Sainsbury's Business Environment: Analysis of Objectives and Factors

This report provides a comprehensive analysis of Sainsbury's business environment, covering its organizational structure, objectives, and the impact of macro and micro factors on its operations. It begins by explaining different types of organizations (voluntary, public, and private) and their legal structures, focusing on Sainsbury's background, objectives, services, mission, and vision. The report then examines the relationship between organizational functions and objectives, followed by an analysis of Sainsbury's macro environment using the PESTLE framework, identifying both positive and negative effects. Internal and external analyses are conducted to pinpoint Sainsbury's strengths and weaknesses, and a SWOT analysis justifies its influence on decision-making. The report concludes with a critical evaluation of how macro and micro factors affect Sainsbury's business objectives and overall decision-making processes. This document is available on Desklib, a platform providing study tools and solved assignments for students.

Business and the business environment
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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
P1. Explaining the different purposes and types of organisations: voluntary, public and private
sector and also the organisation’s legal structure.........................................................................5
P2: Explain in details the background, objective, the services and the Mission and Vision of
the company...............................................................................................................................14
M1 Analysing the link of scope, structure, and size of various different organisations with the
objectives of the business and services being offered by the company.....................................19
D1. Critically analyzing the complexities of organisational structure and interrelationship
between various organisation.....................................................................................................20
Task 2.............................................................................................................................................21
P3: Explain the relationship between different organizational functions and how they link to
organizational objectives and structure chosen for the purpose................................................21
M2: advantages and disadvantages of relation between function and impact of the organisation
....................................................................................................................................................23
Task 3.............................................................................................................................................24
P4. Identification of how macro environment of Sainsbury has a positive and negative effect
on operations of its business......................................................................................................24
M3. Analyzing Sainsbury's macro environment in details through application of PESTLE
analysis.......................................................................................................................................27
Task 4.............................................................................................................................................28
P5. Conducting internal and external analysis of Sainsbury’s for identifying its strength and
weaknesses.................................................................................................................................28
P6. Explanation of how strength and weaknesses of Sainsbury’s is related to external factors 30
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M4. Application of SWOT analysis for justifying its influence to Sainsbury in decision
making:.......................................................................................................................................31
D2. Critical evaluation of both macro and micro factors and their impact on Sainsbury’s
business objectives as well as decision making.........................................................................32
Conclusion.....................................................................................................................................33
References......................................................................................................................................34
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Introduction
Business and business environment of an organization depends upon how much and how
effectively an employee contributes to the organization, how they deal with different situations
and in what way they exploit their talents. Company’s overall growth is dependent on such
factors. Although there are many other things which can influence directly or indirectly a
company’s business like the performance of different cells, departments among the workers,
standard of the organization’s management procedure, relationship among the members of all the
departments. The assignment are going to focus on a particular organization named Sainsbury’s
which is diversified in various sectors like fuel, energy, banking, grocery.
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Task 1
P1. Explaining the different purposes and types of organisations: voluntary, public
and private sector and also the organisation’s legal structure
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Public sector: The public sector includes the all the public and government controlled
enterprise; agencies and other entities of publicly funded which provides the public services,
goods and programs. Moreover, the public sector includes expansion ring of the organization,
having the government positioned at the centre which is followed by public enterprises and
agencies. The different types of organisations related to the public sector are:
● International
● National
● Regional and
● Local
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The legal structure of the public sector organisation:
● Vertical Structure: The agencies of government use this structure at each level. This
structure includes a department head or director at top of the managing the organisation.
It also includes the middle or lower level managers.
● Horizontal Structure: The horizontal structure of this sector uses lesser no. of layers
between the labour and management. According to Belás et al. (2015, p.95), this structure
also allows open communication between the layer of labour and management.
● Divisional Structure: This structure of the public sector separates the staffs or
employees by job geography or specialty.
● Matrix Structure: This structure of the public sector makes use of the system where the
relationship is established between the management and the employee as a matrix or grid.
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Private sector: The privately owned small business entity forms a part of the private sector.
This sector includes the diversity of partnerships, individuals and groups ranging from small
stores to conglomerates which are multinational. The organisation existing in this sector are sole
proprietorship business, partnership business, the business medium and small size, large
multinationals, trade unions and trade or professional associations. Private sector forms the part
of an organisation which is carried out by companies and individuals instead of the government.
Most of the organisation of private sector carries out their businesses with an intention of profit
earning.
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The legal structure of the private sector organisation:
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Voluntary sector:
Voluntary sector generally consists of the organisation which includes the purpose of benefiting
and enriching the society. This sector of an organisation often carries out its business operations
without any motive of earning the profit or little earning of profit. The Voluntary sector carries
out is business without any intervention from the government. Unlike other sectors such as
private where the return and the generation of the earning are emphasized, the profit raised or
money earned by this sector of an organisation is normally invested back. According to Fleisher
et al. (2015, p.25), the money or profit earned in this sector is invested back to the organisation
itself or to the community. In voluntary sector, there are various types of organisation involved
such as charities, organisations of social welfare and betterment. This sector organisation
includes various foundations, groups of advocacy, organisations which are faith-based,
recreational sports and groups of the community.
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The legal structure of the voluntary sector:
The rules followed in the voluntary sector are made out in the constitution, the small part of
which is adopted in the legal structure. The voluntary sector consists of three legal structures:
● Unincorporated Association: This legal structure of the voluntary sector is followed by
small groups having goals of short-term, low income and membership. This structure of
the sector does not have any intention of employing staff or acquiring property. This legal
structure is cheap and quick for setting up.
● Trusts: This legal structure is basically set up for managing the property and money for
the purpose that is clearly defined. This structure of the sector forms the relationship
which is formal between 3 parties: the property and money donor, the trustees and
individuals who benefit from this structure. Setting up a trust is cheaper and can be set up
quickly.
● Limited companies: This structure of the voluntary sector is becoming popular. Its
structure of the voluntary sector consists of groups who are involved in the management
of staff, contract, funding of large amounts and also land.
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The purpose of the organisation belonging to different sectors:
The purpose of the different sectors such as the public, private and voluntary sector of an
organisation is the development of the market, development of the product for maintaining good
relationships with the customers. The purpose also includes maintaining a survival strategy by
the organisation. The other purpose of the various sectors of an organisation includes positioning
and branding of the services or products and also the extension of branding and building of brand
for including the sale of the organisation's product.
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