Business and Business Environment Report: UK Retail Sector Overview

This report provides a comprehensive analysis of the business environment, encompassing different types of organizations like profit, non-profit, and non-governmental entities, differentiating them based on their purpose, funding, leadership, and staffing. The report further delves into the size and scope of organizations, contrasting micro, small, medium, and large enterprises concerning equity, decision-making, planning, customer base, and funding sources. It examines market share, profit share, growth, and sustainability across these organizational sizes. The report also explores organizational structures and functions, particularly in the context of the UK retail sector, such as Sainsbury's, and how these structures influence revenue generation and operational efficiency. Furthermore, it applies PESTEL analysis to assess the political, social, technological, economic, environmental, and legal factors impacting the UK retail sector, including the effects of Brexit and other economic events. The report also uses SWOT analysis to interrelate internal and external factors, providing a holistic view of the business environment.

BUSINESS AND THE BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of organisations.......................................................................................1
P2. Size and scope of the organisations..................................................................................1
P3 Organisation structure and functions.................................................................................2
P4 Implicating PESTEL analysis and identification of positive and negative impacts over UK
retail sector.............................................................................................................................3
P5 Internal analysis over UK Supermarket with the help of SWOT......................................5
P6 Interrelating the internal as well as external factors on the basis of strength and
weaknesses.............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
There are different kinds of organisation like profit organisation which aims to earn
profit, other can be non profit organisation where company earns profit to invest in works related
to the welfare of the society and one is non governmental organisation which only seeks for
performing activities which provides benefit to the society. They work with the help of funds
which are raised through charity and donation. This report depicts the differences between
various type of organisation on the basis of their goals and size. It also includes factors such as
market share profit share and growth associated with it (Hillary, 2017).
TASK 1
P1. Different types of organisations
a. Differences between profit, not for profit and non-governmental organisations
Purpose
Every organisation has different purpose. For the profit seeking company, there would be
various goals such as mission to generate a good amount of profit and to produce an effective
product and services to satisfy the needs and requirements of a customer. They introduce their
offering in the market for solving particular problem or increasing the efficiency of certain
products such as various electronic items. Whereas a non -profit or a nongovernmental
organisation does not aim for earning lot of profit, instead they work for social cause and
activities which are related to the welfare of the society (Crane and Matten, 2016).
Funding
For these profit-seeking companies, they have various sources for funding such as taking
loan from banks, local investors and revenue generation through sales. If their product generates
a high value, then there are chances that many global investors become interested to provide
funds for them, whereas the non-profit organisation and NGOs tends to get fund through private
donations, sponsorship through various corporate and grants from the government.
Leadership
Large corporate are lead by the team of individuals which can be board of directors,
stakeholders or investors. They are not only considered as leaders but also have a huge share of
the company for the financial success whereas the NPOs and NGOs get direction from the board
of directors who takes the responsibility of the whole organisation. They have to balance their
financial concern as well as the social activities for which funds are being raised.
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Staff
Staff or the employees for the profit earning company are employed against salaries; they
require some monetary as well as no monetary benefits for their contribution in the organisation.
Nevertheless, those who work for non-profit and no governmental organisation are considered as
volunteers and donors who want to contribute for a noble cause (Key differences between Non-
Government Organizations (NGO) and Non-Profit Organizations (NPO), 2018).
b. Business purpose and supply of goods and services
Purpose of Business
The business purpose for various organisations can be very different. For some
organisation, profit earning can be the goal which includes financial gain, focusing on the
metrics of finances and businesses and also certain key performance indicators of the company.
While some companies focus on providing value products and services to satisfy needs and
wants of the customer and also to give a tough competition in the market and establish
themselves leading producers for the particular segment of a market. Whereas some organisation
like non profit earning also aims to earn profit but to invest in some social work or for the
betterment of the society, they produce products and along with that collaborate themselves with
this association that works for noble cause. In addition, there are some Non- governmental
organisation that works just to provide benefit to the society by raising funds through charity and
donation.
Supply of product and services
Profit earning corporate always think for providing innovative ideas to the market which
can benefit various customers in many ways. They always conduct various researches on the
existing product to make it better. Also, focusing on the fact that the product should reach every
corner of the area. Whereas NPOs majorly promotes arts, researches, sciences and commerce and
tries to make certain policies to give them recognition. Whereas the scope of NGOs is generally
very limited as they work in confined areas and on the basis of amount of fund they are raising
for their work (Deasy and et. al., 2017).
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P2. Size and scope of the organisations
a. Difference between micro, small, medium-size and large enterprises
Micro/Small Enterprises Small Enterprises Large Enterprises
Equity is held by either
founder or the member of the
family
Mostly held by private
individuals who can be family
or few shares can be publicly
held
They have mostly public
investors such as government
who also have the rights for
equity.
Decision is made by the owner
of the firm
Decision is made by the
individual who has the highest
authority such as CEO
Decision making power can be
distributed among different
members.
Works on short term plan Can work on short as well as
long term plans
Only works on extensive long
term plans.
Processes are mostly informal Formal approach is used for
the process
Have Formal structures and
processes for every task
Small customer base Limited Customer base Having diverse market and
customers.
Funds raised by leveraging
personal net worth
Sources of capital are limited,
even some are hard to access
Funding sources has a wide
range, availability of investors
are more as compared to other
enterprises.
Personnel development
opportunities are limited
Development of personnel is
limited to key employees
Multiple career development
programs are offered to
workers.
Requirement of extra input is
less which can be taken from
friends and other networks
Also, requires less input which
is mainly taken from trusted
professionals, friends and
networks
Requires significant external
inputs which is assisted from
consultants and also have
separate governance structure
Mostly managed by the owner It can be owned by owner as They have complete
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well as various professionals
of particular areas
professional management for
effective working
b. Market share, profit share, growth and sustainability
Market share of large enterprises are more because they seek for earning great
profitability which can be achieved by increasing their market share and applying various
strategies that can increase their share. Medium organisation has less market share which lead to
as compared to larger one because they do not get sources for funding which can facilitate them
to earn maximum shares. Also, small or micro enterprises has the least shares in the market as
they operate on the local markets of the confined areas and does not have interest for gaining any
market shares in the national or global market. Profit sharing in large enterprises is among the
various shareholders and investors who have provided funds for the company. In the medium
enterprises, profit sharing is done between the owner and the professionals who have been in the
key role whereas in the small enterprise, the profit is completely own the by owner as he is the
only investor of the firm (Hair Jr and et.al.,2015). Growth of the large firm is very essential and
rigorous as it is very important for the large companies to grow nationally as well as
internationally in the market. Medium enterprises can grow only in national markets whereas
small firms grow only in a confined area. Large Corporate are very hard to sustain as the
competition is very intense whereas small enterprises can easily sustain in the local market.
P3 Organisation structure and functions
In relation with analysing the operational activities of small size, medium size and large
size enterprises there will be need of implicating the effective analysis over the facts. There will
be appropriate increment the revenue generation as well as gains of the business. However, in
contrary with it there has been analysis made over various organisation which are profit making
non for profit making entities and governmental agencies.
Structure relevant with size and scope of business: In accordance with the supermarket
business such as Sainsbury there will be large numbers of consumers, employees and stores in
the location. It results in fruitful gains to the business (Pearson, 2017). Therefore, there will be
increment in the revenue generations as well as improved productivity of the business. There can
be appropriate development of funds for the operations.
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Analysis over the complexity, internationals and global organisational structure: In
relation with analysing the business operations on the global context it can be said that there are
various changes into operational practices of the firm. Therefore, this in turn will make fruitful
gains in the business operations. Sainsburys mainly operates in UK the business is not operating
any of the location out of the national boundaries. This impacts over the number of shareholder
in associated with the business as well as gains made by them.
Functions relevant with organisational mission, objectives : the mission of Sainsbury
is to plan the operational activities outside the national boundaries (Ozkan, 2017). Similarly,
operating the business on the global level which will be indicative to have higher revenue gains
in the business.
P4 Implicating PESTEL analysis and identification of positive and negative impacts over UK
retail sector
To ascertain requirements of business as well as make accurate environmental analysis
which in turn will be helpful for developing the business objectives. However, in the recent times
there has been drastic changes in the UK economy which in turn affect the trade market. The
impacts of Global financial crisis, inflation, recession as well as Brexit has affected the business
operations moreover, in relation with operating the business at large level there will be various
external issues. Similarly, for making the adequate ascertainment and development of proposed
business plan which in turn will make rise in the revenue and gains of the business. It comprises
with the PESTEL analysis over the business which will be effective as to have development of
various business objectives.
Political: These are the factors which mainly associated with the governmental decision
as well as planning for the log term as well as short term economic activities. These are mainly
in associated with the changes in the polices of government as well as plans for securing
economic standard for the long term development of business activities. UK retail businesses are
currently affected with the Brexit implication in the environment (Linnenluecke, 2017). The
decision of living European Union has incurred the negative impacts over the industries. The
impacts of these political issues has mainly influenced the tax practices in UK there has been rise
in the prices of various commodities due to changes in taxation policies. There has been main
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impacts incurred over imports and exports of goods and services which are generally produces
and prepared by the businesses.
Social: there will be various positive and negative impacts which were being incurred
and addressed through social elements. In relation with the business objective and performance
retinal businesses in UK which are mainly associated wroth various brands or organisation that
will seek for the attention of large numbers of consumers in the business. Moreover, in relation
with the trade practices of such entities there will be increment in the revenue and gains of the
organisation in order to have appropriate revenue generation. There are no similarity in between
choices, preferences of consumers that means business need to implicate new and innovative
products into their product line. (Mahmood, Zhu and Zaheer, 2017) It will help them in keeping
the attention of consumers for long period. On the other side, an entity will have preferable gains
as if they were timely updated and make appropriate changes in revenue generation.
Economical: These are the factors which are generally influenced economy wiwth the
economical, financial changes in the environment. However, in relation with UK retailers there
are various organisations such as Tesco, Marks and Spencer which got affected by such
economic changes. The impacts of Global financial crisis and recession, inflation has mainly
affected the retail business and trade practices in the nation. It impacts over rising the value and
prices of the commodities in the market which in turn makes consumers to reduce expenses and
same money (Ahmed and et.al., 2017). Therefore, it results in reducing the monetary circulation.
On the other side, the impacts of such changes has been very effective as they make changes into
business operations. In addition, these are the issues which generally impacts over economic
standard over the businesses for the long period.
Technical: It is necessary that every business must have appropriate revenue generation
as well as gains in the market which in turn will be helpful for managing the business operations.
In the recent times there has been increment in the operational practices of the organisation as
well as rise in the dependency over technical gadgets and software for the operations. It will be
helpful to a retail business that they must make necessary updates in technical operations of the
business (Smith and et.al., 2017). Therefore, the installation of various statistical software,
project management tools and relevant software which brings promptness in transactional
activities. Therefore, which in turn influences the fruitful managerial plans and decision making.
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Environmental: The impacts of natural factors which in turn will have impacts over
perishable nature of goods. Therefore, to operate the business there is need to analyse the
environment or climate of that particular locations. UK is near to north pole so this is
comparative cool country and have the highest temperature around 25' c. similarly, there will not
be any drastic changes in the environmental condition (Pestle and et.al., 2017). Thus, it will be
suggested to the retailers that they must make fruitful products which in turn will have
appropriate gains to the professionals of economy.
Legal: the changes in laws and regulation were mainly affected the business operations.
Therefore, there are various operational activities which in turn will be inclusiveness as well as
effective as to have the negative impacts over the business operations (Fozer and et.al., 2017).
UK is incorporated with the various laws and regulations which are relevant with EU laws and
regulation mainly related to food securities, consumer rights, human rights etc. therefore, the
implication of such techniques will be helpful as to make changes into operations as well as
develop the managerial work.
P5 Internal analysis over UK Supermarket with the help of SWOT
In relation with analysing the operational activities as well as internals environment of
Sainsburys businesses there will be use of SWOT analysis techniques. Therefore, there will be
analysis through the strength and weakness of this supermarket which will be assistive to the
researcher in suggestion the fruitful changes will be implicate as to improve the business
operations (Pearson, 2017). However, the internal analysis over the business which will be
beneficial to suggesting ways to improve the internal activities and make necessary changes that
will be effective for managing the business operations.
Strength
 It is UK's most respected brand which
has higher consumer ratio.
 The consumers are brand loyal to
products and services offered by
Sainsburys The brand which are incorporated with
this supermarket are trusted and
Threat
 There are various rivalries of this
supermarket chain which are operating
in UK such as Tesco, Asda etc.
 The costs of business comparatively
higher than which enables them to meet
the competition with other firms but it
becomes expensive for the consumers
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authenticated to make necessary
improvements in the business
operations.
(Ozkan, 2017).
Weaknesses
 There are higher risks and difficulties
which are in associated with the
appointment of various employees to
perform such duties.
 Poor costs management which in turn
does not have positive impacts over
rising the market value in the capital
markets. The business is limited which serves
only in UK (SWOT analysis of
Sainsburys, 2018).
Opportunities
 Launching new products will be helpful
in attracting the consumers
 Inviting various brands and sponsors to
make fruitful influences in the business
operations.
 Sainsburys is the rapidly growing
business in UK and they will be more
profitable as the expansion of business
took place out of the national
boundaries (Linnenluecke, 2017).
 Development of business over online
site as encouraging the professionals to
make websites and cover the large
numbers of consumers which will be
effective in improving the sales of
business.
P6 Interrelating the internal as well as external factors on the basis of strength and weaknesses.
By considering the internal analysis of Sainsburys which in turn will be effective as to
have adequate development of operations. Moreover, there can be increment in the sales volume
of the industry as if the managers of the business will have appropriate analysis over the facts.
However, in terms with relating the micro factors of industry with the macro factors there will be
various outcomes which in turn will be effective and helpful to this super market.
Political: The governmental decision as well as planning for the log term as well as short
term economic activities are mainly associated with the changes in the polices of government as
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well as plans for securing economic standard for the long term development (Mahmood, Zhu and
Zaheer, 2017). It has the impacts over the business of Sainsburys trading operation mainly in
terms of imports and exports.
Social: there are various differences in the preferences and choices of the consumers
which in turn makes the reduction in the sales of the business. Therefore, to meet the satisfaction
of level of large numbers of consumers the professionals need have innovative planning
techniques which will be assistive and appropriate for designing the products which meets
consumer desired level (Ahmed and et.al., 2017).
Economical: The impacts over rising the value and prices of the commodities in the
market which in turn makes consumers to reduce expenses and same money. Therefore, it results
in reducing the monetary circulation. Similarly, Sainsburys has to plan adequate changes into
operations which will bring profitable gains to the business.
Technical: The installation of various statistical software, project management tools and
relevant software which brings promptness in transactional activities. Therefore, which in turn
influences the fruitful managerial plans and decision making (Smith and et.al., 2017). Thus, it
will be suggested to the managerial professionals of Sainsburys that they must make introduce
the workforce with the new technologies and software.
Environmental: Sainsburys need to be conscious about the changing climate and bring
the products which will be suitable and have proper packaging which prevents them from climate
changes (Pestle and et.al., 2017).
Legal: Sainsburys needed to be conscious regarding various laws and regulations. UK is
incorporated with the various laws and regulations which are relevant with EU laws and
regulation mainly related to food securities, consumer rights, human rights etc.
CONCLUSION
It has been concluded that the goals of various organisation varies and the purpose of
business is very different. Many companies supply product and services which are unique and
some focuses on the value of the product and other focuses on the profit earning. There has been
analysis over macro environmental factors in UK which are affecting the business of super
market and retail stores. There has been analysis made on Sainsburys internal operations which
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the help of SWOT analysis which in turn bring the appropriate details relevant with the
operations of the business and its strength, weaknesses of the project.
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