Sainsbury's Business Model Analysis

Business Environment
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Table of Contents
INTRODUCTION ...............................................................................................................................4
TASK 1.................................................................................................................................................4
1.1 Purpose of different organizations.............................................................................................4
1.2 Sainsbury PLC meets the objectives of its different stakeholders ............................................5
1.3 Responsibilities of Sainsbury and its strategies to meet the expectations of stakeholders........5
TASK 2 ................................................................................................................................................6
2.1 Different economic systems attempts to allocate resources effectively....................................6
2.2 Impact of fiscal and monetary policy on Sainsbury PLC and its activities ..............................9
2.3 Evaluation of impact of competition policy and other regulatory mechanism on activities of
Sainsbury PLC UK .........................................................................................................................9
TASK 3 ..............................................................................................................................................10
3.1 Market structure which determine the pricing and output decision of businesses including
Sainsbury PLC UK........................................................................................................................10
3.2 Market forces shape Sainsbury PLC UK responses................................................................11
3.3 Impact of business and cultural environment in shaping the behaviour of Sainsbury PLC UK
........................................................................................................................................................11
TASK 4...............................................................................................................................................12
4.1 Significance of international trade to Sainsbury PLC UK ......................................................12
4.2 Impact of global factors on Sainsbury PLC UK .....................................................................13
4.3 Evaluation of impact of policies of the European Union on Sainsbury PLC UK ..................14
CONCLUSION .................................................................................................................................14
REFERENCES...................................................................................................................................16
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Illustration Index
Illustration 1: 20x20 Sustainability Plan of Sainsbury PLC UK..........................................................6
Illustration 2: Free market economy system .......................................................................................7
Illustration 3: Command economy system...........................................................................................8
Illustration 4: Mixed economy system ................................................................................................9
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INTRODUCTION
Business Environment (BE) is a combination of external and internal factors which affect
the organizational activities and associated people such as employees, competitors, government,
consumer etc. External factors are just beyond the control of the company. These are affecting the
business functions in both positive and negative way. Alteration in business environment is unable
to predict (Palmer and Hartley, 2008). It has provided various benefits to organizations such as
delivering growth and opportunities, continuous learning, taking advantages of competition etc. To
understand the role and importance of business environment, Sainsbury has been taken into
consideration. Sainsbury PLC is a part of Sainsbury's Supermarket Ltd. and it is operating its
business in different business environment that has affected its business activities (Demirguc-Kunt,
Love and Maksimovic, 2006). In this context, objectives which will cover under the following study
are purpose of the different organizations, nature of the national environment in which business
operates and behaviour of Sainsbury in that market environment. A Along with this, significance of
the global factors that shape national business activities of Sainsbury will also be discuss..
TASK 1
1.1 Purpose of different organizations Virgin Group Ltd: It is a top leading group of companies which is operating its business at
international level. The founder of this group was Sir Richard Branson. This group is
conducting its business in more than 50 nations with more than 5000 employees (Kaplan and
Norton, 2001). Main purpose of this organization behind doing the business is to serve society
by offering good quality of products as a good brand image in community as well as seeking
the profits. Sainsbury PLC: It is the third biggest retail group in UK who is offering wide range of
products and services to its customers. Main purpose of this company behind doing business is
to meet consumer satisfaction level, increase market share and enhance number of users
(Kennerley and Neely, 2003). For this, firm has tried to given the good shopping experience to
its service users. McDonalds: It has the global brand identity across the world. It is the world’s biggest fast food
restaurant chain and it is operating in more than 119 nations with 35000 stores. The intention
behind conducting business of this restaurant is to offer good meal to its customers. National Health Services (NHS), England: It is the world’s largest health service provider
which is operated by public funds. The aim behind conducting the business is to serve the
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