Business in Practice (Part 2): External Factors and Sainsbury Analysis

This report provides an analysis of Sainsbury's business operations, organizational structure, and the impact of various external factors. It begins with an introduction to business concepts and then defines different business structures, including sole trader, partnership, and limited liability companies, followed by an examination of hierarchical and flat organizational structures. The core of the report applies the PESTLE analysis to Sainsbury, evaluating the political, economic, social, technological, legal, and environmental factors affecting the company's performance. It highlights the impact of Brexit, economic conditions, changing consumer trends, technological advancements, legal regulations, and environmental considerations. The report concludes by emphasizing the importance of understanding external factors for business success, with a particular focus on Sainsbury's approach to these challenges. The analysis provides insights into how Sainsbury manages these factors to maintain its market position and achieve growth.

BUSINESS IN
PRACTISE
(Part 2)

INTRODUCTION
Business helps out to make the advancement in the technologies and also develops the
nature and revenue by more customers. There are various industries which use to deal on the
business they are covered in various sectors like industrial, commercial and all the other
important professional sectors. For maintaining the proper functioning of the company there will
be use to have a clear view of the external environment factors. Organisation chosen for this
report is Sainsbury. This report will cover the external factors for analysis of the business
environment and competition.
SECTION 2
Definition, characteristics and example for the sole trader business, partnership, limited
liability business, public limited liability business and Cooperative.
Organisational structure is mainly the system which covers out all the activities which are
being pertained by the company in order to run a proper business. There has been analysed that
all the structures an the method through which the working is being framed and the flow of
information is balanced will be covered in it. Their are various kinds of organisational structure
which are being considered as follows:
 Hierarchical organisational structure- This kind of structure comprise of all the top to
bottom areas through which the working of the company and the organisation will be
from the top to bottom basis(Williams, 2018). This is mainly the pyramid shape structure
and all the employees will be working under the supervision. This is mainly being made
in order to check out all the working process of the employees in the company.
 Flat organisational structure- In this kind of structure all the higher and the lower level
staff is being concerned and they do not take any such steps like to make there employees
being well aware about the company and the organisation and with that they try to

maintain that the employees being working over there will not need any supervising.
They usually do not involve the employees in all the areas and sectors.
Sainsbury use to work on the hierarchical level as this helps out to maintain all the
working through the higher level of the employees. That means all the levels of the employees
are being controlled by the higher level above them. Such kinds of methods and the employment
tends out to maintain the supervision so there may not be any mistake and the work can be done
in the proper manner(Gray, 2019).
Basis Hierarchical Flat
Managing the
company
It considers in all top to bottom
level of organisation which helps
in management of the employees
in the lower level and implied
strategy.
There will not be any management
skills in it.
Adaptability It covers out in large business
practises.
It covers out for certain small
companies and with that all the
decision making will lie on the
supervisors.
Guidance and
supervising
Supervision is done for all the
employees.
Supervision is not being considered.
Using PESTLE analysis explain how different external factors affect the performance of a
business.
PESTLE Analysis helps out to check all the external problems that are being covered in
it. It implies that all the behaviour and the nature the organisation tends to follow in order to
grow in the external environment is considered in the company. There has been analysed that
there are varies areas and the conducts which creates the impact and as in order to run a
successful business a company should carry all the important information about the external
factors that are important. The PESTLE analysis of Sainbury is mentioned below;

 Political- This comprise of all the government regulations and the factors which helps out
to pertains the areas in which the company can there by help out to make the varies
nature and policies. As due to Brexit there has been seen the major affect in sainsbury as
the product pricing there by increased and also the customers were there by being lost as
the result of this. All the government regulation is majorly affecting it(Darics and Koller,
2017). Economic- It covers out all the factors that contains the economic rates in the company,
as there has been analysed that all the foreign exchange rates are being carried out in it
and the economic factors involve all the cost rate and also the inflation period. As
Sainsbury is being dependent on the road for all the shipment of there product there has
been seen that the rise in petrol price there by affects the cosy of the products and they
use to manage all the economic growth with it. Social- This factors complies that all the changing trends and also the market conditions
which are being considered in it. The products are there by being made by the change in
the requirements and also the social factors which there by being change with all the
global changes. The sainbury is already providing all the products that are the main focus
of the customers and they keep check on the riding demands of the customers and work
accordingly. Technological- It is mainly the technological advancement that the company can use in
order to attain the growth in the market. As there has been seen that Sainsburry is already
a tech- friendly company. As there has been seen that all the advancement and the
benefits are being considered in it (Weerawardena and et. al., 2019). Legal- The legal factors complies that all the laws and the regulation that are being
considered in the company and there has been seen that the framework which implies
towards the areas and the nature through which the companies can affect the market
conditions is being concerned. The Sainsbury implies that all the areas and the laws and
the regulation are properly being allowed by they train there employees with all the laws
and regulation.
 Environmental- Sainsbury is in order to maintain the environment control try to use the
carbon footprints that helps out to frame all the work and with that it pertains that the
further climate change and the working can be seen. All the plastic waste is being

controlled by the company(Morozko, Morozko and Didenko, 2018). And thus the
environmental factor is majorly important as this is to be specifically controlled.
CONCLUSION
Business plays an important role in all the growth and advancements and provides the
nature and the methods of increase in the customers. Furthermore it is also analysed that the
Sainsbury external environmental factors covers out the PESTLE in which the environmental,
legal creates a positive impact and the political and economic are the areas that should be
properly observed.
REFERENCE
Williams Jr, R.I., 2018. Measuring family business performance: research trends and
suggestions. Journal of Family Business Management.
Weerawardena and et. al., 2019. Business model innovation in social purpose organizations:
Conceptualizing dual social-economic value creation. Journal of Business Research.
Gray, D.E., 2019. Doing research in the business world. Sage.
Morozko, N., Morozko, N. and Didenko, V., 2018. Rationale for the development strategy of
small business organizations using the real options method. Academy of Strategic
Management Journal, 17(2), pp.1-11.
Darics, E. and Koller, V., 2017. Language in business, language at work. Palgrave