Sainsbury's Business Environment Analysis

This assignment examines Sainsbury's plc, a leading British supermarket chain, focusing on its business environment. It analyzes both macro-environmental (political, economic, social, technological, environmental, legal) and micro-environmental factors influencing the company's operations. The analysis incorporates elements of corporate social responsibility, exploring Sainsbury's approach to sustainability and ethical practices within the global market.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1) (a) Background of Sainsbury and Iceland............................................................................1
P2) Size and scopes of business entities.....................................................................................4
M1) Analysis of organisational structure, size link with its objectives......................................8
P3) (c) Organisational functions and its structures.....................................................................8
M2) Critical evaluation on interrelationships between organisational functions and its impact
on structures..............................................................................................................................10
PART 2..........................................................................................................................................11
P4) (a) Impact of macro environmental factors upon business operations of Sainsbury...............11
P5 (b) Internal and external analysis for identification of its strength and weakness...............12
P6 (c) Explanation about the strength and weakness which is linked with the external factor 13
M3, M4 Description about the Pestle and SWOT model with respect of Sainsbury................13
CONCLUSION..............................................................................................................................16
REFERENCE.................................................................................................................................17

ILLUSTRATION INDEX
Illustration 1: Sainsbury...................................................................................................................4
Illustration 2: Difference between public and private sector organisations.....................................8

INTRODUCTION
Business environment is composition of internal and external factors that affect
productivity and profitability of entity. In this regard, internal environmental factors are
controllable like; management of business operations etc. While, external environmental factors
are uncontrollable for including political, legal, socio-economic etc. The present report is based
on understanding different environmental factors as well their impacts on Sainsbury plc. It is one
of the largest supermarket chain of UK that provides groceries and food items services to a
million customers worldwide. In this regard, structure and scope of public, private and voluntary
sector organisations are to be described. Moreover, different departmental functions of entity
including structures is to expressed through this assignment. However, internal and external
environmental factors including SWOT and PESTLE analysis can be presented that influences
profitability and competitive strategies of Sainsbury. Thus, students are able to understand
several aspects of business environmental factors that are related with further business operations
through this report.
PART 1
P1) (a) Background of Sainsbury and NHS
There are large number of entities in UK that operate in different sectors like;
manufacturing and operations, production, retail, IT and so on. However, some organisations
belong to private and public sectors that is linked with its business operations and decision
making process regarding activities (Lewis, 2013). For instance; decisions related to business
operations are made according to policies created by government for public sector. While, on the
other side, private sector entities are free from regulations in business operations. In this regard,
general background public and private sector entities can describe as below:
Public sector organisations: Under this sector entities, government plays essential role
in business operations also creates policies regarding business activities. However, these
organisations are mostly linked with public welfare and also accomplish government projects.
For example; water supply, school, colleges, healthcare entities etc. There are large number of
entities who work in under public sector of the country in different industries (Pancoska and
Carr, 2014). For instance, Tesco, Sainsbury, Morrisons, Marks and Spencer, NHS etc. In order
1

to this, general background including product services, purpose, legal systems of NHS can be
understood as follows:
General background:
It is one of the wide spread health and social care organisation of UK which provide
medicals and treatment services in wide range. However, it is spread all over the world for in
social and health care sector also provide proper hospitalisation (Cantwell, Dunning and Lundan,
2010). Including this, it is also considered that million of people take advantage of its services
globally also getting increased on larger scale in health care and hospitalisation.
Purpose:
Objectives of public sector organisation can be understood as:
 To maximize social welfare and building up society's trust with hospitalisation of NHS.
 To contribute in increasing government fund on large scale for nation's development. To following on rules and regulations made by government regarding business
operations.
Legal status:
It is public sector organisation therefore, it has to follow on some rules and regulations
amended through government policies of UK (Snieška, 2015). However, provisions presented
under government policies are followed on regarding hospital entity and its operations. In order
to this, restrictions on production and distribution of goods are also mentioned that remains
suitable for social welfare and country's social development.
Private sector organisations: These are those entities which are free from restrictions
and regulations regarding business operations. However, director and managers of the
organisation make their own decisions regarding activities for production of goods and
innovations in its quality services (Tibbetts, Jeremyand Danika, 2013). Examples of private
sector organisations in UK are such as; River Island, Iceland, Primark etc. who operates in
different industries.
 Establishment and general background:
2

Sainsbury plc is a private sector organisation which works under retail sector. It is one of the
largest supermarket chain of UK with 16.9% shares known for grocery retailer. It spreads across
UK and globe. It is establishment in 1869 headquartered in London. Its chairman is David Tyler
and CEO is Mike Coupe who take decisions regarding management of entire business operations
(Reinalda, 2013).
Product services:
Sainsbury plc is grocery and food retailer of UK that provides its quality services to
customer at maximum level (Hamilton and Webster, 2015). Including this, it also provides online
delivery of goods as per customer convenience.
Purposes:
Objectives of Sainsbury as private sector organisation can be expressed as:
 To maximize sales revenue and profitability of Sainsbury.
 To improve quality services of the organisation increasingly. To expand business entity across the country as well internationally.
Product services: It is private sector retailer of groceries and frozen food items. Including
this, it also known for providing fresh goods to a million people globally has as well has good
reputation (Wetherly and Otter, 2014).
Legal status: It is private sector entity for which decisions related to business operations
are taken by top level managers and main operators. However, government interferes less in
business operations of Sainsbury. Therefore, strategies and planning regarding activities are done
at own level mostly (Willems, Boenigk and Jegers, 2014).
P2) Size and scopes of business entities
Sainbury: Number of employees: Employees are the basic asset of organisation, Sainsbury focuses
on recruiting the best and skilled staff which basically focuses on two major factors that
are efficiency and effectiveness of employees. It is one of the largest chain of
supermarket industry that is why its centre of attention is on maintaining the quality of
staff. According to recent analysis Sainsbury has 162,700 employees working for the
3

company on global level (Welford, 2013). In addition to this, there is low rate of
employee turnover that is good for entity and its services. On the basis of this analysis,
effective coordination of workers is gained that influences customer dealing and other
services of entity.
 Size and scope:
Sainsbury is one the largest supermarket chain of UK provides groceries and food items
to a million globally. It has several stores internationally as well enhancing its efficiency on
larger scale. However, different people from different countries demand for its products and
services at maximum level affect further implementation.
Including this, it has around 1400 stores across UK also has large number of customers
globally who demand for its items and services on large scale. Its net income is 470 million
which financially strength and ability to create innovations and further operations (Aishah,
Mbachu and Phipps, 2013). Therefore, it is the largest chain of retail sector famous for its
services also remains able to sustain its market position for long time periodicity.
 Mission and vision:
Sainsbury views its growth in further years at the highest level for providing its services
and ranking 1st order in retail sector organisation of the country. However, its profit margin and
competitiveness is getting increased on large scale affect effectiveness and long term
sustainability in competitive market. It is private sector retailer of UK which is wide spread for
providing groceries and frozen food across the country (Halbert and Ingulli, 2011).
 Gross annual turnover: It is very important for the company to have positive and
increasing gross annual turnover to maintain its market image and stability. Sainsbury
from past many years is serving its services but according to given figures, it was
discovered that Sainsbury Gross annual turnover in 2015 was 23,775m pound, in 2016 it
was 23,506m pound, and in 2017 it further decreased to 23,224m pound (Craig and
Campbell, 2012). Continuous decrease in annual turnover is not a good symbol for the
company, that is why the firm should focus on its development like, whether to innovate
a new product or to make changes in services like offering commodities at discounted
prices, making use of promotional campaigns etc.
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Therefore, it is increasing its profitability from last years rapidly. Its gross annual turnover is
almost in favour of entity and its further operations. As per analysing its financial growth and
proper development, it can forecast that in future time, it will develop its business and
competitive strategies at maximum level.
 Market Share: The company has been the best performer in super market industry but
now it is turning very difficult of Sainsbury to maintain its market stability. Further, with
the decreasing gross annual turnover its market share is also coming down in the graph
continuously (Sainsbury plc, 2016). According to the given figures its market share is
falling rapidly, Sainsbury share fell from 16.9pc to 16.5pc in 12 weeks. Hence, it is the
first time when its market share fallen by 0.4pc points.
 Operations & Scope, Size of Sainsbury:- It is the most popular departmental store of the
UK which provide there customers frozen & non frozen as well home delivery services &
fulfil the needs & wants to their customers.
NHS
 Number of workers: There is around 1.6 million workers provide health and social care
services internationally. Including this, service providers deal with patients effectively to
5
Illustration 1: Sainsbury
(Source: Sainsbury plc, 2016).

build up their trust with treatment and hospitalisation (Carroll and Buchholtz, 2014).
Therefore, increasing number of workers is determined for providing its services and
contribution in nation's effectiveness.
 Scope: It places on the top rank for providing treatment services and hospitalisation to a
million people of the country. It is able to build up society's trust with its services at
maximum level.
 Mission and vision: NHS aims to gain society's trust at the highest level in health and
social care also places at the top rank for hospitalisation and taking care of people more
efficiently (Hamilton and Webster, 2015). They work on the basis of there requirement of
the customers & fulfil the needs & wants of there customers.
 Services: NHS is known for providing treatment and hospitalisation to patients at most in
the global market. However, its healthcare and social responsibilities are increasing at
higher level remains able to build up society's trust on larger scale for hospitalisation
(Carroll and Buchholtz, 2014). Including this, there is continues increasing number of
hospitals for taking care of people and reducing health related issues.
 Gross annual turnover: Through analysing workers' turnover ratio, it is recognised that
NHS has the least number of this factor in comparison to other health care entities.
Moreover, number of service providers is getting enhanced at maximum level affect its
further operations and improvement in health and social care.
Therefore, Sainsbury plc is private sector while NHS belonged to publ;ic sector who
provide different services to a million people worldwide (Carroll and Buchholtz, 2014). In this
regard, differences between both entities and their operations can be understood as:
Bases NHS (Public sector
organisation)
Sainsbury (Private sector
entity)
Management and
administration
Management of business
operations are depended on
government policies.
Management of all business
operations are in decision
makers' hand.
Size, scope and structure NHS is wide spread entity in Its scope is wider than public
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comparison to other public
sector organisations of UK.
sector organisation.
Government interferes There is a lot of government
interferes in business
operations of NHS.
There is less government
interferes in comparison to
public sector organisation of
UK.
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M1) Analysis of organisational structure, size link with its objectives
Above mentioned size, structures of public and private sector organisations as Sainsbury
and Iceland respectively are interlinked with their profitability and increasing efficiencies for
business operations. It is considered that entity's growth is depended on its structure and size, its
decision-making process, ownership and so on (Klapper, LewiN and Delgado, 2011). However,
decisions regarding further business activities are made on its business and competitive
strategies.
P3) (c) Organisational functions and its structures
In an organisation, there are various functional department like human resource,
marketing, administration, financial, marketing etc. All functional departments have main
objective is to attain the common business enterprise goal. In the context of Sainsbury, it is the
8
Illustration 2: Difference between public and private sector organisations
(Source: Private vs public sector organisation, 2016).

second largest chain of super market in the UK which have 16.9% share in the super market
sector. Its main aim is to deliver the high quality of product and services to customer and
enhance its market share and profitability (Welford, 2013). For this objective, it makes several
efforts and plays various business functions. There are several functional department and each
department has one manager and many employees. They all carry out the business activities and
function for attainment of the determined objective. On the other hand in the NHS there are alos
several functional department which have interrelationship with organisation objective and goal.
Eaah functional department carry out its activities and function in order to attain the comp[any
objective. In the context of Sainsburry its major objective is to deliver high quality of product
and services and improve profitability and productivity so its each functional department carry
out theory working to attain its objective. On the other hand in the NHS company also focused
on improvement of care services to patients so each department have major objective to attain
organisation common objective. These all organisational functions have linked with the company
objective and structure. The link between the organisation goal and structure of these functional
department are as follows-
 Marketing function- This is one of the major department in the Sainsd burry company
which main function is to promote and advertise the product and services in the market
and attract large customers. In the absence of this marketing department, corporation
cannot attain its desired success. Within business enterprise, in the absence of marketing,
company can not earn profitability and market share. In these various activities are
included such as advertisement, promotion, distribution, packaging etc. It is related to the
organisation goal and structure because firm, profitability is largely depending upon the
numbers of customer and their purchasing speed (Craig and Campbell, 2012). As
marketing department promote the commodity in the market as customer can able to
know the new product. Thus, it can be said that when marketing process effectively carry
out so as customer can attract to purchase. Therefore, with help of marketing department,
Sainsbury company can attain its objective related to improve profitability and market
share. Marketing is interconnecting with the objective & the overall structure of the
business. The marketing is that important element which is help to examine not only
the requirement of customers but also affect the goals & the aims of the entire
business concern. The strategy & the polices of the business organisation are based
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on the marketing theoretical tenets & testable proportions. In the Sainsbury company
marketing department have linked which company objective because cited venture have
main objective is to attain the highest profitability and sales. While marketing department
improve its sales of product and services then automatically improve the profitability of
company. On the other hand with help of marketing in the NHS company can promote its
services in the market. With help of this department, NHS can able to attain its objective
so it can be said that marketing department can link with objective of business.
 Human resource department- This department have main objective is to manage the
employees because in the absence of human resource firm cannot survive its functioning.
While this department properly manage the employees like recruit, promote, manage,
transfer etc then business activities can effectively manage and firm can attain its success.
While company properly train, recruit and manage human resources then they will able to
attain its determined objective. Thus, it can be said that human resource functional
department have direct related with company objective. In the context of Sainsburry and
NHS, while it effectively organise training and development, recruitment and selection
and develop company policies then its employees can effectively carry out their roles and
responsibilities to attain its objective. Thus, it can be said that company objective have
direct relationship with human resource department. This department of Sainsbury and
NHS have also linked with company structure because by the structure of business,
hierarchy can manage among the department. Each level of management can carry out
their function by proper structure of the company.
Interconnection with the organisational structure:-An Human resource is very much
affect the overall organisational structure of the business concern. The manpower the
refers to the that essential power which is base of the growth of the each & every
organisation. A human resource is that organisational function which focus on the
recruitment process, & providing the directions to the overall management
concerned people. There strategic goals & objectives which involves the implementing
the companies strategies, workforce management in order to develop the business
culture & the performance with the flexibility.
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 IT functions- Information technology department has main objective is to develop
effective communication among the various department so as activities can effectively
carry out. In this department, various kinds of techniques and software used for keeping
information secure and safe (Halbert and Ingulli, 2011). This department have direct link
with company goal and structure because in the absence of information technology,
information cannot communicate with other departments and coordination cannot
develop. In the context of Sainsbury and NHS information technology department plays a
very crucial role by which information can transfer among various department. With help
of this department company can not deliver is information about the product and services.
With help of this department company can make the relationship with customers. Thus, it
can be said that it helpful in attainment of the company objective.
Interconnection with the organisational structure:- the information technology
department is bases where the entire communication of the organisation occurs. There are
so many kinds of the software & hardware techniques which is required to run the
overall thee modern business concern. Under this the development of new & innovative
software will help the overall business, where they prepare the annual budgets & the
entire financial statements, compare the cost analysis with their software system.
 Finance function- This department have major objective is to manage the financial
performance of company. While product and services are sale and purchases then all
information related to profitability and loss are recorded in this functional department.
Sainsbury objective and structure have direct relationship with this department because
while financial performance of firm not measure then firm can analyse its profitability
and cannot attain its objective (Gebauer, Paiola and Edvardsson, 2010).NHS company
have also huge importance of the finance department by which it can manage all financial
activities in an effective manner.
As per the above discussion it has been ascertained that there are various functional
department in the Sainsbury and NHS have relation with company objective. Cited venture have
functional organisation structure under which whole company is divided into different
departments on the basis of specialisation that is human resource, administration, information
technology, finance, marketing etc. Sainsbury and NHS effectively delegate responsibility
according to this structure. Each organisation has different functional department which have
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directly relationship with the structure and objective of the organisation. All department function
have working according to the company objective so it is very important for the company to
develop the structure of the firm according to the objective of the organisation. Each department
like marketing, finance, human resource, etc have relationship with company objective through
which it can collectively attain the business objective.
M2) Critical evaluation on interrelationships between organisational functions and its impact on
structures
Advantages:
 Effective coordination among all departments towards business operations and effective
goal accomplishment.
 Creates positive and friendly environment of organisation also reduces conflicts and
disputes among employees (Reinalda, 2013).
 Proper ideas are generated for further business operations and incraesing its product
services.
Therefore, organisational functions are linked with its structure to perform further
activities and optimum allocation of resources efficiently.
Disadvantages:
 Lack of coordination among employees and functional departments of entity.
 Inefficient resources and fund for further operations affects productivity and profitability
of organisation.
Hence, above mentioned drawbacks are required to be considered and reducing for effectiveness
of entity. It is necessary to prepare strategies regarding establishing relationships among workers
and departments to create positive atmosphere of entity effectively.
PART 2
P4) (a) Impact of macro environmental factors upon business operations of Sainsbury
Macroeconomic factors severely impact on the operations of any organization. The
factors are usually economic. Political, technological, and environmental. Sainsbury's business
operations are affected by these factors both positively and negatively.
Economic factor:- The factors which affect the customers purchasing power and
spending patterns in the whole economy are known as economic factor, GDP rate growth, GNI,
sales tax, unemployment, inflation, disposable personal income are the important criteria of
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economic factors (Commander and Svejnar, 2011). If there dominate economic growth it
positively affects Sainsbury's sales levels because people's income has risen. But the rise in
inflation also causes the cost of raw material to increase. So that the companies sales increase
with low profit margin.
Political factor:- These factor affects the organization's operation mostly. It refers to the
degree of government's involvement in the operations of an entity. It includes legal issues,
government rules and regulation. Globalization creates challenges as well as opportunities on the
retail market. As Sainsbury's is a retail company, it can utilize joint ventures or partnership and
go into the emerging market easily (Gecevska and et.al., 2010). Moreover, governmental also has
decreased corporates tax rates with 2% which ultimately helps the retailing companies to invest
surplus money in business affairs and earn more profit from the market, moreover must be
focuses on the external expenditures to increase the financial condition.
Technological factors:- Production growth rates increase with the helps of the
technology. If adoption of any new technology in Sainsbury's that impacts on organizations'
employee and growth . So, technology affects the operational running of Sainsbury's. Company
must have to catch the trend of technology and quickly adapts it within the organization. Without
doing it, production of that specific product will be outdated and will miss out market
opportunities (Gebauer, Paiola and Edvardsson, 2010). Most of the consumer do not like the
queuing system in the UK and so modification in this process through technology has become a
primary concern for the firm. Many of times the new technology adoption both impact on the
organization operations, if the company adopts new technology with proper planning and sample
implementation test in the market then less chances of the failures but if the organization without
any planning and test then create more chances of the failures. Its impacts on the brand image
and market sharer of the organizations (Social factors, 2016).
Environmental factors:- A business entity's operations are affected by some
environmental factors such as natural resources. These are affected by some marketers and their
marketing activities. It is strictly maintained to be eco- friendly in dealing with an organization.
Sainsbury's operations are also affected by the environmental factors. Company must focuses on
the adoption of new environmental protection techniques for increasing the new customer
attraction and also given picture on the product packaging of the environmental protection. After
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going through the PESTLE analysis, it can be said that Sainsbury's affected by the external
factors like high inflation rate and high unemployment rate whereas company it self is taking
effective steps which will helps in sustain its growth levels.
P5 (b) Internal and external analysis for identification of its strength and weakness
Sainsbury is one of the most famous supermarket in the United Kingdom which delivers
the high quality and luxury product and services to its customers. It has more than 160000 high
skilled and talented human resources who is going their bes efforts to attain the business
objective. It has high experience leadership team which coordinate the business functioning for
attainment of business objective. Its major strength is that it has more than 550 supermarkets
across the nation. In addition to this, company is using the high quality and latest technology so
as firm internal communication process is very effective. It has its own bank in the UK and it
deals with various customer products like gift items, fuel, pharmaceutical items, alcohol,
groceries etc (Aterido, Hallward-Driemeier and Pagés, 2011). Research and development team of
the organisation always engages some innovative and creative ideas in the business through
which it meets the actual needs and wants of customers. In addition to this, it has invested high
amount of capital in the training and development of its employees. The major strength of the
Sainsbury is that it has 30000 products and 19 million customers in the UK. On the other hand,
there are various weakness of the cited venture like it have high competition in the market. As
Sainsbury is one of the famous retail in the UK thus it has high competition in the retail industry.
As cited venture is dealing with the customer goods and services so it has to engage with the
market research so as it can deliver the right product according to customer choice and taste.
Regular changing customer taster and preferences is another major weakness of the cited venture
because it has to update its stock according to customer requirement.
P6 (c) Explanation about the strength and weakness which is linked with the external factor
As it has been discussed that there are some strength and weakness of the Sainsbury. In
addition to this internal and external factor have direct link with the cited venture. Technology is
one of the most effective external factor if the business environment. It is strength of the
company because cited venture used high quality and latest technology for business process.
However, technology is being changed regular basis thus company have to also change it
according to the new update. This is major weakness of the corporation.
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Social and cultural factor also affect the Sainsbury company because it is deal with the
customer products. In order to meet with customer, require company have to understand the
social factor. Customer needs and wants are continuously changed according to the fashion and
trends so this is \major weakness for company as it has to change its production and procurement
according to changing trend in the market. Sainsbury have strong positive brand image in the
market though which firm can easily enter in the new country like china etc. In addition to this
strong brand image assist to company in enhancing the profitability because customer does not
need to think so much at the time of purchasing the product and services. This strength is related
to the social and cultural factor of the external business environment. In addition to this,
company have high skilled and talented workforce which assists in enhancing the production and
quality of product and services. This strength is related to the internal factor of organisation. On
the other hand company have weakness related to the rising process of the food raw materials.
This weakness is related to the economic factor because changing the prices of raw material are
not in hand of company. This is related to the economic component of business environment. Its
another weakness is related to the stiff competition due to which barrier is generated related to
business growth. This weakness is related to the economic factor of the business environment.
M3, M4 Description about the Pestle and SWOT model with respect of Sainsbury
In every business enterprise, for attainment of success, analysis of business environment
is very essential. It divided into two that are micro and macro. In the context of macro business
environment includes political, social, cultural technological, environmental etc. In order to
compete with rival and sustain in the changing business environment, company can understand
the Pestle model. With help of Pestle analysis, Sainbury business environment can effectively
analyse. Political factor- In the political factor includes the governmental rules, regulation,
policies, taxation, trade restriction, etc. Sainsbury have to understand the political factor
the business environment in order to carry out the business operation. Government has
developed various regulation and code of conduct which cited venture have to follow. In
the present time in the UK the government debts and the consumer debt are very high
which affect customer attitude and business condition experience. Economic factor- This factor is related to the economic condition of country like
recession, inflation, interest rate etc. These components affect the customer demand, cost,
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prices and profitability of organisation. In order to survive in effective manner within
country, company haver to understand the economic condition of country. Social factor- This factor includes the customer taste and preferences. Sainsbutry is
highly affected by this factor because in order to meet the actual customer needs,
company have to understand the needs and wants of customers. In the present time,
customer are affected by the online trend of shopping. Technological factor- In order to produce and manufacture the product and services,
technology plays a vital role within organisation. With help of technology various
process of business can mange like marketing, administration, distribution, promotion,
etc. (Carroll and Shabana, 2010 ) While company operate sit business in the country then
it should understand the latest trend of technology. In the present time, company focuses
on the online food delivery and online shopping in which technology plays a very vital
role. Environmental factor- This factor in the business environment is related to the natural
sources of the nation like weather, climate, water, air , sunlight etc. Environment affect
the business enterprise directly and indirectly. Sainsbury has taken an initiative in the
area by championing in their reduce, reuse, recycle approach that effectively manages
wastage, packaging and recycling.
 Legal factor- This factor is related to the legislation and law which designed by
government. In order to survive the operation in the market, company have to follow all
law and legislation related to business, customer and employees. For instance, the
legislation related to introduced a new tax on advertising highly processed and fatty food.
As per the above discussion it has been analysed that Sainsbury affected by the internal
and external business factors. In order to understand its competency, SWOT analysis can take
into consideration-
Strength
 It has major strength is that it is one of
the most famous supermarket in the
united kingdom which delivers the high
quality and luxury product and services
to its customers.
Opportunities
 It has main opportunity is to produce
the healthy product and services for the
customer.
 Its another opportunity is to start the
online shopping application on the
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 Sainsbury another major strength is
related to human resources as It has
more than 160000 high skilled and
talented human resources who is going
their best efforts to attain the business
objective. It has high experience
leadership team which coordinate the
business functioning for attainment of
business objective (Aishah
Kamarazaly, Mbachu and Phipps,
2013).
internet so as it can directly
communicate with customers.
Weakness
 The major weakness is related to the
high competition in the market. On the
other hand company have weakness
related to the rising process of the food
raw materials.
 As Sainsbury is a consumer product
company so Regular changing
customer taster and preferences is
another major weakness of the cited
venture because it has to update its
stock according to customer
requirement.
Threats
 Sainsbury is one of the retail in the
world which have high market share so
high level of competition is major threat
for cited venture (Cantwell, Dunning
and Lundan, 2010).
 It is another threat is related to
changing technology on regular basis.
 Daily changing customer demand about
the product and services is another
threat for cited venture.
CONCLUSION
As per the report, it is concluded that business environmental factors impact on
organisation's effectiveness and profitability. In this regard, public and private sector entity's
structure and scope are presented for Sainsbury and Iceland performs in retail sector. However,
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relationship of organisational functions with its structure is described that affects further business
operations. Including this, all internal and external environmental factors of Sainsbury are
described through this report.
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REFERENCE
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Aishah Kamarazaly, M., Mbachu, J. and Phipps, R., 2013. Challenges faced by facilities
managers in the Australasian universities. Journal of Facilities Management. 11(2).
pp.136-151.
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change, 59(3), pp.609-647.
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