Business Requirements and Understanding the Functionalities of Business in UK


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Business environment is very essential part of an organization to impact on internal and external factors. These factors are key elements to affect their business functions such as management process, employee, operations, customer etc. There are various natural resources that would be helpful for business growth and development such as raw material and legal. These factors are very important for any business environment.

Internal factor is very important for organization that would be controlled by company to manage the whole business process and activities in effectively and efficiently. External factor are those factors which cannot be controlled by company. This report will determine the scope and size of firm. This report will identify the business requirements and understanding the functionalities of business in UK. SWOT and Pestle analysis is important role to identify their negative and positive impact on small business.


P1. Various types of organization and its Purpose

There are many types of organization such as private, Non-governmental and public sectors and these are as follows:


Non-Governmental Sector



Basic Aim

  • The main objective of this organization is to provide effective services for human welfare and society.
  • They are mainly focused on public benefits and have many facilities for development and growth.
  • The aim is to increase their business in all over the world.
  • They are mainly focused on to establish their business in United Kingdom. There are various types of public sector situated in UK.
  • The main objective of private sector to increase their profitability and productivity in market.
  • They are mainly focused on profit because they have to establish their business and earn a lot of money.
  • This sector will distribute their profit to shareholders and reserve some portion of profit.


  • This sector is basically running by people and local authority to increase their business for purpose of people welfare and society.
  • They provide various operations for development and it will earn a profit that would be contributed to social community.
  • They are use different platforms to increases their profitability for the growth of human being.
  • There are various type of organization such as EURAD and DCA that would be established in UK.


  • This sector is established their business in all over the world. This sector will increase their brand value in market. It has been funded by the government of United Kingdom (Kew and Stredwick, 2017).
  • There are many organizations in UK to establish their business and increase probability.
  • This sector will enhance their business for growth and development.
  • They are mainly focused on to increase their brand value and productivity in marketplace.
  • This sector is developed by group of partner, joint venture to maximize their profitability in market.
  • For example- Sainsburry is a leading company to increase their profitability in market. The objective of firm to enhance their business in UK and earning a lot of money.


  • This sector is not registered by the government. They are not investing a large amount. This sector will establish a fund and charity. The funds are used for the purpose of proving various services within the society such as health care, social care etc.
  • This sector will share their profit in market. It will exchange their stock in market place for development.
  • The sector will distribute their share in market for shareholder to enhancing their productivity in market for growth and development.
  • This sector is not suitable for public because they are listing a share in market. They will increase their selling price in market for business.
  • The private sector is develop their business operations for growth in which they increase their shares value in market. This sector is increasing their productivity and profitability in market place.


  • DCA and EURAD is a non-governmental organization to provide the best services to human being and society. They are earning a lot of profit for human, society, social community welfare. It would provide the facilities to enjoy their life in efficiently.
  • The public sector will provide the services regarding their health of person in United Kingdom. The main vision of this firm to providing the safety for human being.
  • This sector will increase their profit rate in market. The main goal of this firm to achieving their targets and objectives.
  • This organization is only focus on profitability and productivity. It will enhance their business in United Kingdom.
  • This sector will earn a lot of money but it cannot be useful for social community and society.

P2 Scope and Size of organization

There are various type of organization and that has difference between Micro, small, medium and large organization as given below:






Basis of workforce

  • The micro business is operated by one person that would be control the whole management system. In this form has only one or two employees are working.
  • Only one person should be handle the business operation and their functionality.
  • The small firm should be handle their business operation and functionality through employee. They have only 20-60 employee working together. They are main part of organization to increasing their business for growth and development in United kingdom.
  • This company is establish business in united kingdom and many organizations are participated a main role for increasing the country economy.
  • This organization has only 100-130 employee is working at particular place. They have specific working hour to completed their task.
  • This organization is already established their branches in other countries. It is a multi national firm that has more than 300 employees have working.
  • They have a common goal to achieve their objective and targets.

Basis of Turnover

  • This organization has small turnover and it would be investing a less amount of money. The turnover is $1 million in every year.
  • The small scale company creates $2 million to $25 million turn over in every year.
  • The medium scale firm is created $25 million to $250 million in every year.
  • The large organization is established their business in around all over the world. Th turns over is $350 million in every year.

Basis of operations

  • This organization has small business. It will generate a less revenue and the capital, platform and their business operation is also very small.
  • This firm will generate a small revenue. This company will be control by the owned people or corporation (Luthans and Doh, 2018). This organization has established a small business in all overt the world.
  • This organization has moderated business operation is creating. There are very less employee working. They are investing a more fund for growth and development.
  • It will create a higher revenue generated in every year.
  • Large organization has established business in different country as well as united kingdom. They have investing a large amount of money for business. This is very large company in which that has many projects. It will increase the cost and revenue in year.

Basis of Sustainability and growth

  • The micro firm has very low development and growth. The sustainability is not also for long term.
  • The small firm has very small business in which it has increasing their level and some times, it has high level.
  • The sustainability of firm is depended upon their profit and that would be helpful by government.
  • The medium organization has average growth level but as compare to small firms. It will increase their profit level on the basis of productivity.
  • The sustainability of medium firm has depended upon the level of profitability.
  • The growth rate is very large of big organization. They have high profit and increasing their growth rate in business process.
  • The sustainability is long term and lifetime.


P3 Relationship between different organization structure and their functions

The scope and size on the basis of organization structure and functions: There are various type of organization is differentiated on basis of its structure and function is described in given below:

Functional Structure- Function structure are those set up that has to be collection of group on the basis of particular purpose (Caiazza, Shimizuand Yoshikawa, 2017). This functional structure is work in proper manner to increasing their business activity through those people who has capabilities to increase business for growth and development. The main drawback of functional structure to poor coordination and communication between departments. All the departments should have work in separately.

Divisional Structure- this structure is spreading in all over the world to widely used in geographical. They have separate small firm to covered different type of market areas and product (Hillary, 2017). The most important benefits of divisional structure to more specifically and more rapidly (Goleman, 2017). Some times, it is very costly due to its scope and size of organization. Most of the people can be use divisional structural on small organization and having a different offices in other city. The sales team is control the business operation and it will identify the requirement of customer.

Matrix structure- this structure is hybrid of divisional and functional because it is applicable for the multinational companies (Moutinho and Vargas-Sanchez, 2018). They have created a power of struggle because in most of the places they use dual management system in which the divisional manager and functional manager are working at same level and it will cover the same social control territory.

Sainsbury is a type of matrix structure that has many functionalities in global market. They offering various services to customer while the manager providing wide scope of services that are helpful through matrix structure. They are performing various activities in this structure. Different organization has own unique structure that would be classified on the basis of the level and business operations.

Interrelation between goals and targets and functions and mission of organization-

Sainsbury is a leading brand in retail store that has some specific goals and targets that would be achieve to performing specific function are given below:

Marketing – Marketing is very important part of organization to promoting their product in market. It is a key element of growth and development because it increasing the productivity and profitability in market place (Cascio, 2018). They are promoting their product through online marketing because this is very easy method to Advertising the product in market. Sainsbury also use for marketing and increasing their profitability in marketplace. Most of the organizations are used these techniques to established their business in around all over the world.

Human resource management- HRM is very essential part of organization to managing quality of business operation in effectively and efficiently. This is performing various function such as recruitment of people, providing training and development. Provide security. Secure the employee information etc (Pearson, 2017). this is the main part of company to handle the whole operation's relation human being. Time to time, they are conducting a new training program for employee's growth and development.

Finance- Every organization is needed a fund such as large, micro, small, medium organization. Funding is very essential part for organization to investing of some money for business process (Cong and Zheng, 2017). The organization should plans a new strategy for growth and development. The business planning is very important for every company to increasing their market value and brand value.


P4 positive and negative impact on micro environment in UK market and using pestle analysis

The retail marketing is enhanced the business activity in UK and it is very helpful for growth and development. It is important part to generating a more revenue in marketplace. There are important factors affecting the retail marketing business in UK. The Pestle analysis is basically used for increasing the market as follows:

Political factor- Political factor are those factor which follows some rules and regulations, government policies in the retail industry. This would be impact to retail business operations in UK. They also effect profitability and revenue in the market. Tesco, M&S are multinational company to expand their business in all over the world. Sainbury is a leading company to handle its operations and functionality in proper manner. The market should be increases their profitability in market to control their action to gain an affective sustainability.

Economical factor- this factor is affecting the business operations to reducing the functionality to control the time and cost of the company. Unsuitability is a part of economic factor to effect the firm such as M&S that would impacted to their revenue generation. Positive economic conditions helps in better growth and development of the company or organization whereas low economic conditions have negative impact on the core competencies of the business.

Social factor- Social factor is affect the basic functionality of company and its important operations. The management reshuffling and structural functioning that has great impact on their functions and work. They have many risks for employee regarding their job and faces many problems. This factor affects the overall business operations and activities.

Technical factor- the technology factor is affecting the business operations because most of the organization has increases their production values in market. Tesco, Plc is a multi national company to implemented the new technology platform to identify the requirement of business. It will help measure the requirement of operational capabilities. For advancement of technology to increasing their productivity in marketplace. It is very beneficial for organization.

Legal factor- Most of the organization has use different laws and legal obligation in UK. Through this law, it will create a specific legal rule to build an effective connection between customer and stake holder. They will create an effective relationship so that the customer should be trust on stake holder. This changes are required to creating an effective ideas and innovation.


P5 internal and external analysis of specific organisations in order to identify strengths and weaknesses



  • For advancement of technology to improve the economic conditions that would be directly impact on the business operations. The retail firm has been increasing their business in all over the world. In past five year, it will increase the revenue and growth in market. Sainsbury is a leading company to increasing their productivity and profitability in market (Spillan and King, 2017). This will improve the performance of business operations and activities. In United kingdom, there are various organization to enhance their business in all over the world.
  • The retail business has directly impact on economy of UK. The price of sainsburry is higher than other competitor because they would offer same product in a reasonable rate. Many analyst analysis the whole business activities related product detailed and new product information.
  • In 2017, sainsburry has posted 8.2 percentage reduction in yearly profit ratio. This due to various factors such as increase competition, unavailability resources, increased cost etc. on the other hand, the company is expected more difficulties in future due to uncertainty with the economy caused by Brexit.



  • The retail market is enhancing their market value in globally. It is very good opportunities for organization to improve their services in market place. The organization should be adopting a new ideas and technology to increasing the profitability and productivity in market.
  • This is advantages for retail business to earning a lot of profit in market.
  • The organization should not use a new techniques and innovation for growth and development.
  • The competition level is very high in retail business because other competitor company should giving many option related new product and time to time, Launch a new product in market at same price.
  • In this way, the level is very high in marketplace so that it is very tough competition and becoming a threat in business activities.

Porter's Five Forces Model-

Bargaining power of Buyer- this is very important model that cause behind generation of revenue in the organization. The main objective of buyer to provide an affective quality of product and services in very reasonable rate. The buyer should manager the power of bargaining in very systematic manner.

Bargaining Power of Supplier- the retailer business is totally depended on supplier because they are giving an effective service (Saleem, 2017). This supplier will help to increasing their productivity in market in which the supplier will help to provide the right direction to gain a profitability.

Threats of new Entrants- the globalisation has increased and many sectors has been established in market so that the competition level is increasing that has influences with the profitableness and Sainsburry.

Threats of substitution- this will affect the retail business structure that are not to be identifying the deep knowledge. It is required to planning a new idea for growth and development. This is the initial stage to impacted on innovation and services and commodity.

Competitive Rivalry- the competition level is very high in retail sector because the rivalry is increasing that would cause of price of services and product. It also affects the profitability and revenue of the company.

On the basis of discussion, it concluded that the business operation is affect in UK for growth and development in which the economic condition is major problem to reducing their level in market.

P6 Weakness and strength of external macro factors

The external factor is very important to affecting the weakness and strength of retail business in United Kingdom (Surin, Edward, Hussin and Wahab, 2017). The development and growth is directly related to each other in which the social and political factor is a major role to determine the actual weakness and strength of company.

The organization should be plan a new strategy for development while they will identify the business process in different area. They can be handle the competition level in marketplace. They are created an effective relationship between customer and supplier to maintain the level of organization. Some times, the environmental facultative is main cause of firm to gaining a more profit in market.


As per discussion, it concluded that the business strategy and planning is required for every organization to impacted on its functional and operational environment. This report will determine different organization structure and scope and size of business that would handle the business activities and operations in proper manner. This report will identify the external and internal factor are applicable for growth and development. It will analyse the weakness and strength of retail business through the SWOT and Pestle analysis. This will analysis the impact on macro environment in UK.

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Books and Journals:

  • Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan Page Publishers.
  • Caiazza, R., Shimizu, K. and Yoshikawa, T., 2017. Crossborder M&A: Challenges and opportunities in global business environment. Thunderbird International Business Review,59(2), pp.147-151.
  • Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
  • Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business imperatives. Routledge.
  • Saleem, M.A., 2017. The impact of socio-economic factors on small business success. Geografia-Malaysian Journal of Society and Space, 8(1).
  • Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI Tourism Texts. Cabi.
  • Cong, Y. and Zheng, Y., 2017. Study on Operation Mode of Agricultural Supply Chain in WeChat Business Environment.Journal of Service Science and Management, 10(03), p.330.
  • Surin, E.F., Edward, O.T., Hussin, H.F. and Wahab, I.A., 2017. Recognising the Importance of Strategic Business Network on Business Performance of SME Manufacturing Firm in Malaysia: Analysing The Moderating Influence of Human Capital and Business Environment. International Journal of Arts & Sciences, pp.31-44.
  • Spillan, J.E. and King, D.O., 2017. Current Business Environment. In Doing Business In Ghana (pp. 13-66). Palgrave Macmillan, Cham.
  • Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
  • Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard Business Press.
  • Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior. McGraw-Hill

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