
can be
marketed as
per the targeted

availability in the
firm itself.
based on the
smooth
functioning of the
firm.
technological
advancements
done are to or, can
be productively
used or not for the
development of
firm.
and revenue
enhancement
returns on the
investments.
consumers of
the firm's
business.
Benefits and drawbacks of interrelation and influence of functions on the organization:
ADVANTAGES DISADVANTAGES
1. The interrelationship and functioning among
the different business functions of Sainsbury
eliminates inter-departmental discord and other
operations.
There are times when all these functions
overlap and result in workplace complexities.
2. It promotes good interpersonal
communication and relationship in the
management authorities and employees.
In some instance issues of time
mismanagement and other complexities
occurs because of the simultaneous process
completions in the organization.
3. One of the important benefits of interactive
functions of Sainsbury's business is the creation
of problem-solving skills and extremely
effective management plans.
Incidences of miscommunication, inaccurate
hearing, etc. might also have taken place that
have affected the colleagues and their
productivity for the contribution in the
business operations.
Part 2
Pestle analysis of the firm with the positive and negative impacts in the context of “Sainsbury”:
Pestle analysis is the study of the external factor influencing the organization. The factors
included in the pestle analysis are political, economic, sociological, technological legal and
environmental factors. The pestle analysis of the firm is as under:

Political factor: sainsbury is the second world largest super market chain in UK, and company
mainly operates in United Kingdom. But since UK has existed from Europe, then it will have
certain impact on firm's business. Sainsbury's performance will be affected by political factors.
As, the government taxation rates and the consumer debt are high there in the country, and in
order that it will be impacting the position of the customers because of business conditions is
experienced on higher rates in the markets. Political factors includes government implemented
policies, tax policies, environmental law and regulations, political stability and instability that
will affect the organization's business functions. Example: when the government bring new
trading rules and restriction leading the organization to change their process of business
operations (Walters, and et.al., 2019). Positive political factor of the business is more widespread
for the economy. So, this treads of integrating is enhanced and increase industry for the
development. The country by operating in the stable economy then it gives positive impact on
the firm. But if the country is not performing in the stable econmoy then it gives negative impact
on company and might impact the revenue generation.
Economic factors: the economic factors have the various elements like interest rates, inflation
rates, foreign exchange rates, aggregate demand of the produce and investments in the economy.
With the efficient market of operations in the United Kingdom, the firm can have the easy access
in to the markets and To spread out globally in near future. The exchange rate of the country
could impact company's investments plans. Inflation rate in the market in recession during the
different years will result in increases inflation rate in economy that affects the organization.
Skill level of the employees in local market is good which will give positive impact on the
company business operations. The rapid growth in the economy has contributed for the
development of the company. But due to the rising rates, it impacted the market share of
sainsbury's products. Unemployment rates in the conurty and High inflation rate has come in
front as the two main factors of the economic differentiation that will affect the company. The
demand of the company's products and services decrease due to the high prices of products. So,
under this type of critical and unmanageble situation the company can expand their business in
new global markets to expand the business.
Sociological factors: the factor includes the cultural expectations and norms like age,
population, health and needs of the individuals. These factors contribute in the firm to understand
the market conditions in the global markets and develop the strategies according to the market

conditions of the international markets. The population of the country by shifting towards the
healthy trends, healthy foods and drinks so the different fast food items are not included in the
product list of the firm. In the modern days the individuals like the places that can give them all
the products under the same roof. Thus, the organization by offering the complete product line in
the same stores have the benefits of the customer attraction and brand loyalty in the customer.
Other social factor is increasing the female workers in the workplace, that will result in decrease
of the domestic meal making adn will help the firm.
Technological factors: this factor focus on the development and adoption of the new technology
that helps the firm in working innovatively. The firm can launch the company's E-commerce
store that will be helpful towards business to focus on current technologically friendly generation
and this will help to attract more of the customers for the business. Company can have many
aspects of brand improvement for the better customer experience and the customer retention. If
the brand start use of modern data based system like artificial intelligence and block chain then
the firm will able to understand the needs of the customers in better ways. This will also help
company in increasing sales and to adopt better marketing strategies of the firm by going on the
internet. The Latest technology is based on innovation that is used by the competitors of the
company and the organization must also focus on innovation to cover the market. if the company
starts using the latest technology then it will give positive impact on the company's business
success and growth (Christodoulou, and Cullinane, 2019). But, if the organization is not using
technology then it will give negative impact the business. By developing the online delivery
system as the thing is growing in the whole world, it will be benefitting the organization's
business.
Environmental factors: These factor is includes the surrounding and the environmental aspects
that provides both the negative and positive impacts on the firm's business. The firm should
mainly focus on preserving the environment and keeping the things healthy. The firm has to
respond in likely manner to save the society. In the context of organization's environmental
factors may put positive impact on the business as organization may take sustainable actions by
following the different concept.
Legal factors: The legal factors include quotas, changes of legislation and taxation laws of the
country. The legal factors affect the company in achieving the objective aligned in the small part
of it abiding the rules and regulations. The legislations made by the government influence

performance of sainsbury's business. For example: when the law introduced for new tax for the
advertisement for fast foods or unhealthy foods or other products this has been adopted by the
firm by modifying their products and services provided.
SWOT analysis of the firm in the context of “Sainsbury”-
Sainsbury is known as the retail brand In grocery sector. The Sainsbury has deals in food and
other merchandize as well (FATRICIA, 2016). The company today operate as the best super
market chain in U.K. But still has their own strengths and weakness. The SWOT analysis of the
Sainsbury is as follows-
Strengths of the Sainsbury are as follows-
The expansion moves- from being the smallest grocery stores, today Sainsbury is operating as
the best retail store chain Today, it is trying to satisfy all the consumer needs and deal in all the
grocery products. The Sainsbury is trying to become the best retail store because of all the right
moves of the expansion (Xiao, Chen and Yu, 2021).
Opportunity to cater all the consumers- Sainsbury is trying to cater all the grocery products to
the consumers. Business keep changing products according to the requirement of the consumer.
The reasonable products and the specialist product of the retail store offering best to every
segment of the society.
Innovative promotion- the strategies adopted for promoting are the strategies that has helped
business organization to grow. The retail consumer are getting attracted because of the
innovative promotion tool that company use. This has helped business in diversifying the
business.
Weakness of Sainsbury as are follows-
Brand Switching- Despite all the promotion strategies brand still find challenging retaining
consumers. The company still has risk of the consumer switching to the other products.
Low margins- the growing competition in the market is making difficult for the company to have
large amount of margins. Today, there are various brands competing in the market to become the
best retail store and that is making companies to cut cost their margins.
Higher costs- the procurement costs of the company is getting higher because today consumer
don't only visit the places for shopping purpose but also for the experiences they feel while
shopping. That's the reason Sainsbury is offering different experiences in their retail stores which
is increasing the costs of the company.

Opportunities for Sainsbury are as follows-
Partnership and joint ventures- Sainsbury can increase its consumer base by partnering with
different small brands in order to increase their profitability. Profits are very important for the
company today and joint ventures with local brands helps to gain it.
The 24*7 service- the new stores of Sainsbury provide the 24*7 services to its consumers that
will increase the profits of the company by helping the company to boost the sales. There are
very fewer stores in the market that provides 24*7 services.
The growing economies- the growing economies of the world can become the hub for the retail
store of Sainsbury. As the economy of any country grow the purchasing power of the people
increases, that purchasing power is new opportunity for the company.
Threats the Sainsbury is facing in the market-
Globalization- the increase globalization is the biggest challenge that the company is facing
today. The globalization brings new companies to the market and that companies gives major
threats to the existing companies.
Rules and Regulations- the different rules and regulations of different countries has been the
drawback for the company. All the liability laws in different states are creating a threat on the
companies position.
Controversies- Sainsbury has been caught in various controversies like the price- fixing,
environment and ethical issues etc. these controversies are the reason behind the decreasing
image of the market.
Critical reflection and how they influence the decision-making process:
From the above report I have analysed so many things about the business environment
including both, the external and internal factors have a very significant impact on the entire
structure of Sainsbury. The factors affecting power has lead to the fixing of the inner and outer
structure of the company, be it in the environment or in context of scope. Here by deriving the
information I have observed that, despite being the largest multinational company in the world
with a big portfolio across the globe, there are still numerous opportunities standing in front of
the company that if taken into consideration, help the business to touch new heights. I also got to
know that there exist different types of businesses with different production scales and functions
in each of the organization (Elgen, 2018). But from the above comparison of Sainsbury with the

other companies made me understand that there are interred relationship with reciprocally related
functions that exist in with in these businesses.
I came to know from the things done above that the strategic planning of the business
gets directly influenced by the external factors. These factors also affect the company's
management techniques that influences the decision-making process related to the customers.
Here I also observed that Sainsbury's product making is also affecting the environment as it was
causing deforestation, food wastage, packagings wastage etc. The company can take steps and
can aim in order to reformulate strategies and improve its customer loyalty base.
Later, I also learnt that there is an extreme competition in the market in which Sainsbury
operates, between the companies related to the different things like distribution channels, general
customers and supplier networks which is leading to a little declination of the company's sales
and its brand image. This has also made the company to raise the pricing of different products
because of the continuous rivalry from companies on the products. But in context to this issue I
also saw that, Sainsbury is also taking care of these things and is also planning on the new
strategies to take control over the factors which are causing this declination. Here, I should take
it in consideration that the company can also rise again and stand even stronger by taking care of
the external factors based on the increased organizational growth and development.
CONCLUSION
The above report have concluded about the types, size, and the scope of the different types of
organizations. The report have also shown about the inter-relationship of the various functions
with in the organization and how they are linked with the organizational structure. The report
will also show about the portfolio of fact sheets and organizational chart of the firm. Further, in
the report positive and negative impact of the macro environmental factors and the strengths and
weakness of the firm is being shown in the report of the firm sainsbury and how the different
internal and external factors affect the functing of the business is being shown in the report. The
critical reflection is also been shown in the report for the further enhancement of the business.

REFERENCES
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