Understanding the Business Environment of Sainsbury in the UK Markets

Business Environment-2

Table of Contents
INTRODUCTION...........................................................................................................................3
1.The Sainsbury company and the activities it does to make money in the UK markets...........3
2.The value chain model to analyse the internal environment of the Sainsbury with its primary
or supporting activities. ..............................................................................................................4
3.Micro-environmental forces of Sainsbury that may impact on the main activities of
business. .....................................................................................................................................6
4.The internal business environment model and its usefulness - ...............................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is refer as the collection of the all the internal or external factors
that effect the organisation for instance demand and supply,advancement in technology, social or
market trends, economic changes and customers needs or desire etc. Sainsbury is one of the
largest chain of London,UK which is done its operation in retail food and clothing, financial
services and property investment and founded in 1869 by John James Sainsbury and Mary Ann
Sainsbury. Lets discuss more in detail about the internal or micro environmental factors of the
Sainsbury along with the reflection of the usefulness of academic model.
1.The Sainsbury company and the activities it does to make money in the UK markets.
Sainsbury mainly operates in the convenience store, the online grocery and general
merchandise, and also operate in providing financial service. Geographically, there are almost
more than 1100 supermarket and their chains solely in UK. However, Sainsbury makes most of
its money by selling food in the markets of UK where out of total revenues generation of last
year almost 25 euro out of which 2.5 euro approximately came only from convenience stores and
through digital platforms and its non-food sales revenue is just over 1 euro (Akhmetshin “and
et.al”2017). Sainsbury is the only supermarket with its own financial services which includes
Sainsbury bank and Argos financial Services Entities apart from Tesco but its less interested in
shifting to new fields although it offers mobile telephones, digital entertainment and pharmacies.
Sainsbury is now planning in adding two new food stores in a week and many of those
supermarkets by the next year, but still company only represent approx. 4% of selling. As
compare to total revenue of 5%, those convenience stores sales are expanding at over 14%
yearly. Moreover, the company also see huge growth at those stores which are located at
traditional local place and the distance is only 15 minutes drive away as it become convenient or
time saving for the buyers.
Its also increases its profit of about 10% by investing the value in the real estate through the
leasebacks agreements and the sales as over the last five year Sainsbury selling its properties of
about 1.3 euro and collect maximum profit of about 320 euro. The company always proved to be
best in their core business with a long record of increasing quarterly sales and market share of
UK that has grown around 15%.