Regent College: Business and Business Environment Report Analysis

This report provides a detailed analysis of Sainsbury's business environment, exploring various aspects such as different types of organizations, their sizes, and scopes. It examines the organizational functions within Sainsbury's and how they interrelate, emphasizing the hierarchical structure and departmental responsibilities. The report includes PESTLE analysis, assessing the political, economic, social, technological, legal, and environmental factors impacting the company. It also applies Porter's Five Forces model to evaluate the competitive landscape and conducts a SWOT analysis to identify Sainsbury's strengths, weaknesses, opportunities, and threats. The analysis covers Sainsbury's objectives, mission, vision, past performance, and the interconnectedness of its functional areas, such as marketing, finance, and research and development, highlighting their impact on the company's overall performance and decision-making processes. The report also touches upon the impact of external factors like Brexit and economic conditions on Sainsbury's operations and market expansion strategies.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P.1 Different types of organization.............................................................................................3
P2. Size and scope of different types of organization.................................................................4
P3. presenting different organizational functions and how they interrelate with each other......5
TASK 2............................................................................................................................................6
P4. Pestle analysis of Sainsbury..................................................................................................6
P5. Analysis of Porter's five force model of Sainsbury..............................................................8
P6. SWOT Analysis of Sainsbury...............................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES .........................................................................................................................12

INTRODUCTION
Business environment plays an important role and affects the performance of an organization;
there are two types of environment that is micro and macro and both will affect the business
directly or indirectly. The whole report shows how internal and external factors affect the
environment of Sainsbury's. It is 2nd largest chain of supermarket having dairy shops and
groceries. The report shows different types of organization and their size and scope. It also
explains its organizational functions and how they help in better decision making. Report also
depicts its positive, negative impact on the environment and with the help of PESTLE and
SWOT analysis determine its impact on the performance of a company. It also explains its
porters five force model and strengths and weaknesses of a company. It also explains Sainsbury's
objective that is to provide good quality of product to the customers and it also explains its
mission with vision and its past performances. The report also explains its functional structure
and the inter relation between every part of a company.
TASK 1
P.1 Different types of organization
Slide 1
BUSINESS AND
BUSINESS
ENVIRONMENT

Slide 2
P1 Different types of
organization
Private organization:
 It is controlled by individual, not a part of government. The
basic means of this sector is to gain more profit.
 This type of firm have their own legal identity and this
usually includes both profit and non- profit corporations.
For example retail store, credit unions and local businesses.
 In this sector, activities are guided to earn more profit.
 Further it is dived into Sole traders, in this type of private
organization person simply sets up to provide goods for
profit, there is no legal formality require and sole trader is
responsible for day to day management.
 For example, storekeepers, plumbers etc

Slide 3
CONTD
Public organization:
 These type of organization are owned by the government.
 Its main aim is not to generate profit.
 To serve public, they get funds from taxes, fees and through
financial transfers. For example, education, electricity, gas
oil etc.
 sometimes the public sector will be a partner in private
sector to create public- private partnership.
 These type of relationship work together to jointly deliver a
service and product.
 The main purpose of these sector is to enhance the level to
this sector and encourage people for more trust.

Slide 4
CONTD
Voluntary sector:
 The purpose of this type of organization is to benefit and enrich society
without profit and no government interference.
 They help to create social wealth rather than material wealth. But it is
separate from public sector, there are many organization which are
tightly linked with governments in order to make programs successful.
 Examples are charities, foundations and social welfare programs. In
this type of sectors people work in profit and non- profit organization.
 In profit org, these are operated by private sector and there is no
interference of government.
 These are related to both legal and financial framework. Their operation
can be based in multiple sectors like fashion, technology etc whereas
Non- profit organization are set up not to gain profit they work for the
peoples.
 There work is not to generate profit for private companies but to work
for public benefits.

Slide 5
CONTD
Legal Sectors:
 These type of sectors are completely bound with
laws and regulations.
 Government plays important role in this sector
because state may pass any new rule it must be
follow in this sector.
 Courts are come in the legal sectors.
A group or a social unit which is structured and manged to meet a need of people and
these are affected by environment. In organizations, different activities are dived in members and
staff with their roles and responsibilities. There are many organizations which are mention
below:
Private organization: it is controlled by individual, not a part of government. The basic
means of this sector is to gain more profit. This type of firm have their own legal identity and
this usually includes both profit and non- profit corporations. For example retail store, credit
unions and local businesses. In this sector, activities are guided to earn more profit. Further it is
dived into Sole traders, in this type of private organization person simply sets up to provide
goods for profit, there is no legal formality require and sole trader is responsible for day to day
management. For example, storekeepers, plumbers etc
Public organization: these type of organization are owned by the government. Its main
aim is not to generate profit. To serve public, they get funds from taxes, fees and through
financial transfers. For example, education, electricity, gas oil etc. sometimes the public sector
will be a partner in private sector to create public- private partnership. These type of relationship

work together to jointly deliver a service and product (Eidizadeh, and et.al. 2017). The main
purpose of these sector is to enhance the level to this sector and encourage people for more trust.
Voluntary sector: the purpose of this type of organization is to benefit and enrich society
without profit and no government interference. They help to create social wealth rather than
material wealth. But it is separate from public sector, there are many organization which are
tightly linked with governments in order to make programs successful. Examples are charities,
foundations and social welfare programs. In this type of sectors people work in profit and non-
profit organization. In profit org, these are operated by private sector and there is no interference
of government. These are related to both legal and financial framework. Their operation can be
based in multiple sectors like fashion, technology etc whereas Non- profit organization are set up
not to gain profit they work for the peoples. There work is not to generate profit for private
companies but to work for public benefits.
Legal Sectors: these type of sectors are completely bound with laws and regulations.
Government plays important role in this sector because state may pass any new rule it must be
follow in this sector. Courts are come in the legal sectors.
P2. Size and scope of different types of organization
Slide 6
P2 Size and scope of different
types of organization
Private organization:
 These type of business are mostly depends on its share because
they are small as compared to other form of organization as they
having small shareholder.
 For example 50 shareholders in UK. These share cannot be
related to public traded that means private companies cannot list
their shares on stock exchange.
 In UK, at the time of incorporation at least one share issued but
there is no minimum capital requirement so set up new private
company.
 There are many small medium enterprise which support private
company in order to protect them from personal liability and
reduce personal risk and allow to raise the funds.
 The main scope of this sector is to reduce the small scale
industry's quality and enhances the relationship between
customers and private owners.

Slide 7
CONTD
Public sectors:
 They can sell their shares easily on stock exchange. Not like private
companies, there is need to invest some amount of capital
 for example $50,000 in UK. They must appoint two type of directors
and company secretary and can file their annual return in every 12
months i.e. closing of financial year.
 In UK, public companies cannot trade its share without trading
certificate and they must include public limited in their names.
 They have different types of share including ordinary shares,
preferences share and redeemable share.
 The main advantage of public sectors is that they raise finance through
sale of shares to the public.
 But on the other side it is not possible for small business because they
will not afford it and at last they struggle to raise finance elsewhere.
 The scope of this sector is to provide variety of services and protection
from the government . It also manages government owned industry and
regulate private industries.

Slide 8
CONTD
Voluntary sectors:
 charities and foundations are divided in many sub group that is less
than 10,000 are named as micro charities, between 10,000 to 100,000
called small charities, range between 10,000 to 1 million known as
medium charities, 1 million to 10 million are named as large charity and
more than 10 million are known as major charity.
 These are the different types of charity and voluntary organization
conducts lot of activities it may in grouped or sub-sectors or in industry.
 Different activities are held on international and national level in order
to creates interest to take part in charity functions. In reality many
organizations take participating in multiple activity for their benefits.

Slide 9
CONTD
Legal Sectors:
 There is increment in the industry, over 600 industry are added.
 For example in Bureau of Labor Statistics issued that there are
around 1,128,200 people engaged in this company during
December.
 It includes lawyers, paralegals, secretaries in the legal service
employment report.
 In June, 2013 there is increase in service about 1.12 million and
1.13 million , roughly 50,000 new employees are engaged.
 Now in 2017, the data is slightly down because only 1,123,300
people are employed in legal sector while June marked a high,
with employing 1,130,700 in that month.

Slide 10
REFERENCES
Calabrese, M., and et.al. 2018. From Mechanical to Cognitive View: The
Changes of Decision Making in Business Environment. In Social
Dynamics in a Systems Perspective (pp. 223-240). Springer, Cham.
Hansen, M. W. and et.al. 2018. Coping with the African Business
Environment: Enterprise Strategy in Response to Institutional
Uncertainty in Tanzania. Journal of African Business. 19(1). pp.1-26.
Adegbite, O. E. and et.al., 2018. The Organisation Business Environment.
In Organisational Adaptations (pp. 11-26). Springer, Cham.
Private organization: these type of business are mostly depends on its share because they
are small as compared to other form of organization as they having small shareholder. For
example 50 shareholders in UK. These share cannot be related to public traded that means
private companies cannot list their shares on stock exchange. In UK, at the time of incorporation
at least one share issued but there is no minimum capital requirement so set up new private
company (Adegbite and et.al., 2018). There are many small medium enterprise which support
private company in order to protect them from personal liability and reduce personal risk and
allow to raise the funds. The main scope of this sector is to reduce the small scale industry's
quality and enhances the relationship between customers and private owners.
Public sectors: they can sell their shares easily on stock exchange. Not like private
companies, there is need to invest some amount of capital for example $50,000 in UK. They
must appoint two type of directors and company secretary and can file their annual return in