Sainsbury's Business: Organizational Structures and PESTLE Analysis

This report provides a comprehensive analysis of Sainsbury's, a retail-focused company founded in 1869, examining its business types, organizational structures, and the external factors influencing its operations. It defines and characterizes micro, small, medium, and large-sized businesses, elaborating on ventures like sole proprietorships, partnerships, public limited liability companies, and cooperatives. The report justifies different organizational structures, including functional and matrix structures, and their impact on business productivity, noting Sainsbury's adoption of the matrix structure. A PESTLE analysis evaluates political, economic, social, technological, legal, and environmental factors affecting Sainsbury's performance, such as Brexit implications, transportation costs, consumer trends, technological advancements, legal compliance, and carbon footprint concerns. The analysis concludes that external elements significantly impact the firm, both positively and negatively, emphasizing the importance of adapting to market trends and regulatory requirements.

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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Types of company and its characteristics:..................................................................................3
Task 2 ..............................................................................................................................................4
Definition and characteristics of different kind of ventures. ......................................................4
Task 3...............................................................................................................................................5
Justify Different types of organisational structures and explain they affect on business. .........5
Task 4 ..............................................................................................................................................6
Pestle Analysis :..........................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
A company is an organisation that works on taking out the commercial practices in order
to earn revenues as well as accomplish non profit goals. People invest capital in order to gain the
equity which is divided. The organisation have several segment which shows the size and scope
of the firm. Companies are the major contributor towards the betterment of the economy of
country. The identification of company is totally based on the capital invested, scope as well as
size (Sultan, and et.al., 2021). The following report is based on the firm Sainsbury which
specialises in dealing of retail products. Company is also having various super marts. It is
founded in 1869 in London. The following report will cover about the definition, characteristics
and example of micro business, small business, medium size business and large size business and
it will also cover regarding the different organisational structures and explain how organisational
structure affects business productivity. In addition to this, it will include PESTLE analysis on
how different external factors affect the performance of a business.
TASK 1
Types of company and its characteristics:
There are several types of the company which are classified into its size, value, capital
which represents the working method of the company. The Various types of the company is
mentioned below briefly:
 Micro Enterprises- This type of company consist of working employees of less than 10
people and also it is owned and managed by the single individual. Turnover of such
companies are not more than 10 million. This type of firm involves the businesses like
small retail organisation, car cleaning, private contractors, freelancers and many more. As
due the size, it is belong to the micro enterprise (Sambeek, 2021) .
 Small Business – This is privately owned firm which consist of same 10 workers. In
addition, the annual earning of the this type of the company have low yearly turnover
than medium size organisations. It is managed by the single owner who is responsible for
the decision making. As the owner have the effectual decision authority which can lead to
the controlling and guiding the team as well as their associates.
 Medium business – The medium scale organisation are refers to as the business which is
owned by the family and it is managed as well as maintained by the leaders or associates

with appropriate mind set. It has the turnover around 13 million annually and also there
are less than 250 workers employed in it. This type of business possess skilled as well as
experienced people that are innovating in case of segmentation of the market area.
(Rovanto, and Bask, 2021)
 Large business – This kind of the businesses more than 6000 people working in their
management. It has the yearly turnover of around 1.5 billion. These companies works
works in large market area. With having their businesses in more than one country as
well. It is owned by the several of the stakeholders.
Task 2
Definition and characteristics of different kind of ventures.
As the company is based on its goodwill, profits, liability and its working which makes
them contrary from the other organisations of business. It can be formed in the way of
segmentation in order to manage their several methods. The various types of ventures are
mentioned below with its characteristics.
 Sole trader business -It is also refers to as the sole proprietorship and it is kind of
business which is operated by the single owner and so this is why there is no conflicts
among the business with its stakeholder. Novus accountancy Ltd belongs to this category
of the business. In this proprietorship the liablity of the sole trader is unlimited and on the
occuring of any loss in the venture can lead to the use of business as well as private asset
of the sole trader in order to pay for the losses (Li, and et.al., 2021).
 Partnership – It is an legal agreement among two or more people who works in
accordance to accomplish the mutual goals. This type of the venture involves in several
commercial firm, government and schools as well. Go pro as well as Red bull are the
example of this kind of business. In addition to this, partners shares the profits as well as
loss in accordance to their agreement between them.
 Public limited liability – This kind of the company are managed as well as controlled by
its shareholders. The firm give equity shares in the market in order to raise the funds. The
common goal of it is to enhance the revenue in accordance to gain better return on their
invested capital. The example of this type of venture is Larsen & Turbo.

 Cooperative – It is the collaboration of people and it involves minimum 5 members in
order to start the cooperative. It can either be non profit and profit firm. Blue diamonds
which belongs to United Kingdom is in this category. Additionally, cooperative society
can be joined by anyone on the voluntary base.
Task 3
Justify Different types of organisational structures and explain they affect on business.
An organisational structure shows the working of supervision as well as coordinating in
order to accomplish the goals of the firm. In simple words, it is the system which follows the
practices and operates in order attain the assigned goals as well as objectives of the business. It
also includes the obligations, rules as well as roles in order to understand the way of information
which is made in the section to make the management of the business (Krivtsov, and
Berdnikova, 2021). In addition to this, it makes the functions and operations of the company
more effectual and efficient as well. It supports in accomplishing the goals and target
appropriately and successfully. It consist of several of structure which is described below:
 Functional Structure – It means to the official structure of the organisation and it
separates the firm in accordance to the working experience and skills of the workers.
Major of the organisations follow this structure by dividing the company in several
divisions of operations such as sales, human resource, marketing and many other. This
element is operated by all the area of the firm in order accomplish the objectives as well
as goals. The organisation that operates on this structure is of organisation is Strabucks.
 Matrix Structure – The matrix organisational structure is the format of the workplace in
which workers is accountable and also report to two or more associates instead of one
manager focusing on all the features of the task. Knowing the disadvantages as well as
advantages of matrix organisational structure can assist in determining, this kind of
structure if it is appropriate for the firm (Hellmann, Schure, and Vo, 2021).
Matrix organisational structure is adapted by the Sainsbury. The structure is basically flexible
and it permits firm to accomplish organisational goals. The functions impacts the firm in
enhancing the sales as well as performance of the business which gives an outcome of
accomplishment of the organisational goals as there's increment in the profit ratio. The firm has

the aim of gaining more revenue in the market and also having the more loyal consumer base.
The concentrates on offering consumers satisfaction by providing appropriate goods to them.
Task 4
Pestle Analysis :
This analysis is the tool which is utilised to evaluate the external elements which impact
the working or practices of the company. It consists of various elements which assist in
understanding the opportunities as well as risk for the business and all these elements are
mentioned below in case of Sainsbury:
 Political Factor – It refers to the essential way which includes the orientation of the
government in the percept form in order to manage the several segmentations. It involves
the financial polices, tax policies, trade tariffs and various more. In context to sainsbury,
as England is no longer the part of European Union which has lead to enhanced import
rates. It can necessarily enhance the pricing of good of the organisation and hence a large
quantity of the consumers can switch to the rivals of the company that offers similar
products at cheaper price (Elnadi, and Shehab, 2021).
 Economic Factor – It makes sure that productivity in accordance to the economic source
of the firm which have the major effect on the rate of inflation which will impact the
prices of offerings in the way to increase the productivity of the organisation. In case of
Sainsbury, company is majorly ship their products on road based means of transportation
in whole country. So, it will lead to the high cost of diesel or petrol as it is restricted to
enhance the pricing of products. As, this means lack of fossil fuel as well as loss of the
potential lower income consumers of the company.
 Social Factor – This factor is linked with the trend of market, population, behaviour,
safety, health, age distribution, growth rates cultural norms, expectations as well as
attitude of the consumers etc. These factors are supportive for the firms to plan their
strategies and marketing techniques. In context to Sainsbury, consumers focus to shop
from a Sainsbury instead of local retail stores as due to the understanding that super marts
offers various products at one place. Moreover, management also come out with the
attracting schemes that offers consumers various discount as well (Denoncourt, 2021).

 Technological Factor – The elements makes sure that innovations at the several area of
field to manage the orientation of market which focuses with the strategies and the ways
in accordance to existing market trend. In context to Sainsbury, management working on
selling food online as well as they are also gathering its purchases from the local outlets.
This can assist them gaining more consumer base which will lead to more profitability
(Vidrova, Bohus, and Adamko, 2021).
 Legal Factor – It includes both of the internal as well as external element which impact
the surrounding of the business in an appropriate manner. The legal area focuses on the
appropriate frame work of the laws as well as legislation to make sure the labour laws,
safety standards, consumer standards. In relation to Sainsbury, company need comply
with national minimum wage in order to make their employees satisfied and negate the
future consequences.
 Environmental Factor – It involves the atmosphere which is focused on the global
changes, location, weather, climate and various more which impact the smooth operations
of the business. In context to Sainsbury, company make major level of carbon footprints
in their production process which is extremely bad to the existing condition of
environment. Moreover to this, it involves catering to the quantity of industrial waste,
ways of fossil fuel transportation. So, I order to work appropriately organisation need to
focus on eliminating their issue of carbon footprints (Crous, Battisti, and Leonidou,
2021).
CONCLUSION
From the above report, it is concluded that business organisation are known by their size
as well as kinds of doing the work. The firm is separated in accordance to the size as well as
number of working employees in the organisation. There are several kinds of the organisation
that operates for the same goal which is earning appropriate profitability and also to enhance the
performance in the company. Some company operates as non profit firm as they functions for
various social cause as well as charity. In accordance to the above analysis of the external
elements, it is evaluated that the firm functions are impacted by the element in the negative and
positive manner.

REFERENCES
Books and Journals
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Denoncourt, J., 2021. Company classification taxonomy and corporate intellectual property
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