Business Environment BMS412 (GC01749)

Executive Summary

In this report, we have summarized the environment of Sainsbury’s. Sainsbury’s is the oldest and largest supermarket in the UK with a formidable reputation. Sainsbury’s has several shareholders which means the company is a Public Limited Company (PLC). They have a good connection between their managers and employees. The SWOT analysis helps understand that Sainsbury has many strengths, weaknesses, opportunities, and threats. It should be mentioned that Sainsbury’s has a lot of competitions that also have good reputations. PESTLE analysis elaborates that Sainsbury’s has numerous external environments that help the business move forward. Lastly, the influence of globalization in business and how Sainsbury’s make decisions and strategies in accordance with that.

Table of Contents

1.0 Introduction.

2.0 Company’s Overview.

3.0 Literature Review.

4.0 Discussion and Analysis.

5.0 Conclusion.

Reference.

1.0 Introduction

In this big world, the competition of business is very high and is increasing rapidly. A successful business can make a country move forward. The UK is a large country and it has many big companies. Sainsbury’s is one of them. In this big competitive business era, Sainsbury’s has a great brand name and image (Sainsbury’s Annual Report, 2019). It was founded in 1869 and earned the second-largest grocery shop in the UK. Their main purpose is to support the customer to live well for less (Sainsbury’s, 2020). Their main aim is to give the customer healthy foods, quality clothes, quality products, latest technology, stylish homewares etc. The report consists of an explanation of the business environment in Sainsbury. Then the report identifies the type and size of Sainsbury, the interrelationship between organizational function and structure, and the internal and external influence by SWOT and PESTLE analysis of Sainsbury. Finally, the influence of globalization in Sainsbury is explained and analyzed.

2.0Company’s Overview

Sainsbury’s is recognized as the second biggest chain shop superstore in the UK that was established in 1869 (Sainsbury’s 2020). It was recognized as the biggest retailer in 1992 but later Tesco placed its position. It now gains about 16% of market share, where its key competitor Tesco gained around 28%. It has first introduced the self-service automated machine in the UK retail environment. It has a huge number of shops, wherein in 2017 it owned 1415 stores. However, it has been trying to increase its stores in new markets including the UK and international marketplace. It first started its business as a single retailer, but now the company’s sectors have been increasing. It amplified into many stores like meat and bakery, clothes, etc. the number of employees in this company is approximately 126,400 (Sainsbury Annual Report, 2020).

3.0 Literature review

3.1 Different types, sizes and scope of the organization

A business organization can be of different types, sizes, and scopes. There is a lot of business in sectors of profitable business, non-profitable business, government organization, non-government organization, micro, medium size, macro business etc along with many other types (Annie, 2018). A profitable business is the main aim of any commercial firm. These businesses are usually managed in the private sector. Non-profitable business means organizations are set up for other purposes, not because of financial gain. The example of these organizations can be charities, social activities, NGOs, etc. Although some of these organizations do business activities like profitable business ventures. Non-government organization or NGO means a non-profitable organization (Mullins, 2016). Their main aim is to help society, without earning money.

Microbusiness means a business that has small capital, goals and aims as well as small profits. Macro business means a business with big risk, big profit, and so big goals and aims. Besides, there are also many different forms of business; like sole traders, private limited companies, public limited companies, and so on (John, 2018). A sole partnership means a business controlled by a single person. In this business, the owner is personally liable for all the expenses and profits. It is considered the easiest business because it is easy to set up and open a business with a small budget. Private limited is limited than public limited companies that are handled by a small number of people. The business has limited shareholders because it is privately held. Public limited are larger businesses that offer shares to the public that help the business to increase their capital and funding (John, 2018).

3.2 Interrelationship of functions on organization structure

An organization function means the process or set of performances completed within a department or areas of a company. There are lots of organizational functions such as sales, marketing, human resource management, accounting and finance, R&D production, etc (Bills, 2018). According to Mullins (2016), there are many different kinds of organizational structures such as hierarchical structure, flat structure, matrix structure, divisional structure, etc. A hierarchical structure is the most popular structure of an organization. In this structure, the workers are united with every worker having a clear supervisor. In a matrix structure, people with similar abilities are work for assignments and reports (John, 2018).

The horizontal or flat structure is used in small companies. In this structure, the employees make quick decisions, not the managers. The division structure is an independent operational flow. An organization must build up a connection or relationship with other people of the firm. An interrelation is very important for business development as no business can succeed individually. In business, there are lots of departments. Suppose, if a marketing department has no connection with each other, their marketing ventures go wrong and lead to chaos. According to Amy (2018), every department’s managers and high-level workers should have a connection with inferior-level employees; making the business stronger. So it is must to have a relation between an organizational function with organizational structure………….