The business environment is remarked as a direct relationship between a successful management as well as the impact and influences on the environmental changes. In the economic aspect, business includes the activities such as purchasing, extraction of sales those are performed for earning money. In the economic aspect, there are various types of organisations such as private, voluntary and public organisations those are divided between the retail industry, service industry and a charity industry. Moreover, various organisations are required to manage their internal as well as external environment. In this study, there is the chosen of three organisations based on private, public and voluntary and those are Sainsbury, British Heart Foundation and NHS. Moreover, there is a brief description of the scope, size and purpose of the organisations with a critical analysis of their relationship. On the other hand, there is a brief demonstration of the interrelationship of the organisations and there is a positive and negative impact on the business is discussed. In the last section, there is the internal strength and weakness is shown
P1 Explaining the purpose and legal structure of private, public and voluntary organization
The public sector is a portion of the economic system which is controlled by the local governments, state or national authority. On the other hand, the private sector is mainly run by the companies or any individual rather than nay governmental authority. Most of the private sector organisation are having the intention is to make a profit.
The main purpose of NHS is to provide the proper care and support to the people those are in need. NHS has the purpose to the resource for the benefit of the community. NHS legal structure is mainly governed by the National Health Service act.
Sainsbury has the purpose to fulfill all the requirements of the customer and provide their best quality of products. Sainsbury has the matrix structure which is allowing adopting any kind of changes.
The main operation plans for both the sectors is to support the strategic objectives as well as planning for the upper management. The main scope is to be on the top of the organizational sector.
In the public, the voluntary and private organization there exist various types of purpose and legal structure those are helping in terms of achieving their target. The public sectors are not owned by any individual rather than they are run with the help of government. In the view of Prajogo (2016, p.250), people are paying the taxes to the government and from that money are used for the finance purpose of the public sector. The main purpose of the public sector is to provide the immense amount of care to the public's and those resources are used for the benefit of the public.
The private sectors are owned as well as run by private individuals. The private individuals are responsible for any kind of problem that is creating trouble for the organisation. The main purpose is to grow their business and increase their profits. As opined by Hamilton and Webster (2015, p.50), the private sector's mainly includes the franchise, companies both in public and private sectors, sole traders as well as the partnership. The legal structure of private sector mainly includes the supporting them for helping to grow their business.
The voluntary organisations are not owned by any individual person but it is run by a group of people for helping the people those are in needs. In the view of Wild et al. (2014, p.65), there will be some persons those are responsible for setting the budget or target of the voluntary organisation. The main purpose of the organisation is to guide or help the people those are in need.
P2 Explaining the size and scope of the organisation
There are various types of organisations and those organisations are categorised into three sectors: private sector, voluntary sector and public sector organisations. The purpose, scope and size of all the organisations are not same. In the opinion of Bryman and Bell (2015, p.100), the public sectors are run by the government for the people benefits. The private sectors are run by a private individual and the voluntary organisations are not owned by any individuals.
Public organisation - NHS
The main purpose of NHS is to provide essential care and support to the people those are in need. Moreover, NHS has also the purpose to use their resources for the benefit of the community. In the opinion of Crane and Matten (2016, p.45), a public organisation has some of the legal structure as well for having a better environment. The legal structure of NHS is governed by the National Health Service Act 2006. Moreover, in the present version of NHS, it is governed by the health and social care act 2012.
Voluntary sector - British heart foundation
The main purpose of British heart foundation is to fight against the heart diseases those are creating the problem. There is much risk in terms of heart diseases in the UK thus, the British heart foundation has taken the initiative for curing all the heart problem of the root. The Board of Trustees is mainly responsible for the governance as well as the strategy of the British Heart Foundation (bhf.org.uk 2017).
Private sector - Sainsbury
The main purpose of the Sainsbury is to be on the top of the competitive market and fulfil all the requirements of the customer demands. Sainsbury has an objective to create as much profit as possible. Sainsbury has matrix structure which allows the company to adopt any kind of changes because it is flexible in nature (sainsburys.co.uk 2017).
M1 Analyzing how the size, structure and scope of the different organization linked to the products, business objectives
In order to make the business organisation in the top position, it is required to attain the objectives with the help of the partners those are associated with the organisations. In all the three sectors such as private, public and voluntary organization helps to achieve the target to a great extent. In the opinion of Belás et al. (2015, p.95), the structure, scope and size of an organization are directly connected with the goal of a business organisation. In addition to that, the organisation set their objectives for reviewing the business scope. On the other hand, if the organisation does not have enough people as well as not properly understand their roles and responsibilities then it becomes difficult to reach out tier targets in the long run. Most of the organisation has the same type of objectives but their level of profit generally differs as per their size. In addition to that, based on the services and products of organisations their structure, scope and size are prepared.
Most of the business organisations set their objectives based on the size of organisations. If the size of the organisations is big as well as the set huge amount of money in the organisations then the organisation set their target big because upon their business objective. As per the view of Menychtas et al. (2014, p.120), the objectives of the business is set upon the business structure.
P3 Explaining the relationship between the different organisational functions
Figure 1: Sainsbury organizational function
In the organisational function there are four main parts which help to run the organisation in a proper way. Those are HRM, finance, marketing and last are the operation. Human Resource Management (HRM) is mainly needed in the organisation in terms of managing all the people in the organisation. The HRM is responsible for motivating the employees; recruiting the effective employees those are helpful for the organisation. In any organisation marketing is much needed because an effective marketing help to make the organisation in the top position. The financial condition of the organisation is required to be in control for the benefit of the organisation. The operational functions are required to be in a proper management for controlling all the sectors.
The organisational structure is mostly dependent on the functions of business because organisations make their objective and structure based on the servicing of the customer. Sainsbury has set their objective mainly to increase the productivity of the organization as well as maintain a respectable position in the competitive market. The main aim of Sainsbury is to provide their customer with the best service and products for gaining a position in the retail market. In the view of Cai and Yang (2014, p.140), there is a requirement to have a control and monitoring of the business objectives to give their best in the organisation. Sainsbury can maintain a control over the business by monitoring the service which is provided to the customers. The business functions of Sainsbury is categorised upon the various departments such as sales department, marketing, HRM and so on. The main motive of business is to provide the service for all age group of people.
There is a direct relationship between the organisational functions because in order to be on the top in competitive market there is a requirement of help from the management, financial, operations and marketing. The proper recruiting helps to manage the entire financial sector as well as operates the organisation in a proper way.
A proper consistency can be needed with the help of Sainsbury by providing the right amount of service and products to the customers and not changing for service quality. Moreover, Sainsbury can achieve the functions properly if the employees those are associated with the organisations have properly understood their roles and duties for playing in the organisation. In the view of Kolk (2016), the setting of the proper objective and structure can be helpful for any business organisation for providing their effectiveness in the competitive market. Thus, Sainsbury can achieve the target by focusing on the set objectives.
M2 Analysis of advantages and disadvantages
There are an advantage and disadvantages of the interrelationship in terms of the organisational functions as well as there are some impacts on the organization's structure also.
Inter employee relationships in Sainsbury organisational functions are maintained for the proper functions of the organisation. In the view of Boons and Lüdeke-Freund (2013, p.10), in each of the unit of the company, there is self-contained mini-company those are charged for carrying out of their specific role. Sainsbury becomes expect within their own areas as well as develop some of the specialized knowledge for moving in the hierarchy. In addition to that, the organization become the expert as well as experience as the time passes by.
In the Sainsbury the employees are experts and they perform the high level of productivity through their work experience. The HRM department of Sainsbury has a direct relationship with the organisational functions because the recruiting of a proper employee has a great effect on the success of the organisation. As opined by Niemann-Struweg (2014, p.190), the career paths in the functional unit are clear and the employees are highly motivated for achieving the targets of the organisation.
In the organisational function sometimes there has been seen a lack of teamwork. The specific units in the organisational functional structure sometimes perform below the efficiency level. In addition to that, sometimes in the organisation, there is a requirement to work all the activities in teamwork but if the team do not perform well it creates the problem for the organisation. As opined by Demil et al. (2015, p.11), in the functional organisation there is another difficult problem which is faced is the improper management control.
Sainsbury is a large organisation so, as the time passes there is a lack of problem in the management. In the opinion of Virglerová et al. (2016, p.78), the improper management can create the problem for any organisation to make them in the top position. There is a requirement to have more decision making responsibility on the various sections of the organisational functions. Simsbury expands in various other parts so, there is a high challenge of managing the management.
D1 A critical analysis of the complexities various types of organization
The structure of the organisation is mainly dependent on the functions of a business. As opined by Sila (2015, p.300), the business structure and objectives are based on the needs of the customers. There is a requirement of increasing the productivity for all the sectors of the organisation are it a private, voluntary or public organisation. There is various organizational complexities in the various organisations. All the various organisations are required to set their objectives and goals based on the organizational functions. In most of the organisation, there is complicity of the people those are involved in terms of providing success to the organisation. In addition to that, the main complex part of an organizational function is the management of an organisation. The people are connected with the organisational function because they help in making the business in the top position.
There is the direct interrelationship between the various professional's function of the different organisations. Moreover, the entire organisation does not have the same goal because they have different organisational structure. The services which are provided to the customers vary on their respective organizational functions. In the view of Yee-Loong Chong et al. (2014, p.130), the management is required to be in control for making an effectiveness in the competitive market.
P 4 Identifying the positive and negative impacts
In the business environment there are two types of factors. Those are macro and micro factors. The micro which is external environment is the small forces of the company which affects the customer. The macro environment is the larger societal forces which can affect the microenvironment.
In an organisation, there are some of the external factors that are affecting the organisations as well as have an impact on the organisation. A certain environmental change can also affect the organisation and the managers do not have any control over the environment. In the opinion of Homburg et al. (2013, p.70), technology has various negative and positive impacts on the organisation. In the organisational advancement, the technology can provide various opportunities for the business. The technology provides various areas for the development of the retailing industry by an opening of the online marketing. On the other hand, if the technology is not handled properly then it can create a negative impact on the organisation. A robust income can also increase the sell or organisation as well as help for selling more services and goods for the organisation. The lethargy economy can automatically decrease the income and spend less money while spending in the market.
The macro and micro environmental factors are affected by both political as well as economic factors. There is a negative as well as positive factor in the economic and political aspects. The factors are shown in the PESTLE analysis.
M3 PESTLE analysis
P 5 Conducting the internal and external analysis of the specific organisations
The political factors are denoted as a strength factor for Sainsbury. There is some strength as well which is denoting the part of reducing the impact of carbon footprint. Sainsbury has a huge strength on the online shopping for all the customers.
The increasing globalisation automatically creates a problem in the marketing of Sainsbury. In the view of Popescu (2013, p.170), there is a weakness as well that can affect the organisational market. The rising cost creates a huge loss for the organisation.
Sainsbury has the greatest strength in terms of the technological, support for the online shopping facility. There is an effective working environment in Sainsbury's as well as there is coming positive response from the staff members. Sainsbury has the strength in supplying more low fat and healthier foods to the people.
There is some weakness as well for Sainsbury that the company do not have any plan for expanding. In the recent market, all the company has a plan for expanding the business at the international level. There are some of the technical issues as well which is fed sometimes and creates the problem as well.
P 6 Explaining how the strength and weakness interrelate with external factors
Strength and weakness both are associated with Sainsbury and have direct contact with the organisation as well as it can affect the business also. The macro-environmental factor affects the decisions making, working ability, strategy and some other factors of the organisation. In the opinion of Popescu (2013, p.170), the macro factors affect the overall geographical area where the organisation is operating. Sainsbury's strength in the political factors can affect the business and help for growing to a huge extent. The technical issue in Sainsbury can create the problem for the organisation and it gives a negative publicity in the competitive environment. The organisation is required to take their strategy which is based on the strength and weakness of the organisation.
M 4 SWOT analysis
D2 Critically evaluating both macro and macro factors upon business objectives and decision making
From the external and internal factors, it is seen that Sainsbury has a strong strategy for fulfilling the customer choice as well as it has the good position in the retailing market. The proper management is also able to give their best for making any kind of business decision as well as for fulfilling the objectives of the organisation. In the view of Popescu (2013, p.170), in any organisation, both the macro and micro factors are responsible for making the decision and achieving all the activities of the organisation. In the locality of Sainsbury, they also apply the strategy properly which can be helpful for the achieving the business objective. Moreover, the company clearly understand the needs of a customer which is helping the customer to grab more customer for the future and create a positive brand value as well.
From the above study, it is found that there is various business environment for the private, voluntary and public sector. In the study, there are three aspects of the organisation such as private, public and voluntary organisation. Each of the organisation is varying in terms of their goals and organisational functions. The goals of organisations are set on the basis of the organisational functions. In an organisation, there are some strength and weakness which is directly affecting the organisation success in the long run. Moreover, the Sainsbury is facing a technical issue that is giving a negative effect on the surroundings. It is found that all the organisations are maintaining to be on the top and giving their best to the organizational success. Moreover, the macro and micro factors are interrelated in term of the decision-making process as well as for achieving the objectives of a business.
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