Business and Business Environment Report for Sainsbury's Analysis

This report provides a comprehensive analysis of Sainsbury's business environment, a major retail sector business in the UK. It begins with an introduction to the business environment, highlighting the importance of innovation and market trends. The report is structured into two sections. Section 1 explores different types of organizations, including public, private, voluntary, and non-governmental enterprises, and their sizes and scopes. It also examines Sainsbury's organizational structure and functions, such as design and production, finance, sales and marketing, and human resources. Section 2 delves into a PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors affecting Sainsbury. It then conducts a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. Finally, the report discusses the interrelation between Sainsbury's strengths and weaknesses and the macro-environmental factors. The report aims to provide insights into Sainsbury's operations and strategies within the dynamic business environment.

HND Business Management
Business and Business Environment
Florian Marius Pelin
ID:17002145
Batch: WH-D38

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
1 Different types of organisation (P1).........................................................................................1
2 Size and scope of the organisations (P2)..................................................................................2
3 Organisation structure and functions (P3)................................................................................3
SECTION 2......................................................................................................................................5
a) PESTLE analysis (P4).............................................................................................................5
b) SWOT analysis (P5)...............................................................................................................6
c) Strength and weakness interrelated with the macro factors (P6)............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment considered several operations and functions that assist to develop
effectiveness in the business. In this consideration, enterprise implements innovations and
creativity so that promotional activities have been implemented with market trends and
consideration. Therefore, activities design to focus on the attainment of profits and revenue in the
business environment activities (Evans, Van Fossen and Barlow, 2017). In this context, present
report based on the Sainsbury which is one of the largest supermarket which deals in the retail
products and services in the country. Furthermore, it also carries different functions in the
business to cope up with the additional activities as well. For gaining insight information of the
present business, report covers different types of business and its scope in the world.
Furthermore, it focuses on the macro environment analysis through effectiveness will be develop
in the market. At last, strength and weaknesses has been described with interrelate it macro-
environment factors. Therefore, effectiveness will be developing in successful way.
SECTION 1
1. Different types of organisation (P1)
In the UK, there are different kinds of sector operate successfully to make sure that
effectiveness will be develop in proper way to fulfil aims and objectives. Each business
considers different targets to work in systematic manner. Hence, following explanation
considered towards different sector business: Public enterprise: Public enterprise considered their operations and functions to focus on
the systematic work performance. In this regard, welfare for society is main aim and
objectives which they possess to operate their operations (Solomon, Dahl and Polegato,
2014). They make sure each activity of business done to maintain society effectiveness
and attain overall goals and objectives at workplace. With the help of this aim, they
target customers easily. In addition to this, it impacts positively on the customer
attraction and attainment of desired goals. On the other hand, it has several
disadvantages in which due to lack of money, they get very fewer profits. As results,
they are unable to make more investment to innovate new things at workplace. In this
consideration, it is important to look upon the creative advantages that assist to make
successful operations and functions. For instance, Sainsbury operate their outcomes in
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public sector so that effectiveness will be generated in the business to attain creative
results and outcomes at workplace. They possess their operations to focus on the public
sector business. Private enterprise: As compare to this, in the private sector, operations and functions has
been carried to attain more profits and revenue at workplace. In this regard, small
number of customers mainly target by the business so that they are attracted to
implement fund amount as well. However, they have no amount to create more
operations and functions at initial stage so that they generate IPO in their organisation.
As results, it assists to make focus on the more investment activities. Systematic work
performance mainly generated to develop creative advantages in the business
environment. Limited liability is the main advantages that implemented in the business
to attain more significance results at workplace. For example, Tesco operate their
functions and operations in private sector so that they consider objectives to increase
profitability as well (Evans, Van Fossen and Barlow, 2017). Voluntary enterprise: In respect to deal with the voluntary sector, functions and
operations has been carried to attract different customers at workplace. In this way,
different individual perform their part to make activities innovative. In the agreements of
different people they are work voluntary. As results, it will assist to accomplish desired
results and outcomes in the business environment to focus on the benefits and
development (Solomon, Dahl and Polegato, 2014). Voluntary participation of the people
assists to look upon the proper checking and management of the activities as well. In UK
market, National Trust performs their functions and operations in this sector to attain
more profits and revenue as well. Non-governmental organisation: NGO works with the creation of better work in the
society. Therefore, it considers proper support in financial and operational to develop
better services to buyers. For instance, Oxfam
 Not for profit enterprise: They consider their part to work with specific purpose and
look for better handling operations. They mainly develop their consideration to develop
innovative results in the society.
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2 . Size and scope of the organisations (P2)
In the UK, different organisation possesses effective results to operate successfully and
attain more significant advantages at workplace. With the help of these aims and objectives, they
develop their creativity at workplace easily. Different business followed scope and size in
following aspects:
Private organisation: In the private sector business, there are several shareholders
working to make effective results in the business. They appointed to operate systematic liabilities
in term of shares. This is because, operate functions and operations considered to increase target
market activities (Baesens, Bapna and Zhao, 2016). They possess main objectives is to increase
their revenue and profits as well to make sure that effectiveness will be generated to focus on the
innovation and creativity. Furthermore, they are also developed their part to make innovation and
expand business in new areas which helps to attain more profits and revenue. Private business
also considered in different businesses such as partnership, limited liability, sole proprietorship,
etc. They all adopted hierarchical structure that assists to accomplish desired results in the
business. In different areas, business could be expand through medium-sized business and invest
more money as well.
Public organisation: In other aspect, public enterprise considered systematic work
performance to deliver products and services. In this aspect, all businesses that working in public
sector need to follow rules and regulations that are set by government. It will help to focus on the
innovations and creativity as well. Therefore, marketing activities implemented with different
size and scope. Therefore, these kinds of businesses considered operations in health care,
educational system, social services, etc. All these enterprises are working to maintain
profitability and business as well. Furthermore, public sector enterprise develop their system in
different activities such as central government, health care etc. (Baesens, Bapna and Zhao, 2016).
Hence, Sainsbury develop their operations in different kinds of businesses such as banking,
retail, etc. They adopted vertical structure so that communication will be made effectively with
all members easily. With the help of the policy and effective participation, characteristics also
performed in systematic manner. Hence, existing strategy is also taken on the basis of horizontal
structure to make effective position and activities. Guidelines and basic structure ascertained
systematic work performance in the business.
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Voluntary organisation: Voluntary sector also pay effective results to operate functions
and operations in the business. In this consideration, they adopted aims, scope and size to
cooperate with different activities at workplace. In inclusive consideration, organisation and
community also create benefits which adopted creativity at workplace (Grosanu, Bota-Avram
and Tiron-Tudor, 2015). They are also focuses on the group and organisation that are variety in
ranging in scale, organisational structure and cultural activities to develop more effective
functions and operations.
Micro level: In this way, single individual consider their part with limited scope and
functionality. Profit also gained by them to grow their personal outcomes. For instance grocery
shops, travel agency, etc.
Small size: They consider bigger operations as compare to the micro level. They have
scope to expand their operations at international level. They develop good sustainability and
outcomes in systematic manner. For instance, educational institute.
Medium size: They consider scope to make themselves as large business. Their main aim
is to meet with the operational and functional requirement of the company. Mainly they work for
manufacturing sector. For example, Marks and Spencer, etc.
Large level: They consider operations and functions as the large scope and production
capabilities. Therefore, they are able do their operations in better way. For example, Aviation
industry
3 Organisation structure and functions (P3)
In Sainsbury, there are different functions and operations have been performed that are
interrelated with each other. It creates link with the objectives and structure as well (Dyllick and
Muff, 2016). Therefore, effectiveness will be developing with several operations such as
marketing, finance, etc. In this aspect, following are certain functions ascertained that perform
and interrelated with each other successfully: Design and production department: Sainsbury operate successfully in the production
department in systematic manner. With the help of creative design and activities, the
company can ascertain their innovation in creative manner. Therefore, performance will
be developing to operate successfully. It is the best way to target people and attain goals.
In this department activity has been performed to focus on the customer attraction with
implement quality and innovation at workplace (Evans, Van Fossen and Barlow, 2017).
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Therefore, targets and goals will be developing to focus on the mission and vision of
business. Finance department: Finance department relate with all other departments functions.
This is because it assists to arrange money that needs to invest in different areas. For
instance, implementation of the new tools and techniques, recruitment and selection of
staff, marketing, etc. All these departments require proper funding so that effectiveness
will be increasing in successful manner (Solomon, Dahl and Polegato, 2014). With the
help of the proper arrangement of fund, the company can make sure effective results will
be done at workplace. Sales and marketing department: Sales and marketing department taking important role
in Sainsbury success. This is because it includes different activities that need to
implement to focus on the innovations and creativity. In this manner, there are different
advantages exist such as advertisement, free sample of new products, etc. In this way, the
company interrelate with the finance department because it provides proper money.
Furthermore, HR department also helps to maintain effectiveness and attain creativity in
the business (Doh, McGuire and Ozaki, 2015). With the help of the sales team, proper
development has been made at workplace.
 Human resource department: Human resource department considered their functions
and operations with each area of Sainsbury. In this way, they consider marketing
activities with staff members to promote products and services. Furthermore, in
production department they consider their part with product manufacturing. It will assist
to look upon the several development activities that are needed to perform functions and
operations in the business (Reynolds and Rohlin, 2014).
SECTION 2
a) PESTLE analysis (P4)
Sainsbury is one of the major retail sector businesses in supermarket consideration.
Therefore, they considered different types of activities that assist to develop more profits and
revenue with different strategies' implementation (Martínez, Galván and Alam, 2017).
Furthermore, there are several competitors exist in UK who considered same functions and
operations as the chosen. As results, following analysis included in term of PESTLE:
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 Political factors: Sainsbury develop their operations and functions which influence by
the political elements. This is because, due to increasing globalisation there are several
opportunities and challenges exist in the business that creates impact on the business. In
this consideration, corporation tax which is around 28% unlike and continuously grow
with the lower rate of the taxes. This is because large businesses need to implement more
amounts in their operations and functions to attain desired results (Verraes, Uyttendaele
and Herman, 2015). Economic factors: Due to rising cost of fuel is one of the major economic considerations
which affect to the Sainsbury. This is because it creates impact on the supply chain which
causing of increasing prices for product. Due to global food crises, the chosen business
has implemented more cost to operate systematic functions. Furthermore, in UK
unemployment rate continuously increasing which create impact on the performances and
objectives to attain more systematic work performance. This problem creates negative
impact so that labour cost need to keep in the mind. All employees must pay minimum
wage so that budget program will be developed in successful manner. Social factors: Due to increasing customer awareness and social trends, Sainsbury has
great opportunities to deal with these activities. In this consideration, there are many
suppliers exist who provide raw material to Sainsbury. Furthermore, there is wide
competition exit that create impact on the products and services development to look
upon the current market opportunities. Hence, the chosen business needs to keep their
proper touch with market so that they can provide products and services accordingly.
Apart from this, Sainsbury involved their different activities such as charities, raising
fund, arrangement of social activities, etc. All these aspects create positive impact to
attain goals and objectives (Ramli and Twaha, 2015). Technological factors: Further, correct use of technology also increase effectiveness in
the business to make sure that effective result will be attain at workplace. In this manner,
there are several things implemented that helps to Sainsbury to upgrade their technology
continuously and attain desired results as well. Sainsbury provide option of online
shopping to each customer so that they are able to attain creative results in the business
that makes technological advantages in the business environment. This is because,
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company considered efficient and good system to make profitable business (Martínez,
Galván and Alam, 2017). Legal factors: Sainsbury is well known business about the different policies and
legislation. They follow discrimination, fair treatment, wage policy, etc. rules to make
effective results at workplace. In this consideration, all these elements helps to follow
different consequences that are needed to implement effective results at workplace. In
this consideration, well-being of society also develops so that positive results will be gain
at workplace. In addition to this, there are different laws has been implemented such as
employment law, safety, health security, etc. (Verraes, Uyttendaele and Herman, 2015).
 Environmental factors: Moreover, the company also trying to reduce carbon impact from
the environment so that effectiveness could be increasing. In this manner, Sainsbury
considered green environment strategy through they will able to solve different issues and
problem that take place in the environment. In addition to this, there are several ethical
issues are also solved to sell organic foods. Therefore, it can be depict that the chosen
business make availability ethically which could be acceptable on the fair pricing towards
the consumer.
b) SWOT analysis (P5)
Sainsbury operate different kinds of operations and functions in retail market. Therefore,
there are different strategies has been implemented that assists to look upon the systematic work
performance in the business. In this regard, following are certain strength, weakness,
opportunities and threats has been implemented in the UK market towards the business: Strength: Sainsbury deals in the diversified business so that they have strong market
share. Currently they are dealing in more than 1200 supermarkets in all over the world
with grocery and other merchandise operations. It is the biggest strength of the company.
The company has different kinds of segmentation exist that offers in the brand so that it
impact positively to make sure that effective results will be generated with different
group members. Different groups are work together in the business to attain desired
results at workplace. Therefore, it will assist to look for the business development. Along
with this, customers of the chosen business are loyal so that it impact positively to make
sure that effectiveness will be attain in systematic manner in the business environment.
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Although, the company provide effective and good quality in their products and services
so that it impact positively on the operations and functions that make creative results. Weakness: However, there are several weaknesses exist towards the Sainsbury in UK
which impact negatively on the operations and functions. In this consideration, it can be
depict that it is the single operating market so that it impact negatively on the business
operations and functions. In this manner, it is important to develop target market which
assists to look upon the innovations and creativity as well. It will help to focus on the
more operations and functions in new areas of the world. Furthermore, there is low
margin on food business so that they are unable to gain more profits and revenue on these
products. In this aspect, it is important to look upon the creativity and attain desired
results as well with set more margin (Martínez, Galván and Alam, 2017). Opportunities: Sainsbury has several opportunities through them are able to deal with the
innovative functions and operations as well. In this way, they need to look towards the
global market expansion that assists to make sure effectiveness will be develop in
successful consideration. It will help to focus on the setting business activities with online
activities. Furthermore, it also considered lucrative market that assists to attain more
profits and revenue as well. In addition to this, another opportunity also develops that is
diversification of the banking industry. This is because in this way they can enter in
financial sector so that investment can be developing in successful way. It will help to
increase credit and loan facilities that assists to attain more profitable outcomes in the
business environment (Tan, Chew and Hamid, 2017).
 Threats: In addition to this, there are several threats also exist in the UK market that
create negative impact on the business performance. This is because, there is wide
competition existing in the retail industry with Tesco, Asda, Morrison, Marks and
Spencer, etc. As results, all these create impact on the functions and operations of the
company. Furthermore, Brexit create major impact on the prices that are charges by the
Sainsbury. Intense competition in the grocery and retail segment create major impact on
the functions and operations of the business (Leng, Hamid and Dawei, 2015).
Porter five forces
There are different elements exist which included in the porter five forces. They are as
follows:
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 Competitive rivalry (High): In the market, there are different businesses exist that
compete with Sainsbury such as Tesco, Asda, etc.
 Barriers to entry (High): Barriers of entry is high because in the UK there are different
food retail business consider their operations and functions in this aspect. Local
knowledge is extremely crucial in the food retail sector.
 Threat of substitute (Low): In the UK, there are less threat of substitute because,
Sainsbury provide qualitative products and services. Therefore, customer loyalty has been
maintained in systematic manner.
 Buyer bargaining power (High): Buyer power is very high because there are different
businesses exist that provide same products and services as Sainsbury. Therefore, it
creates impact on ascertain desired results.
 Supplier bargaining power (Moderate): Supplier bargaining power is considerable low
because there are several suppliers exist in UK. As results, sales volume could be develop
as per dependence on supermarket.
c) Strength and weakness interrelated with the macro factors (P6)
In respect to determine relationship of strength and weaknesses with macro factors,
following elements are signifies in the business:
Strength Great place to work with employee diversity: In respect to look upon the political factors,
it can be stated that Sainsbury has great place to work with employee diversity (Kumar
and Bansal, 2015). This is because there are different kinds of people working together
who possess distinctive culture. Therefore, it will help to focus on the innovative
characteristics in the business environment.
 Differentiated food proposition with great quality: Furthermore, differentiated food
proposition also helps to determine great quality (Verraes, Uyttendaele and Herman,
2015). In this way, Sainsbury follow all rules and regulations in their business to focus on
the creative consideration. In addition to this, it also impacts positively to make customer
loyalty.
Weaknesses High competition: In the UK, there is high competition exist so that there are several
substitutes exist of branded products of Sainsbury. Therefore, it is major weakness to
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