Sainsbury And Its Environment

Introduction
Business environment is defined as the combination of
various internal and external factors that impacts on
business functioning and performance in efficient manner.
It facilitates the organisation to identify various
opportunities, provide important resources and help in
planning as well as improve organisational performance,
growth and profitability. It is the marketing term that
consist different factors and forces that impacts business
in positive as well as negative manner. There are various
factors are included in business environment such as
competitors, government, suppliers, customers, political,
cultural, legal as well as technological factors effective
business functioning and productivity. It is the part of
retailing industry and FTSE100. In this report the chosen
organisation in Sainsbury that is second largest
supermarket in United Kingdom founded in 1869 by the
John James Sainsbury. Headquarter of respective
organisation is situated in London, England, UK. In this
report internal as well as external factors are discussed
that affect business performance and productivity. On the
other hand, impact business activities on external
environment is being covered in this report.
Sainsbury And Its Environment
Name of the Student
Internal Factors
Internal factors are defined as the factor that are in control of organisation whether they are tangible or intangible. Internal factors are related to the strengths and
weakness of the Sainsbury
that affect the functioning and performance in positive and negative manner. The factors that affect business positively are consider as the strengths on the other hand,
factors that affect the growth and development in negative manner are considered as the weakness (Aziz, 2017). Internal factors are important part of business
environment that impacts on Sainsbury to attain all defined goals and objective. As organisation have control over these factors so, it changes them accordingly in order
to attain organisational objectives and gain sustainable competitive advantages as well. Strengths and weakness are evaluated effectively that affect business functioning.
All these internal factors are discussed below:
Strengths: Strengths are defined as the internal sufficiency of business that provide benefits to the Sainsbury over its competitors. Automation and
technological advancements facilitate the respective organisation to produce better quality products at affordable prices (Ben-Hador, Eckhaus and Klein, 2021). Success
of marketing strategies and their effective implementation enhance the customer base and profitability. Apart from that there are various internal strengths such as strong
dealer community, higher customer satisfaction and skilled as well as experienced workforce that help business to grow and develop in competitive business
environment. Strong cashflow and effective brand portfolio that help business to expand business and attract more customers in order to enhance brand image and
customer base.
Weakness: Weakness is the area where the organisation need improvement. Sainsbury analysis all weakness and develop effective planning to improve the
specific area that enhance overall performance and productivity. As the organisation invest less amount in research and development programmes that make it weaker
than other competitors, profitability ratio or return on investment is very low that effect the overall organisation (Bolland, 2017). The demand forecasting system of
respective organisation is not good than other competitors so, it affects the market share and customer base as well. Investment in latest technology of Sainsbury is very
low that enhance the overall cost of operations and functions. Apart from that the organisation is not able to tackle all challenges that are raised due to new entrants that
impacts on profitability level of organisation.
Sainsbury forecast all strengths and weakness efficiently and formulates effective planning to enhance strengths and overcome all weakness effectively. There
are various other internal factors that affect business performance in positive and negative manner that are discussed below:
Organisational missions and objectives: Organisations have their own goals and missions and objectives that affect business functioning and performance
directly. Sainsbury develop all goals and objectives accordingly that enhance the profitability and productivity respectively. As missions are main objectives and purpose
for the business come in existence and all decisions are taken to fulfil these organisational missions in effective manner (Franco, 2021). Respective organisation set their
all objectives after analysing all strengths and weaknesses so these are accomplished within defined time according to planning.
Quality of human resources: As human resource or employees are the most important factor that affect the overall performance and productivity of
organisation positively and negatively. Success of Sainsbury depends upon the effectiveness, skills, capabilities and attitude of employees. Respective organisation
controls all human resources in effective manner and enhance their competencies in effective manner by providing them training and development programmes so they
can contribute effective role in business success.
Organisational structure: Organisational structure plays important role in the decision-making process of Sainsbury. To ensure the efficient working in
competitive environment respective organisation develops conductive and transparent organisational structure that facilitates it to take quick and effective decision and
smooth working of business activities as well as functions. Respective organisation creates various changes in the structure of business according to current
requirements.
Functioning of top management and corporate culture: Effective corporate culture as well as functioning of top management is the effective internal factor
that affect business functioning and performance in effective manner. Sainsbury ensures the effective, supportive and transparent business culture that motivates
employees to work in efficient manner and help business to attain all defined goals and objectives effectively (Jebari, 2021). Management department also take proper
decisions that facilitates the smooth working.