HR7003 Business and Business Environment Level 5 University of East London

Introduction

Business environment is consists of external as well as internal factors of the firm. This is helpful in relation to achieve the aim of the enterprise. This kind of factor are very helpful in relation to find out the strength, weakness, opportunities and threats. It is helpful in order to make the growth and sustainability of firm in the market. The business environment so the region in which various kind of components of firm are interrelated to which other so that firm can able to operate its function effectively. The growth and development of firm is overall dependent on the working of enterprise. The present report will outline the business activities of Sainsbury's, it is one of the largest supermarket chain of UK, it is beneficial in relation to provide groceries services to worldwide customers. In addition to this report will be inclusive of various factors as are internal and external environment factors, differed departmental functions etc.

Task 1

P1 Description on the various kind of profit, non profit and non governmental organizations.

There are some prominent features of business environment as are-

  1. Dynamic- The environment of business changes as per the needs and change in the market place due to introduction of new product and technologies. There are various kinds of factors which are responsible in relation to making alteration or those factor which are useful in order to enhancing the operation of the firm.
  2. Complex- There are various kinds of sources, due to which varied forces arises in this manner it is essential to have modifications in the existing terms and conditions in the venture.
  3. Multifaceted- in this it can be said that the when the changes are alternated are introduced in the new venture, all the observer have differed point of views in relation to the occurrence. In this focus is need to be given to the function that objective which are set by the companies should be achieved in order to meet this all out effectively.
  4. Extent and impact of procedure- under any of the firm the growth and success factor is directly depends on the conditions of working of business environment. If the introduction of small modification and changes cam affect the working of the enterprise in the large manner.

Differed kind of organization are defined in following manner as are-

The organized group of people with the particular purpose such as are business and government department. Organization are set up in relation to provide benefit to the customer so that they are able to perform their work in an effective manner. There are various kinds of organization, profit, non- profit and government organization. These all are build to serve the people in the effective manner. This is defined in following manner as are-

Profit making organisation- the business and other kind of enterprise whose primary goal is to making profit. Thy need to put major focus on the goals and it is helping the community and the main motive is to generate the large amount of profitability in the market. They render services to public so that they can create some amount of profitability in market.

Importance of profit making organisation-

  1. Employment generation- The profit is the term which can be generated by making investment in the large amount of money so that they are able to derive larger profitability.
  2. Profit is essential for survival of business- The profitability is essential in order to have survival and growth of enterprise. The term profit means survival, with the help of this the firm can sustain it functions in market for longer period.
  3. Reward for risk taken- The profit is reward for risk taken in enterprise. This term can be taken as return on the investment.

Hence, it can be said the main objective of this kind of enterprise is to profit maximisation. These all are in various forms like sole proprietorship, partnership, business organisation and facilities. These all work in the differed manner. In the sole proprietorship all business activities are run and managed by the individual proprietor. At the time when partnership is formed with the help of two or more person and they work as to manage the all business activities. It can be understood with the help of example as are- Sainsburry is the privately owned company, the main goal is to generating larger amount of profitability. They deliver services to the customer sop that main goal can be achieved.

Public organisation- These are the those firms which are controlled and managed by the government authorities at the national and differed state levels. Under these business units the main motive is to provide all kind of product and services as per the requirement of the society. The funds to this kind of the organisation is allocated by the various types of taxes and fees which are used to be taken from the citizen. This kind of business units works as to provide all types of product and services to the customer by understanding their demand. In this the main sources can be taxes, fees and rents which are given by the government with the various state authorises.

Voluntary organisation- This is entirely differed kind of sector of economy. This kind of business units work towards bring development in the societal requirement in relation to provide proper care and supports. The main aim of this kind of venture is to provide financial, legal and personal support to the various sectors and individuals this all are very helpful in relation to support to various sectors and individuals who takes various initiative in order to grow and develop the business personalities.

P2 Define the Size and scope of business enterprise and difference between the small, medium and large enterprise.

Small business

Medium enterprise

Large enterprise

In this the equality held by the founder and family.

There are owners and other professional key roles, so that they all can perform their business activities effectively.

In this mostly public investor held the equity.

It is manager by the owner of the enterprise

It is managed by the owner and other professional key roles.

There is large amount of professional management in the enterprise.

In the there is short term planning and it is planned by the owner of the firm.

There is long termed planning and it is mostly get done by the key executive so that all things can be done in expertise manner.

There is distributed making of decision which can be done with the help of organizational hierarchy.

There are limited personal opportunity to have the development in the individuals.

The personal development is limited to the only few numbers of employees.

There is long term planning and it is need to be done with the large number of dedicated teams.

Sainsbury is the largest supermarket chain in UK and it works as to provide grocery and food items to the number of customers. By providing effective services they are becoming the 1st retailer chain in the retail sector. On addition to making their services effective they need OT perform their business activities as per the demand of customer and innovation is need OT be carried out.

Mission and vision- under this it can be said that Sainsburry view its growth in further years at the highest levels in relation to providing good services to customers. In addition to this, it profit margin and competitiveness is getting increased on the large scale and this affects the long term sustainability in competitive market. The main aim is to provide good and services, which are helpful to full fill the desire of customer in the market. Thus, it can be said that the continuous increase in the annual turnover is not the good sign of the business enterprise. In this manner the firm need to focus over various innovation as are to change sin the service like provide product and services in the discounted manner, will be helpful to making the use of promotion campaign etc.

Market share- in this it can be the best performed in the super market industry but in these days it is becoming very typical for sainsburry to maintain its market stability. In addition to this decrements in gross annual turnover is working as coming down in the graph in continuous manner.

P3 Description on the organizational structure and function of firms.

Organization structure refers to that kind of framework but it is helpful in order OT develop the activities of business so that there can be increment in productivity and profitability of enterprise. The sainsburry's have various kind of organizational function in the effective manner, this will be helpful in order to generating the large amount of profitability in enterprise. It is need to be efficient, flexible and caring so that firm is able to gain sustainable competitiev advantage in market. There are various kinds of departments and its function in following manner as are-

  1. Marketing- in this it can be said that the market plays the crucial role in order to make the operation of firm in effective manner. The marketing department is responsible in order to promote product and services withing target marketplace.
  2. Human resource- The human resource plays the vital role in order to bring success to enterprise in large manner. The Sainsburry department is taking various initiatives to search out for the best talent for their firm so that they are able to carry out each activity effectively. In this it can be said that the employees are need to be selected and recruited after the proper recruitment process and in this manner it is essential to provide the most suitable departments. They work as to bring revolution in the business activities by having innovative and productive ideas.
  3. Production function- Every organization need to take various kind of initiative in relation to produce its own product and services by having production function. This is the department which is responsible for complete manufacturing process for the product and service. In this way the production manager should keep his eyes on the organization activities so that product can be produce with effectiveness and at the reduced cost.
  4. Accounting and finance- in the accounting team they work as to analyse the all funding system so that they can have adequate amount of resources. By having sufficient funds the firm is able to create the good and services in market. Under this department, every element of business needs to cater relevant resources in order to generating requirement of customers.
  5. Advertising- The Sainsburry is an important element as it is helps the company in relation to generating the goods so that things can be developed effectively. There are various kinds of source with the help of which the firm is able to make the use of it and these as are television, commercials, bill Boards and Facebook for having advertisement of the product and services so that customer can get attracted towards it.
  6. Research and development- in this Sainsburry needs to take various initiatives, so that product and services need to researched and developed. Under this there is need to research those things which is helpful in relation to develop the products and services, so that existing product can be improvised. With the help of economical, efficient and economical services the firm is able to carried out its operation significantly.

Relation of functions with business objectives- The main objective of Sainsbury is to takes various kind of initiatives to satisfy the customer by providing the high quality of products to customers. The research and development department will be responsible to have the continuous development in the activities of entity. Human resource manager are responsible to carry out the function effectively so that there can be excellent services in the manner as are customer. Accounts and finance.

Task 2

P4 pestle model, identification of positive and negative impacts the micro environment has upon UK retail sector.

There are various factors which is inclusive of internal as well those factors which are having uncontrollable influence in relation to making of decision in enterprise. IN this manner there is need to defined the PESTLE analysis in the following manner as are-

Political factor- There are various kinds of things which are affecting the legal and political system of the enterprise in large manner. There is need to be proper and effective policies which is helpful in relation to having development in product and services of enterprise. It is inclusive of the various kinds of elements as are foreign trade system, trading, government polices etc. in this term it can be said that the political factors affects the working of enterprise in large manner. The Sainsburry need to follow prescribed rules and regulations by the legal authorities so that they are able to produce the product in expertise mode.

Economic factor- There are various kinds of processes which is helpful in relation to generating the growth of enterprise in large manner. It is inclusive of various factors like tax rates, economic polices and inflation system. In this the foreign exchange are and interest rate are having huge impact on the working of business enterprise. The economic crisis in the European market affect the economy of UK and its leads creating the situation of recession.

Socio culture factors- In this lifestyle of people are changing in badly manner and it is having direct impacts on the sale of good and services of the sainsbury to its customers. In this it can be said that the every region of people have differed taste and preferences. In order to cop[e up with this it is essential to provide good and services with the help of variation. In these the restriction are based on differed kind of norms and values prevailing in market. These all kind of factors will be helpful in order to developing the culture and society.

Technological factors- It is very important factor as it is helpful in relation to develop the product and services in the large manner. The Sainsburry need to use the technological factor which will be helpful to attract the customer’s in the large manner. The main aim of having technology is to creating the innovation in the services of business enterprise. The sainsburry need to have proper knowledge of inventory system and it can be dine with the help of innovation facilities. These all kind of activities will be helpful in relation to gathering the trust of the customer so that firm is able to create the large amount of profitability and productivity.

Environmental factors- it is strategic tool, it is helpful in relation to identification of external as well internal elements which can affect the working of enterprise. In this the analysis is need to do as it affects the performance of enterprise. In this important analysis and all micro and macro element need to understand as this all are helpful in order to generate growth and development opportunities as to deal with the firm services effectively.

P5 Description on the internal and external factors of the UK supermarket to identify the strength and weakness.

This is defined in following manner as are-

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For inside investigation of Porter 5 drive model will be utilized that help with portraying the small scale condition, Sainsburry is made out of, which is depicted beneath:

  • Risk of New Entry: The danger of new section is dependably terrify any association. It influences the economies of size of organization and impact its general business. There are numerous new businesses which work at little scale yet make enormous effect on inward condition of business enterprise like Sainsburry.
  • Customer Power: Sainsburry is driving nourishment retailer and comprise real offer of clients. Buyers affects the matter of firm in a few ways. In the event that organization unfit to take care of their demand, they will move to options and which brings about reducing in development of organization.
  • Focused Rivalry: Sainsburry is encompassed with rivalry. Huge retailers like Tesco, Aldi's etc. It should have high impact on the association in extraordinary degree.
  • Dangers of Substitutions: Sainsburry face absence of risk of substitution, as the majority of the buyers favor nature of sustenance which is served by the association.
  • Provider Power: Sainsburry does not impact by providers as the vast majority of the assets are produced in the association itself and restricted assets are bought from outside providers.

P6 Description n how strength and weakness interrelate with external macro factors.

Political Factor

  • Strength:- Sainsburry is a strong global brand which works as to helps in providing products and services to international consumers by analyzing all political situations.

Shortcoming:- Main disadvantage is that items offered by organization are not successful as far as giving each client the level of fulfillment which they want.

Economic Factor

Quality:- Main quality is that it creates stream of cash in an economy by creating marketed items and administrations.

Shortcoming:- Main drawback is that it needs information about economy where organization is giving merchandise and ventures.

Social Factors

Quality:- Advantage is that organization is giving marketed items in view of confidence and morals relating specifically area.

Shortcoming:- Social issues are created which hurts organizations notoriety in specific zones where products are being conveyed.

  • Technological Factors

Quality:- Techniques utilized by organization are advantageous in creating items and administrations for a specific area.

Shortcoming:- Its primary downside is that a few outlets are not all that monetarily solid and that is the reason they can't change to new and most recent innovation.

Legal factors

Qualities:- The principle positive component for organization is lawful framework which Sainsburry tries to dissect and use keeping in mind the end goal to give products and enterprises.

Conclusion

Based on above report it can be concluded that Business environment is consisted of external as well as internal factors of the firm. This kind of factor are very helpful in relation to find out the strength, weakness, opportunities and threats. In addition to this, report has been covered various factors as are internal and external environment factors, differed departmental functions etc. The main aim of this report is to conduct the environmental activities in the manner which will be helpful in relation to process business activities effectively.

References

  • Adeoye, A.O. and Elegunde, A.F., 2012. Impacts of external business environment on organisational performance in food and beverage industry in Nigeria.British Journal of Arts and Social Sciences,6(2), pp.56-65.
  • Arasti, Z., and et. al , 2014. Business failure factors in Iranian SMEs: Do successful and unsuccessful entrepreneurs have different viewpoints?. Journal of Global Entrepreneurship Research, 4.(1).pp.1-14.
  • Cavalcante, S., and et. al. 2011. Business model dynamics and innovation:(re) establishing missing linkages. Management Decision, 49.(8). pp.1327-1342.
  • Chen, H., and et. al., 2012. Business intelligence and analytics: From big data to big impact. MIS quarterly, 36.(4). pp.1165-1188.
  • Chow, A.T., and et. al. 2017. Intellectual Property Ii, LP, 2012.Computer readable medium with embedded instructions for providing communication services between a broadband network and an enterprise wireless communication platform within a residential or business environment. U.S. Patent.
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