Unit 1: Business Environment Types with Purposes and Legal Structure | Sainsbury

TASK 1

P1. Organisational types with purposes, legal structure as well as stakeholders.

Every organisation has group that based on the ownership and other activities. An organisation classified into the different types that have several scope, legal structure, purpose, vision & mission. Regulation of these organisation have different hands and according to that follow rules & regulations. There is defined the different business entity which are mentioned underneath:

Public sector organisation: These types of organisation are not regulated & controlled by the individual. It is operate by the government because they have all the responsibility that can be central or state (Belás and et. al., 2014). In this sector selected the organisation National health service. This organisation mainly situated in the United Kingdom which is provided different types of health services at national level. 

Objective: The main Objective of the public organisation to support those people who require help and have low income that's why they do not afford the services. The main purpose of the NHS organisation to supplying the basic health services to those people who have not good income sources. Eventually, these types of organisation do not concentrate on the increasing market share as well as growth because they don't want to generate profit from the public. Because for the public services government provide the fund and staff members serve on a permanent contract with higher pay scale.

Legal structure: The public organisation legal structure based on the regulation by the government, local or domestic government. In the broad manner, the UK government set the own rules & regulations and policies to conduct the business activities effectively.

• Local government: There is providing the authority and responsibility to local government to manage a city or town (Belás and et. al., 2015).
• State government: It is approved with the arrange the power where manage the activities and possess all the power that is defined in the law and conduct business environment. 
• Central government: At this level all the government division are working in a country. For this supreme power allocated to responsibility to local and statement government to conduct activities effectively.

Stakeholders: The main key internal stakeholder of the organisation are managers and staff members of the business. External stakeholders are Government, general public and financial entities.

Vision: To connect with the people as well as companies to develop effective atmosphere that allow for the changes as well as innovation in order to improve the health of the individuals and stay well being.

Mission: To improve the experience of the people regarding the health services and found professionalism and value experience to provide clinical practices.

Private sector organisation: These types of organisation are not governed by the government and not the public property. It is operated by the private parties. In this report selected private organisation Sainsbury which is a retail sector organisation that was founded in 1869 by John James to dealing into the grocery & super markets.

Legal structure: The private organisation are formed in following three legal structure:

• Sole traders: The particular business operated by the individual person with the available sources & fund. For this business is not required to registered of these types of business because there is consisted of high amount of rewards as well as risk.
• Partnership: There are two or more individuals are operating the business activities and share profit and loss in equal manner. For this business required to registered as per the partnership act and deed signed among partners.
• Company: Business entity situated according to company law and have separate legal identification in terms of law. Sainsbury is performing its business activities to set up separate legal entity that provides effective legal structure to the business.

Stakeholders: Sainsubury have internal as well as external stakeholders that relate with the organisation. In stakeholders consist of managers, staff members of the store and many others. The external stakeholders are suppliers, government and local communities.

Vision: The main vision of the organisation to provide services to customer as most trusted organisation and provide employment to people (Erasmus, Strydom and Rudansky-Kloppers, 2016). 

Mission: To focus on the customer taste & preferences according to that provide the food quality with high standards.

Objective: To provide different type food products in fair price and consumer get good experience after purchasing products from the store.

Voluntary organisation: These types of organisation are known as the non profit organisations. There are consisting of smaller as well as larger organisation like healthcare, educational and charitable industries. Good thing foundation is type of the voluntary organisation that founded in the 2011 in the south Yorkshire. It provide supports to people to over come from the social problems, challenges, develop society that based on the digital activities and help to individuals to grow their essential skills.

Objective: The main objective of the Good thing foundation to deduct the range of the digital rejection, set better life of people through digital activities and providing solutions through digital technology for address various social issues.

Legal structure: There is different types of the voluntary legal structure such as:

• Unincorporated Association: According to this structure same objective organisation come together that have not registered under any law that work as the social welfare. The company have not motive to earn profit.
• Trust: It is the legal formation of the non profit organization which is provided services to large number of people with specific motive like social welfare. Good thing foundation work as the trust and present their activities as trusties.
• Company: Non profit organisation also registered as the limited company that provides public for social welfare.

Stakeholders: The staff members, suppliers, creditors, investors and consumers are the stakeholders that divided into external and internal.

Mission: The mission of Good thing foundation to provide help to people through social change charity and improve life by digital activities.

Vision: To set a good world where all over the world get the advantages by digital technology and get specific platform.

P2 Explain the size and scope of a range of different types of organisations

A business environment is influenced by the size as well as scope in order to perform in the competitive environment where carry out more and more challenges. There are defined the size and scope of the different organisations as follows:

National Health Service

Size: The size of the NHS has wider because there are consisting of many hospitals, community and primary care where are working about the 150000 doctors and 320000 nurses and midwives that provided services to the patient (Georgescu and Popescul, 2015). The particular organisation provide health care as well as medical services to the public. As it has large size that provides free services to the UK residents.

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Scope: NHS intent to carry out different reforms in the context of the opportunity and challenges that face in the pharmacy profession. As per the present movement or shifts in the commissioning framework and focus with the help of coordinated care for the developing patients to get effective results. NHS can provide facilities about the 65 million people in the UK and connect with the about 1 million person at 36 hours.

Sainsbury

Size: It is the second largest supermarket chain of the United Kingdom that contribute about the 15.35% share in the super market. It is provided recruitment about the 186900 staff members and generate revenues about the £ 28.456 billion. The company have net income about the is £309 million. It is conducting activities across 1415 shops which are established all over the UK.

Scope: Sainsbury is delivery services to large number of customers group and offer opportunity to purchase things under a roof. So it helps to become famous and largest supermarket in the UK. It is conducting services in the retail sector where scope to spread out the operations of the super market at the whole Europe and other countries.

Good Thing Foundation:

Size: Few time ago this foundation has been recorded that this foundation had accepted cooperation with the about 5000 community partners to providing services to about large number of common people with the digital services and improve standard of living. The particular organisation is a medium size that known as non profit organisation and conduct activities to serve more and more of consumers.

Scope: The Good thing foundation is established with the particular motive to spread out the utilisation of the digital media so that quality of life can be offered to all the people who lives in the UK. Through using of the digital media to sort out the different types of issues on right time (Grewal and et. al., 2015).

TASK 2

P3 Explain the relationship between different organisational functions

The organisational functions are outlined as the group of activities where carried out the several divisions of the business and all the departments are working for the common objectives that set by the organisation. There are defined some common function that conducted by the retail function in order to show their performance like information technology, financing, human resources, marketing and storing goods.

The main function of the Sainsbury organisation of marketing as well as sales in the UK market. So it become one of the largest supermarket chain that concentrate on the different marketing strategies to increase sales and marketing involves for all the marketing activities which is utilised by the business entity in order to address the consumers with all the different goods and services that provided by the particular super market. According to this function retail store will be capable to recognise al;l the sources that helps to get success for the products at the particular market place. The sales department of Sainsbury store will report to marketing department in order to provide feedback of the consumer in the context of the different goods & services provided by the firm (Kljucnikov and et. al., 2016).

Relationship between marketing and finance department: The Sainsbury mainly dealing in the retail sector and the aim of the supermarket to provide effective marketing that impact on the customer mind. All the departments of Sainsbury performing directly with the finance department. The marketing department is influenced by the finance as budgets that are necessary to operate in marketing for business to create by the finance department. The manager of the marketing can be accomplished effectively. If both departments link their functions so get outcomes will be productive.

Relationship between finance and HR department: The operations of the Sainsbury are presented at the large scale. For this required to highly qualified workers that have skills of sales and marketing. The HR department of the Sainsbury organisation mainly concentrated on the offers that provide by the best man power for the organisation at the different levels. There are conducting critical analysis that have done by them for the job role of each individual and skills required can be specifically recognised. To appoint of the educated and capable staff members in the business may needed more and more finances. HR as well as finance department required to communicate so that budget can be developed to recruit best manpower according to budget in the super market. 

TASK 3

P4 Positive and negative impacts of macro environment factors upon business operations

PESTLE Analysis: In this analysis all the external activities that impact on the business performance in direct manner. On the basis of particular analysis an organisation prepare effective strategy effectively. There are conducting PESTLE analysis of Sainsbury that has been defined:

Political factor: In this factor consist of various types of regulations, trade practices, tax rate etc. These factors influence to business and require to focus on the efficiency. There are defined impact in positive and negative manner:

• Positive impact: Due to occur Brexit in 2016, most of the population voted to EU for leave. As a result it shows positive impact to arrange goods quality and increase profit.
• Negative impact: Leaving the Euro zone has had a negative effect on Sainsbury's as it has become very challenging for grocery store executives to manufacture and trade goods from foreign countries as a result of which organizational costs have boosted (Quinlan and et. al., 2019).

Economic factor: There are consisting of inflation & interest rate, labour rate, currency exchange rate etc.

• Positive impact: Due to deduct the rate of labour as well as fuel price impact in positive manner because Sainsbury recruit more employees to provide effective services to their customers and fulfil the expectation.
• Negative impact: When raise the price of the fuel as well as diesel so company does not easily supply the goods and make expensive transport that decrease the sales.

Social factor: The social status like population growth, age, career attributes and cultural restrictions impact on the Sainsbury supermarket like:

• Positive impact: Consumers are more well-being conscious, so it is beneficial for Sainsbury to offer better meals and alcoholic beverage value at affordable prices, which helps increase the number of customers.
• Negative impact: The particular supermarket do not focusing on the customer health and offer unhealthy food as well as drink that impact on the health in direct manner.

Technological factor: It is consisting of advanced digital technology, changes, issues such as online trading, robotic services etc. that are applied by the Sainsubury to analysis the impact positive and negative like:

• Positive impact: After apply the advanced technology customer attract and happy with the services that provide by the Sainsbury to their customers. Customers are not facing any problem regarding the payment option due to provide different alternatives.
• Negative impact: It can impact in negative manner due to carrying of cost and apply digital technology for online and offline shopping. As a result it increase cost compare than to profit.

Legal factor: Every organisation required to follow all the legal activities that relates to their sector like health & safety, copyright and patents (Saleem, 2015).

• Positive impact: To become long time in the retail sector Sainsbury follow the rules & regulations that helps to create good brand image in the market. As a result it helps to maintain good relationship with the customers.
• Negative impact: When Sainsbury does not follow all the laws so lose the trust of the customer and fall down brand image in the market.

Environmental factor: There are consisting of various factors regarding to environment safety, climate change, weather etc. There are discussed the positive and negative impact of the environment factors on Sainsbury such as:

• Positive impact: The supermarket has been developing low share of carbon dioxide due to recycle of the wastage products and decrease the use of carbon footprint after adopted the environment safety law.
• Negative impact: Due to continuous changes in the environment damage the products that keep in the ware house. Sainsbury can keep different types of products that based on the weather condition.

TASK 4

P5 Internal and external analysis of organisations to identify their strength and weaknesses

SWOT analysis is an internal analysis that provides that detail information of the organisation to know the strength, weakness, opportunity and threat. For this purpose, to identify the major strength and weakness, internal analysis of NHS has been analysed in following way

Strengths: As NHS is one of the healthcare organisation of UK, therefore, there is no major competitor of this organisation. So, this would help in maintaining interest of investors to make investment, so that better health facilities can be provided to public for their well-being. Along with this, as compared to private hospitals, emergency services and other facilities are also unique that helps in maintaining its competitive position (Savrul, Incekara and Sener, 2014).

Weaknesses: Increasing population size with more demand to get health facilities on minimum cost, creates difficulties in front of NHS, to stimulate their demand. It also affect performance of this organisation, where to see more patients in a day, medical practitioners could not provide more attention on them individually. 

Opportunity: NHS can usage the effective market strategies to promote health care services that helps to raise their profile. Furthermore, use different types of social platforms such as YouTube, Facebook, Twitter etc. 

Threat: As EU leaving the UK it impact in negatively and NHS loss their fund about 45% of the revenue that come from the government.

Sainsubury

Strength: The automation activities supports to business as per the demand of the product in the market place. They are satisfying the consumer at extreme level through effective goods and services. For this they are hired skilled staff member and rime to time provide training.

Weakness: Sainsubury face the high labour turn over that increase cost due to provide training & development of staff members. There is law investment and low profitability in certain period of times in the organisation.

Opportunity: After Brexit company achieve many opportunities regarding to business that supports to increase profitability. New trends in the market impact on the consumer behaviour and spend more at super market.

Threat: The demand of seasonable product that impact on the profit and difficult to follow the new regulation in various market place. Due to increasing strength of the local distributors is influencing of the profitability.

P6 Interrelation of strengths and weaknesses with external macro factors

The strength and weakness of any organisation based on the internal activities that connected with the external macro factors. In the context of the Sainsubury described both factor interrelation underneath:

Political Factor

• Strength: If business wants to extended into another nation so it is required to internal political stability is theirs, it turned out to be a catalyst for global success. The term of Brexit carry out the possibility to the business.
• Weakness: Due to changes of the government and change the rules & regulations so it impact on the stability of the organisation for future activities. The Infliction of EU laws made complex to generate profitability through import as well as export.

Economic Factor:

• Strength: After the Brexit Sainsbury get various business opportunities in the retail sector. Due to decreased labour rate provide skilled labour in the super market and generate profit.
• Weakness: The smooth policies of an organisation leads for the competition in the Sainsbury and changing price of raw material increase cost.

Social Factor

• Strength: The Sainsbury mainly concentrate on providing goods due to fulfil the expectation of the consumer. It helps to create goof relation with customer and in present time people become more health consciousness. So it provide opportunity to spread out the business activities. 
• Weakness: As per the automation to introduced of the business can impact on the employment opportunities.

Technological Factor:

• Strength: The company always follow advanced technology that attract customers and fulfil the demand the customer as per the expectation. It is providing online facilities to group of people effectively.
• Weakness: Operational cost has gone high due to apply advanced technology and required more amount for the maintenance.

Legal Factor:

• Strength: To follow all the rules & regulations in proper manner and provide good quality food to customer helps to create good brand image to get growth.
• Weakness: Due to introduced more and more requirements require to provide difficult legal structure of the organisation. Different laws at the international level make critical to follow them.

Environmental Factor:

• Strength: Sainsbury follow all the rules regarding to environment and provide priority to establish good image at the market place. After introduce anti oxidant characteristic in different services supports business to increase with effective atmosphere image. 
• Weakness: It is required to keep clean and healthy environment where proper utilise of the resource. Due to change climatic conditions make complex for the business activities and do not follow all the organisational policies.

CONCLUSION

It has been concluded from this assignment that today’s business environment of organisations has become more dynamic. The reason behind this is regular changes in internal and external environment, that demands firms to develop better strategy for operating successfully. Along with this, before making any change in business operations, it is essential for companies to analyse external factors like political laws, social concerns and advancement of technology. This would help in developing better strategies for running business successfully. Similarly, measuring company’s internal capabilities, also aid to identify weaknesses that arise barriers for accomplishment of corporate objectives and make changes accordingly to reduce same.

REFERENCES

Books and Journals

Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in Africa. Journal of Development Economics. 114. pp.159-171.

Belás, J. and et. al., 2014. Significant attributes of the business environment in small and meduim-sized enterprises. Economics and Sociology.

Belás, J. and et. al., 2015. The business environment of small and medium-sized enterprises in selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.

Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business management. Oxford University Press Southern Africa.

Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and communication for business environment. Procedia Economics and Finance, 20, pp.277-282.

Grewal, R. and et. al., 2015. Business-to-business buying: Challenges and opportunities. Customer needs and Solutions. 2(3). pp.193-208.

Kljucnikov, A. and et. al., 2016. The entreprenurial perception of SME business environment quality in the Czech Republic. Journal of Competitiveness. 8(1).

Quinlan, C. and et. al., 2019. Business research methods. South Western Cengage.

Saleem, M. A., 2017. The impact of socio-economic factors on small business success. Geografia-Malaysian Journal of society and space. 8(1).

Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.

Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a globalizing business environment. Procedia-Social and Behavioral Sciences, 150, pp.35-45.

Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford University Press.

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