Detailed Business Environment Analysis for Sainsbury's Company Report

This report provides a comprehensive analysis of Sainsbury's business environment. It begins with an introduction to the business environment and focuses on Sainsbury's, a public limited company. The report then delves into different types of organizations (public, private, voluntary, and small-medium), their purposes, and legal structures, using examples like Centrica and Arcadia. It examines the size and scope of these organizations, comparing their objectives, visions, missions, and financial data. The report further explores the relationships between different organizational functions (marketing, finance, and human resources), objectives, and structures within Sainsbury's. It also analyzes the positive and negative impacts of macro factors on Sainsbury's, along with an internal and external analysis of the company, and concludes with the interrelationship between strengths, weaknesses, and macro factors. The report highlights the importance of coordination between functional departments for meeting customer demands and maximizing profit. The report also discusses the role of HR in recruiting the right people and the importance of effective communication between departments.

Business And Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
P1- Different types, purpose and legal structure of organisation ...............................................1
P2- Size and scope of different type of organisation ................................................................3
P3-Relationship between different organisation functions , objective and structure..................7
P4-Positive and negative impact of macro factors on Sainsbury business.................................9
P5.internal and external analysis of company...........................................................................13
p6. inter-relationship between strength and weaknesses and macro factors.............................16
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment is a part of every business. Internal factors are those factor which can
be control by organisation like (employees ,owners) and external factors are those factor which
can't be control by organisation and external factors( political, economic, social, technology,
competitors ) that are influence to business .
Present report based on Sainsbury company, it is public limited company which is registered
in London stock exchange and FTSE 100. this company founded by John Jains Sainsbury and
headquarter established in London, UK , EC1. Total 186900 employees engaged with this
company.
Further study includes different types, purpose and legal structure, size and scope of public
company, private company, voluntary and small medium company Further mention relationship
between different functional department with objective and structure. This report also includes
that macro factor positive and negative impact on sainsbury company and Analysis internal and
external factor that interrelated with macro factor(Hamilton and Webster, 2018.).
TASK
P1- Different types, purpose and legal structure of organisation
Public company
Public companies are those company which regulated by government(central
government, state government and semi government) and at least 51% of shareholding taken by
government. Public company also called public held company or public traded company
because that company's shares are freely traded on stock exchange.
For example :- centrica public limited company- company is largest supplier of gas and electric
to customer and having turnover 27.1 billion pound in the last year.
Purpose
 Public traded company main purpose is generating employment for people.
 Company focus on improving welfare of people.
 Public company concentrates on increasing shareholder's value through maximization of
profit.
Legal structure
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 public company should have minimum 7 members and no limit on the maximum
members.
 “Public limited company” word use in the end of company's name.
 Public limited company require minimum two directors and one company secretary.
 Before start new public limited Company, must be allotted share to valued of at least
50000 pound.
Private company
private sector company are those company which is not regulated by government. These
company run by private individuals and group of individuals. Private company's shares privately
and publicly traded on stock exchange(Quinlan and et.al.,2019.).
For example :- Arcadia company works in clothing sector and sales are 2682 million pound and
employees 44030 who are engage with this company.
Purpose
 private company main purpose is maximization of profit .
 Private sector purpose to compete with competitors by providing best services and
product at a low price.
Legal structure
 private company must have at least one director or secretary.
 Limited company must issue share to its initial member .
 “Private limited” word must be mention in the end of the private company name.
 Private company should have minimum 2 members and maximum 200 members.
Voluntary organization
voluntary organisation are those organisation where group of individual voluntary enter
into a agreement who run their business for welfare purpose rather than making profit.
For example : wellcome trust is the UK based voluntary organization and expenditure is 728.1
million pound.
Purpose
 voluntary organization aim is wealth creation for society rather than material wealth.
 Provide benefit to community, increase health awareness and promote education
facilities .
Legal structure
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 voluntary organization follows the legal structure as per provisions given for trust ,
unincorporated associations and limited company by guarantee.
 All Liability are in the hand of the voluntary organization owner.
 Memorandum of association must be prepare by company (Teece, 2018. ).
small medium organization
Small medium companies a non subsidiary company where numbers of members less
than required members.
For example: verdant leisure is Uk based small medium company and annual turnover is 31
million pound.
Purpose
 main purpose of small medium organization is increase competition through innovation
and provide better services.
 Small medium organization aim is Increase employment and create opportunities for
rural people.
Legal structure
 In small organization should have less than 50 employees and in medium organization
should have less than 250 employees.
 Small organization having turnover under 10 million pound and in the other side medium
organization turnover should be under 50 million pound,
P2- Size and scope of different type of organisation
Public company Private company Voluntary
company
Small medium
company
Name of the
company
NHS Arcadia company Wellcome trust
company
J rothweham
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Objectives Promote to NHS
brand and
influence to
health services
and generating
commercial
business by
generating
network(Calabres
e, and et.al.,
2018. ) .
The main
objective of this
company is to
create value and to
expand the
business so that
profit can be
maximised.
Main objective of
the company is to
provide welfare
services to
people.
this main
objective is to
create luxury
product by using
stones. For this
achievement they
use advance
technology.
Vision Company vision
is to provide
better health, care
and value to
community.
Arcadia company
main vision is to
promote and
improvement of
services and
provide
specialised
treatment.
To set up the
research centre
for meeting the
world wide
health
challenges.
Main vision is to
generate profit by
providing product
,create
employment and
enhance
innovations and
skills.
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Mission
Company's
mission is to
deliver quality to
care to every
person. This
mission can
achieve by
assessing modern
services.
Company mission
is to be create best
company in the
world by
providing
specialised
deceases treatment
as well as other
treatment.
Mission is to
make agreement
with those
research
institution who
work for lower
and middle class
people and also
provide healthy
care services to
them .
Mission Is to
become leading
company in small
medium sector
and generate
profit through
create innovation
and skills.
revenue NHS generate
annual revenue is
67.1 million
dollar.
Arcadia
company's annual
revenue is 124.5
million dollar.
Wellcome
company is the
third wealthiest
charitable trust
because this
company's total
endowment of
Turnover of this
company is 24
million pound.
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25.9 million
pound.
Organisation
structure
NHS company
follow tall
organisation
structure so that
they can provide
health care
funding across
the world.
This company
follow also tall
structure so that
they can work for
reduce illness and
provide
specialised
treatment to
needed people.
Wellcome trust
follow matrix
structure so that
they can receive
information from
the selected
individuals.
This company
follow that
structure so they
can easily
introduce new
technology into
the stone
company.
Legal structure NHS company
freely transfer his
share to public.
Minimum
member can be 7
but no limit on
the maximum
members.
Arcadia company
are restricted to
transfer his share
and minimum
member can be 2
and maximum can
be 200.
As per provision
voluntary
company follow
legal structure
same as trust and
incorporated
association.
people voluntary
come for welfare
purpose.
Small company
should have less
than 50
employees and
medium company
should have less
than 250
employees.
scope It is the leading
health care
service company
and total 1.4
million
employees
engaged.
Day by day this
company growing
Arcadia company
have more than 25
outlay in UK and
total number of
employees are
22000. This
company recruit
new doctors and
qualified person
This company
have 5056
employees and
this company
located in london
,euston ropad and
NW1. Main
scope of the
company is
This company is
small medium
organisation so
number of
workers are
limited in
company. This
company day by
day provide
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by providing
quality services to
public.
for giving
specialised
treatment to
patient and
continuously
increase locations.
providing
welfare services
to poor people.
innovative and
luxury product
which is made by
stone with
advance
technology.
Stakeholder Employees and
manager are
stakeholder of the
company.
Customers,
employees and
any partnership
firm take stake
holding in
company.
Public , investors
, managers,
customers are
stakeholders of
the trust
company.
Employees,
customers and
manager are
stakeholders.
P3-Relationship between different organisation functions , objective and structure
Sainsbury company follows tall structure in which top management give instruction to
functional department managers after that manager of functional department give instruction to
worker . Sanisbury company should have strong relationship among functional department like
finance, research, human resource department , marketing department and IT department so it
helps in create synergy within all department. Coordination among all functional department
helps in meet out customer demands with high production and maximised profit(Beatty and
et.al., 2018).
Relationship between marketing and finance- Sainsbury's marketing department uses
different marketing techniques which facilitate increase in sales and huge funds are generated in
the company which helps the finance department in managing the inflow and outflow of fund in
a better way. Finance department effectively manage to funds that helps to get to sufficient funds
to marketing department for effective advertisement and achieve sales target . Marketing cost
always vary so finance department analysis market trends and make budget and cost of
marketing decide.
Sainsbury company's interrelationship helps to increase in sales and easily achieve sales
target. Company can maximised the profit that show positive financial position of the company.
Company follow tall structure sometimes it become complex process. sometime Marketing
department not provide information to finance department then finance manager not able to
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estimate cost then it will increase in cash outflow position. In the other side company select
particular member to handle situation so information can be easily provide to finance department
then they able to manage inflow and outflow of funds (Hillary, 2017).
Relationship between human resource department and marketing – Sainsbury company HR
department recruit right people at a right time who helps in effective marketing and convince
people to purchase product. HR is important for effective marketing because HR department
inspire to employees by providing incentives, bonus and salary. Marketing create awareness
among people it will helps in increase selling and generate funds so human resource department
effectively allocated resources among employees. HR department helps in improving individual
and company's performance that will helps in achieve organization goals. HR recruit skill people
to promote product so that is helps increase in sales volume. Resources can be utilised in better
way and build positive image in the market.
Sainsbury's company have hierarchy structure it is very useful for providing information
on time . Marketing department provide information to HR department to recruit required person
then HR of the company recruit suitable person for suitable job that helps to attract customer.
Relationship between research department and marketing- Research department analysis
customer preferences by demand and supply , market trends and market situation so it will help
in marketing department. Sainsbury company have strong research department so company able
to meet out demands on the time and generate profit (Hamilton, and Webster, 2018). On the
other side marketing department analysis target audience that makes easy for the research
department to research on the demand and prospective of the target market. It will increase
customer retention by meet out the demand in the market and also maximised the profit.
Sometimes research and development department can't analysis to market situation that
create miscommunication and effective marketing doesn't take place but in flip side research and
department and marketing department relationship provide information according to area it will
give positive direction to marketing department (Jaakkola, and et.al., 2016).
P4-Positive and negative impact of macro factors on Sainsbury business.
There are some macro and micro factors which affect the Sainsbury business in all way.
Business are directly affected by the external factors which are continuously changing that is
they are dynamic. To exist for long term every business has to match their activities and
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functions with dynamic environment. Without matching with external factors or dynamic
environment no business is able to survive for long run.
Some macro factors are explained below through PESTLE Analysis-
Political factors-
Sainsbury is a retail, company trading in many companies and exposing themselves to
different type of political system risks and political environment. The company must diversify
their political risk in a systematic way to achieve success in all the retail industry crossing
countries .in this political factors there are some other elements also which can affect the
business organisation in long run .
 Political stability and risk of military invasion.
 For enforcement of contract ,the legal framework must be followed.
 Regulation related to trade and tariffs.
 Employee benefits which are mandatory
 tax rates and incentives
 other requirements of retail like product labelling
 Wage legislation which says about the minimum wages which are to be paid. and
overtime criteria.
 Regulations related to pricing
These are some factors which are required to consider while doing political analysis.
Negative impact
Another major impact on Sainsbury's is of Brexit. That is due to this act British and UK
get separated Imports and export become difficult and sever instability in political
environment which somewhere affect the business in very huge way. also the another impact
of Brexit on trade business affect many people as employment of EU citizen in the UK and
vice versa (Laudon and Traver, 2016).
It brings difficulty in transportation and logistics including fulfilment also, risk increases
regarding product safety including packaging, labelling and many.
Positive impact
Political stability in any economy of country may bring many advantages to the
organisation in all way.
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A constant and stable political system will help Sainsbury's to avoid the disrupts of
government in all their transactions.
Business will be able to work smoothly without disrupts. Which will help them to save their
time and energy which result in improving productivity.
Economic factors-
the macro factors of the economy are inflation rates, exchange rates, saving rates,
interest rates, economic cycle, aggregate demand and supply, aggregate investment etc. are
some macro factors which affect the Sainsbury’s. Whereas some micro factors like
competitive advantage ,competition norms etc (Chang, 2016).
Sainsbury can use some macro factors like interest rate, growth rate, spending’s of
consumers etc. forecast the future growth and development of the product so accordingly
they can mange their production and supply in their retail industry includes any type of
economic system of country which is required to be followed by the organisation ,they also
have to maintain the system which is followed by that particular country.
 costs of labour and their productivity in the economy
 stages of business cycle ( prosperity, recession, etc.)
 various growth radiates -economic, discretionary, employment rate interest rate and
inflation rates
Negative impact
The economic factors in relation to Brexit ,slows down The economy and resulting in
high inflation rate which them resulting on low purchasing power bad hence economy of the
country decreases and business goes down. Unemployment rate is also the another important
factor which affects the Sainsbury's business significantly .due to unemployment the
production of Sainsbury's falls down in addition to it because of high inflation rates and non
availability of employees the supply decreases and demand also tend to fall as the price so
food products are high (Laudon and Traver, 2016).
Positive impact
After some long years the condition of UK is increased and low and falling price of food
products help in benefiting the customers as they are able to purchase the food products and
can raise their standard of living.
social factor-
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