Understanding the Business and Economic Environment

Understanding the Business
and Economic Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Structure of industry....................................................................................................................3
Nature of company in relation with structure of industry............................................................3
STEEPLE Analysis......................................................................................................................3
Problems and challenges faced by business.................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is referred as the sum of all external and internal factors which has
an influence on the overall performance of the business in the industry. The current essay will be
based on J Sainsbury Plc. which is a popular supermarket chain in the retail industry. This essay
will explain structure of industry, nature of organization, STEEPLE analysis, microeconomic
factors, determinants of supply, competitiveness of UK market, random shocks given by
government and the challenges which are faced by the company.
MAIN BODY
Structure of industry
The retail industry of UK have several organized players which offer products directly to
the consumers in order to fulfil their demand. It includes department stores, individual shops,
market stalls, supermarkets etc. which have a daily contribution in the economic development of
the country (Cepel and et.al., 2019). There are various centralized, regional and store operators in
the industry which have different roles to fulfil in order to achieve better results. There are many
new entrants which are looking to gain benefit in the market as the initial entry costs in the sector
is low in comparison with other industries.
Nature of company in relation with structure of industry
J Sainsbury Plc. Is a successful supermarket chain in the UK market having a significant
market share in the UK market. It operates in the retail industry with wide network of suppliers
and customers in the industry. The organization has a variety of products and services to offer to
the customers which increases it efficiency in the market significantly (Hrechyshkina and
Samakhavets, 2019). The business organization is popular for its quality offerings in the market
which has a positive impact on its brand image in the industry.
STEEPLE Analysis
Social factor analysis
The attraction of customers towards super market chain like Sainsbury's is beneficial for
the business to improve its overall performance in the industry and gain better competitive
advantage. It is helpful in increasing the demand of goods which are provided by the company to
its customers in the industry. With the help of this aspect, the organization may be able to
enhance their overall output in the industry. These societal factors may increase the engagement
of the customers towards the products and services which are offered by the business to them for