Business and the Business Environment: An Analysis of Sainsbury's

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Business and the Business Environment

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................7
Task 3.............................................................................................................................................10
Task 4.............................................................................................................................................13
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................16

Introduction
The purpose of the business environment is to provide a safe place for the smooth operation of
the business companies. The main aim of these companies is to cater to the growth of the
workforce and bring in positive changes in the workforce. The business managers make the use
of the external and internal micro factors in the assessment of the business environment.
Therefore, the companies are aware about the implications of the macro and micro
environmental factors in the growth of the business. The study will take into consideration the
retail company in United Kingdom known as Sainsbury for the completion of this task. The
Sainsbury is a multinational retail company that specialises in products such as the household
items and merchandise. Hence, a thorough understanding on the operations of the company will
be rightfully discussed for the source of the study. This will play an important role in the
provision of an authentic aim for the study.

Task 1
LO1 Explain the different types, size and scope of organisations
Introduction
The report will present an annual report to the shareholders of the Sainsbury. It will outline the
different types of organization that the latter company will seek partnership with. It will outline
the legal structure and provide the key objectives of the different types of company. This will
form an important part of the research.
Different types of Organizations
The different types of organization revolve around the public, private and voluntary
organizations. These are different in their nature of operations and possess different functions.
Therefore, the aim and purpose of these organizations will be enumerated below. These
organizations are based in the different sectors mainly primary, secondary and tertiary.
Therefore, the purpose and key objectives of the company will be clearly enumerated below:
Public sector Organization: The public sector organization is under the control and influence of
the government. It has the power to provide quality and expert services for the growth of the
company (Bitektine, 2015). The public sector organization is invested with the idea of catering to
the growth and understanding of the individuals of the company. These organizations make
profit through the medium of taxes and other elements significant for the growth of the company
in a better and authentic manner. This is very useful for the growth of the industries to function
in an aesthetic manner. The company British Railway is an example of a public sector
organization. This has an impact on influencing the growth of the business in a better and
accurate way.
Private Sector Organization: The aim of the private sector organization is to earn maximum
profits. These companies are mainly under the control of the single owners or are a product of
joint venture. The private sector organizations are also known as the profit making companies.
These companies are not under the influence of the government and most of the shares of the
company are with the company stocks. The example of a private sector organization is the

company called the House of Fraser located in the United Kingdom. With the understanding of
the elements that are associated with the private sector organization, the company is able to set
better marketing and sales initiative for the growth and understanding of the company. This is
helpful for the growth of the company. This is important in comprehending the basic factors
important for the growth of the company (Lee, 2015).
Voluntary Sector organization
The voluntary sector organization serves the purpose of catering to the society in an authentic
manner. This is useful for the company, as it tends to the services without earning any extra
profits for themselves. This company has the power to influence the growth of the business areas
and the companies in a better manner. The voluntary sector organizations have the power to
influence the funding of the missionaries and the charities that follow the growth of the business.
However, the voluntary sector companies have the power to influence the growth of the
authenticity of the businesses that are important for the company. The company Red Cross is an
example of a voluntary sector organization. The aim of the voluntary sector organization is to
tend to the growth and understanding of the businesses.
The ownership pattern of different types of organizations
The private sector business organizations are tended in a different manner and have diverse
ownership patterns. The private sector organizations are aided with the help of diverse
subdivisions that creates an influence over the growth and understanding of the business that are
significant for the handling of the company
The size and scope of different organizations and their legal structure
The size and scope of the business organizations are invested with a different number o legal
scope and structures (Robinson, 2017). The private sector organizations are invested with
different sub classifications that are important for the company. These are under the private
sector organization and their classifications will be enumerated for a better and comprehensive
understanding. The private sector organizations comprise of the franchise, sole proprietorship,
franchise, there are different size and scope for the purpose of every organization. These will be
clearly enumerated below:

Micro Organization
These organizations have less numbers of employees that provide service to the companies.
These organizations are a design of family businesses that are significant for the growth and
understanding of the business. The numbers of employees that are a part or the organization are
mainly comprised of nine to ten employees working for the business. The micro organizations
are steered to make profit and earn around 1.7 pounds in a year.
Small Organization
The small organizations are mainly in operation to earn profits and are under different ownership
patterns. These companies provide services to the individuals and have a set of important legal
structures. The employee strength of the company is around 50 and they earn a proof more than
10 million in the company. This is their total saving during the financial year, which is important
for the growth and understanding of the company.
Large Organization
The Large organizations mainly comprise of around 250 employees. They are significant for the
company. The large organizations can be both public and private in nature. There are a set of
directories functioning for the growth of the business. The company earns around 50 million
pounds in a financial year. This is important for the growth and understanding of the company.
Therefore, every type of Business organization is steered to make maximum profits. These have
different set of legal structure important for the company. The main aim and motive of the
companies are different and diverse. There lies a significant amount of differences between the
small, medium and large organizations. However, this is an important part of the companies to
make the use or a better standard of living.
Conclusion
The report has provided an understanding on the different types of business organizations. It has
given an understanding on the private, public and voluntary companies. It has also shared an
understanding on the key objective and legal structure of the different companies. This has
played an important role in the growth of the legal structure of the company.

Task 2
LO2 Demonstrate the interrelationship of the various functions within an organisation and
how they link to organisational structure
Introduction
The report will emphasize on the various organizational functions that are in operation in
Sainsbury. It will also demonstrate an understanding on the organizational culture that is
prevalent in the company. Therefore, it will show an interrelationship that exists between the
organizational function and structure of the company. This will be an important and significant
part of the business.
Sainsbury Organizational structure
Every business organization has an organizational structure. This is an important part of the
company to produce better working for the company. However, with the integration of the
diverse organizational structures, the company is able to produce a well detailed outlook for the
growth of the business.
Hierarchical business structure: This is a traditional system of governance that influences the
vertical chain of demand. This is used by the military and government service to determine the
output and the level of the employees. This type of governance mainly consists of a multiple
layer of governments. Therefore, it is an old system of business that can influence the growth and
the productivity of the business to function in an authentic manner.
Matrix Structure: The matrix function of the business is a simple and more sophisticated form
of organizational structure. This type of governance comprises of vertical and horizontal form of
management. With the better understanding and utilization of different management levels, the
company is able to function in a better and authentic manner (Shafritz, 2015).
Functional Structure: This is the most common form of governance by the business
organization. The main aim and motive of the company is to form an independent group of
departments for the growth of the company (Daft,2015).

The retail company has a matrix form of organizational culture prevalent in the company.
Therefore, with the use of the various methods related to the growth of the company, there are
different sources related to the company. Therefore, these are the main factors that are related
with the growth of the company
Interrelationship of the functions of organization with organizational structure of
Sainsbury
The company Sainsbury is embedded with the different organizational functions. With the use of
these organizational functions, the departments are able to function in a better and authentic
manner. That is very useful for the growth of the company. Therefore, the various departments in
Sainsbury will be enumerating below:
Human Resource Department: The main aim and function of the HR department is to ensure
the proper and effective growth of the business and its operations. Therefore, the HR
departments work closely in maintaining the organizational goals of the company. This is very
important for the businesses to grow in a better manner. The marketing and finance department
works closely with the human resource department (Sáenz, 2015). Although the aim of HR
department is ensure the growth productivity of the business and maintain the profit of the
company.
Marketing Department: The marketing department is embedded with the function of providing
of retail to the customers. Therefore, they work in close union with the finance department. With
the better understanding of the finance department, the company is able to understand and
research for their growth. This is an important factor for the growth and understanding of the
business (Anand, 2017).
Finance Departments: The finance department of Sainsbury is accountable for the maintenance
of the funds earned by the department. Therefore, this department is given the responsibility to
comprehend the losses and profits that are earned by the company. This has an influence over the
business.
Therefore, there is an interrelationship that exists between the various marketing departments
that are in operation in the company.

Conclusion
The report has provided an understanding on the organizational functions that are in operation in
Sainsbury. This will provide an effective method of interlinking the growth of the business in a
proper and comprehensive manner. However, the study has produced an understanding of the
factors that are very important for the growth of the business.

Task 3
LO3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations
Introduction
The report will provide an understanding on the main factors that are associated with macro
environment of Sainsbury. The idea of BREXIT will be enumerated and critically analysed for
better understanding. With the onset of BREXIT the company has witnessed market changes in
the business operations. Therefore, the idea of the political, social, economic, legal will be
analysed for the better understanding of the business. This will be analyzed in a better manner
which will further provide an understanding on the growth of the business. Therefore, the
positive and negative factors associated with the PESTLE will be discussed in a comprehensive
manner.,
Pestle analysis of Sainsbury
Political Factors The political conditions in the UK are
favourable for the growth of the business. The
incidence of BREXIT leaves the political
system of the country stirred and has negative
implications on the growth of the business. The
company Sainsbury is influence with the
growth of the political incidents in the country
(Policy, 2016). The impact of the globalization
also has an influence over the company and its
operations.
Economic Factors The economic factors have an influence over
the growth of the company. The cost of fuel
after the incidence of BREXIT has influenced
the company in a negative manner. The
company Sainsbury has boosted the cost of

their merchandise in the market. The gross
revenue and the various other factors can affect
the brand recognition of the company.
Social Factors The social factors also influence the growth of
the retail sector company. With the growing
impact of culture, the society is affecting the
consumer behaviour of the individuals. This
created havoc on the operations of the
company (Widya, 2018). There are other
companies that are being able to project better
services for the company. Therefore, the
company Sainsbury increases and boosts its
market operation through its presence in
charities and so on. With the influence of
BREXIT thee company can tailor its growth
which is an important aspect of the business.
Technological Factors The technological factors are vital as it affect
the growth and productivity of the business.
The company Sainsbury being the retail
merchant is able to boost the growth of its
business. The company has the online
transaction system which is very important for
the business (Moro, 2016).
Environmental factors The environmental factors are accountable for
the influence in the retail sector. The company
Sainsbury is able to maintain its company with
the use of an important footmark. This
footmark is embedded with the essential
growth to the green issue prevalent in the

company. Therefore, the company is also able
to boost their productivity which further leads
to the growth of the company in a better and
authentic manner.
Legal Factors The legal factor of Sainsbury ahs an influence
over the growth of the business. Therefore, the
company is affected with taxes, tax policies
and so on. The company also make the use of
the statute law which is important for the
business. Therefore, of with the integration of
the consumer elements the company is able to
influence the growth of the operation of the
business.
Table 1: PESTLE analysis of Sainsbury
(Source : Created by Learner)
Conclusion
The report provided an outline of the major issues that had an influence over the operations of
Sainsbury. Therefore, with the better understanding of the business objectives, the company has
been able to sustain its growth in the business environment. It has also analysed the social
methods that are associated with the proper and effective growth of the business. Therefore, with
the occurrence of the important factors, the company has been able to understand its competitive
standing in the market. Therefore, the study has given an understanding on the elements that are
associated with the macro environmental factors. That is an important aspect of the business and
its operations.