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Business Environment Report

University: University Of Chichester

  • Unit No: 5
  • Level: High school
  • Pages: 9 / Words 2314
  • Paper Type: Case Study
  • Course Code: L/508/0485
  • Downloads: 103
Question :

This sample will let you know about:

  • Discuss about the different types of organizations.
  • Discuss about the Scope and size of different types of organizations.

Answer :
Organization Selected : Sainsbury’s

INTRODUCTION

Business environment consist of various kinds of internal and external factors that can affect an organization’s ability to grow and maintain customer relationship (Phadermrod, Crowder and Wills, 2019). It is important for all the organizations to analyse their business environment and bring changes within their organizational strategies accordingly. This assignment will lay emphasis on business environment analysis of J. Sainsbury’s PLC so that they can enhance their decision making and business development. J. Sainsbury’s PLC is the second largest supermarket chain of UK that was founded in 1869 whose headquarter is in London, UK.

LO 1

P 1 Different types of organizations and their purposes

There are three main types of organizations, each of the sector organizations has their own legal structure and purpose.

  • Public Sector: Public sector organizations are one of the most important part of a countries economy. These types of organizations are mostly organized and run by government or it can also be said that a major part of an organization is owned and operated by the government i.e. 51 percent or more than that percent of shares are owned by the government. Main purpose of these kind of organizations is to serve customers with best quality of products and services (Ali, Miah and Khan, 2017). These kinds of organizations do not think of profit as their main factor but providing best service to the customers is their main factor to be focused on. Most of the decisions of these type of organizations is taken by their board of directors, none of the decision can be passed without their approval. These types of organizations are also listed understock exchange. For example, General Motors is a public sector organization whose few shares are owned by the government.
  • Private sector: private sector organizations are those type of organizations that are mostly run by an individual. The main purpose of these kind of organizations is to make profit. These types of organizations have less number of restrictions as compared to public sector organization. All the profit and financial risk faced by the organization are faced by individual owner themselves. For example, J. Sainsbury’s PLC is a private sector organization that focuses on making profit by enhancing their market share and customer base.
  • Voluntary sector: These are type of organizations whose main purpose is to serve society without focusing on profit. These types of organizations can be run either by government or by individuals as well (Kozubikova, Homolka and Kristalas, 2017). Legal structure of these type of organizations is not fixed i.e.it can be trustee based, charitable incorporate organizations, unincorporated organizations and many more. One of the most common example of voluntary sector organization is NHS it is a non profit organization which is run by partnership of local government.

P 2 Scope and size of different types of organizations

 

Public Sector

Private sector

Voluntary sector

Goal and objective

Main objective of these type of organizations is to enhance nation’s economy and their main goal is to serve and provide customers with good quality products and services (Komljenovic, Loiselle and Kumral, 2017(.

Main objective of these type of organizations is to increase their profit and market share. Their goal is to increase owner’s capital, reduce liability etc.

Main objective of these type of organizations is to serve society. In this different type of organizations have different purposes. For instance NHS’s main goal is to provide medical facility to people at lower possible price.

Market share

According to recent reports market share of General motors in UK in past five years is decreasing continuously and current it is below 5 percent.

According to recent reports market share of Sainsbury is approximately 15.3 percent.

Non-profitable organizations do not have any kind of market share (Hörisch, Kollat and Brieger, 2017).

Size

General Motor operates Globally except few counties and they have more than 170,000 employees approximately.

Sainsbury currently operates in UK and serves people of UK and they have approximately more than 180,000 employees.

NHS serves in England, Wales, Scotland and in Northern Ireland and they have approximately 1.4 million employees.

Growth

In last few years growth of General Motor especially in Europe has decreased

Sainsbury have to face tough competition in retail sector. According to recent survey it was observed that their growth rate has increased by approximately 1.08 percent (Almalki, Al-fleit and Zafar, 2017).

NHS is a growing organization who is continuously focusing on increasing their funding’s in order to serve their people. In Fact, in past 1 year their funding’s have increased by approximately 3.7 percent.

Products and services

They provides products and services related to automobiles, automobile parts, commercial vehicles.

Sainsbury provides retail sector products and services through their supermarkets, they also provide financial services through their banks etc.

NHS provide all kinds of healthcare services.

LO 2

P 3 Relationship between different organizational functions of Sainsbury and ways in which they link to organizational structure and objectives

Organizational functions are one of the main part of an organization and for retail sector organizations these functions are quite important. Some of the moat common functions of Sainsbury are: Sales and marketing, finance, human resource logistics etc.

  • Sales and marketing is one of the main and primary function of Sainsbury which plays a vital role in achieving mains and objectives of the organizations. Sales helps an achieving main objective of an organization which to provide quality products and services to their customers. Marketing helps in enhancing brand name of the organization.
  • Human resource of an organization helps in dealing with current employees, recruiting and selecting employees. This function of Sainsbury helps in achieving their objective of providing employment (Kim, Jang and Yang, 2017). HR also helps in designing or bringing changes with organizational structure and it is designed in such a manner that al the main functions of an organizations are fulfilled properly.
  • Financial functions of an organization also help in managing all kinds of financial activities of an organization. If financial functions of Sainsbury are not managed in a proper manner then they might face issues in achieving their organizational objectives.

All kinds of organizational functions of a business are completely dependent upon their size, scope and type of organization. Sainsbury has a hierarchical organizational structure i.e. all employees at same level are controlled and managed by above level. Functions of Sainsbury directly affects their organizational structure because all the departments and functions of the organizations are distributed according to their overall hierarchical structure and chances with the functions will directly affect their overall structure. Get Assignment Examples.Talk to our Experts!

LO 3

P 4 Positive and negative impact of macro environment upon business operations from example of J. Sainsbury’s PLC

Macro environment positive and negative impacts upon business operations can be explained with the help of PESTLE analysis. This analysis will also help in understanding impact of macro factors on J. Sainsbury’s business operations.

Political Factor: Brexit uncertainties can impact business operations of Sainsbury in many ways. It can impact marketing and sales operations of their business as import/export rates might get fluctuate which will further affect product pricing (Virglerova, Dobes and Vojtovic, 2016). But political stability of UK can help them to gain sustainability as well.

Economical Factor: Growth rate is one of the main factors that can help Sainsbury to expand their business operations bur growing competition in retail sector can increase pressure on their sales and marketing operations of Sainsbury.

Social Factor: Rising demand for organic products can be an opportunity for Sainsbury which will impact business operations of the organizations as they would be requiring to bring changes within the products and services that they offer to their customers. But change in shopping pattern of people can have a negative influence on business operations of Sainsbury and can further affect their profit.

Technological Factor: Advancement in technology is helping Sainsbury to enhance their business operations. In fact, recently has introduced their own digital services of online shopping which is helping them to enhance their business. But there is one negative impact of these technological advancement i.e. they continuously need to bring changes within their business operations in order to gain profit and if these changes are not brought then it can affect their overall sales and profitability as well.

Environmental factors: high carbon footprint of Sainsbury can affect their business operations as UK government has passed various kinds of regulations for organization to reduce their carbon footprint (Ahmadi, Rahimi and Rezaei, 2018). However, Zero waste supermarkets of Sainsbury are helping them to attract more customers. Order assignment help from our experts!

Legal Factors: Regulatory approvals can have a negative impact on business operations it can delay their decision making and can further result in market share loss. But ensuring systematic legal changes within the organization can help them in enhancing their overall business growth.

LO 4

P 5 Internal and external analysis of J. Sainsbury’s PLC

Analysis of Sainsbury’s internal and external factors can be done with the help of SWOT analysis.

Strengths: Sainsbury’s digital services of online shopping has become their one of the main strengths in fact, 18 percent of their overall sales is because of their online sales. Sainsbury’s channel distribution is another one of their main strength as it provides flexibility to their customers. This has also helped them to gain competitive advantage against their top competitors. One of their core strengths is that they provide variety of high-quality products for their customers.

Weaknesses: One of their major weakness is that they operate only in UK because of which their customer range and growth of business decreases (Bohari, Hin and Fuad, 2017). Changes in inflation rate of UK is also affecting their business drastically as they only operate in UK. Due to this reason their overall sales are getting affected. Sainsbury has high carbon footprint which is another main weakness and changing government regulations towards environment can impact their business

Opportunities: Global market expansion is one of the main growth opportunities for Sainsbury. They can focus on expanding their business in developing countries. They can further focus on expansion of online sales and enhancing customers shopping experience.

Threats: Brexit uncertainty is one of the main threats as it can result in price hike and decrease in consumer’s spending’s. Increasing competition in retail sector is another one of the main threats of Sainsbury which can affect their overall sales, profit, revenue and market share.

P 6 Strengths and weakness of J. Sainsbury’s PLC and their inter-relationship with external macro factors

Strengths and weakness of Sainsbury and macro factors are interrelated to each in many different ways such as:

  • One of the main strengths of Sainsbury is there online presence where customers can do online shopping as per their convenience. Advancement in digital technology will only benefit the organization and will help them to increase their overall sales (Ahmadi, Rahimi and Rezaei, 2018). It can also help them to enhance their overall customer base.
  • One of the main weakness of Sainsbury is that they only operate in UK and political instability due to Brexit can affect their overall business profit as Brexit can impact in rising inflation rate which can affect their overall sales.
  • Another one of their main strength is that they provide high quality and organific products to their customers and social change of customers i.e. shifty of customers towards environment friendly products can help them to enhance their overall sales, profit and market share.
  • Another one of their weakness is their high carbon footprint. today most of the countries are bringing changes within their legislation and introducing various acts for organizations in order to reduce their Carbon footprint and this can affect their overall business in many ways. Ask for Academic Writing Service from our experts!

CONCLUSION

From the above assignment it has been analysed that there are three different kinds of organizations and each of these organizations have their own purpose, goals and legal structures. It has also been analysed that there are various kinds of macro factors that can impact an organization both positively and negatively which can affect their decision making and business objectives.

Read more - Managing Food and Beverage Industry

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