Business and Business Environment Analysis for Sainsbury's: Report

This report provides a comprehensive analysis of Sainsbury's business environment, examining various organizational types including public, private, and voluntary sectors, and their respective legal structures, purposes, and stakeholders. It explores the size and scope of different organizations like the NHS, Sainsbury's, and the Good Thing Foundation. The report delves into the relationships between organizational functions, focusing on marketing and finance, and their interdependencies. It assesses the positive and negative impacts of macro-environmental factors on business operations and conducts an internal and external analysis to identify strengths, weaknesses, and the interrelation of these factors with the external environment. The report uses Sainsbury's as a case study to illustrate key concepts, providing insights into the company's market position, competitive strategies, and operational challenges.

Business & Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Organisational types with purposes, legal structure as well as stakeholders........................3
P2 Explain the size and scope of a range of different types of organisations.............................6
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions.....................................7
TASK 3............................................................................................................................................9
P4 Positive and negative impacts of macro environment factors upon business operations......9
TASK 4..........................................................................................................................................11
P5 Internal and external analysis of organisations to identify their strength and weaknesses..11
P6 Interrelation of strengths and weaknesses with external macro factors...............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is sum of the internal as well as external factors that influence to
business efficiency as well as operations in direct manner (Bah and Fang, 2015). It is important
for the different types of organisations to make plans and approaches as per the fluctuated
environment conditions. In this environment consist of different types of aspects such as
technological, political, legal and others. So it is essential for the business to effectively run the
business activities as per the changing environmental aspects. To understand the concept of the
report selected organisation Sainsbury organisation which is operated super market in the UK.
This report mainly depended on the North west London chamber of commerce that wants to
become successful. In the particular project report consist of different types of organisation like
private, public and voluntary organisation and their size, scope and functions. Along with
defined the interrelationship between different functions and related with the each other.
Additionally, define the positive and negative impact on the business operations and analysis the
strength, weakness in the context of external macro factors.
TASK 1
P1. Organisational types with purposes, legal structure as well as stakeholders.
Every organisation has group that based on the ownership and other activities. An
organisation classified into the different types that have several scope, legal structure, purpose,
vision & mission. Regulation of these organisation have different hands and according to that
follow rules & regulations. There is defined the different business entity which are mentioned
underneath:
Public sector organisation: These types of organisation are not regulated & controlled
by the individual. It is operate by the government because they have all the responsibility that
can be central or state (Belás and et. al., 2014). In this sector selected the organisation National
health service. This organisation mainly situated in the United Kingdom which is provided
different types of health services at national level.
Objective: The main Objective of the public organisation to support those people who
require help and have low income that's why they do not afford the services. The main purpose
of the NHS organisation to supplying the basic health services to those people who have not
good income sources. Eventually, these types of organisation do not concentrate on the

increasing market share as well as growth because they don't want to generate profit from the
public. Because for the public services government provide the fund and staff members serve on
a permanent contract with higher pay scale.
Legal structure: The public organisation legal structure based on the regulation by the
government, local or domestic government. In the broad manner, the UK government set the
own rules & regulations and policies to conduct the business activities effectively.
 Local government: There is providing the authority and responsibility to local
government to manage a city or town (Belás and et. al., 2015).
 State government: It is approved with the arrange the power where manage the activities
and possess all the power that is defined in the law and conduct business environment. Central government: At this level all the government division are working in a country.
For this supreme power allocated to responsibility to local and statement government to
conduct activities effectively.
Stakeholders: The main key internal stakeholder of the organisation are managers and
staff members of the business. External stakeholders are Government, general public and
financial entities.
Vision: To connect with the people as well as companies to develop effective atmosphere
that allow for the changes as well as innovation in order to improve the health of the individuals
and stay well being.
Mission: To improve the experience of the people regarding the health services and
found professionalism and value experience to provide clinical practices.
Private sector organisation: These types of organisation are not governed by the
government and not the public property. It is operated by the private parties. In this report
selected private organisation Sainsbury which is a retail sector organisation that was founded in
1869 by John James to dealing into the grocery & super markets.
Legal structure: The private organisation are formed in following three legal structure:
 Sole traders: The particular business operated by the individual person with the available
sources & fund. For this business is not required to registered of these types of business
because there is consisted of high amount of rewards as well as risk.

 Partnership: There are two or more individuals are operating the business activities and
share profit and loss in equal manner. For this business required to registered as per the
partnership act and deed signed among partners. Company: Business entity situated according to company law and have separate legal
identification in terms of law. Sainsbury is performing its business activities to set up
separate legal entity that provides effective legal structure to the business.
Stakeholders: Sainsubury have internal as well as external stakeholders that relate with
the organisation. In stakeholders consist of managers, staff members of the store and many
others. The external stakeholders are suppliers, government and local communities.
Vision: The main vision of the organisation to provide services to customer as most
trusted organisation and provide employment to people (Erasmus, Strydom and Rudansky-
Kloppers, 2016).
Mission: To focus on the customer taste & preferences according to that provide the food
quality with high standards.
Objective: To provide different type food products in fair price and consumer get good
experience after purchasing products from the store.
Voluntary organisation: These types of organisation are known as the non profit
organisations. There are consisting of smaller as well as larger organisation like healthcare,
educational and charitable industries. Good thing foundation is type of the voluntary organisation
that founded in the 2011 in the south Yorkshire. It provide supports to people to over come from
the social problems, challenges, develop society that based on the digital activities and help to
individuals to grow their essential skills.
Objective: The main objective of the Good thing foundation to deduct the range of the
digital rejection, set better life of people through digital activities and providing solutions
through digital technology for address various social issues.
Legal structure: There is different types of the voluntary legal structure such as:
 Unincorporated Association: According to this structure same objective organisation
come together that have not registered under any law that work as the social welfare. The
company have not motive to earn profit.

 Trust: It is the legal formation of the non profit organization which is provided services to
large number of people with specific motive like social welfare. Good thing foundation
work as the trust and present their activities as trusties. Company: Non profit organisation also registered as the limited company that provides
public for social welfare.
Stakeholders: The staff members, suppliers, creditors, investors and consumers are the
stakeholders that divided into external and internal.
Mission: The mission of Good thing foundation to provide help to people through social
change charity and improve life by digital activities.
Vision: To set a good world where all over the world get the advantages by digital
technology and get specific platform.
P2 Explain the size and scope of a range of different types of organisations
A business environment is influenced by the size as well as scope in order to perform in
the competitive environment where carry out more and more challenges. There are defined the
size and scope of the different organisations as follows:
National Health Service
Size: The size of the NHS has wider because there are consisting of many hospitals,
community and primary care where are working about the 150000 doctors and 320000 nurses
and midwives that provided services to the patient (Georgescu and Popescul, 2015). The
particular organisation provide health care as well as medical services to the public. As it has
large size that provides free services to the UK residents.
Scope: NHS intent to carry out different reforms in the context of the opportunity and
challenges that face in the pharmacy profession. As per the present movement or shifts in the
commissioning framework and focus with the help of coordinated care for the developing
patients to get effective results. NHS can provide facilities about the 65 million people in the UK
and connect with the about 1 million person at 36 hours.
Sainsbury
Size: It is the second largest supermarket chain of the United Kingdom that contribute
about the 15.35% share in the super market. It is provided recruitment about the 186900 staff
members and generate revenues about the £ 28.456 billion. The company have net income about

the is £309 million. It is conducting activities across 1415 shops which are established all over
the UK.
Scope: Sainsbury is delivery services to large number of customers group and offer
opportunity to purchase things under a roof. So it helps to become famous and largest
supermarket in the UK. It is conducting services in the retail sector where scope to spread out the
operations of the super market at the whole Europe and other countries.
Good Thing Foundation:
Size: Few time ago this foundation has been recorded that this foundation had accepted
cooperation with the about 5000 community partners to providing services to about large number
of common people with the digital services and improve standard of living. The particular
organisation is a medium size that known as non profit organisation and conduct activities to
serve more and more of consumers.
Scope: The Good thing foundation is established with the particular motive to spread out
the utilisation of the digital media so that quality of life can be offered to all the people who lives
in the UK. Through using of the digital media to sort out the different types of issues on right
time (Grewal and et. al., 2015).
TASK 2
P3 Explain the relationship between different organisational functions
The organisational functions are outlined as the group of activities where carried out the
several divisions of the business and all the departments are working for the common objectives
that set by the organisation. There are defined some common function that conducted by the
retail function in order to show their performance like information technology, financing, human
resources, marketing and storing goods.

The main function of the Sainsbury organisation of marketing as well as sales in the UK
market. So it become one of the largest supermarket chain that concentrate on the different
marketing strategies to increase sales and marketing involves for all the marketing activities
which is utilised by the business entity in order to address the consumers with all the different
goods and services that provided by the particular super market. According to this function retail
store will be capable to recognise al;l the sources that helps to get success for the products at the
particular market place. The sales department of Sainsbury store will report to marketing
department in order to provide feedback of the consumer in the context of the different goods &
services provided by the firm (Kljucnikov and et. al., 2016).
Relationship between marketing and finance department: The Sainsbury mainly dealing
in the retail sector and the aim of the supermarket to provide effective marketing that impact on
the customer mind. All the departments of Sainsbury performing directly with the finance
department. The marketing department is influenced by the finance as budgets that are necessary
to operate in marketing for business to create by the finance department. The manager of the
marketing can be accomplished effectively. If both departments link their functions so get
outcomes will be productive.
Relationship between finance and HR department: The operations of the Sainsbury are
presented at the large scale. For this required to highly qualified workers that have skills of sales
and marketing. The HR department of the Sainsbury organisation mainly concentrated on the
offers that provide by the best man power for the organisation at the different levels. There are
conducting critical analysis that have done by them for the job role of each individual and skills
required can be specifically recognised. To appoint of the educated and capable staff members in

the business may needed more and more finances. HR as well as finance department required to
communicate so that budget can be developed to recruit best manpower according to budget in
the super market.
TASK 3
P4 Positive and negative impacts of macro environment factors upon business operations
PESTLE Analysis: In this analysis all the external activities that impact on the business
performance in direct manner. On the basis of particular analysis an organisation prepare
effective strategy effectively. There are conducting PESTLE analysis of Sainsbury that has been
defined:
Political factor: In this factor consist of various types of regulations, trade practices, tax
rate etc. These factors influence to business and require to focus on the efficiency. There are
defined impact in positive and negative manner: Positive impact: Due to occur Brexit in 2016, most of the population voted to EU for
leave. As a result it shows positive impact to arrange goods quality and increase profit.
 Negative impact: Leaving the Euro zone has had a negative effect on Sainsbury's as it has
become very challenging for grocery store executives to manufacture and trade goods
from foreign countries as a result of which organizational costs have boosted (Quinlan
and et. al., 2019).
Economic factor: There are consisting of inflation & interest rate, labour rate, currency
exchange rate etc. Positive impact: Due to deduct the rate of labour as well as fuel price impact in positive
manner because Sainsbury recruit more employees to provide effective services to their
customers and fulfil the expectation.
 Negative impact: When raise the price of the fuel as well as diesel so company does not
easily supply the goods and make expensive transport that decrease the sales.
Social factor: The social status like population growth, age, career attributes and cultural
restrictions impact on the Sainsbury supermarket like: Positive impact: Consumers are more well-being conscious, so it is beneficial for
Sainsbury to offer better meals and alcoholic beverage value at affordable prices, which
helps increase the number of customers.

 Negative impact: The particular supermarket do not focusing on the customer health and
offer unhealthy food as well as drink that impact on the health in direct manner.
Technological factor: It is consisting of advanced digital technology, changes, issues
such as online trading, robotic services etc. that are applied by the Sainsubury to analysis the
impact positive and negative like: Positive impact: After apply the advanced technology customer attract and happy with
the services that provide by the Sainsbury to their customers. Customers are not facing
any problem regarding the payment option due to provide different alternatives.
 Negative impact: It can impact in negative manner due to carrying of cost and apply
digital technology for online and offline shopping. As a result it increase cost compare
than to profit.
Legal factor: Every organisation required to follow all the legal activities that relates to
their sector like health & safety, copyright and patents (Saleem, 2015). Positive impact: To become long time in the retail sector Sainsbury follow the rules &
regulations that helps to create good brand image in the market. As a result it helps to
maintain good relationship with the customers.
 Negative impact: When Sainsbury does not follow all the laws so lose the trust of the
customer and fall down brand image in the market.
Environmental factor: There are consisting of various factors regarding to environment
safety, climate change, weather etc. There are discussed the positive and negative impact of the
environment factors on Sainsbury such as: Positive impact: The supermarket has been developing low share of carbon dioxide due
to recycle of the wastage products and decrease the use of carbon footprint after adopted
the environment safety law.
 Negative impact: Due to continuous changes in the environment damage the products
that keep in the ware house. Sainsbury can keep different types of products that based on
the weather condition.

TASK 4
P5 Internal and external analysis of organisations to identify their strength and weaknesses
SWOT analysis is an internal analysis that provides that detail information of the
organisation to know the strength, weakness, opportunity and threat. For this purpose, to identify
the major strength and weakness, internal analysis of NHS has been analysed in following way
Strengths: As NHS is one of the healthcare organisation of UK, therefore, there is no
major competitor of this organisation. So, this would help in maintaining interest of investors to
make investment, so that better health facilities can be provided to public for their well-being.
Along with this, as compared to private hospitals, emergency services and other facilities are also
unique that helps in maintaining its competitive position (Savrul, Incekara and Sener, 2014).
Weaknesses: Increasing population size with more demand to get health facilities on
minimum cost, creates difficulties in front of NHS, to stimulate their demand. It also affect
performance of this organisation, where to see more patients in a day, medical practitioners could
not provide more attention on them individually.
Opportunity: NHS can usage the effective market strategies to promote health care
services that helps to raise their profile. Furthermore, use different types of social platforms such
as YouTube, Facebook, Twitter etc.
Threat: As EU leaving the UK it impact in negatively and NHS loss their fund about
45% of the revenue that come from the government.
Sainsubury
Strength: The automation activities supports to business as per the demand of the product
in the market place. They are satisfying the consumer at extreme level through effective goods
and services. For this they are hired skilled staff member and rime to time provide training.
Weakness: Sainsubury face the high labour turn over that increase cost due to provide
training & development of staff members. There is law investment and low profitability in
certain period of times in the organisation.
Opportunity: After Brexit company achieve many opportunities regarding to business
that supports to increase profitability. New trends in the market impact on the consumer
behaviour and spend more at super market.

Threat: The demand of seasonable product that impact on the profit and difficult to
follow the new regulation in various market place. Due to increasing strength of the local
distributors is influencing of the profitability.
P6 Interrelation of strengths and weaknesses with external macro factors
The strength and weakness of any organisation based on the internal activities that
connected with the external macro factors. In the context of the Sainsubury described both factor
interrelation underneath:
Political Factor Strength: If business wants to extended into another nation so it is required to internal
political stability is theirs, it turned out to be a catalyst for global success. The term of
Brexit carry out the possibility to the business.
 Weakness: Due to changes of the government and change the rules & regulations so it
impact on the stability of the organisation for future activities. The Infliction of EU laws
made complex to generate profitability through import as well as export.
Economic Factor: Strength: After the Brexit Sainsbury get various business opportunities in the retail
sector. Due to decreased labour rate provide skilled labour in the super market and
generate profit.
 Weakness: The smooth policies of an organisation leads for the competition in the
Sainsbury and changing price of raw material increase cost.
Social Factor Strength: The Sainsbury mainly concentrate on providing goods due to fulfil the
expectation of the consumer. It helps to create goof relation with customer and in present
time people become more health consciousness. So it provide opportunity to spread out
the business activities.
 Weakness: As per the automation to introduced of the business can impact on the
employment opportunities.
Technological Factor: Strength: The company always follow advanced technology that attract customers and
fulfil the demand the customer as per the expectation. It is providing online facilities to
group of people effectively.

 Weakness: Operational cost has gone high due to apply advanced technology and
required more amount for the maintenance.
Legal Factor: Strength: To follow all the rules & regulations in proper manner and provide good
quality food to customer helps to create good brand image to get growth.
 Weakness: Due to introduced more and more requirements require to provide difficult
legal structure of the organisation. Different laws at the international level make critical
to follow them.
Environmental Factor: Strength: Sainsbury follow all the rules regarding to environment and provide priority to
establish good image at the market place. After introduce anti oxidant characteristic in
different services supports business to increase with effective atmosphere image.
 Weakness: It is required to keep clean and healthy environment where proper utilise of
the resource. Due to change climatic conditions make complex for the business activities
and do not follow all the organisational policies.
CONCLUSION
It has been concluded from this assignment that today’s business environment of
organisations has become more dynamic. The reason behind this is regular changes in internal
and external environment, that demands firms to develop better strategy for operating
successfully. Along with this, before making any change in business operations, it is essential for
companies to analyse external factors like political laws, social concerns and advancement of
technology. This would help in developing better strategies for running business successfully.
Similarly, measuring company’s internal capabilities, also aid to identify weaknesses that arise
barriers for accomplishment of corporate objectives and make changes accordingly to reduce
same.

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