A Comparative Analysis of Business Environments: NHS and Sainsbury

This report provides a comparative analysis of the business environments of the National Health Service (NHS) and Sainsbury's. It begins by defining the business environment and then explores the organizational types, differentiating between public (NHS) and private (Sainsbury) companies, as well as voluntary and legal organizations, partnerships, and sole traders. The core of the report focuses on the stakeholders of each company, highlighting the government, doctors, and nurses in NHS versus the shareholders, managers, suppliers, investors, and employees in Sainsbury's. It examines the varying interests and roles of these stakeholders and their impact on each organization. The reflection section discusses the student's learning process, challenges faced, and improvements made in understanding the topic, research skills, and writing. The report concludes with a list of references, including books, journals, and online sources.

Table of Contents
BUSINESS ENVIRONMENT........................................................................................................3
Organisational types and purposes of business ..........................................................................3
Requirement of variety of stakeholders......................................................................................4
CONCLUSION................................................................................................................................6
REFLECTION.................................................................................................................................6
REFERENCES ...............................................................................................................................8

BUSINESS ENVIRONMENT
18 February, 2021
Introduction
Business environment refers to the internal and external factors like, political, social,
customers etc. that affect an organisation (Farooq, 2020). In the report two companies are taken,
NHS and Sainbury. NHS is a public company and Sainsbury is private company (Čepel., 2019).
Comparison is done on the basis of types of organisation and stakeholders between the two
companies.
Organisational types and purposes of business
Public organisation
It is organisation which is owned and managed by the government. Goods and services
are provided by the government for benefit of the society and they raise money from people in
the form of tax (Jeong., 2017). The main purpose of the public organisation is to provide services
to public rather than earning profit. NHS(National Health Services) is a public company in UK.
It is non profit organisation which aims at providing services to the public. NHS is health and
social care which provide free services to customers who are not able to pay money and lower
amount is charged from other people (Eling and Schaper, 2017). Purpose of company is not to
earn profit, health and social care is priority of organisation.
Private organisation
Organisations which are owned by individuals and their purpose is to earn profit. In these
organisations profit is distributed among owners, shareholders and investors. In private
organisations there is no role of government. Sainsbury is private company and its aim is to
increase revenue by selling more products. It provides different types of grocery products to
customers and increasing sales by attracting more consumers. The main aim of company is to
earn profit. Private organisations are part of economy, it is controlled by individual person or
more than one person (Komljenovic., Loiselle and Kumral, 2017).
Voluntary organisation

Sometimes, these organisations refer to as non profit companies like, NGOs or owned by
government, civil society organisations but their aim is to earn profit rather than providing social
services to people. Some benefits of voluntary organisation are that it helps in development of
new services, active participation of members, social mission. Examples of voluntary company
are, Cancer Research UK, Save the children international, Oasis International Association
(Gavurova and et.al., 2017).
Legal organisation
A legal entity is company that has legal rights which includes tax filings and
responsibilities. These organisations can enter into legal contract and can sue or be sued as a
vendor or supplier. All the companies has different rules, regulations, policies and procedures. In
UK companies has right to make contracts and pay debts (Fogarassy., Horvath and Borocz.,
2017.).
Partnership
Partnership is formal agreement between two or more parties that agrees to share profits
and losses of the company equally or in ratio which is decided by partners. In partnership more
capital is available and borrowing capacity is large. Examples are, GoPro and Red bull, Uber and
Spotify, Apple and MasterCard.
Sole trader
Sole trader is business which is owned and controlled by individual person. These
organisations does not have separate identity from its owners, all the profit and loss is of single
person. In this very low investment is required as compared to other organisations. Examples are,
grocery shop, electrician.
Requirement of variety of stakeholders
Stakeholder is the party that have interest in the organisation and can be affected by
company. In different types of organisations, shareholders vary as in public company
government are owners because it is owned and controlled by the government whereas in public
company investors, owners, suppliers, customers and employees are stakeholders (Hrechyshkina
and Samakhavets., 2019).

They have legal right to take decision for benefit of organisation and also handles issues
related to budget. Some owners are responsible for educating developers, financing projects and
set standards. They provide necessary resources to company and also arrange money when
required. Stakeholders are important in organisation as they give financial as well as practical
support.
NHS SAINSBURY
Government is the stakeholder in NHS as it
is public organisation which is owned by
government and aim is to provide services to
customers. It is non profit organisation which
focuses on health of patients and social care.
They set goals and objectives for NHS, all the
employees have to work according to that.
Another shareholder is doctors who are
interested in organisation as they are having
duty towards patients (Khan., Çera and
Nétek., 2019). They are directly responsible
for the health of their patients. Doctors play
key role in giving proper treatment to
customers and they build relation of trust with
patients.
Nurses are also shareholders of NHS as
finance is needed to meet daily expenses of
hospital so they contact government for funds
to improve working conditions of hospital and
patients can get better services and facilities.
Nursing staff helps finance department in
Shareholders of Sainsbury is managers of
company, suppliers, investors . Managers of
all levels i.e., top, middle and bottom as they
want salary from organisation. Suppliers are
providing raw materials to company so they
are having right to take money, they can charge
high price if company earns profit. All the
profit is shared among owners and investors.
They invest money in organisation with the
purpose that good return will be gained. So,
profit is distributed among investors,
employees, managers and board of directors.
Sainsbury is private company whose purpose is
to earn profit. Employees of company want
their salary.
Investors are main shareholders of
organisation as to generate revenue investment
is required and purpose of investor is to get
higher return. They invest after analysing
financial condition and market position of
company, debt equity ratio, assets amount,

allocating budgets. Nurses take care of
patients and their safety, they appeal for funds
to government so that good environment can
be provided to patients.
check balance sheet.
Owner: They have right to take more profit as
all the activities are managed and coordinated
by them. They have maximum right on profit.
CONCLUSION
It can be concluded that there are different types of organisation such as, public, private,
legal, voluntary, partnership and sole trader company. All the organisations are having different
criteria and purpose. Stakeholders are owners of company, control and manage all the activities.
In NHS and Sainsbury role of shareholders are discussed.
REFLECTION
In the first submission I was not able to answer properly to questions as I was not having
knowledge about types of organisations and purpose. The topic was new for me so I face
problem in gathering information and analysing about NHS, its purpose and shareholders. My
research skills are not good due to which I was not able to understand topic. I get details on
google related to NHS and Sainsbury, their purpose and role of stakeholders in organisation.
NHS is a public company which is owned and managed by government whereas Sainsbury is
private company which is controlled by managers.
I was getting information but I was not able to analyse and interpret them. In first
submission I was not able to frame proper sentences because of less knowledge about topic.

There was lot of grammatical mistakes in my first part. I am working on improving my research
skills by taking new topic daily and gathering information, I try to understand topic and then
write. My seniors are checking my work and they tell me where I have to do improvements. I ask
my colleagues when I did not understand key points, how to write, basics and any other doubt. I
am learning how to frame sentences by taking help from my friends, teachers, colleagues and
also from you tube by watching lectures in which they taught how to frame sentences which
creates good impact on reader. I am improving my grammatical mistakes by proof reading what I
had written and get it checked my senior. I am interacting with people so that I can improve my
skills.
It is important to improve my skills as this will help me in future career growth and I will
get lot of opportunities. This is stage at which I can improve my research skills, proper sentence
framing and grammatical errors can be reduced. If I will not improve my skills then I will face
problems in future because in today's world every organisation recruit and select candidate who
is having all essential skills that will be beneficial in growth of organisation.
For my future development it is necessary to focus on improving these skills, these make
changes in my personal and professional development. Improving my research skills will help
me in learning new things which will increase my knowledge. Personal and professional
development both are essential to get good job and some additional skills are also required. If I
am not able to frame sentences properly then I will face problem in communicating people.
I will not repeat my mistakes again in future and improve my skills soon so that
opportunities for career growth can not be missed. Next time I will research properly about topic
and gather all relevant information. I am improving how to frame sentences so that I can interact
with more people and did not make grammatical mistakes. My knowledge and learning will be
increase and there will be lot of opportunities for future growth.

REFERENCES
Books and Journals
Čepel, M., 2019. Social and Cultural Factors and their Impact on the Quality of Business
Environment in the SME Segment. International Journal of Entrepreneurial
Knowledge. 7(1). pp.65-73.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Fogarassy, C., Horvath, B. and Borocz, M., 2017. The interpretation of circular priorities to
Central European business environment with focus on Hungary. Visegrad Journal on
Bioeconomy and Sustainable Development. 6(1). pp.2-9.
Gavurova, B., and et.al., 2017. Predictive potential and risks of selected bankruptcy prediction
models in the Slovak business environment. Journal of Business Economics and
Management. 18(6). pp.1156-1173.
Hrechyshkina, O. and Samakhavets, M., 2019. Foreign trade of the Republic of Belarus in the
international business environment. Bulletin of Geography. Socio-economic
Series. 44(44). pp.47-55.
Jeong, Y. S., 2017. A Study on improving manufacturing environment using IoT technology in
small business environment. Journal of Convergence for Information Technology. 7(2).
pp.83-90.
Khan, K. A., Çera, G. and Nétek, V., 2019. Perception of the selected business environment
aspects by service firms. Journal of Tourism and Services. 10(19). pp.111-127.
Komljenovic, D., Loiselle, G. and Kumral, M., 2017. Organization: A new focus on mine safety
improvement in a complex operational and business environment. International Journal
of Mining Science and Technology. 27(4). pp.617-625.
Online
Farooq, U., 2020. Business Environment. [Online]. Available Through:
<https://www.marketingtutor.net/business-environment/>. [Accessed on 18 February, 2021].