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How Business Operates | Sainsbury

University: ITCM College London

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages: 18 / Words 4545
  • Paper Type: Assignment
  • Course Code: BA5F01
  • Downloads: 515
Organization Selected : Sainsbury


Business operations concern with everything which happens in the company for the purpose of running activities and generate higher revenues or profits in an effective manner. Business man consider the action plan for operations by considering equipment, people and entire systems which are necessary to make organisational functions. There are defines various types of business as per the size, industry, scope and many others. Some of most important elements are process, staffing, technology and locations so that a business can be run its operations in ans effective manner. Every business firm belongs from different sectors as well as branches that have various roles or responsibilities (Adjei, 2014). In the country of UK, many of firms are operating their functions or activities as per set visions or missions. Owners perform various role to carry out the operations within the firm. This report is based on Sainsbury which is supermarket chain store and provide variety of products or services in the United Kingdom. It will defines public and private companies and different structure of firm. This will also explain the accounting and functions of HR department within the organisation. It helps in understand the roles of team to get success.


1.1 Various types and structure of private and public sector organisation

In this defined various types of business which operates its functions for the purpose of attaining predetermined goals or objectives in well manner. These firms generally comes from different background and have their own objectives, size, structures and scope as well. The main business organisations in the private sector of UK are various such as partnership, franchise, sole traders and companies. In the sole trader, the owner starts their venture and perform wide ranges of activities as it is the common form business ownership. In this considered plumbing, electrical work busking and window cleaning etc. on the other side, the public sector organisation, every operations and functions are regulated by the government authority. There are many of firms included in the public sectors such as educations, hospital facilities, transportations services, road constructions, public services and many others which are operating by the government for the purpose of providing several facilities or services to the people at less prices in well manner. Apart from these, UK is focusing on generating higher profits so that country's economy can be developed. They also try to improve living standard of people by providing employment opportunities to them. Private sector is increasing fasts and contributing more for developing country. They are providing number of products or services to the public in the nation and also helps in increasing infrastructure so that sustainability development can be enhanced in well manner. These can be understood by considering various types of business in the private sector such as:

  • Sole proprietorship:In this defines a business venture which starts or operates by an individual and they come up with various resources such as tools, technologies, land, capital and material for the purpose of earning money or raise profits in an effective manner. Owner is liable to operate entire business activities and make several decisions so that they can create a better organisation. They conduct various functions or activities and invest funds for getting higher returns in well manner. Owner make decisions regarding adoption of tools or techniques and formulate strategies to achieve business goals. They also responsible for bearing risks or uncertainties if occurs during business operations in well manner.
  • Partnership: A partnership term can be considered as the business form that are started and operated by the two or more individuals. In this, partners come up with their appropriate resources for the purpose of running or operating business in an effective manner. They consider an agreement while starting the business and agrees for sharing profits or losses during business operations. It can be describe as the arrangement in which two or more persons engage in the business activities for sharing risks or profits as well.
  • Companies:it is generally defines the public limited company that are under the UK company law and common wealth jurisdiction. It has limited liabilities as owners are free to sell their shares and trade it in the public place. They starts firm with minimum share capital of euro 50000 and use PLC after the name. For example Tesco Plc, BT and Cadbury.
  • Franchise: it is becoming more popular as this is a good idea for hiring out as well as licensing to the other companies. A franchise generally grants the permissions for selling the particular products or services within a defining areas. In this, an individual take out the franchise and make decisions regarding put down some money by considering as capital for the purpose of starting a new business in an effective manner. For example McDonald's, Dominoes and many more in the franchise.

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Public sector companies: In this included those business firms which are operated by the government authority as they are main stakeholders of these types of companies. These are as following:

  • Central government: They play an important role in running various organisation or firms for the purpose of public welfare and their safety or protections within the firm. For example prison and army forces who take responsibilities to protect the country from outside of threats as well.
  • Local government: this is generally known as state government who are responsible for providing various facilities or services so that they live better their lives. They can be as councillors, care homes etc. local government provide free educations, free check ups or hospital facilities and many more to the poor or needy people. For example NHS which is health care centre and giving free or less costs services to the social people.

1.2 Different structure within the business

There are various organisations defines who have different structures and culture of the firms. It is necessary to follow such structure and consider those for running business in more efficient manner. In this consist some organisational cultures with beliefs, values, norms and code of conducts that company follows for run the business in an effective manner. There are some business organisation that have different legal structures and forms as per their nature such as:

Sole proprietorship: It may be consider as the business organisation which starts or run by an individual. It is the common business that operated by any persons who have ability to bears risks or take uncertainties for the purpose of running business and its functions in better ways. They bring necessary resources, equipments, tools, land and financial resources so that they can run an organisation. For example Tessa Scott who operates a cupcake business as a sole trader. Aslo, If you are seeking dissertation help from some professional writers, then you are at the right place.

Franchise: It is the best method for expanding business at different countries or places because an organisation adopts various strategies and procedures for business where they can run its operations in an effective manner. In this, franchisers grant permissions and take licenses for getting knowledge about process, intellectual property and brands for selling particular goods or services in the market place. For example McDonald's which are available at number of companies.

Companies: These are known as public limited company where have limited liabilities for running business firms. They have pool of capital because they operates various activities or functions so that maximum outcomes can be get in an efficient manner. There are several companies defines that deals in stock exchange market and they have rights to sell their shares to the public for generating higher revenues and maximum size. For example Mark and Spencer plc as it is large scale firm.

There are defines some types of business structure such as:

  • Matrix structure: in this consider the reporting relationship that have an appropriate framework such as matrix, grid lines and traditional hierarchical structure as well.
  • Flat structure: It formulated in define frameworks that have the few level of middle management among staff members and executives as well.
  • Tall structure: Last but not least that the tall structure which have hierarchy structure so that company can run its operations in smooth manner. In also consist the span of control as well as promotional opportunities for the firm.

1.3 How local, national and international economic environment impacts

Sainsbury is a retail industry based in U.K and international. It was founded in 1869. This retail industry is one of the most popular brand in a retail sector. This category includes formal wear, casual wear, party wear, fusion, accessories and other related things for men, women and children. Sainsbury is leading chain of supermarket in united kingdom. The environment factor includes:

PESTEL of Sainsbury

Political factor: This aspect includes the instability in government policies, rules and regulations of a country. For example Brexit plays a significant role instability in political factor.

  • Positive impact: By the political factor, it influence to enter by a permission of the government to cross a border.
  • Negative impact: This involves political relations with the foreign countries which can get affected due to political policies.

Economical factor: This feature plays a vital role in the business organization. This factor includes the economical issues related to a country such as impose duty on trading, foreign exchange rate, inflation and deflation crises due to economic imbalance.

  • Positive impact: Due to this factor, company cannot cheat to other countries at the time of foreign investment. This will led to increase the cost of goods and services.
  • Negative impact:By imposing taxation and duty on goods will increase the price level of goods. This will led to a negative effect on the growth of an economy.

Social factor: This aspect includes the customers demand, culture and trend of an individual country, this will led to improve the standardisation of a brand. It can be achieve through an opportunity in remaining competitive companies in the world.

  • Positive impact: By adopting the culture and trend of a particular country, will bring the efficiency and loyalty from customers. This helps in increasing the sets of standardisation of a brand.
  • Negative impact: The negative effect influence customer for raising demand for an organic material which is a biodegradable product. This will increase the cost of a company.

Technological factor: Using upgraded technology will reduce the labour workforce and increase the efficiency and accuracy in work and enhance the work ability. This includes training sessions for the subordinates to trained them and work effectively.

  • Positive impact: By introducing online shopping for customers is can be treated as an advantage for a company. The good deliverable system will assist in increasing the profit of a company.
  • Negative impact: Technological factor includes huge cost at the time of installation of a software and equipment related to it.

Legal factor: This aspect includes the employees welfare such as employees provident fund, gratuity fund, minimum wages act etc.

  • Positive impact: By using this factor, it will reduce the job rotation and employees absenteeism.
  • Negative impact: At the time of implementing, these laws and order can delay in making decisions and business growth.

Environmental factor: Sainsbury contribute towards environment by reduction in carbon emissions products.

  • Positive impact: It will improve the environmental conditions and helps in strategic sustainability plan. To save the resources for future use. Using three R's policy.
  • Negative impact:This will reduce the business profitability.


2.1 Importance of accounting for business success

For the business success, there are requires various activities and functions to run it effectively. For this purpose, accounting play an important role in achieving success and maintain the accountability in well manner (Amit and Zott, 2015). It is an essential tool for the business organisation regarding document information, evaluation of particular reports and provide informations about assets, liabilities and debts by maintaining accounts and keep records. This must bes necessary for every business firm whether they are small and medium as it support in making effective strategies and decisions by determining data or figure in an effective ways. Accounting information play vital role in the Sainsbury as it is fundamental for formulating strategies to achieve business goals and objectives. Here are defines some importance of accounting system within an organisation that helps in gaining long term benefits such as:

  • Business planning:It is very helpful aspects in making effective business plan by undertaking the accounts or keeping records so that owners can get appropriate data and achieve set targets in an effective manner. Sainsbury generally take support of accounting to make decisions about business expansions as well as increasing size or growth of the firm (Bernstein, 2015).
  • Budgeting: This is also another helpful component that provide proper information about exact financial position in the marketplace so that they can create better environment within the firm. Financial department provide various informations so that the can formulate the strategies and frame an appropriate budget to perform different activities and achieve particular targets in well manner.
  • Monitoring costs: This is another tool to monitor or review the entire business activities so that company can make decisions about action plans. Accounting is very necessary for every business organisation as it make aware regarding several costs or expenses that occurs during running business operations. It also support in formulating strategies for utilising available funds by allocating them among different business activities.

2.2 Different functions of HR division in business

The human resource management is known for a wide variety of activities across the organization. It includes the responsibility and authority to handle the work force of an organization. This helps in maintaining the relations with superiors and subordinates. The function of a department is to responsible for the hiring, firing and spanning the activities in a business organisation. The role of human resource management is based on the employees and a type of an organization (Doppelt, 2017).

The function of a human resource management is to developing their skills, motivating them to maintain their roles towards an organization. These functions are described in detailed as follows:

  • Training and development: It is an indispensable function of an organizational. By providing training and development to the employees, it will increase the work performance and their effectiveness of work. Due to this, it will increase the efficiency of an individual employee. With this, it will maintains the relations with superiors and their employees, while interacting them at the time of training.
  • Compensation and Benefits: Human resource management is generally responsible for the increasing the performance of an employee to their highest level in their role. By using this function company can attract best qualified applicants for job openings. In benefit, it includes counselling employees on medical, dental, vision and disability coverage (Mackey and Sisodia, 2014).
  • Employees relations: Employees are the pillars of an organization. It is a crucial function in any organization. This is the most effective resource of an organization to make a discipline among the workers and labours. It foster good employees relations. It can done with the help of rewards and recognition, investigating employees complaints, handles employee grievances and assists legal counsel.

2.3 Key features of employment legislation

In the parliament of UK country, many of legal laws and legislation are formulated by the government regarding employees benefits and their safety or security. There are defines number of rules or regulations, regarding safeguards, health and safety and discriminations etc. these are very helpful for employees who are working within an organisation Sainsbury also requires to consider these legislation while running business or its functions in well manner. These are as following:

  • health & safety act 1974:it is one of the most important aspects or legislation that must be considered in the business organisation. In this consist several protections components regarding employees and their welfare at working place. It is also for those people who are working within the firm including, temps, self-employed, and clients, general public and visitors (Omar, Leach and March, 2014).
  • Equality and discrimination act 2010:This is an act of parliament of UK which formulated for employees regarding their equality at the working place. In this consider several basis of discrimination as per the gender, race, religion, sex and beliefs, disability and many others so this act will provide proper protections to the employees.
  • National minimum wage act 1998: this is related with wages and compensation as it created minimum wage across the UK. Every employees can get minimum wage as well as proper funds in exchange of their efforts or works as well.


3.1 Accounting workshop

Profit and loss account of Sainsbury of 2018



Total Revenue


Cost of Revenue


Gross Profit


Operating Expenses


Selling General and Administrative


Operating Income or Loss


Income from Continuing Operations


Total Other Income/Expenses Net


Earnings Before Interest and Taxes


Interest Expense


Income Before Tax


Income Tax Expense


Net Income From Continuing Ops


Net Income


Net Income


Preferred Stock And Other Adjustments


Net Income Applicable To Common Shares


Interpretation: from the above statement, It can be analysed that Sainsbury firm has earned around 45900 net incomes or profits through running business operations or activities as per the accounting year of 2018.


4.1 Team development

In the Sainsbury, they are focusing on formulating an appropriate team for developing firm in an effective manner. It is necessary to form team because teamwork support in achieving common goals of the firm. Here is defines some stages of developing a team such as:

Team Development Stages:

  • Forming:In this phase, every staff members are known and act like more polite or pleasant. They try to understand behaviours, opinion and observe of each person.
  • Storming:It is further stage where team push for edging to the form in the past steps. It can create any disputes while making team.
  • Norming:In this stage, members are able to understand, establish and evaluation of every individual according to their opinion.
  • Performing: Team is ready to achieve common goals or tasks and work hard without any frictions and conflicts as well (Petro and Gardiner, 2015).
  • Adjourning:In this, teams are broken or members moves for another new team establishment after completing task.

4.2 An analysis to determine own and other roles of team membership

In any business firms, there is require an effective team who can able to achieve set targets or goals. It support in bringing the skills, abilities and innovative thoughts. Every individual perform their roles and responsibilities such as shapers who give shapes to the task and designing the entire work for accomplishment of goals. These are actions oriented, people oriented and thoughts oriented who try to achieve set targets or goals in limited time period. Teamwork play an important role in getting best outcomes and build reputation (Reim, Parida and Örtqvist, 2015).

4.3 Motivational Theories

There are defines some motivational theories that helps in increasing productivity level and accomplish goals or objectives in the Sainsbury such as:

  • Maslow's Hierarchical theory: It is more effective and best theory that given by Abraha, Maslow in which consist five stages such as Psychological, needs, safety or security, self esteem and self-actualisation. These are necessary for motivating people to get work done within the firm.
  • Alderfer:In this included the ERG theory that describe about motivation for enhancing growth. It can be consider as existence, growth and relatedness to provide proper support to the employees within the firm.
  • Expectancy theory of vroom: It generally defines as the content and process which are combination of quality theories and reinforcement. It can be defines that expectancy is related with beliefs of persons as well as their success, instrumentality regarding claims and valances is relevant of individual rewards values.

4.4 Different types of leadership styles

  • Autocratic leadership style: In this consider the unilateral decisions that taken by the leader without discussing with another persons of the group within the organisation. Many of leaders adopt this style for getting work done from the employees by forcefully and fearfulness (Warner, 2018).
  • The Democratic:It is defines as the leader who give opportunities to every members for taking part in decisions making process, corrective actions and many more decision within the firm. This approach is helpful in making happy to every employees and motivate them to come up with new ideas.
  • The Gratifiers:In this, leaders follow the old approach as they set the goals and offers several benefits regarding rewards to employees who contributes in achieving goals or targets in well manner (Weiss, 2014).


5.1 Impact of customer service on business success

In the present era, management requires to improve customers services so that they can be loyal towards firm and achieve long term benefits within limited time period. It is necessary to appoint better skilled persons who are able to perform entire tasks or works in molre effective manner and satisfy customers needs or wants through effective quality of products or services in well manner. Customers are key people for every successful organisation as they must be required to increase sales volume and generate higher profits by improving business performances. Sainsbury is a retail chain store that provide better quality of goods or services to the targeted audiences so that long term goals or objectives can be accomplished in well manner. There should be requires proper staffing services who can treat the customers with effectively and give their best while performing any tasks or work to attain higher returns as well. They get feedbacks from customers after making sales which support in making decisions regarding improving performance of services in an appropriate ways.

5.2 Benefits of customer profiling to a business

There are number of facilities and services defines which are given by the organisation to the customers for satisfying their desired needs or wants so that company can build good relation among them and attain set targets in an appropriate manner. It is very beneficial in achieving common wealth as Sainsbury focus on increasing growth and competitive advantages through long term benefits. Here are some benefits for the organisation with the helps of customers profiling such as:

  • There are biggest opportunities for the company as they can identify customers choices and preferences regarding goods or services.
  • This can be beneficial for gathering informations and appropriate data regarding customers so that company can meets with their desired outcomes in well manner.
  • Sainsbury can consider various tools or internet sources which support in managing or maintaining records of customers in adequate ways.


From the above report, it has been concluded that there are different organisations which belongs from various structure, types such as public and private. It defines several sectors and branches that considered by the business for performing several tasks or activities in an effective manner. Different organisations generally operates and regulate as per the business nature for the purpose of achieving business goals or objectives in well manner. These business also have various objectives, structure, scope and size and many more.


  • Adjei, H., and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima Kwawoman Rural Bank Limited and its Impact on the Communities it Operates. European Journal of Business and Innovation Research. 2(4). pp.36-47.
  • Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of business model design. Strategic Entrepreneurship Journal. 9(4). pp.331-350.
  • Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University Press.
  • Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
  • Mackey, J. and Sisodia, R., 2014. Conscious capitalism, with a new preface by the authors: Liberating the heroic spirit of business. Harvard Business Review Press.
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