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Business environment consist of both macro and micro factors which need to be consider at the time of running business effectively (Baden-Fuller and Morgan, 2010). Further, different types of changes coming in external market in relation to choices, preferences and perception of customers so it is important for all the businesses to make alteration in their organisation structure so they easily grab all the market opportunities and remove threats coming in this market. Therefore, for all the organisation it is important to scan all the external conditions and make innovation in their products and services which satisfy the customer most. Under this assignment the company which is pre-freed i.e. Sainsbury's  that is UK based retail organisation deals in grocery and clothing industries require to formulate such type of policies that help them in gaining competitive advantages over competitors.


1.1 Types of organisation in public and private sector

In every organisation department is divided into different sectors and area on the basis of which they have to decide what type of policies and function has been conducted by organisation. Company engaged in different goods and services formulate various strategies in order to earning profits and fulfilling the objectives in appropriate manner. In corporate world there are different types of sector the main is public and private sector who has their own functioning and types which describe below:-

  • Public company:- It includes all the governmental, public and other local authority who formulate their own legal rules regulation for the conducting of business. Further, they set the price of their product according to the purchasing power of customers. The main objective of this company is to serve general public. Types of public company are:-
  • Departmental undertakings:- This is one the oldest form of public organisation in which all the decision are taken by top authority only.
  • Statutory corporations:- these are those public sector organisation which are establish by the act of parliament. They are owned by government with or without shareholders.
  • Government company:- these are those public association which are covered under companies act,1985 and 2006. For example British Railways are large sized corporation provide railway service to large audiences.

Private company:- These type of organisation are owned, controlled and  managed by general rules regulation of private persons only (Carroll and Shabana, 2010). Further these company have their own rules regulation and policies which are made according to the vision mission of organisation. Different types of private companies are described below:-

  • Sole proprietorship:- These type of organisation are owned and controlled by one individual only. They come with their own capital and share profit losses and take risk for earning more returns.
  • Partnership:- Under this type of organisation more than two partners are coming in partnership and all terms conditions are prescribed in partnership deed. In that deed all the things include profit loss, capital ratio and working hours.
  • Limited liability:- A new concept coming known as limited liability partnership in which partners enjoy limited liability I.e. there are not liable for losses of business.

1.2 Different organisation structures within the business and reason for variations

In different organisation company have their own organisation structure according to their working conditions and different source of medium. Further company have their own organisation structure according to the vision and objectives. Sainsbury's which is UK based retail sector dealing in clothing and luxury items. For effectiveness in both production and manufacturing company has to arrange optimum funds for proper conducting of business.

From research and observation it has been concluded that Sainsbury's adopting flat organisation structure because of less level of management and company has for better decision making they have to communicate with strategic level only. Apart from it, it has seen that company take initiative to induce employees for active participation that leads to rational decision making.

1.3 Describe how the local, national and global economic environment impact Sainsbury's business

Every organisation is affected by macro and micro elements of external environment so they need to make adjustment in their organisation structure which leads to increase in profitability and market share. Retail market is highly affected by changing conditions and dynamic situations in the form of innovation and digitalisation in their products and services. Therefore, it is essential for Sainbury's to make updation in their working conditions so they easily grab market opportunity and reduce threats which lead to accomplishment of targets. Further Sainsbury's expand their supermarket branches in various sectors that affected in local, national and global level in context of Sainsbury's which describ