Business Environment Analysis: Sainsbury's Organization Report

This report provides a comprehensive analysis of Sainsbury's business environment, organizational structure, and functions. It begins by exploring different types of organizations, their purposes, and legal structures, including sole traders, partnerships, and private, public, and voluntary organizations. The report then examines the size and scope of these organizations, focusing on Sainsbury's as a private entity, and compares it with public and voluntary organizations. It delves into the relationships between various organizational functions, such as human resources, sales, R&D, and production, and how they link to organizational objectives and structure. Furthermore, the report identifies the positive and negative impacts of the macro environment on business operations, supported by specific examples. It also conducts internal and external analyses of Sainsbury's using SWOT and PESTEL frameworks to identify strengths, weaknesses, opportunities, and threats. Finally, the report explains how strengths and weaknesses interrelate with external macro factors, providing a holistic view of Sainsbury's business environment.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1. Different types and purposes of organizations and legal structure.....................................................3
P2. Size and scope of different types of organizations.............................................................................6
TASK 2..........................................................................................................................................................8
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure....................................................................................................8
TASK 3..........................................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples...............................................................................................................9
P5 Conduct internal and external analysis of specific organizations in order to identify strengths and
weaknesses............................................................................................................................................12
TASK 4........................................................................................................................................................13
P6 Explain how strengths and weaknesses interrelate with external macro factors...............................13
CONCLUSION.............................................................................................................................................15
REFERENCES..............................................................................................................................................16

INTRODUCTION
Business Environment is a mixture of various forms of internally and externally factors
which might not be managed by business organizations but have a profound influence on the
production, competitiveness, financial performance of organizations. Inner factors affecting
business organizations' working involve vendors, consumers, workers, investors, whereas
environmental influences involve government laws & legislation, technical factors, economic
circumstances, and competitors (Becker, 2018). Given report was conducted on Sainsbury's that
is one of the largest large supermarkets with headquarters in London, EC1, and UK. This
supermarket mainly deals into food and groceries. This report covers different types of
organisation, their purpose, legal structure. Discussions on the type and scope of various
organizational structures alongside their connection have been established are being designed in
this chapter. Additionally, this report includes interconnections between various department
managers of enterprise with their duties. Finally, to assess strengths and weaknesses, SWOT and
PESTAL analyzes of various macro factors are carried out.
TASK 1
P1. Different types and purposes of organizations and legal structure.
There are different types of organizations in three various industries conducting their
company operations, such as the public, private and voluntary industries. Along with some
organizational types also mentioned that are provide help to nation economic like sole traders,
partnership, and limited company. These organizations function with such a desire to meet
critical customer needs and at the same time gain good profits. In addition to this, these
organizations' successful operation contributes in high-end income production for a nation
government resulting in higher GDP levels gaining. In this situation, a report is presented to
management at an Annual General Meeting before Sainsbury's investors to appropriate choice
components of management framework.
Sole traders: A sole trader is a person-employed individual who starts and runs an
individual’s personal own company. A sole trader business has no permanent address different
from its owner, which leads many others to admit people are the company as a limited company.

For example, Aspire UK tax accountants is an accounting firm that operate by the one person
and handle their customers.
Purpose: The main purpose of sole trader to generate higher revenues and expand business at
large level (Bhatnagar and Sinha, 2018).
Legal structure: This business follows the legal structure of limitless activity that set by the
government.
Partnership: A legal type of activity involving two or more parties who divide the
ownership and income. The executive branch acknowledges so many partnering kinds. The more
popular of these two are limited liability partners.
For example: John & Lewis are based on partnership that which established in UK
Purpose: The main purpose of this partnership to enhance the income by the sharing financial
information and become leading business.
Legal structure: The business follows of responsibility sharing legal framework in order to
operate the business activities of John & Lewis.
Private organisation: Private sector organizations are owned and operated by
privately corporate individuals, firms and every other judicial basis inside this industry. The
primary reasons of businesses working in the construction industry are to attain a high degree of
profit margins (Chang, Wong and Chiu, 2019).
For example, in private sector organizations, Sainsbury is regarded since they have everyone’s
own while here together with client legislation.
Purpose:
Legal structure: These structures follow by the organization in appropriate manner such as:
 Sole proprietorship: Organizations which operate their business operations in this
industry are wholly owned, managed and owned by a centralized person. There are no
formal legal differences here between holder and a public institution in the sort of
business arrangement.

 Partnership: When group of people come with each other in a comprehensible way to
operate a company, they are called partnerships. It's basically a formal communication
agreement made between two people in which they work in collaboration on the portion
of revenue and expenses in company. Industries that operate as alliances have an
individual code for making more and more income when helping customers.
Public organisation: Organization of the government sector this field is the one that
executes its duties by getting complete influence over government departments, public
departments as well as other government departments. The primary motivation of industry
sectors is to serve the public done by offering individuals with social assistance, instead of
generating large amounts of revenue (Crick, 2019).
For example: In public sector organizations, BBC is regarded to be governed by government
entities even when exchanging for revenue.
Purpose: The main reason of the company to provide all the reliable information to population.
Legal framework: This organisation followed central government based structure with proper
laws & legislation.
Voluntary organisation: Voluntary businesses focus their operations inside this industry
primarily on the basis of supplying public healthcare infrastructure to represent communities and
fulfill their wants and needs.
For example: In the voluntary sector organization, Oxfam is regarded to even provide
humanitarian assistance to communities in the drought-prone region as well as other regions
impacted. These volunteer organizations simultaneously reach people to enhance their living
standards and thus social system with the greatest.
Purpose: These organizations perform systems and services efficiently with volunteer groups
from numerous places who are inclined to assist individuals and society.
Legal structure: The company follow limited liability, trust and unincorporated organisation
structure in proper manner.

P2. Size and scope of different types of organizations.
There are various types of organizations performing their operations inside of three main
headings of organization, namely public, private and voluntary. Each organization has various
sizes and scope for conducting its business processes within the systemic form of government
(Freudenreich, Lüdeke-Freund and Schaltegger, 2019). The following are described differing
size and scope of various organizations:
Private (Sainsbury) Public (BBC) Voluntary (OXFAM)
Goal The scope of such
company is to be
largest company by
making profits. Its
main target is to beat
the competition and
maintain highest
profits
Goal of BBC is one of
the major media
organizations and the
largest company with
more that 1200
programs provided
global and other
nations. Company
consists of a
rectangular
management system
in under something
they have varying
series of business
operations.
This entity does not
have a particular
format because, with
the help of this project
who pertain to us
from various places,
they can actively
participate as per their
wishes.
Objective The main objective of
the business to
become leading
supermarket at global
level.
Management delivers
services with the
desire to create
"people here think to
be programming"
along with the whole
industry's aim is to
maximize their
Oxfam's objective is
to represent extra
affected regions even
when expanding
personal quality of
life so as to start
making someone to

financial performance
by 20 per cent for the
next accounting
periods.
earn a decent living.
Market share Sainsbury's has been
one of the Uk’s
largest grocery store
chain with over 16.9
per cent shareholding
in the supermarket
industry. Company
participates in the
services provided via
the chain store
channel, Grocery and
much more.
The market share is
larger and leading
company of UK.
Oxfam offers services
to academics in even
more than 14
countries and extends
its reach further by
adding new locations
to support prospective
consumers.
No. of
products/service
It is mainly working
into the food, grocery
and beverages.
The products and
services are provided
by the broadcasting,
radio, web portals.
The services are
television, online
activities.
It is mainly working
for poor people and
provides help to
increase their living of
standards.
Employees number There are working
about the 186900 staff
members.
In this business about
22401 workers are
working in this
business.
It has a variety of
sizes where more
individuals relate to
social assistance. It
has 650 specialty
shops in Oxfam, and
23,000 volunteer
groups around the

globe.
Sainsbury structure:
BBC structure:

Oxfam structure:
TASK 2
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
Within an organization, there are numerous departments including such advertising,
accounting, human resources, manufacturing, sales department. To achieve the organization's
goal and objective, it is quite essential for an organization to work effectively and efficiently
from all these departments. All of these departments play an important role and make a positive
contribution to organization’s profit margins (Kurnianto and et. al, 2019). It is quite necessary
for every organization to collaborate with other departments for improved organization and
organizational performance. Sainsbury's is an organization that operates in the retail industry and
it is crucial that certain team member’s work together just to obtain significant market share for
this organization. Sainsbury's divisions are interlinked with each other because they can operate
efficiently in order to accomplish the organization's goal. Interconnection between various
Sainsbury's departments is mentioned below.
Human resource with sales department: Sainsbury's organization’s marketing Division
would support to boost business profits. It is the duty of the human resources team to recruit
correct workers of this organization and to prepare them to score higher. Company Human

Resources roles can support agency revenues through successful team training and development
opportunities. Human resource manager can provide courses that will help staff members in the
sales department significantly boost their skills with the capability to complete a behavior.
Training programs will contribute to higher total sales team leader efficiency and increased
efficiency. Sales team wants to connect with consumers and developing their interpersonal skills
is really necessary for this team to gain new consumers.
Human resource with finance department: Sainsbury Human Resources Department’s
have the power and responsibility to hire talented candidates with each or their different
departments bases as efficient applicants. Strategic hr department is responsible for recruiting
qualified and experienced applicants who would easily demonstrate their ability in the enterprise.
In addition, it is crucial for business Hr professionals to boost their current professional
knowledge by presenting them with both the requisite training and updating their on the modern
innovations that the business has used. To achieve this goal effectively, there is a funds
prerequisite that can be obtained only through the assessment of organizational finance
(Mazzoni, 2019).
R&D with production department: Sainsbury's Department of R&D is one of the most
relevant departmental units with responsibility for assessing specific customer wants and desires.
Business research & design division support production department through providing
information associated with existing customer behavior and state-of-the-art technology. This will
help production line through using advanced technologies to upgrade their manufacturing work
and increase more competitive edge in the industry. Although production department in addition,
but in the other side, helps R&D department by providing the necessary information linked to
every type of necessary brand and product adjustments.
Matrix structure: A matrix design is a paradigm of a corporation wherein audit results are
established as a power system, or vector, instead of in hierarchical control. In other words
employees with dual interactions to report-generally all still to a management team and to a
business analyst.

Divisional structure: The divisional system is a structure of management structure in which
each managerial component is grouped into a segment. Every other division has all the resources
needed to complete that brand line or geographic location (e.g., its own agencies of finance, IT,
and marketing).