INTRODUCTION
The business environment includes various forms of organisation and different factors which impact operations. This assignment is based on Sainsbury which is a popular retail store established in London. Different varieties of food, home, health, beauty and many other items are provided by the company. This report defines different types and purposes of organisation which vary with each other in respect to size and scope (Bahand Fang, 2015). Every firm and function has a relationship with each other which helps management accomplish objectives. The internal and external analysis provides information to seniors about the positive and negative impacts of the macro environment. This also benefits executives to identify strengths and weaknesses; thereby interrelating with external macro factors.
TASK 1
P1 Different types and purposes of organizations
Public, private and voluntary are various organisations which are present in the market. These are different firms which have variance capital and objectives. Business operations are executed by subordinates for the welfare of society and to achieve objectives. Apart from this, the market has various enterprises which are started by individuals to generate adequate profit. Different kinds of organisations which exist in the market are stated beneath (Bußra and Savaà Ÿkan, 2012):
Public Sector:
This segment comprises firms which are owned and controlled by the government. Barclays is a public sector firm which executes financial services and provides different instruments to people.
Purpose: The public sector includes organisations with the aim of providing items and services for the welfare of society. These firms even increase employment opportunities for people to gain adequate amounts for regulating their livelihood.
Private Sector:
This aspect includes enterprises which are established and managed by an individual or group of persons. A variety of items and services are provided by Sainsbury to give options to customers and make them purchase things according to their tastes and preferences.
Purpose: The private sector comprises firms which are started by individuals with the goal of generating profit. Apart from this, executives deliver different products to enhance market image and goodwill with respect to competitors (Cai and Yang, 2014).
Voluntary Sector:
This segment is also defined as the community sector which includes organisations which are incorporated by people to independently execute activities and gain money to deliver appropriate things and services to needy ones. NSPCC is a firm which is started by individuals to raise funds for young adults and children who are ill-treated and misused.
Purpose: This sector includes firms which carry the aim of providing things to earn appropriate money for the execution of activities and not as profit.
Legal Structure: This is a description of public and private sector organisations which follow instructions and plans as formulated by seniors (Craig and Campbell, 2012).
Public sector:
- Local government: Primary and secondary education, library, council housing, social services, sports facilities and parks are various services which are managed and controlled by local regulatory bodies.
- Central government: Defence, social security, national health service, police, universities and prisons are various things which are regulated and monitored by authorities.
Private sector:
- Sole Trader: Accountants, hairdressers, painters, plumbers and many more are businesses which are executed by individuals to generate adequate revenue for their livelihood.
- Partnership: More than two individuals sign an agreement to conduct activities and deliver appropriate things to people. Profit or loss is shared by all members and is distributed with respect to their capital share and involvement (Hamilton and Webster, 2015).
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Contact UsP2 Size and Scope of various types of organisations
Each and every firm such as micro, small, medium and large which are present in the market. These are organisation which differs from each other in respect to objective, size, scope and structure. Availability of funds and manpower determine goals and targets set by the executive. These aspects which determine business operations conducted according to objectives are stated below:
- Small scale: This type of organisation which is bigger than micro, as around 50 to 70 staff are available with administration which helps them gain approx 6 million dollars of revenue (Hilton and Platt, 2013).
- Microscale: This aspect includes firms which are started by individuals to utilise funds and members to deliver appropriate things to customers. This helps the executive to manage standards and livelihood; thereby getting financially secure.
- Medium scale: Business people expand branches in the same city and also in various other nations. For this, approx 200 subordinates are available which helps management generate 10 to 20 million dollars.
- Large scale: This form of aspect comprises enterprises which have a number of branches in the same city and in different nations. Sainsbury targets different market segments to enhance sales and profitability. There are around 250 to 500 employees which benefits the administration to mange outlets (Portugal-Perez and Wilson, 2012).
Differentiation:
Basis |
Micro |
Small |
Medium |
Large |
Objectives |
The prime goal of this sector is to conduct adequate business activities and generate appropriate revenue from the business. |
This kind of firm's main focus is to provide a variety of items and services with respect to the needs and wants of people (Prajogo, 2016). |
The main motive of this sector organisation is to enhance market reach which helps management to have a large number of customers. |
This sector includes firms whose prime goal is to develop a competitive advantage to position the company higher than competitors.
|
Market and profit share |
Micro-scale firms have very small market reach and revenue gain, as enterprise has only one outlet. |
Small enterprises have limited market share and profitability which is due to the amount of resources. |
Medium-scale firms' market share and revenue are lower than those large but bigger than small. |
Large organisations are established in different nations so there is high market share and profit. |
Growth and sustainability |
Micro firms are required to enhance customers by opening new outlets in the same city. |
These forms of enterprise have a goal to increase outlets to enhance customer base and sales volume.
|
Medium organisations are required to expand business and open branches in different nations. |
This segment includes firms which required to maintain their position and reputation in the market. |
Scope of Different Types of Organisations:
- Public sector: Barclays institution's aim is to enhance market reach by enlarging firms in the same city and other countries.
- Private sector: The executive of Sainsbury's firm goal is to expand business in different segments and increase the type of items. Along with this, another objective is to open new outlets in different nations and increase the customer base (Savrul, Incekara and Sener, 2014).
- Transnational Company: Sainsbury is a multinational enterprise which has outlets in more than one country which helps the administration to have a large customer base. This helps the company to improve sales volume and generate adequate profit from the business.
- Market forces and economic operations: The organisation and its business operations are affected by market conditions. Government, customers and competitors are various components which indirectly influence activities. These various tactics which are taken care of by Sainsbury are stated below:
- Scarcity and Choice: Sainsbury is supermarket which provides different variety of food items and other things. For this, management is required to use resources efficiently and deliver products with respect to market trends.
- Supply and demand: Sainsbury requires adequate products available in store which helps the administration to provide things in according to the taste and preference of people.
- Income elasticity: The public purchases products with respect to the amount of money available to them. Sainsbury provides a different range of items which help firms to grab the attention of a large number of customers (Sodeyfi, 2016).
TASK 2
P3 Relationship between different organizational functions and their link with objectives
HR, finance, operation, marketing and sales are various departments which are present in each and every organisation. These segments are required to function in connection with each other so that appropriate items and services are given by Sainsbury. This helps the administration enhance its market position and accomplish goals and objectives. There is a description of different organisation functions:
- Human resource: Recruitment, selection, compensation, training and development are various practices that are performed by employers. This helps Sainsbury to have an adequate workforce which helps management to provide appropriate information to people about items.
- Finance: This department's responsibility is to frame financial statements that are profit and loss, and balance sheets to have complete information about the income and expenses of Sainsbury. Besides this, each segment is given adequate funds to execute activities effectively (Welford, 2013).
- Operation: This unit manufactures items and provides appropriate services to customers. Sainsbury is retail store which requires have adequate variety of products to provide choices to people and make them purchase things according to their demands.
- Marketing: This department of Sainsbury uses promotional techniques such as online advertising, social media and personal selling to inform the public about items to attract people and establish a competitive advantage over rival firms.
Organization structure:
- Functional structure: Finance, HR, operation, marketing, R&D and sales are various departments which are formulated by the administration to distribute the workforce and provide their duties according to their skills and abilities (Bahand Fang, 2015).
- Divisional structure: This form of tactic defines that organisations manage activities with respect to the geographical area covered by them. Along this, market and products are two aspects used by management to organise business.
- Strategic Business Unit: This form of structure define large firms which function as independent companies. Administration has a single range and variety of things that are provided to customers.
- Matrix structure: This tactic specifies that management selects members from each segment to accomplish projects.
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CONCLUSION
From the above report, it can be comprehended that the business environment has different organisations that are private, public and voluntary. These firms differ from each other in respect to size, scope, objective and structure. Micro, small, medium and large are various scales of enterprises which are present in the market. Organisation functions have relationships with each other which help the administration accomplish goals and objectives. PESTEL and SWOT analysis are techniques used by management to identify positive and negative impacts of the macro environment. With interrelation of strengths and weaknesses with external macro factors helps seniors design systems and make them function in according to market conditions.
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