Business and the Business Environment Report for Sainsbury's

This report provides a comprehensive analysis of Sainsbury's business and its environment. It begins by exploring different types of organizations, including public, private, and voluntary sectors, and their respective purposes and scopes. The report then examines the relationship between organizational functions like design and production, finance, sales and marketing, and human resources, highlighting how these functions are interconnected and contribute to overall business objectives and structure. A significant portion of the report is dedicated to PESTLE and SWOT analyses, evaluating the positive and negative impacts of political, economic, social, technological, legal, and environmental factors, as well as assessing the company's internal strengths and weaknesses and how they relate to the external macro environment. The report concludes by synthesizing the findings and providing insights into Sainsbury's strategic positioning within the dynamic business landscape. The report emphasizes the importance of innovation and creativity in the business environment and its impact on the enterprise's functions and operations.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Types and purposed of organisation......................................................................................1
P2 Size and scope of different types of organisation..................................................................2
LO 2.................................................................................................................................................3
P3 Relationship between organisational functions and create link to objectives and structure .3
LO 3.................................................................................................................................................4
P4 PESTLE analysis and its positive and negative impact.........................................................4
LO 4.................................................................................................................................................6
P5 SWOT analysis and assess strength and weaknesses............................................................6
P6 How strength and weaknesses interrelate with external macro factors.................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In respect to implement innovation and creativity, business environment get several
benefits to work in systematic manner. In this regard, different aspects also carried that create
major impact on the enterprise to promote and development of the functions and operations of
business. With the help of the market trends and consideration, it could be see that innovative
results will be done in systematic manner (Bah and Fang, 2015). It assists to work for more
profits and revenue. Present report based on Sainsbury which is public sector business and
considered retail operations in different areas of the world. In order to gain insight information of
the present report, it covers size and scope of the business to develop more work and results at
workplace. Furthermore, it covers relationship of different department that assists to meet with
innovation and creativity at workplace. At last, SWOT and PESTLE analysis included that
assists to identify impact of external and internal consideration in the business.
LO 1
P1 Types and purposed of organisation
In order to develop systematic work performance, every business has different aim,
purposes, etc. so that they all are working accordingly. In this regard, operations and functions
developed in the different sector that assists to meet with its systematic work performance (Cull,
Navajas and Zeiler, 2015). In this way, following are different types of enterprise and their
purposes: Public organisation: Public organisation operate their functions and operations in the
enterprise to develop their systematic work performance. In this regard, they work for
public welfare and their safety. It will help to make advantages with considered different
aims and objectives at workplace. With the help of some innovations and creativity they
are able to attract several people in business easily (Wild, Wild and Han, 2014).
Therefore, it makes targets and goals to work on the business. However, there some
disadvantage exist which unable to control by the business such as lack of money for
investment. In this way, Sainsbury exist that considered operations and functions as
public sector aspect. Private organisation: Further, private company owned their operations and functions to
carry more profits and revenue at workplace. It will aid to work on the small number of
1

customers who want to buy products and services. Furthermore, there are less number of
shareholder so that fund generated with considered IPO in business. It also helps to make
focus on the creativity at workplace that make systematic work performance at
workplace. In addition to this, in this kind of business has limited liability to perform
functions and operations (Trevino and Nelson, 2016). For instance, Tesco operating their
functions and operations as the privately owned.
 Voluntary organisation: In order to deal with the voluntary sector operations and
functions, there are several individuals required in the business who make their activities
as per the business need. With the help of the agreements, systematic work performance
also developed at workplace to accomplish objectives. In the group, work done for
benefits and make targets to develop effective results. In this way, advantages considered
implement voluntary participation of the people (Schaltegger, Hansen and Lüdeke-
Freund, 2016). In addition to this, there is disadvantage to considered high cost to
perform task and activities. Beside this, in the business proper auditing needed so that
systematic work performance could be deliver at workplace. For instance, The National
Trust in UK perform their functions and operations as the voluntary enterprise.
P2 Size and scope of different types of organisation
Different business has distinguished size and scope in order to operate their outcomes.
Therefore, as per the aims and objectives, following description considered in the business:
 Private organisation: In the private sector enterprise shareholder appointed that operate
activities with limited liabilities in shares. They operate functions and operations to
develop their target market in different areas of the world. Their main objectives is to
earn high amount and earn more profits with making themselves as market leaders. They
considered their operations and functions as the sole proprietor, partnership, limited
liability, etc. (Wheelen, Hunger and Bamford, 2017). Further size of the business based
on its number of employees those work in the business. It assists to develop creativity and
belongs to the activities as well. Private sector enterprise developing objectives in small
and medium-sized operations to work through invest more money. They expanding
operations through implement more money in different areas. All private businesses
adopted hierarchical structure so that they accomplish desired results at workplace.
2

 Public organisation: In respect to develop systematic work performance, business
considered products and services delivery. They considered operations to control and
operate to make more profits and revenue. There are different rules and regulations in UK
market. Public sector business also considered health care, educational, social services to
attract more people in business (Helm and Gritsch, 2014). Scope of the public sector
business developed through working in different activities such as central government,
health care, etc. For example Sainsbury working in banking, retail, etc. sectors. In
addition to this, they develop several types of operations and functions with serve their
activities in different areas of the world. Further, this enterprise considered their size in
vertical structure to make policy and give effective participation with existing strategy.
Along with this horizontal structure develop with characteristics through position and
supervisor activities (Shenkar, Luo and Chi, 2014). In this type of structure through
follow guidelines and basic structure to attain systematic work performance at workplace.
LO 2
P3 Relationship between organisational functions and create link to objectives and structure
In respect to operate systematic work performance, it is essential to create link between
the organisational functions and objectives with structure as well. In this way, people need to
focus on the different activities such as marketing, financing, accounting, etc. These all work
together so that environment get benefits to work in systematic manner (Monroe, Rikala and
Somervuori, 2015). Hence, following are different functions that interrelated and make
systematic work performance at workplace:
 Design and production department: In the production department, Sainsbury carry
their operations and functions and outcomes in systematic manner. With the help of the
creative design and activities, products considered innovative results and attain
systematic work performance in the business environment (Leonidou, Fotiadis and
Katsikeas, 2015). It is the best way to work in the targets and goals of chosen business in
systematic manner.
 Finance department: In addition to this, finance department set budget and create
activities that are related with the functions and operations. They perform their operations
with marketing department to create proper design of the products and target more
3

customers by Sainsbury. Manufacturing activities also requires proper budget so that
program develop to concentrate on the proper payment activities and benefits as well
(Wu, Zhang and Lu, 2015). Effectiveness also developing through make support with
creativity in business environment. Apart from this, finance department has also linked
with the marketing department because advertisement activities also considered money
that needed to perform tasks and operations (Laszlo and Cescau, 2017). Satisfaction level
of the customers required to identify so that strategy involve in systematic manner at
workplace.
 Sales and marketing department: Sales and marketing department also work to create
proper management in the business to attain desired results at workplace. With the help
of increasing satisfaction level, customers are also attracted which helps to perform
marketing functions as well (Schaltegger, Lüdeke-Freund and Hansen, 2016). Design and
marketing activities of the business helps to make proper concentration on the products
and services. It assists to create reviews and concentrate on the functions and operations.
It develops business deal and performance of Sainsbury to focus on the strategy and
performance.
 Human resource department: Human resource department develop their operations and
functions in systematic manner with including recruitment, training, development, etc. In
Sainsbury, development program must be considered that are applicable to provide equal
and proper management. It impacts positively so that helpful consideration also maximise
that assists to attract potential candidates in the business environment (Charles Jr,
Schmidheiny and Watts, 2017). Therefore, it will help to make sure that HRM of chosen
business has responsibilities to implement Data protection act 1984 to maintain security
and personal information as well. Along with this, Equal Right Act 1974 also considered
which stated different rights of employees to maintain effectiveness.
LO 3
P4 PESTLE analysis and its positive and negative impact
In order to assess the external environment, PESTLE analysis is the important tool that
assists to develop systematic framework in the business. In Sainsbury, there are several issues
occurs due to market trends changes and results oriented with activities as well. Furthermore, it
4

also makes advantages to increases positive review of results at workplace (Lu, Hu and Tzeng,
2015). Therefore, certain elements included in it that majorly create impact such as: Political factors: In respect to look towards the political factors, it has been seen that
government in UK regulate different regulations and norms so that Sainsbury need to
concentrate on it to make systematic work performance. In this regard, several activities
has been promoted which charge taxes towards the retail business operations (Reim,
Parida and Örtqvist, 2015). All these regulations essentially followed to make innovation
and impact positively in different business environment. Economic factors: Economic factors are also developing positive impact to make sure
that several changes occurs to increase customer base in the business environment. In the
UK, there are certain policies, systems regulated that helps to focus on the work
performance. Therefore, Sainsbury need to concentrate on the different kinds of functions
that carried to develop finance, availability of resources at workplace. As results,
operations included to perform creativity at workplace (Cull, Navajas and Zeiler, 2015). Social factors: Social activities also create major impact on the business operations and
functions. In this context, consumer trends, lifestyle factors, career attitudes, fashion, etc.
All these elements create major impact on the Sainsbury activities. As results, they need
to focus on the these elements which considered cultural diversity and preference through
region or country (Wu, Zhang and Lu, 2015). Clothing range not always cater with all
size and ages of people. Hence, demographic with most disposal income sits needed. Technological factors: In order to attract several customers, it is important to Sainsbury
to implement automation innovations, disruptive technologies, social networking, etc. In
respect to considered E-commerce technology help to increase purpose of the business in
successful manner. Online shopping is popular trends in these days so that the company
need to focus on it to develop their profits and revenue. In this way, several customers
could be attracted easily through developing more operations on website. Legal factors: In respect to look towards the legal factors, there are several elements exist
that considered as rules in UK. Government of the country set these rules and regulations
which essentially adopted by Sainsbury to focus on their creativity and innovations. It
includes employment law, common law, health and safety regulations, local labour law,
etc. (Leonidou, Fotiadis and Katsikeas, 2015). Therefore, Sainsbury need to focus on the
5

wage rates because National Minimum Wage rate increasing yearly that assists to
concern family and friendly implications. In the peak trading periods, contractual
flexibility needed which assists to include compliance with modern Slavery Act.
 Environmental factors: Environmental restriction in the UK also exist that create major
impact on its outcomes and results. In this aspect, sustainable resources required for
ethical sourcing transportation procurement. In the supply chain management rising in
ethically and environmentally pushed price for goods of Sainsbury. In order to focus on
the environmental consideration, customer relationship need to be managed so that CSR
invention producing to make systematic work performance at workplace (Shenkar, Luo
and Chi, 2014). In addition to this, company need to make sure that their activities never
harm to any environmental activity in all over the environment.
LO 4
P5 SWOT analysis and assess strength and weaknesses
Sainsbury deals in international areas of the world so that they perceive creativity in all
over the global market. Therefore, plan considered expand and make innovation for dealing in
several areas. Following SWOT analysis considered in the business:
Strength Weaknesses
 Sainsbury deals in major supermarket
operations and functions.
 Excellent branding and advertisement.
 Each store considered more than 30000
stock in all over the area with own
label.
 Extremely experienced leadership team
(Wild, Wild and Han, 2014).
 Rising food prices in the world create
impact on Sainsbury selling at higher
price.
 Stiff competition in each segment of the
retail sector majorly impact (Cull,
Navajas and Zeiler, 2015).
Opportunities Threats
 Sainsbury can easily enter in the market
with emerging companies through
considered joint venture.
 Increasing globalisation create
challenges in the Sainsbury.
 Implementation the best quality of
6

 Expanding in growing economies
market like Africa, etc.
 Implement self checkout machine that
help to opening store for 24 hours.
products also create high cost at
workplace.
 There are major competitors in market
such as Tesco, Asda, etc.
Strength of SWOT within the Sainsbury Strong brand development: Sainsbury develop their strong brand with effective portfolio
to develop their segmentation. Hence, they are able to provide creative services and
quality in their products in the UK market. In this way, creativity model implement to
deal with several activities.
 Creativity and innovative results: Sainsbury always considered their operations and
functions with considered proper patent and agreements. Therefore, they are able to
increase systematic work performance at workplace. With this regard, customers are
easily attracted for new products and services in business.
Weaknesses of SWOT analysis in Tesco Concentrated on the quality of products and services: The chosen organisation
considered their operations and functions in different areas of the world. Therefore, they
need to focus on the quality to develop effective results at workplace. Sainsbury requires
implement effective activities in the business through considered more products and
services in the business environment (Wu, Zhang and Lu, 2015).
 Slowdown in economic results: In the country, economic results slow down every time
so that it create major impact on the results and outcomes of the enterprise. It creates
major impact on the business performance so that enterprise need to make their
consideration to develop creativity and performance.
P6 How strength and weaknesses interrelate with external macro factors
With the help of the systematic work performance, it is important to look towards the
internal and external both kind of analysis. This is because, it assists to develop economic
strength and weaknesses to maintain results and performance. In the way, following two kinds of
elements describes which create major impact on the functions and operations:
Micro factors
7

In the micro factors, following are results carried in the business that make strength and
weaknesses in the performances:
 Suppliers: Suppliers are those people who considered their part to provide raw-material
in the company. They considered operations and functions with different things that
influence business decisions (Monroe, Rikala and Somervuori, 2015). In order to
maintain relations with them, the chosen business need to provide timely payment and
considered systematic work performance as well. It assists to impact positively which
related with operations of Sainsbury.
 Resellers: Resellers considered their operations and functions to sell products to ultimate
customers. They are able to access their products and services as per convenience. They
are also known as the intermediaries to provide ultimate goods and services to implement
successful marketing activities. Along with this, they help to Sainsbury to create their
high reputation in front of customers. It ascertained relationship with several numbers of
customers directly (Wild, Wild and Han, 2014).
 Customers: Sainsbury also developed their products and services to deal with the
different people in business. Therefore, several kinds of customers are existed in the
business environment in term of international firm, direct customers, etc. They help to
make high profits and revenue in the business through adopting different products and
services as well. With this regard, successful results will be made to fulfil customers
needs and requirement.
Macro factors
Following are certain macro factors which develop for products and services in
Sainsbury: Technological forces: In order to develop products and services, technical skills requires
at workplace to implement creative operations and functions. With this regard, the chosen
business need to considered advance technology implementation which directly impact
on the operations and functions. Advance technology also assists to make effective
products and services in the business environment to gain more profits and better results
at workplace. Natural forces: Natural forces also impact on the Sainsbury operations and functions.
This is because, there are several natural elements exist that are not renewable resources
8

and impact negatively on the firm operations and functions . As results, petroleum
products, oil, etc. are included. Demographic forces: In respect to look towards the demographic factors, it has been
seen that there are different market segmentation exist that create impact on the business.
Because of variation in age, lifestyle, etc. Sainsbury get affected.
 Economic forces: Economic environment considered major part on the business
performance. Therefore, changes in market trends and customers requirement also create
major impact on the operations and functions. With this regard, it is important to
implement laws, regulation, norms, etc. (Shenkar, Luo and Chi, 2014). Hence, Sainsbury
need to follow to make effective results in the enterprise.
CONCLUSION
From the above report, it can be concluded that different enterprise possess their
operations and functions to attain desired results at workplace. In this regard, Sainsbury operate
their functions in public sector consideration to develop effective results at workplace.
Furthermore, report summarised about the different size and scope which considered operate
systematically and attain more significant results at workplace. Moreover, report articulated
about the positive and negative impact of PESTLE analysis which helps to operate in the
different areas of the world. Hence, the company able to generate strategic position and make
successful results in business. In addition to this, report considered SWOT analysis which helps
to make proper implementation of new programs.
9

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.
Charles Jr, O.H., Schmidheiny, S. and Watts, P., 2017. Walking the talk: The business case for
sustainable development. Routledge.
Cull, R., Navajas, S. and Zeiler, R., 2015. A new index of the business environment for
microfinance. World Development, 70, pp.357-388.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International
Business Review, 23(2), pp.418-428.
Laszlo, C. and Cescau, P., 2017. Sustainable value: How the world's leading companies are
doing well by doing good. Routledge.
Leonidou, L.C., Fotiadis, T.A. and Katsikeas, C.S., 2015. Environmentally friendly export
business strategy: Its determinants and effects on competitive advantage and
performance. International Business Review, 24(5), pp.798-811.
Lu, M.T., Hu, S.K. and Tzeng, G.H., 2015. Evaluating the implementation of business-to-
business m-commerce by SMEs based on a new hybrid MADM model. Management
Decision, 53(2), pp.290-317.
Monroe, K.B., Rikala, V.M. and Somervuori, O., 2015. Examining the application of behavioral
price research in business-to-business markets. Industrial Marketing Management, 47,
pp.17-25.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production, 97, pp.61-75.
Schaltegger, S., Hansen, E.G. and Lüdeke-Freund, F., 2016. Business models for sustainability:
Origins, present research, and future avenues.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2016. Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and
transformation. Organization & Environment, 29(3), pp.264-289.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
10

Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Wheelen, T.L., Hunger, J.D. and Bamford, C.E., 2017. Strategic management and business
policy. Pearson.
Wild, J.J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.
Wu, D., Zhang, G. and Lu, J., 2015. A fuzzy preference tree-based recommender system for
personalized business-to-business e-services. IEEE Transactions on Fuzzy Systems,
23(1), pp.29-43.
11