Comprehensive Report: Sainsbury's Business Environment Analysis

This report provides a comprehensive analysis of Sainsbury's business environment. It begins by defining the business environment and its impact, then explores different types of organizations, including public sector, limited companies, and charities, with a focus on Sainsbury's as a case study. The report examines the size and scope of various business types (micro, small, medium, and large) and their objectives. It further delves into the interrelation of various organizational functions, such as research and development, human resources, and finance, and their applicability to achieving business objectives. The report also identifies the positive and negative impacts of the macro environment on business operations and conducts internal and external analyses of Sainsbury's to identify strengths and weaknesses, explaining how these interrelate with external macro factors. The report concludes with an overview of the key findings and implications for Sainsbury's.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of organisation and and growth of international business............................3
P2 Size and Scope of various types of organisations .................................................................5
P3 Interrelation of various function and their applicability to accomplish objectives................6
TASK 2............................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations....................................................................................................................................7
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is one of the important tool and component that affect the overall
operation of business. Further, in dynamic external environment changes were coming in the
thinking, perception and attitude of person that induce the company to come with new and
innovative techniques in their goods and services that attract large number of customers which
help increasing the sales and goodwill of business. Apart from it, there are various factors and
elements that need to be modify in respect of organisation structure which allow them to beat all
the challenges of rivalry (Björklund ,2011). Under this assignment the company which is
preferred i.e. Sainsbury's which is UK based retail stores engaged in clothing and grocery
products items and also deal with different diversified sectors according to the culture and
perception of target audiences. Apart from it, this project discuss about different types, size and
scope of organisations, interrelationship of various organisation, various organisational functions
and conduct of internal external factors for the purpose of accomplishing objectives.
TASK 1
P1 Different types of organisation and and growth of international business
Business is consider as the mixture of different activities whose main objective is to
provide standard quality of goods and services to customers that help in satisfying all their needs
and desire at optimum manner (Chow and et. al.., 2006). Every kind of organisation have their
own purpose and objective in respect of their products and process that allow them to gain best
results or outcome in future. Apart from it, the legal structure of business has been maintain in
effective manner so that ethical code of conduct and morale of employees has been maintain at
the time of accomplishing daily targets of business. Therefore, it has been properly said that
when any association is working at wider level then growth and development of business is
possible through the effectiveness and efficiency of business. But for the proper working they
need to scan environment on daily basis and mostly there are three types of company whose
description given below:-
Types Overview Purpose
The most important kind of
business is public sector
enterprise whose main
Famous company known as
crown prosecution services
which has open relationship
On of the main objective and
purpose of crown prosecution
services is that they offer legal

objective is to serve the whole
society in order to enhance the
living standard of communities
and make an efforts to remove
all types of issues that society
has been facing for longer
period that lead to good
outcomes and entities get
control by local, state and
central government.
with UK and working for
controlling criminal activity in
England and Wales. It was
enforced its working in year
1986 and comprises of 6000
representatives in their
workforce. The main aim of
company is to reduce all type
of criminal offences that exist
in society so that better
working is possible.
and adequate compensation to
all the person who are suffer
because of criminal offences
and also investigate the whole
case and execute the whole
proceeding for legal actions.
Another company which
running freely in whole
business environment are
come under limited
companies. These type of
company are limited by debt,
liability and also at the time of
subscribing shares and these
are including in both public
and private enterprise and have
less power and direction as
compare to public firm.
Sainsbury's is famous retail
store privately run in UK and
it is limited by liability kind of
organisation in which member
has no liability towards risk
and loss of business. But it is
necessary for them to register
under companies act, 1998 in
order to regulate the business
in retail sector at the time of
engaging diverse range of
products and services.
Private limited company
having utmost objective to
earn huge amount of profits by
offering various goods and
services. Similarly Sainsbury's
another aim is to deliver
standard quality in respect of
their items in order to remain
in competitive market place by
making innovative
modification to beat challenges
of rivalry.
Third sector or type of
business entity which
operating under this sector
known as charity and these
company are not for profits
purpose but their activity are
running with an aim of uplift
British heart foundation one of
the famous charity
organisation in UK and
enforced its business in the
year 1961. Their main business
is to provide heart care
services to people who are
The main purpose for the
establishment of this kind of
organisation is to resolve and
free the society from heart
related diseases and they
require to work by analysing
different heart related

the standard living of people
by providing them better
infrastructure and help needy
and disable people so they
develop their lively-hood in
better way.
suffering from the heart related
diseases which help in curing
the people from the stage of
mental tension.
problems along with their cure.
P2 Size and Scope of various types of organisations
In every organisation there are different kind of companies which are differ in respect of
size, structure and divide their type of business in different categories like micro, medium and
large enterprise and the description regarding the size and kind of companies are describe
below:- Micro scale:- This kind of organisation are generally small in size and main purpose of
their establishment is to fulfils the basic needs and lively-hood so that they carry business
smoothly. Further this company comprises of few number of employees and total
turnover is very low and running business by single individual only (Haksever ,2010). Small scale:- Under this kind of division business are generally large in operations as
compare to micro enterprises and they comprises of employees around 50 and their
capacity of earning revenue is about less than 5 million dollars. The main characteristics
of this kind of business is to accumulate large amount of market share and they usually
plan for larger expansion at different place of countries. Medium scale:- Under this kind of business approx 500 to 250 employees are working
and the revenue they earned is about 5 to 24 million dollars. For example Exponential-e
which is digitalisation based organisation fall under this category. Large scale:- It consist of around 300 workforce who carry out their operation on large
scale at different countries and the revenue or profit they generated is around 250 million
dollars and suitable example is Sainsbury's which are operating their business at
international level and consist of around 1500 employees.
Objectives differentiation:
Micro Small Medium Large

The main purpose of
this kind of
organisation is to earn
that sufficient amount
through which they
satisfy their basic
needs and ensure
financial security
within society.
Under this main aim of
this kind of
organisation is to
maintain good and
healthy relation and
better lifestyle which
help in grabbing all
type of market
opportunities so that
they gain extra amount
of profits.
The main objective of
this kind of
organisation is to
diversified and expand
their stores at
international level
which enhance their
brand image and
market share.
The main focus of this
kind of organisation is
proper structuring of
whole business that
leads to better
sustainability and
bring proper stability
in overall organisation
structure.
Scope of Different types of Organisations:
Micro scale:- This kind of business generally have less chances of expansion because of limited
procedures and open their stores at limited marketplace within the cities or region.
Small scale:- under this they use different kind of tools and mechanism which are been utilised
in order to enlarge the whole scope so that business has been shifted from small scale to medium
scale business which also wider their scope.
Medium scale:- Level of scope is very high in nature and due to which company can go at global
level easily and this can be done if the company has license of operating up the business in which
approval of government is mandatory.
Large scale:- They carry out their operation at huge scale in which they got an scope of
acquiring the whole economics in which they are unable to establish their mark in particular
country due to complex legal issues.
Transactional company:- Transnational organization is an vast organization which have their
own business activities in different nations and even their income is significantly more high then
some economy of the nation. From the above articulation one might say that transnational
organization has coordinate impact on the conservative state of a nation.
P3 Interrelation of various function and their applicability to accomplish objectives
Every organisation is not based on single working style but they have to deal with diverse
range of functions and procedures. Further, it is essential for them to understand all the function

properly and manage it accordingly (Kaplan and et. al., 2013). With the proper assistance and
working of these function management easily accomplish all the goals and objectives with
optimum manner. It is clearly define that every business has proper organisation structure on the
basis of which duty and responsibility are assign to various workforce that leads to better
productivity and efficiency. Other function which must be performed by Sainsbury's are describe
below:- Research and development:- This department plays an important role in conducting the
research of business under which investigator carry out research in respect of particular
market issue and different trends liked by customer in respect of retail sector. Whatever
the data and information collected by organisation must be analysed properly and those
they consider relevant and essential will be used at the time of making innovative
invention in respect of goods and services. Human resource division:- This division generally work for hiring and recruiting the able
and professional employees for vacant job position under which they need to formulate
different policies and tactics through which they select the source of recruitment whether
external and internal on the basis of suitability and financial position of company through
which they execute all the procedures related to selection process. Sainsbury's one the
famous retail company in which through advertisement and social media advertise in
whole public regarding all the vacant job position through which large number of
participate apply for recruitment procedures and company has different alternatives in
which they select which is best suited to them.
 Finance department:- This department is appointed in order to maintain all the data
related to financial matters. Their main aim to maintain the financial position and prepare
the budget in which they evaluate whether the revenue earned by the company is
sufficient in order to meet all the expenses or not. For example Sainsbury's finance
department compare the actual budget with standard one and if any deviation is arises
then it will be meet by taking corrective action for it for the purpose of adequate
performance.

TASK 2
P4 Identify the positive and negative impacts the macro environment has upon business
operations
Every organisation deal with different type of market at macro level where they need to focus on
individuals in order to earn huge amount of profits and leads to optimum satisfaction to
customers. Further, it will help in accomplishing their goals by providing standard quality of
goods and services to their target audiences which facilitates the option to manage properly all
the things at proper manner (Mohamed and Lashine ,2012). But at macro level there are huge
changes coming in taste, choices and perception of customers which require all the company to
make modification in their organisation structure so that company able to fulfils all the needs and
requirement of customers. Therefore, it is essential for Sainsbury's to observe all the positive and
negative impact of macro environment in respect of their business and on the basis of which they
gain competitive advantage over competitors and for the proper macro analysis of Sainsbury's
that need to assess properly for which strategies are made for managing all the work at macro
environment which describe below:-
Basis Strength Weaknesses
Political:- It is basically related
to maintaining all the political
conditions which are related to
government policies, standard
and different principles which
need to understand by
companies.
Major positive impact in
macro environment on
company is related to
corporate tax which has been
decreased from 32% to 28%
that help in maximising the
effectiveness of business.
Rapid changes in policies and
political instability cause many
negative impact on overall
operations of business.
Economical:- It stated down
all the economic conditions
related to inflation, deflation
and fiscal deficit policy.
UK company has lot of options
of doing job in good manner
because of which crises are
low and purchasing power of
individual is higher which
increase the sale of
Sainsbury's.
Negative impact on
economical basis is due to the
Brexit under which many
company are winding up their
operations from UK and that
create the issue of depression
which leads to problem of

unemployment.
Social factors:- Basically
related to emotion, culture and
sentiment of society.
Sainsbury's diverse their retail
business at different countries
that facilitate them to provide
products to customer
according to their taste.
Using such type of marketing
campaign which hurt the
sentiments and detrimental to
the interest of particular
society will dilute image of
company.
Technological:- This mainly
discuss about all the
technological and innovative
invention coming in the form
of goods and services.
Sainsbury's launch such type
of application under which
they showcase their outlets and
products online so large
customer avail services.
Using crtical innovative and
digitalise technique will lead
to confusion in the mind of
target audiences.
Legal:- Under this
compliances of all rules
regulation ensure ethical code
of conduct.
Proper adherence of policies
and legal standard enhance
brand image of company.
Non compliances leads to
heavy penalty to Sainsbury's.
Environmental:- those method
and mechanism used will leads
to less dilution of
environmental beauty.
Less use of such machinery
equipment that help in emit
such pollution which less than
range define by government.
Carbon footprints has been
increased which damage
natural beauty of environment.
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses
In order to evaluate properly the internal position of company Sainsbury's conduct the SWOT
analysis in which they know properly all the strength, weaknesses, opportunities and threats of
company and following is the description which stated below:-
Strength
 One of the biggest supermarket chain in
UK.
 It comprises the whole employee
Opportunities
 Sainsbury's can easily enter into the
market of emerging market through

strength of more than 150000
employees.
 Effective leadership along with top
branding and advertising. Having more than 550 supermarket
chains and 350 stores across UK.
joint venture and strategic alliances.
 Digitalise machines allow Sainsbury's
to opening their stores for 24 hours.
 Expanding their branches in Africa,
Asia.
Weaknesses
 Huge rise in the price of food over the
world also increase the price of
Sainsbury's products. Biggest player and rivalry in every
segment of retail sector.
Threats:-
 Enforcement of globalisation is the
biggest challenges and opportunity for
business.
 Need to provide high standard quality
of products in order to beat the
challenges of rivalry.
Therefore, it is essential for Sainsbury's to analyse properly all the above SWOT through which
they easily understand what changes they need to make in respect of different products and
services that allow them to take take competitive advantage over rivalry and easily increase the
profitability and efficiency in market place (Poon ,2011).
P6 Explain how strengths and weaknesses interrelate with external macro factors
Internal and external analysis both are important methods and tools which are interrelated
to each other so that better and effective outcomes can be made in respect of their operations.
Sainsbury's whole management need to examine all the factors and elements of both macro and
micro component on the basis of which strategies and policies are made for getting better
suitable gain. Various factors consider in order to define interrelation of strength weaknesses are
discuss below:- Political:- Government main strength is to make their business more gainful and visit
changes in government meditation limit nation regards to development and advancement.
Most important strength of Sainsbury's is to establish good relationship with government
authorities. Economical:- Another area is basically economy of nation that need to be decide before
executing activities. Although UK is not going good because of exist or debate with

European union. Further company require to implement all the activities in legitimate
manner so better working condition is possible. Further condition related to inflation,
deflation and other economic crises that affect business operations therefore, it is
necessary for Sainsbury's to understand all the economic condition of various countries
where they establish their retail stores and if changes needed take corrective steps for it. Social:- Various social factors like culture, sentiments and emotions of people that need
to consider at the time of running marketing campaign in which different tools and
techniques like advertising, social media and roadshows are used in order to aware large
audiences regarding the new features they offer in respect of products and services which
satisfy needs and wants of particular society (Quinn and et. al., 2010)
 Technological:- Factors like digitalisation and new innovative techniques reflect positive
reflection and company also increase positive outcomes and gains by utilising upgrade
technologies through which they easily facilitate all the services to customers at better
and efficient manner. Provide customer online platform of payment at the time of
purchasing from retail stores.
CONCLUSION
It has been concluded from the above assignment that analysis of business environment is
very important in order to address all the problems and issues that organisation faced due to
drastic changes in the needs and wants of customers due to new technologies and innovative
ideas that coming in market that offers wide range of varieties to target audiences at affordable
price therefore it is important for Sainsbury's to plan for expansion in term of product portfolio
and strengthen the segment of product line that help them to establish top most position in retail
industry that help them to enhance their market share and accomplish all the objectives and goals
in good and coordinate manner.

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Online:-
4.1 Typical business organisation departments and functions. 2018. [Online]. Available
through :<http://www.open.edu/openlearn/money-management/organisations-and-
management-accounting/content-section-4.1>.