Business Environment Analysis - SWOT and TOWS

BUSINESS ENVIRONMENT ANALYSIS 0
BUSINESS
ENVIRONMENT
ANALYSIS
System04121
2/17/2020

BUSINESS ENVIRONMENT ANALYSIS 1
Answer 1:
The macro atmosphere comprises the outside factors which cannot be controlled and it also
impacts the decision making, presentation and plans of the company. On the other hand micro
analysis is the internal environment issues that impact the business. The instance of macro
environmentally factors. “IKEA” also pretentious with these outside situation forces.
 Political and legal factors: these factors comprise the variations in the administration doings
and the vicissitudes in the regulations and the rules. The political and lawful issues impact the
choices of the business. For illustration: government provide subsidy or the low rate of
assessment of the retail commercial then it can impact the decisions in a positive manner.
 Economic Factors: the economic factors in variety is the combination of global and
national setting, the commercial organizations are employed below the economic situation
which impacts both the choices related to the manufacture of the organization and the
customer decision making process (Jonsson and Foss, 2011)
 Environmental Factors: each and every association use some normal capitals for its
industry like forests, agriculture, products and etc. there some of these non-renewal resources
which are used by the business organization they should take the decisions after knowing
the obtainability of these capitals (Jonsson and Foss, 2011).
 Technological factors: these are the factors which comprise new skills, abilities and
information requires for manufacture of service and goods. These technologies are needed
for the manufacture and they also influence the choices of the commercial
 Social and cultural forces: social and cultural influences include corporate target customers,
changes in taste and tastes, arrogances and values of consumers, etc. These factors affect the
supply and demand of the business association. If industry products goods according to the
taste and preferences of the customer, then it positively affects the organization.

BUSINESS ENVIRONMENT ANALYSIS 2
"IKEA" expressions these environmental macro-factors. Big and major changes in macro-
environmental factors are usually beyond business switch, so it is necessary that the
company's management must be able to examine the properties of these influences in order to
make good choices. Those belongings are analysed through PESTEL examination (Jonsson
and Foss, 2011)
Answer 2
Strengths
 Customer loyalty is strong
 Well-known brand in the university
 Affordable pricing (Sainsbury,
2019)
Weakness
 Does not have any mission
statement
 Have various products but lack
flexibility when compared to the
competitors
Opportunity
 Online shopping has become
common
 Strong network for distribution
Threat
 Strong competitors
 High competition in pricing
(Sainsbury, 2019)
TOWS Analysis of Sainsbury's
Strength Weakness
Opportunity  There is an Increase in
online shopping, the
company keeps its
customers up to date by
allowing them to order
online by allowing
providing customer
oriented products
(Sainsbury, 2019)
 Wal-Mart needs a clear
mission statement, as
retail trade is potentially
booming
Threat  The company has a huge
brand identity, faces
competition from rivals,
and this can be avoided
through the introduction
 In order to any kind of
tough competition, Wal-
Mart should emphasis
more towards the