Business and Business Environment: Sainsbury and Marriott Analysis

This report provides a comprehensive analysis of the business environments of Sainsbury, a public limited retail company, and Marriott, a private hospitality firm. The report begins by defining the purpose and objectives of both organizations, examining their size, scope, and organizational structures, highlighting the differences between a public and private sector business. It delves into the organizational functions of Sainsbury, such as CSR activities, customer service, and training programs, and how these functions connect to the company's objectives and structures. The report also explores the interrelationship between business functions and organizational structure. Furthermore, the analysis includes both internal and external environmental factors, using PESTLE and SWOT analyses to assess the impact of macro factors on decision-making within both organizations. The report also discusses the differences and complexities of the business structures of both firms, offering valuable insights into how each company operates within its specific market context.

Business and Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................5
b)..................................................................................................................................................5
P3 Organizational functions how these connect to the organization’s objectives and structures5
M2 Organization structure impact on interrelationship between its business functions.............6
c)..................................................................................................................................................7
D1 Differences and complexities of two business case in regard to business structure..............7
PART 2 ...........................................................................................................................................8
a)..................................................................................................................................................8
1. Identifying some positive and negative impact of macro environment of business operations
......................................................................................................................................................8
2. Conducting an internal and external analysis to assess strengths as well as weaknesses .......8
3. Explaining the manner in which strengths and weaknesses of firm are linked with macro
factors .........................................................................................................................................9
4. Conducting PESTLE analysis of Sainsbury and present the manner in which macro factors
affect decision making .............................................................................................................10
REFERENCES .............................................................................................................................13

INTRODUCTION
Business environment is considered as the process which involves both internal and
external factors which affects the business operations within market. Therefore, it is essential for
firm to include all the factors and work together so that desired results can be attained. Also, it
involves different legislation such as health and safety which affects the business environment
internally (Kubasek, Brennan and Browne, 2016). Moreover, it also involves certain external
business factors which affects the control of firm’s operations in market and execute the business
activities. However, business needs to control over varied external factors and involve them
within business function so that long term objectives could be fulfilled. There are different
stakeholders who are involved within firm such as suppliers, customers, employees, government
and community which directly or indirectly influences the business operations. External factors
also help in identifying the demand and supply of merchandise and thus it is dependent upon the
varied factors of firm (Chow and et.al, 2016). Present study involves two different businesses i.e.
both private and public sector such as Sainsbury which is a public sector organization while
Marriott which is private firm operates in hospitality sector. Report also discusses upon
identifying the purpose and objectives of firm as well as assessing the size, structure and
objectives. Moreover, study also identifies the internal and external environmental factors that
involve PESTEL and SWOT analysis.
Case study of Sainsbury
Here, the case assesses that Sainsbury is a public limited company focuses upon selling
retail products. Firm also focuses upon carrying out effective CSR activities that assesses the
sustainability plan of firm which aims to minimize the use of plastic polythene bags and use
more of recyclable bags.
Case study of Marriott
In this case, it assesses that Marriott hotel is a private hospitality firm and ensures that
hotel meets the need of its clients by providing them best quality products or services in order to
attain customer satisfaction. Further, it focuses upon saving energy and uses different lighting
technology so that electricity can be saved and helps in improving customer experience.

PART 1
P1, P2 Describe the purpose of each of the chosen organizations and then explain the main
differences between their types and purposes, as well as between their size and scopes

Therefore, it is essential for firm to include all the factors and work together so that desired
results can be attained. Organisation is termed as functioning of different groups, teams and
individual within a workplace that directly lead to attain the goals and objectives that support
them to sustain in the competitive environment.

The key purpose of Sainsbury is to meet the requirement and needs of the customers
through delivering quality of products and services at fair and affordable prices. Although all the
company operates their business activities for attaining the profit and wealth but the public sector
company do not focuses on earning higher profit it deals with delivering quality products.

Along with this, in the year 2015 the number of employees within Sainsbury also increases up to
161,100 so that they may deliver the quality services to their different customers. On the other
hand, it has been describe that scope of public limited company is that it contribute their major
share in developing or growing the UK economy.

It has been describe that they key purpose of chosen organisation is to earn the maximum profits
and wealth so that they may easily expand their business activities in the different region. In
addition to this, another purpose of private organisation is to enhance their market share through
expanding their business activities.

Moreover there is wide scope among the private organisation as they have existing growth
opportunities as well as employment opportunities that support in enhancing their business
activities. Whereas, the scope of growth also exists within the retail industry that benefit Marriott
International to sustain in the hospitality industry.

The chosen organisation that is Sainsbury plc have tall hierarchical structure in which
their series of level and the above level control each of the specific level. For instance, manager
within the Sainsbury is responsible for the activities performed by their line manager and they
are accountable for the sales staff those who are working within the stores and directly in the
contact of customers.

The luxurious hospitality organisation have different brands that deals in delivering range
of services to different segment customers. Therefore, divisional structure is followed by
Marriott International.

On the other hand, another distinction among both the organisational structure include
that under divisional structure the authority is decentralize while the another structure results in
centralize authority structure.

b)
P3 Organizational functions how these connect to the organization’s objectives and structures
It can be assessed that Sainsbury Plc has been selected which is a public limited company
deals in retail supermarket business and focuses upon serving the best quality products or
services so that customer satisfaction can be attained. Another objective of firm is to give tough
competition to rivals through producing similar products or services and thus enhance the sales
and profitability of firm in market (Padmanand and et.al., 2016). Below discussed are the
different functions which aim to be performed within business such as- Maintaining CSR activities- It is one of the effective functions of Sainsbury that help
them to maintain CSR activities in order to sustain social responsibility in market. For
instance, it is significant for firm to use recyclable polythene bags so that environment
could be protected. Business aims to carry out such objectives and attain it till 2020 and
avoid bad impact upon environment (Wu, Chandramohan and Bali, 2016),

 Developing positive environment of store- Further, it is another function that helps
Sainsbury to focus upon developing positive environment of the store in order to satisfy
the needs of both workers and employees. However, it is essential for firm to maintain
positive environment through motivating workers and satisfying their needs which aims
to improve business performance and deliver best quality products and services to
customers (Davids and et.al., 2016). Rendering quality customer service- Moreover, it is essential for Sainsbury to render
quality customer service so that satisfaction can be attained among them. Business also
aims to improve the sales and profitability of firm in market. However, through
motivating the workforce it helps them to deliver quality customer service and enhance
market share by satisfying large number of customers (De Vries and et.al., 2016).
Further, identifying the needs of customers and then provide them appropriate goods so
that they do not focus upon moving towards competitors. Training and development program- Another function of Sainsbury is to provide
effective training and development session to its workers so that their needs could be
fulfilled. However, it is essential for firm to assess the training needs of its workers and
then provide them particular training so that skills and capabilities could be improved.
However, obtaining required training within specific field such as customer service helps
in delivering better customer service to attain desired satisfaction (Erisen and Kubicek,
2016). Expand business functions- It is an effective function that helps Sainsbury to enlarge its
business activities and improve their performance in market. However, it is essential for
firm to improve the business functions and enhance sales and profit margin so that set
targets could be attained. It also carries out effective business functions and thus
enhances the market share of firm in market (Xue and et.al., 2016). Managing cash reserves- Moreover, it is another function of Sainsbury that helps in
managing cash reserves so that it could be used at the time of emergency. Therefore, it is
essential for finance manager of firm to maintain cash reserves so that it could be utilized
whenever required. However, it helps in improving business performance and thus use
the funds so that best results can be attained (Crabbe and Acquaah, 2016).

 Carrying out proper safety and security measures- Such function helps Sainsbury to
maintain proper safety and security so that employees and customers could be
safeguarded. Proper safety measures needs to be maintained so that customers’ visiting
the supermarket does not get hurt (Atighechian and et.al., 2016). For instance, placing
CCTV and fire extinguisher helps in protecting the workplace environment at the time of
emergency.
 Inventory and stock management- It is another effective function of Sainsbury that assists
firm to maintain inventory and stock so that it could be utilized whenever required. Firm
also needs to maintain stock in a proper manner and thus maintain record so that desired
results can be attained (Igliński and et.al., 2016).
M2 Organization structure impact on interrelationship between its business functions
There are different functions of business which are highly interrelated in order to attain
desired results. All such functions, structures and objectives are interrelated to each other in
regard to accomplish desired functions of Sainsbury. Also, assessing the business environment
and identifying the business structure result into carrying out the structure so that set targets can
be attained in an effective way (Netting and et.al., 2016). All the set objectives help in carrying
out the internal business environment and influence the operations so that end results could be
attained. Structure of Sainsbury impact upon the business functions so that interrelationship
could be maintained in order to achieve business targets. However, it impacts upon the sales and
profitability of firm in market.
Further, there are different functions of Sainsbury such as handling cash reserves,
delivering quality customer service; managing business environment etc. needs to be attained so
that set objectives could be attained. Management of Sainsbury also aims to record each and
every customer needs so that it could be fulfilled in order to improve the performance of firm in
market (Usubiaga and et.al., 2017). However, delivering quality services would result into
performing best operations of firm. Sainsbury main objective is to carry out sustainability plan
and thus use recyclable polythene bags which could be used again and again. Also it does not
harm the environment at any cost. Thus, it helps in improving overall structure of firm in market
and thus raise the profitability of firm so that success can be attained.

c)
D1 Differences and complexities of two business case in regard to business structure
It has been assessed that business structure of Sainsbury is flat and therefore, it assists
that workers helps in managing and assigning the task effectively so that best results can be
attained. On the other hand, Marriott obtains a large structure of firm and thus assigns duties and
responsibilities to individual in order to accomplish the task effectively. However, main
advantage of Sainsbury’s structure is that it assists in making fast decisions and thus results into
performing desired functions effectively and efficiently (Wu, Chandramohan and Bali, 2016).
Through identifying the errors and disruptions within Sainsbury needs to overcome the same so
that best results can be attained. Also, there are different layers available within firm in the form
of hierarchy so that involves different individuals within business decision making.
Furthermore, Marriott uses complex business structure and thus it is essential for firm to
take effective business decision so that market share of firm could be improved in terms of
raising business performance. Thus, assessing the business functions within Sainsbury and
Marriott are interconnected in order to enhance the business performance so that set targets can
be attained. It is also essential for finance department of firm in regard to prepare appropriate
budget and thus commence the business functions accordingly (Davids and et.al., 2016). Also,
employing skilled candidates’ assists in improving business performance and results in attaining
success.
PART 2
a)
1. Identifying some positive and negative impact of macro environment of business operations
Macro environmental aspects have both positive and negative impact on the business
operations and performance of Sainsbury. Moreover, macro environmental aspects have indirect
influence on organizational growth and success. Tax is the major factor that places negative
impact of financial aspects of firm. Moreover, when tax liability increases then it may result into
decline in sales price. On the other side, now customers prefer to purchase nutritional product. In
this, by offering high quality food to the customers company can enhance its customer base and
thereby profitability aspect (Crabbe and Acquaah, 2016). Further, now usage of social media
increased with the high rates. Hence, online promotion is the cost effectual method or way which
in turn helps company in promoting services on large level at low cost.

However, laws and legislative framework negatively impacts the decision making aspect
of customers. For instance: Changes in labor policy such as hour and wage rate influences the
operations and functions of Sainsbury Plc. Moreover, during peak season such as festive time
company requires personnel for long hours. In this way, such laws affect the strategies of the
firm to a great extent. In addition to this, economic conditions impact the purchasing decision
and behavior of customers to the significant level (Usubiaga and et.al., 2017). Moreover,
customers make purchase of product in large quantity only when they have high disposable
income. In this way, favorable condition of economy helps organization in attaining the goals
and vice versa. Hence, by taking into consideration all the above mentioned aspects it can be said
that macro environment factors are highly associated with the organizational growth.
2. Conducting an internal and external analysis to assess strengths as well as weaknesses
Sainsbury has undertaken SWOT analysis technique with the aim to get information
about internal and external environment. Internal environment provides deeper insight about the
strengths and weaknesses of business organization. On the other side, external environmental
analysis furnishes information about opportunities and threats. Hence, by making evaluation of
all such aspect company can develop strategies and policies for the near future.
SWOT analysis of Sainsbury Plc
Strengths
 It has attained leading position such
as 4th in the supermarket chains which
are operated in UK.
 Retail chain has highly skilled and
competent workforce such as 150000
people.
 Strong brand image and promotional
aspects.
 Highly effective and experienced
leadership team.
 Company owned 550 supermarkets
and 350 convenience stores across
UK.
 Out of 30000 lines of product 20%
are sold by firm through its own label.
Weaknesses
 Limited geographical presence
because company has less number of
stores across UK.
 Company faces difficulty in managing
the cost and profit level due to the
offering of high discounts.
 Business unit faces difficulty in
retaining personnel with high skills
and positive attitude (SWOT analysis
of Sainsbury Plc, 2017).
Opportunities
 Sainsbury can maximize its
productivity and profitability by
expanding the business operations in
the rapidly growing market such as
Threats
 Sainsbury is facing stiff competition
from other retailers such as Tesco,
ASDA etc. Moreover, customers are
highly price sensitive in nature and

Asia, China etc.
 By employing highly advanced
technologies such as self checkouts
machines company can open up store
for 24 hours and thereby boost sales.
 Globalization has facilitated to enter
in the emerging market through the
means of merger, acquisition and
joint venture.
prefer to purchase retail products from
the customers which offer product at
competitive prices.
 Changing food trend and laws also
impose high level of threat in front of
the business organization.
3. Explaining the manner in which strengths and weaknesses of firm are linked with macro
factors
Strengths and weaknesses which are assessed above are highly linked with macro factors.
From macro environmental analysis, it has been assessed that one stop shopping is main
preferences of customers. By considering such aspect, Sainsbury Plc has established large
number of supermarkets and convenience stores. Hence, by considering such shopping trend
Sainsbury has offered variety of services to the customers on one roof. Further, company has
attracted large number of customer by providing information about discounting offers by the
means of Facebook, Twitter etc. Along with this, PESTLE analysis presents that customers
spend less amount or money in food items whose prices are increased. Due to this, companies are
compelled to offer products to the customers at lower prices or competitive range. Meanwhile,
Sainsbury Plc is facing issue regarding the financial aspect. In 2015, net margin of firm was
negative which in turn places bad effect on shareholders and other stakeholders (Atighechian and
et.al., 2016). By considering this, it can be stated that company’s strengths and weaknesses are
highly based on political rules, legislative aspect, market trend as well as customer behavior.
4. Conducting PESTLE analysis of Sainsbury and present the manner in which macro factors
affect decision making
Sainsbury has applied PESTLE analysis model to get information about external
environment on which it has no or less control.
Macro environmental analysis of Sainsbury
 Political factors: Government rules and regulations in relation to taxation closely
influence the profit margin of firm. Now, taxation policy which is introduced by
government highly favorable. However, in the near future there is probability that
government will increase tax rate with the aim to reduce the burden of debt. The reason

behind this, after economic slowdown government debt is increased with higher rate
(Igliński and et.al., 2016). Hence, with the aim to ensure balanced condition government
will increase tax liability in the near future.
 Economic factors: Inflation and deflation are the major factors that have high level of
impact on demand, cost, price and profitability aspect of firm. Due to economic
slowdown unemployment level in UK increased significantly as compared to the recent
past. This in turn highly impacts the purchasing decision making aspect of customers and
thereby profitability aspect. Further, inflationary trend in food prices also affects the
prices of food to a great extent. It is one of the main reasons due to which customers less
prefer to purchase more food or retain items. This in turn has direct effect of employment
level and profitability aspect of firm. In this, business unit is required to place emphasis
on entering in emerging market such as China, India etc. In this way, by expanding the
business operations and functions Sainsbury can manage both risk and profit margin
more effectually.
 Social factors: Income, occupation, education level, living standard or lifestyle of
customers etc. are the main social factors that closely influence the growth and success of
business. In the present times, customers prefer to do one-stop shopping which entails
they go to the store which offers wide range of retail products and services to the
customers (Netting and et.al., 2016). In addition to this, due to the rise in trend of
working women now domestic meal making is reduced significantly. In this regard,
Sainsbury can enhance its sales revenue and gross margin by offering certain types of
ready to eat specific product. In this regard, by capitalizing such opportunities business
unit can get the desired level of outcome or success.
 Technological factors: Now, high level technological advancements take place in UK
retail sector. In the present era, companies are focusing on offering retail food products
and services to the customers through the means of online channel. In this, Sainsbury can
enhance the demand and sales to the significant level by offering online services to the
customers. Moreover, due to the busy schedule now customers prefer to purchase
products online. In this, by strengthening online distribution channel company can build
and sustain effectual image in the mind of customers. Further, now customers consider

social media advertisement while making decision about purchase. In this, by placing
advertisement on social networking sites Sainsbury can develop awareness among the
large number of customers.
 Legal factors: Sainsbury can enhance its goodwill at marketplace by complying with the
laws and legislation. On the basis of laws, business unit has responsibility to offer high
quality and nutritional products to the customers at affordable prices. Besides this,
according to Enterprise and Competition Act retail business units including Sainsbury
cannot create monopoly in the market (Usubiaga and et.al., 2017). It shows that
legislative aspects have high level of impact on the decision making and practices of
Sainsbury.
 Environmental factors: Sustainable environment becomes the prior demand of customers
now a day. Company has accountability to perform business activities in such a manner
which in turn makes contribution in the safe environment. Activities of business unit have
both direct and indirect impact on Sainsbury. In this, for attracting large number of
customers Sainsbury needs to make focus on doing business activities in a eco-friendly
manner. The rationale behind this, now customer considers sustainability aspect while
making decision about purchase. Thus, with the aim to build effectual image in the mind
of target market Sainsbury has undertaken, reduce, reuse and recycle technique with the
aim to manage waste more effectively as well as efficiently.
b) Reflective statement (D2)
The present report mainly focuses on understanding the business as well as their
environment in which they operates their business activities so that at the time of change it may
not impact the organisation. With the help of conducting the research I come to know regarding
the different environmental or external factors present outside the environment that directly
impact the strategies and activities of the business. Along with this, through assessing the
business environment I have also come to know regarding the internal factors that impact the
organisation and these factors are uncontrollable in nature. Along with this, it is essential to have
balance or equilibrium among both the environmental factors so that Sainsbury the leading retail
would easily frame the strategies for business.

I have also gain effective information regarding the macro environment factors that
mainly include political factor, external stakeholders, economic factor of the region etc. whether
the organisation is private or public limited company they need to consider the effective trade
policies so that they may easily perform their activities. Sainsbury being public sector
organisation is mainly controlled and governed by the UK governmental authorities. In order to
conduct the internal analysis of the leading company I have focused on conducting SWOT
analysis of the firm so that I can easily gain effective knowledge and information regarding the
key strength that company have to sustain in the environment. On the other hand, I also come to
know regarding the opportunities existing in the market so that Sainsbury may use it to enhance
their market share and profit ratio. Moreover, it was stated that engaging in analysing the internal
environment provides deeper insight regarding the strengths and weaknesses of business
organization. On the other side, I must engage in measuring the external environment that mainly
outcome in furnishes information about opportunities and threats. Hence, by making evaluation
of all such aspect company can develop strategies and policies for the near future.
On the other hand, I have also conducted the analysis of external environment of retail
organisation through engaging in different methods such as PESTLE analysis. Therefore using
this method support me in gaining adequate knowledge and information regarding different
factors existing in the market that directly impact the business activities of the cited firm. These
factors directly impact the working dynamics of the establishment. I have also figure out that
retail organization was drastically affected by the change in economy that is due to inflation or
recession within the UK. Therefore, as the results it decreases the level of employment as the
company mainly engage in occurring the losses. Therefore, in this situation company engage in
setting the effective strategies that minimizes or reduces the impact of these factors.
Along with this, I have also focus on finding that social and cultural factors also impact
the purchasing activities of the customers therefore, it directly affect the activities of Sainsbury.
In addition to this, I have also determine some positive and negative impact of the PESTLE
factors on the operational activities of the business as it directly impact the decision that is made
by the company in meeting the objectives and goals of the company. Moreover, on the basis of
above analysis of the business environment it has been suggested that I must focuses on using all
the techniques and methods so that I can easily come to know regarding the various factors that
impact the decision.

CONCLUSION
From the above aforementioned report it has been summarizes that in order to ensure
effective or proper functioning of the business it is essential to measure the business as well as
business environment. Along with this, it has been stated that in order to ensure smooth
functioning of the organisation it mainly focuses on measuring the external environment in
which the cited firm operates their activities. From the above analysis it has been also inferred
that business environment mainly comprises of different environment that is internal and external
environment.
Along with this, it also concluded that researcher has gained the insight knowledge
regarding different type of organisation along with their different purposes to sustain in the
market. The report also focuses on considering the scenario of two types of organisation that is
public or private sector organisation. Considering this it was concluded that key purpose of
private sector organisation is to earn the maximum profit and income with enhancing their
market share. On the other hand, the key purpose of public limited organisation to meet the
requirement of society in which they operate their activities or operation. There key aim do not
include raising the profit or wealth ratio.
Through conducting the report it was also summarizes that different tools has been taken
into the consideration that support in measuring the internal and external environment. The key
technique is used to analyse the internal environment include conducting SWOT analyse through
which company can easily determine their core strength, weaknesses, opportunities and threats.
Moreover, PESTLE analysis has been also applied in order to measure the external environment
under which cited firm operates their activities.

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SWOT analysis of Sainsbury Plc. 2017. Online. Available through:
<http://www.mbaskool.com/brandguide/lifestyle-and-retail/2042-sainsburys.html>.
[Accessed on 13th February 2017].