Sainsbury and Its Environment

Introduction
• Business Practice help organization and leader to motivate their team and business
management.
• This process help company employee to produce its best results with the least
amount of time.
• This Poster helps to explain various internal and external factors of Sainsbury
company.
• Sainsbury is a famous leading brand in retail industry in UK.
• It provides various types of product to the customers such as cloths, food grocery
etc. This Poster helps to explain how internal and external factor such as strengths,
weakness, political, technological. Environmental etc. factors which impact on
Sainsbury business.
• It also explains the different ways in which Sainsbury business impact on the external
factor.
SAINSBURRY And Its Environment
External Environment
Political factor: There are a lot of changes which have come in the free trades, taxes and policies which
have to be considered by Sainsbury so that the company will be able to operate effectively. The
employees of the company have to be treated well and the performance of the company needs to be
improved so that the organization will be able to make the standards and brand value increase in the
market.
Economic factor: The company has taken a lot of changes in the pricing strategies according to the
competition so that there is going to be sustainability which is going to be present in the organization.
GDP in the country is improving as well which can be a great opportunity for the organization to make
the right changes and improvement and create standards for the customers.
Social factor: The lifestyle is improving of the customers and it is important for Sainsbury to make sure
that there are right actions which the organization is taking so that there is going to be higher
performance which is going to be present. There are a lot of offers and discounts which the company
is providing to the customers so that there is going to be higher sustainability which would be present.
Technological factor: Investment of Sainsbury's in technological aspect is huge which is good for the
reputation and the productivity and operations of the company can be increased so that the
organization will be able to develop in the market effectively. Training and development for the
employees is also being provided from time to time for employees which is good for the recognition of
the brand.
Legal factors: There are a lot of policies and actions for the employees which have changes, and they
need to be considered so that there is going to be higher performance. Any kind of discrimination or
inequality is not going to be tolerated in the organization which is making the standards of the
company increase in the competition which is present in this industry.
Environmental factor: There are a lot of environmental friendly actions as well which are being taken
so that there is going to be right working and performance of the company. Zero carbon footprint and
wastage produced by the company are being well maintained so that the company will be able to get
in the right customers and brand value and image in the market as well.
How the company impact its context External
Environment
External environment refer to the factors outside the business and directly affect the
business of the company, and the management also unable to control them. But
sometimes business affects these factors, they don't follow the rules and regulations
made by the government. In this pandemic Sainsbury has rejected to say their staff to
wear mask in their stores of England, which is a low made by England government,
because the company feels that their workers will not focus on their work due to mask,
and they may get problem in breathing so the company is not going to bound and make
it compulsory for the employee to wear mask. By doing so company is clearly breaking
the law of England government, this policy is not favourable for Sainsbury, because its
customers are also not liking this new policy of the company. Thus, it is just not breaking
the low but also putting negative impact on social factor. Apart from this Sainsbury is
asking its employee to come on work place even in the proliferation of Covid by doing
this, company is not following the government's rule. But in terotechnological factor,
company is promoting online and cashless payments, by doing this it is making the
society aware about the use and benefit of technology, for the online payment
Sainsbury has installed QR codes which becomes easy for the customers to make
payment with touching anything in the physical store. For the welfare of society,
Sainsbury has increased its home delivery services owing to pandemic and majorly
taking orders by doing so it is helping the society to stay home, for the promotion of
online orders, company is giving various discount, vouchers and cashback offers to the
customer. So this policy of Sainsbury is putting positive impact on the society as well as
on the technology. Besides this Sainsbury has promoted the use of paper bag, which is
made from the recycle papers mostly from the used magazines and newspaper to stop
the usage of traditional and old plastic bags which harms the environment, and not
good for the animals as well. So this policy of Sainsbury is working in the favour
environmental and social factor. But Sainsbury is not able to help the government of UK
and economy, because due to the lock-down their sales get reduced, people were so
afraid to buy any goods so the company has paid less tax as they get less income and
profit, so it has put negative impact on the income of government. For the welfare of
society, Sainsbury has done many activities like the company is providing equal
opportunity to men and female in their company, apart from this it is providing
stationary and other equipment’s to the students living nearby their offices. So this
policy is putting positive impact on the society as well as on the economic and political
factor. Thus, people of UK and other countries are satisfied with the product and
services offered by the company.
Internal Factors
Strengths: Sainsbury strengths help company in higher performance and compete with
its competitors. It is the largest retail Merchant in UK, it leads retail market. It has various
strengths such as right expansion move this strength help Sainsbury to expand their
market in correct way so that it increase its productivity and attract more customers.
Sainsbury expanded its business from small grocery store to large supermarkets. Its
business philosophy is also a strength for the company it uses this strength to attract
customer and in income segment. It also uses innovation promotion strategies to gain
new consumers attention and to increase profits. Sainsbury's other strengths are
diversified business with strong market share, it also differentiated its food with great
quality in compression to other competitors. These various strengths help company to
increase performance, productivity and profitability.
Weakness: Sainsbury main weakness is it is not holding any extension program. It also
has weakness such as brand switching, low margins, growing coasts etc. These
weaknesses are barriers in the growth of the company. Weakness show Sainsbury that
they need to improvement in these areas. In brand switching it faces risks, it also losses
its loyalty customers and their buyer don't trust on their promotions. Low margins are
also weakness for the company, to attract customers Sainsbury cut its costs but it gave
negative impact on company because it decreases profit and its product is no more
sustainable. Growing costs is another weakness of Sainsbury it decreases its loyal
customers in higher income section.
Opportunities: Sainsbury has different opportunities which help company to grow in
market and attract new customers. Its health and nutrition food products are increasing
its demand in market at attracting more buyers. It has broad scope of commodity which
require of healthier food. So it is good opportunity for company to use these as growth in
market. Sainsbury also have various opportunities which help company to expand their
business such as growth in villages, growth of Sainsbury Bank, Online groceries store etc.
Threats: Salisbury threats are barriers in the growth of the company. Its threats are
competition with other competitors and lifting labour is also a threat for the company.
Impact of Brexit on prices and intense competition in grocery and retail segment are
main threats for the company.
References
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Fozer and et.al, 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS process alternatives. Journal of cleaner production.147. pp.75-85.
Widya and et.al, 2018. A PESTLE policy mapping and stakeholder analysis of Indonesia’s fossil fuel energy industry. Energies. 11(5). p.1272.
Fozer and et.al, 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS process alternatives. Journal of cleaner production.147. pp.75-85.