Business Operations Report: Sainsbury's and Economic Factors

This report examines business operations, focusing on Sainsbury's as a case study. It explores various types of business structures, including sole proprietorships, partnerships, and companies, within both the private and public sectors. The report details how local, national, and international economic environments impact business operations, using PESTEL analysis to assess political, economic, social, technological, legal, and environmental factors. It also covers the importance of accounting, the functions of HR, team development, motivational theories, leadership styles, and the impact of customer service and profiling on business success. The report offers insights into the operational dynamics of a major retail chain in the UK and its response to various external and internal influences. This report is a comprehensive analysis of business operations, structure, and external influences on Sainsbury's.

How Business Operate

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Various types and structure of private and public sector organisation.................................1
1.2 Different structure within the business.................................................................................3
1.3 How local, national and international economic environment impacts................................4
TASK 2............................................................................................................................................6
2.1 Importance of accounting for business success....................................................................6
5.1 Different functions of HR division in business ....................................................................7
5.2 Key features of employment legislation...............................................................................8
TASK 3............................................................................................................................................9
3.1 Accounting workshop...........................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Team development..............................................................................................................10
4.2 An analysis to determine own and other roles of team membership..................................10
4.3 Motivational Theories.........................................................................................................10
4.4 Different types of leadership styles.....................................................................................11
TASK 5..........................................................................................................................................11
6.1 Impact of customer service on business success.................................................................11
6.2 Benefits of customer profiling to a business.......................................................................12
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Business operations concern with everything which happens in the company for the
purpose of running activities and generate higher revenues or profits in an effective manner.
Business man consider the action plan for operations by considering equipment, people and
entire systems which are necessary to make organisational functions. There are defines various
types of business as per the size, industry, scope and many others. Some of most important
elements are process, staffing, technology and locations so that a business can be run its
operations in ans effective manner. Every business firm belongs from different sectors as well as
branches that have various roles or responsibilities (Adjei, 2014). In the country of UK, many of
firms are operating their functions or activities as per set visions or missions. Owners perform
various role to carry out the operations within the firm. This report is based on Sainsbury which
is supermarket chain store and provide variety of products or services in the United Kingdom. It
will defines public and private companies and different structure of firm. This will also explain
the accounting and functions of HR department within the organisation. It helps in understand
the roles of team to get success.
TASK 1
(Covered in PPT)
1.1 Various types and structure of private and public sector organisation
In this defined various types of business which operates its functions for the purpose of
attaining predetermined goals or objectives in well manner. These firms generally comes from
different background and have their own objectives, size, structures and scope as well. The main
business organisations in the private sector of UK are various such as partnership, franchise, sole
traders and companies. In the sole trader, the owner starts their venture and perform wide ranges
of activities as it is the common form business ownership. In this considered plumbing, electrical
work busking and window cleaning etc. on the other side, the public sector organisation, every
operations and functions are regulated by the government authority. There are many of firms
included in the public sectors such as educations, hospital facilities, transportations services, road
constructions, public services and many others which are operating by the government for the
purpose of providing several facilities or services to the people at less prices in well manner.
Apart from these, UK is focusing on generating higher profits so that country's economy can be
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developed. They also try to improve living standard of people by providing employment
opportunities to them. Private sector is increasing fasts and contributing more for developing
country. They are providing number of products or services to the public in the nation and also
helps in increasing infrastructure so that sustainability development can be enhanced in well
manner. These can be understood by considering various types of business in the private sector
such as: Sole proprietorship: In this defines a business venture which starts or operates by an
individual and they come up with various resources such as tools, technologies, land,
capital and material for the purpose of earning money or raise profits in an effective
manner. Owner is liable to operate entire business activities and make several decisions
so that they can create a better organisation. They conduct various functions or
activities and invest funds for getting higher returns in well manner. Owner make
decisions regarding adoption of tools or techniques and formulate strategies to achieve
business goals. They also responsible for bearing risks or uncertainties if occurs during
business operations in well manner. Partnership: A partnership term can be considered as the business form that are started
and operated by the two or more individuals. In this, partners come up with their
appropriate resources for the purpose of running or operating business in an effective
manner. They consider an agreement while starting the business and agrees for sharing
profits or losses during business operations. It can be describe as the arrangement in
which two or more persons engage in the business activities for sharing risks or profits
as well. Companies: it is generally defines the public limited company that are under the UK
company law and common wealth jurisdiction. It has limited liabilities as owners are
free to sell their shares and trade it in the public place. They starts firm with minimum
share capital of euro 50000 and use PLC after the name. For example Tesco Plc, BT
and Cadbury.
 Franchise: it is becoming more popular as this is a good idea for hiring out as well as
licensing to the other companies. A franchise generally grants the permissions for
selling the particular products or services within a defining areas. In this, an individual
take out the franchise and make decisions regarding put down some money by
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considering as capital for the purpose of starting a new business in an effective manner.
For example McDonald's, Dominoes and many more in the franchise.
Public sector companies: In this included those business firms which are operated by the
government authority as they are main stakeholders of these types of companies. These are as
following: Central government: They play an important role in running various organisation or
firms for the purpose of public welfare and their safety or protections within the firm.
For example prison and army forces who take responsibilities to protect the country
from outside of threats as well.
 Local government: this is generally known as state government who are responsible for
providing various facilities or services so that they live better their lives. They can be as
councillors, care homes etc. local government provide free educations, free check ups
or hospital facilities and many more to the poor or needy people. For example NHS
which is health care centre and giving free or less costs services to the social people.
1.2 Different structure within the business
There are various organisations defines who have different structures and culture of the
firms. It is necessary to follow such structure and consider those for running business in more
efficient manner. In this consist some organisational cultures with beliefs, values, norms and
code of conducts that company follows for run the business in an effective manner. There are
some business organisation that have different legal structures and forms as per their nature such
as:
Sole proprietorship: It may be consider as the business organisation which starts or run
by an individual. It is the common business that operated by any persons who have ability to
bears risks or take uncertainties for the purpose of running business and its functions in better
ways. They bring necessary resources, equipments, tools, land and financial resources so that
they can run an organisation. For example Tessa Scott who operates a cupcake business as a sole
trader.
Franchise: It is the best method for expanding business at different countries or places
because an organisation adopts various strategies and procedures for business where they can run
its operations in an effective manner. In this, franchisers grant permissions and take licenses for
getting knowledge about process, intellectual property and brands for selling particular goods or
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services in the market place. For example McDonald's which are available at number of
companies.
Companies: These are known as public limited company where have limited liabilities
for running business firms. They have pool of capital because they operates various activities or
functions so that maximum outcomes can be get in an efficient manner. There are several
companies defines that deals in stock exchange market and they have rights to sell their shares to
the public for generating higher revenues and maximum size. For example Mark and Spencer plc
as it is large scale firm.
There are defines some types of business structure such as:
 Matrix structure: in this consider the reporting relationship that have an appropriate
framework such as matrix, grid lines and traditional hierarchical structure as well.
 Flat structure: It formulated in define frameworks that have the few level of middle
management among staff members and executives as well.
 Tall structure: Last but not least that the tall structure which have hierarchy structure
so that company can run its operations in smooth manner. In also consist the span of
control as well as promotional opportunities for the firm.
1.3 How local, national and international economic environment impacts
Sainsbury is a retail industry based in U.K and international. It was founded in 1869. This
retail industry is one of the most popular brand in a retail sector. This category includes formal
wear, casual wear, party wear, fusion, accessories and other related things for men, women and
children. Sainsbury is leading chain of supermarket in united kingdom. The environment factor
includes:
PESTEL of Sainsbury
Political factor: This aspect includes the instability in government policies, rules and regulations
of a country. For example Brexit plays a significant role instability in political factor.
 Positive impact: By the political factor, it influence to enter by a permission of the
government to cross a border.
 Negative impact: This involves political relations with the foreign countries which can
get affected due to political policies.
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Economical factor: This feature plays a vital role in the business organization. This factor
includes the economical issues related to a country such as impose duty on trading, foreign
exchange rate, inflation and deflation crises due to economic imbalance.
 Positive impact: Due to this factor, company cannot cheat to other countries at the time of
foreign investment. This will led to increase the cost of goods and services.
 Negative impact: By imposing taxation and duty on goods will increase the price level of
goods. This will led to a negative effect on the growth of an economy.
Social factor: This aspect includes the customers demand, culture and trend of an individual
country, this will led to improve the standardisation of a brand. It can be achieve through an
opportunity in remaining competitive companies in the world.
 Positive impact: By adopting the culture and trend of a particular country, will bring the
efficiency and loyalty from customers. This helps in increasing the sets of standardisation
of a brand.
 Negative impact: The negative effect influence customer for raising demand for an
organic material which is a biodegradable product. This will increase the cost of a
company.
Technological factor: Using upgraded technology will reduce the labour workforce and increase
the efficiency and accuracy in work and enhance the work ability. This includes training sessions
for the subordinates to trained them and work effectively.
 Positive impact: By introducing online shopping for customers is can be treated as an
advantage for a company. The good deliverable system will assist in increasing the profit
of a company.
 Negative impact: Technological factor includes huge cost at the time of installation of a
software and equipment related to it.
Legal factor: This aspect includes the employees welfare such as employees provident fund,
gratuity fund, minimum wages act etc.
 Positive impact: By using this factor, it will reduce the job rotation and employees
absenteeism.
 Negative impact: At the time of implementing, these laws and order can delay in making
decisions and business growth.
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Environmental factor: Sainsbury contribute towards environment by reduction in carbon
emissions products.
 Positive impact: It will improve the environmental conditions and helps in strategic
sustainability plan. To save the resources for future use. Using three R's policy.
 Negative impact: This will reduce the business profitability.
TASK 2
2.1 Importance of accounting for business success
For the business success, there are requires various activities and functions to run it
effectively. For this purpose, accounting play an important role in achieving success and
maintain the accountability in well manner (Amit and Zott, 2015). It is an essential tool for the
business organisation regarding document information, evaluation of particular reports and
provide informations about assets, liabilities and debts by maintaining accounts and keep
records. This must bes necessary for every business firm whether they are small and medium as
it support in making effective strategies and decisions by determining data or figure in an
effective ways. Accounting information play vital role in the Sainsbury as it is fundamental for
formulating strategies to achieve business goals and objectives. Here are defines some
importance of accounting system within an organisation that helps in gaining long term benefits
such as: Business planning: It is very helpful aspects in making effective business plan by
undertaking the accounts or keeping records so that owners can get appropriate data and
achieve set targets in an effective manner. Sainsbury generally take support of accounting
to make decisions about business expansions as well as increasing size or growth of the
firm (Bernstein, 2015). Budgeting: This is also another helpful component that provide proper information about
exact financial position in the marketplace so that they can create better environment
within the firm. Financial department provide various informations so that the can
formulate the strategies and frame an appropriate budget to perform different activities
and achieve particular targets in well manner.
 Monitoring costs: This is another tool to monitor or review the entire business activities
so that company can make decisions about action plans. Accounting is very necessary for
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every business organisation as it make aware regarding several costs or expenses that
occurs during running business operations. It also support in formulating strategies for
utilising available funds by allocating them among different business activities.
5.1 Different functions of HR division in business
The human resource management is known for a wide variety of activities across the
organization. It includes the responsibility and authority to handle the work force of an
organization. This helps in maintaining the relations with superiors and subordinates. The
function of a department is to responsible for the hiring, firing and spanning the activities in a
business organisation. The role of human resource management is based on the employees and a
type of an organization (Doppelt, 2017).
The function of a human resource management is to developing their skills, motivating them to
maintain their roles towards an organization. These functions are described in detailed as
follows:
 Training and development: It is an indispensable function of an organizational. By
providing training and development to the employees, it will increase the work
performance and their effectiveness of work. Due to this, it will increase the efficiency of
an individual employee. With this, it will maintains the relations with superiors and their
employees, while interacting them at the time of training.
 Compensation and Benefits: Human resource management is generally responsible for
the increasing the performance of an employee to their highest level in their role. By
using this function company can attract best qualified applicants for job openings. In
benefit, it includes counselling employees on medical, dental, vision and disability
coverage (Mackey and Sisodia, 2014).
 Employees relations: Employees are the pillars of an organization. It is a crucial
function in any organization. This is the most effective resource of an organization to
make a discipline among the workers and labours. It foster good employees relations. It
can done with the help of rewards and recognition, investigating employees complaints,
handles employee grievances and assists legal counsel.
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5.2 Key features of employment legislation
In the parliament of UK country, many of legal laws and legislation are formulated by the
government regarding employees benefits and their safety or security. There are defines number
of rules or regulations, regarding safeguards, health and safety and discriminations etc. these are
very helpful for employees who are working within an organisation Sainsbury also requires to
consider these legislation while running business or its functions in well manner. These are as
following:
 health & safety act 1974: it is one of the most important aspects or legislation that must
be considered in the business organisation. In this consist several protections
components regarding employees and their welfare at working place. It is also for those
people who are working within the firm including, temps, self-employed, and clients,
general public and visitors (Omar, Leach and March, 2014).
Features of health and safety;
◦ employees can feel safe while performing any tasks regarding producing of goods or
services.
◦ They can get compensation if any accidents or injuries happens during running
activities within the firm.
 Equality and discrimination act 2010: This is an act of parliament of UK which
formulated for employees regarding their equality at the working place. In this consider
several basis of discrimination as per the gender, race, religion, sex and beliefs, disability
and many others so this act will provide proper protections to the employees.
◦ This legislation support in removing the partiality among employees.
◦ This can be support in providing motivation to the workers by giving equal
opportunities (Palattella, 2016).
 National minimum wage act 1998: this is related with wages and compensation as it
created minimum wage across the UK. Every employees can get minimum wage as well
as proper funds in exchange of their efforts or works as well.
◦ Employees can be motivated by getting adequate compensation and wages within the
firm.
◦ This is also helpful in increasing living standard of employees in an efficient manner.
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TASK 3
3.1 Accounting workshop
Profit and loss account of Sainsbury of 2018
Revenue 2018
Total Revenue 31907000
Cost of Revenue 29919000
Gross Profit 1988000
Operating Expenses
Selling General and Administrative 1207000
Operating Income or Loss 781000
Income from Continuing Operations
Total Other Income/Expenses Net 41000
Earnings Before Interest and Taxes 777000
Interest Expense 165000
Income Before Tax 612000
Income Tax Expense 153000
Net Income From Continuing Ops 414000
Net Income
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Net Income 459000
Preferred Stock And Other Adjustments -
Net Income Applicable To Common Shares 459000
Interpretation: from the above statement, It can be analysed that Sainsbury firm has earned
around 45900 net incomes or profits through running business operations or activities as per the
accounting year of 2018.
TASK 4
4.1 Team development
In the Sainsbury, they are focusing on formulating an appropriate team for developing
firm in an effective manner. It is necessary to form team because teamwork support in achieving
common goals of the firm. Here is defines some stages of developing a team such as:
Team Development Stages: Forming: In this phase, every staff members are known and act like more polite or
pleasant. They try to understand behaviours, opinion and observe of each person. Storming: It is further stage where team push for edging to the form in the past steps. It
can create any disputes while making team. Norming: In this stage, members are able to understand, establish and evaluation of
every individual according to their opinion. Performing: Team is ready to achieve common goals or tasks and work hard without
any frictions and conflicts as well (Petro and Gardiner, 2015).
 Adjourning: In this, teams are broken or members moves for another new team
establishment after completing task.
4.2 An analysis to determine own and other roles of team membership
In any business firms, there is require an effective team who can able to achieve set
targets or goals. It support in bringing the skills, abilities and innovative thoughts. Every
individual perform their roles and responsibilities such as shapers who give shapes to the task
and designing the entire work for accomplishment of goals. These are actions oriented, people
oriented and thoughts oriented who try to achieve set targets or goals in limited time period.
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