The objective of this report is to develop learner’s understanding over the business environmental factors that has a direct impact over business decision making. This will assist in determining available strategic directions for firm by considering:
- Determine type of different organisation as well as their size and structure.
- Discuss the interrelationship between different functional divisions of Sainsburys.
- Determine positive as well as negative impact of external environmental factors over the business decision making.
- Evaluate strength and weaknesses of Sainsburys as well as its interrelationship with macro factors.
Business environment plays an important role and affects the performance of an organization; there are two types of environment that is micro and macro and both will affect the business directly or indirectly. The whole report shows how internal and external factors affect the environment of Sainsbury's. It is 2nd largest chain of supermarket having dairy shops and groceries. The report shows different types of organization and their size and scope. It also explains its organizational functions and how they help in better decision making. Report also depicts its positive, negative impact on the environment and with the help of PESTLE and SWOT analysis determine its impact on the performance of a company. It also explains its porters five force model and strengths and weaknesses of a company. It also explains Sainsbury's objective that is to provide good quality of product to the customers and it also explains its mission with vision and its past performances. The report also explains its functional structure and the inter relation between every part of a company.
P.1 Different types of organization
A group or a social unit which is structured and manged to meet a need of people and these are affected by environment. In organizations, different activities are dived in members and staff with their roles and responsibilities. There are many organizations which are mention below:
Private organization: it is controlled by individual, not a part of government. The basic means of this sector is to gain more profit. This type of firm have their own legal identity and this usually includes both profit and non- profit corporations. For example retail store, credit unions and local businesses. In this sector, activities are guided to earn more profit. Further it is dived into Sole traders, in this type of private organization person simply sets up to provide goods for profit, there is no legal formality require and sole trader is responsible for day to day management. For example, storekeepers, plumbers etc
Public organization: these type of organization are owned by the government. Its main aim is not to generate profit. To serve public, they get funds from taxes, fees and through financial transfers. For example, education, electricity, gas oil etc. sometimes the public sector will be a partner in private sector to create public- private partnership. These type of relationship work together to jointly deliver a service and product (Eidizadeh, and et.al. 2017). The main purpose of these sector is to enhance the level to this sector and encourage people for more trust.
Voluntary sector: the purpose of this type of organization is to benefit and enrich society without profit and no government interference. They help to create social wealth rather than material wealth. But it is separate from public sector, there are many organization which are tightly linked with governments in order to make programs successful. Examples are charities, foundations and social welfare programs. In this type of sectors people work in profit and non- profit organization. In profit org, these are operated by private sector and there is no interference of government. These are related to both legal and financial framework. Their operation can be based in multiple sectors like fashion, technology etc whereas Non- profit organization are set up not to gain profit they work for the peoples. There work is not to generate profit for private companies but to work for public benefits.
Legal Sectors: these type of sectors are completely bound with laws and regulations. Government plays important role in this sector because state may pass any new rule it must be follow in this sector. Courts are come in the legal sectors.