BMS412 Business Environment Assignment (GC01763)

Executive Summary

This paper has concentrated on the effects of business environmental factors on the functions and performance of Sainsbury’s. It is a retail shop located in the UK and also banking activities for the clients. Sainsbury’s has operated operating activities in the European and other respective countries. For this reason, this company has faced several environmental opportunities as well as barriers in the real business field. Firstly, this paper has concentrated to identify the internal environmental condition by analyzing SWOT factors for Sainsbury’s.  Additionally, the outside issues have also affected the functions of Sainsbury’s plc. That is why; secondly, this paper has concentrated to identify the external environmental condition by analyzing PESTLE factors for Sainsbury’s. After that, this also has identified several outcomes for the different organizations due to globalization.

Contents

1. Introduction.
2. Company’s Overview.
3. Literature Review.

3.1 Different types/sizes of organizations.

3.2 Interrelationship of function on organization structure.

3.3 Impact of internal and external environment on business operations.

3.4 Influence of globalization on organization strategy.

4. Discussion and Analysis.

4.1 Justification of the size/type of Sainsbury’s.

4.2 Interrelationship of functions in Sainsbury’s.

4.3 Impact of internal and external factors in Sainsbury’s.

SWOT Analysis.

PESTLE analysis.

4.4 Influence of globalization in Sainsbury’s.

Conclusion.

References.

1.0 Introduction

The objective of the paper is to find the influence of the Business environment on the strategies of the business organization. This paper focuses on the effects of business environmental factors on the functions and performance of Sainsbury’s. It is a retail shop located in the UK (Sainsbury’s, 2020). Firstly, this paper concentrates on the identification of the internal environmental condition by analyzing SWOT factors for Sainsbury’s. Secondly, this paper concentrates on the identification of the external environmental condition by analysing PESTLE factors for Sainsbury’s. After that, this also identifies the several outcomes for the different organizations due to globalization. Finally, the recommendations are presented on the basis of findings to the small, medium and large organizations including Sainsbury’s.

2.0 Company’s Overview

Sainsbury’s has got the 2^nd position in UK retail shops and it has nearly 16% of total market share. It is a listed company in LYSE and its share market price is 202.40GBp (Sainsbury’s, 2020). This shop was started its business functions in 1869 and now it is a good brand company in the UK market. This retail shop has 1250 stores located in European counties and the staffs’ size is 178000 (Sainsbury’s, 2020). Normally, Sainsbury’s PLC offers several quality foods to consumers in terms of a reasonable price level. This company has the vision to create trust and loyal company to all customers all over the UK (Sainsbury’s, 2019).  The customer attention, product quality and job satisfaction of the employees are the main tools of success for this company (Sainsbury’s, 2020)

3.0 Literature Review

3.1 Different types/sizes of organizations.

Beacon (2017) noted that organizations can be divided into several categories by considering the nature, functions, objective and growth rate. Firstly, organizations can be categorized under private, public, charities and NGOs. According to Francis (2018), the private organization is run by private ownership for earning profit.  It may be structured in several forms including sole proprietors, partnerships, small, medium and large types of organizations. On the contrary, the public organization is run by the government and there is no intention to earn profit but do the welfare of the community and society.

Mohinder Kumar (2018) stated that the public organization collects funds from several sectors by imposing taxes and fees to run their regular welfare activities. Beacon (2017) also mentioned that some of the organizations are referred to as joint organizations where private and public ownership is presented. There are some non-profit organizations including Charities and NGOs that help the government and poor people in a country.

3.2 Interrelationship of function on organization structure

The nature of an organization depends on the structure organization. The structure of all organizations is not the same. Sharma (2019) noted that structure can be defined as the arrangement of the organizational chain of command and the relationship by which an organization can achieve its targets. Beacon (2017) noted that the activities of the organization are related to the marketing functions, production functions, human resource functions and accounting functions. On the contrary, the main elements of the structure of the organization contain the pattern of a chain of command, formalization along centralization.

According to Morten (2014), an organization has several departments and the relationship among these departments is settled by the pattern of the structure of the organization Beacon (2017) also mentioned that the structure of the organization is created in different formats including classical, functional and matrix system. The structure of the small medium and large organizations is different from each other. Normally, the small business is structured by a classical system but the division or function system is suitable for medium and large size organizations.

3.3 Impact of internal and external environment on business operations.

In the case of all business organizations, there are lots of environmental factors coming from internal and external sources (Erica Olsen, 2017). These factors have a significant impact on the operating and financial functions of the business organization. Francis (2018) noted that internal environmental issues indicate the firms’ current position in the competitive market on the basis of internal strengths and opportunities. On the other hand, external environmental issues indicate the firms’ current position in the competitive market on the basis of external business environments (Mohinder Kumar, 2018). Both analyses have a significant role in the development of the strategies by considering SWOT and PESTLE factors………………………………..

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