Internal and External Factors: Impact on Sainsbury Business

Strength Weakness
Oppourtunit
y Threats
SWOT
Strenghs Weakness Opportunities
Threats
INTERNAL AND EXTERNAL FACTOR
 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.
INTRODUCTON
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.
INTERNAL FACTOR
Gani, M., 2020. An Analysis on the Marketing Strategies of Sadma Fashion Wear Limited.
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.
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.
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.
External Factor Impact of Business on External Environment
CONCLUSION
This report concludes that Sainsbury internal factor such as
strengths, weakness, opportunities and threats and also how its
external factor such as political, legal, economical affect the
business and this report help to understand that how external
environment impact the business in different ways in its growth
in new market and it higher performance.
REFRENCE