Impact of Economic Environment on Sainsbury's Business Operations

This report provides a detailed analysis of Sainsbury's business operations, encompassing various aspects such as accounting, human resources, and team development. The report begins with an introduction to different business sectors and organizational structures, differentiating between private and public sectors. It then explores the impact of local, national, and global economic environments on Sainsbury's business, including the significance of accounting for business success. The report further delves into the different functions of the HR division, including recruitment, training, and employee relations, as well as the key features of employment legislation. Additionally, it presents an accounting workshop analysis, including Sainsbury's profit and loss statement for 2017. The report also examines team development, including team development stages and motivation theories. Overall, this report offers a comprehensive overview of Sainsbury's business practices and its interaction with the economic environment.

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 Impact of local, national and global economic environment on Sainsbury..........................2
1.3 How local, national and international economic environment impacts................................2
TASK 2............................................................................................................................................3
2.1 Significance of accounting for business success...................................................................3
5.1 Different functions of HR division in business.....................................................................3
5.2 Key features of employment legislation...............................................................................4
TASK 3............................................................................................................................................4
3.1 Accounting workshop...........................................................................................................4
TASK 4............................................................................................................................................6
4.1 An analysis to determine own and other roles of team membership....................................6
4.2 Team development................................................................................................................6
TASK 5............................................................................................................................................7
6.1 Impact of customer service on business success...................................................................7
6.2 Benefits of customer profiling to a business.........................................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business organisation involves different sectors and branches which have their own
responsibilities and government. In UK, there are various types of business which have different
operational functions and activities. Such organisation can be differentiated by determined vision
and goals. Along with this, accounting refers to firm which presented in the company success
and failure in large number of persons. Owners and company managers are carry out it in the
context of an organisation (Adjei and et. al., 2014). The relationship of consumer can be
effective and helping with achieving desired goals and objectives. Sainsbury is the second largest
supermarket chain in the united kingdom. The roles and responsibility of employer is to contain
with appropriate personnel which practices to implemented in correct manner.
TASK 1
1.1 Various types and structure of private and public sector organisation
There are different types of business concerns which operate and regulate that exist in the
industry which have different on the grounds of objectives, structures, size and their scope. In
public sector organisation, the management of entire venture has been functioning for regulations
and term of government authorities. Apart from this, private section includes items and services
in trade for generating business income and revenue.
Private segments consist with these companies which are described as under: Sole proprietorship – It will consist with business that are form by person for investing
their financial assets and manage raw material in order to practice with the business in
more appropriate way. Along with this, business owners is only a person who are liable
for organising and conducting their procedures related with decision making and its
practices of business as per the opinion and judgements of quality which has been
selected (Amit and Zott, 2015). Therefore, advantages and losses both are borne with the
entrepreneur.
 Partnership – A partnership business can define as arrangement where various partners
and parties agree to engage with changes with their mutual understanding and interest.
The whole members includes equal share and decision making abilities. It provide benefit
to organisation which have more resources and funds for executing exercises and supply
effective services and items according to the demand or need of people.
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Public segment consist with these types of organisation that are as follows: State Ownership – This elements includes organisation which determine management
required for making terms and create functional system as per the provision of state in
better manner. This will provide benefits to regulatory ventures to emphasise with
government and employment opportunities to people. For instance, British Broadcasting
Companies (Bernstein, 2015).
 Local government – It comprise with entities which are developed and formed through
individual to conduct practices and using effective resources, thus they will supply
efficient services and facilities regarding social welfare.
1.2 Impact of local, national and global economic environment on Sainsbury
There are different type of business organisation which are followed by various firm that
are described as under: Matrix structure – It is that framework that consist with reporting relationship which are
determined such as matrix and grid, along with traditional hierarchy. Flat structure – This structure of firm consist with framework along with few level of
middle management between staff members and executives.
 Tall structure – It will follow the hierarchy structure with constrictive span of control
and promotional opportunities.
Sainsbury is the largest retailing organisation in united kingdom which can carry out
appropriate products and services. An organisation functional operation along with hierarchy
structure which can assist in managing whole branches, providing employer control of business
functions or operations (Doppelt, 2017).
1.3 How local, national and international economic environment impacts
Sainsbury are holding high amount of share of retailing industry of united kingdom
which is second largest supermarket chain in UK that has more than 16.8% share in the whole
united kingdom. An organisation was introduced by John Sainsbury which has introduced as
largest grocery selling firm in 1922. the company has employed around 181200 employees with
more than 1400 stores in the entire united kingdom. There are various national, global and local
economical environment impact the business of firm in more appropriate manner. There are
various points which directly impact are as under:
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 Local impact – Local economical environment along with their rules or regulations and
there are different state practices that can impact on business of Sainsbury affecting their
sales and operations (Mackey and Sisodia, 2014). National impact – The nation currency rates, economical and financial condition, GDP of
the nation, interest rate, etc. that can affect on their business operations and its functions
Sainsbury.
 International impact – There are various global economical activities and functions,
business environment, trends, etc. that directly impact on activities and operations of
Sainsbury which operate their business in all over the world.
TASK 2
2.1 Significance of accounting for business success
For operating business, this is sentential to document information, evaluate reports and
create some data and information regarding assets, debts, liabilities, etc. Accounting information
is fundamental for their decision making and administration of Sainsbury. Along with this,
management are not determine any type of decision without making reasonable data and figures.
There are certain points which consist with benefits of accounting system for success and growth
of business are as follows:
 Help in income and revenue can frame budget and manage activities or functions
 Finance department can frame appropriate budget and manage activities
 Accounting can help in acknowledgement loss and profit of business operation with
determining certain functions or activities (Omar, Leach and March, 2014).
 Assist in managing and controlling financial and position of market of an organisation
5.1 Different functions of HR division in business
The duty and responsibility of company manager is to contain accurate personnel and
qualified workforce which help in operating and managing whole business functions in
effectively. There are various practices which are performed with the personnel that are
described are as follows: Recruitment and selection – HR can implement hiring process for occupy vacant places
and select new applicants to increasing at workplace. There are different process of
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selection and hiring approaches that includes internal and external recruitment for major
effective implemented of such activities and functions. Training and development – Management conduct appraisal, providing encouragement
for analysing skills and abilities of employees with the help of comparing with standard
results for performing effective practices (Palattella and et. al., 2016). It will help in
providing new alterations, skills and development to workers which face different issues
and problems. Employee relation management – Company manager form friendly relations along with
staff members to retain with them stimulated and dedicated regarding their work. They
have to manage and maintain certain negotiation process, anticipate disputes and conflicts
and evaluate proper resolution in more appropriate manner.
 Staffing – It is the fundamental activity and function which help qualified employees on
their appropriate job role and organise more effective exercises to motivate the work.
5.2 Key features of employment legislation
State of nation structure of various rules and regulations for safeguarding staff members
rights and their advantages to their employees. There are certain traits which are related to
legislation of employees that are described as follows:
 Authorities has been framed health and safety legislation, so the employees are getting
secure in this working environment and positive workplace. Along with this, people are
get more authentic duration and working hours which directly affect on their mental
ability and health (Petro and Gardiner, 2015).
 Discrimination laws help in providing more fair treatment for disable employees where
employees equality act can lead towards fair treatment and limited biasses on the gender,
caste, religion and other grounds.
 HR present members in more opportunities on the determined results and performance
basis, as equality can be supply through treating and providing equal opportunities to
both.
TASK 3
3.1 Accounting workshop
Sainsbury's profit as well as loss statement of 2017
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Revenue 2017
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
Net Income 459000
Preferred Stock And Other Adjustments -
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Net Income Applicable To Common Shares 459000
Interpretation: It can be analysed that the organisation has earned 45900 net profit in the year of
2017 and 781000 loss and benefits in the year.
TASK 4
4.1 An analysis to determine own and other roles of team membership
In an organisation, workforce desire for an effective team on the grounds along with their
skills and abilities in regarding to perform various tasks in more effective manner and also
complete their aim within given time frame. My interpersonal abilities was formulated and
developed as health and friendly relation which was form by subordinate. Along with this, my
leadership and communication abilities emphasise according to their guidance and instruction
which was rendered to employees regarding their duties and tasks for assigned workers (Reim,
Parida and Örtqvist, 2015). Colleagues are doing different practices to effectively activities to
achieving goals and targets deadlines, if the team are allotting desired targets as per their skills
and abilities. Apart from this, I am capable to manage and maintain various talented employees
along with effective workers for long time period. Therefore, an organisation deliver more
correct activities according to their wants and requirement of customers after that they can
achieving desired goals and objectives in better manner.
4.2 Team development
In Sainsbury, management frame groups and teams which develop and deliver
productivity of effective services and facilities in the large market place. There are various
number of team development which personnel performed that are discussed as follows:
Team Development Stages: Forming – It is the first stage where staff members act as more pleasant and polite for
understanding with each other opinions and alterations. Storming – It is next stage where team push itself to edge to form in past steps which can
lead towards disputes and conflicts (Weiss, 2014). Norming – In this phase, the team members establish evaluating and understanding their
respective opinion and also provide power to their leader.
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 Performing – In this stage, team lead towards hard work without friction and reaching
with their desired goals and targets.
Motivation Theories:
There are various methods and techniques, theories of motivation which can be used by
business organisation so Sainsbury. There are various mentioned points that are as under: Hierarchy need theory of Maslow – It is one of the most known and earliest determined
motivation theory which are given by Abraham Maslow in the year of 1940 – 1950. It is
the major that consider five divide such as psychological needs, safety need, love and
belonging and self esteem and other is self actualisation (Reim, Parida and Örtqvist,
2015). For lower the unsatisfied requirement which is became more dominant or
significant which is more powerful necessitate. According to the need of motivation,
priority requirement which are framed in the pyramid from top to bottom. Alderfer – ERG theory has been distinguished that motivation requirement in divided
into three parts such as existence, growth and relatedness. Safety and psychological need
to combined that can lead towards possible requirement.
 Expectancy theory of Vroom – This theory emphasise over the content and process of
motivation which combine reinforcement and equality theories. Expectancy define as
belief of person of individual success, instrumentality can be claimed and valance can be
defined as individual rewarding values.
TASK 5
6.1 Impact of customer service on business success
Management need to make and create employees to implement task in better manner so
the workers supply services according to their needs and demand of people. Sainsbury is one of
the largest retailing company which provide better services quality to their customers to make
good identified (Warner, 2018). Administration execute more advanced technology in
framework such as payment options to render effective and fast services to an individual.
6.2 Benefits of customer profiling to a business
There are various advantages which are deliver to consumer that assist in Sainsbury
success and growth. These are some points which are as follows:
 Company can easily identifying their preferences and interest of customers
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 Manage can get absolute and certain information about customers
 Management can adopt and use such methods and techniques such as computer and
internet to manage their customers and stock records.
CONCLUSION
From the above mentioned report it can be analysed that Business organisation involves
different sectors and branches which have their own responsibilities and government. There are
different types of business concerns which operate and regulate that exist in the industry which
have different on the grounds of objectives, structures, size and their scope. There are various
practices which are performed with the personnel.
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REFERENCES
Books and Journals
Adjei, H., and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima
Kwawoman Rural Bank Limited and its Impact on the Communities it Operates.
European Journal of Business and Innovation Research. 2(4). pp.36-47.
Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of business model
design. Strategic Entrepreneurship Journal. 9(4). pp.331-350.
Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University
Press.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Mackey, J. and Sisodia, R., 2014. Conscious capitalism, with a new preface by the authors:
Liberating the heroic spirit of business. Harvard Business Review Press.
Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit organizations.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3).
pp.657-678.
Palattella, M. R., and et. al., 2016. Internet of things in the 5G era: Enablers, architecture, and
business models. IEEE Journal on Selected Areas in Communications. 34(3). pp.510-
527.
Petro, Y. and Gardiner, P., 2015. An investigation of the influence of organizational design on
project portfolio success, effectiveness and business efficiency for project-based
organizations. International Journal of Project Management. 33(8). pp.1717-1729.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Warner, K., 2018. Building rules: How local controls shape community environments and
economies. Routledge.
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
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