Factors Affecting Business Environment: Internal and External

Kajigaya, T., 2021. Book Review: Education policy, neoliberalism, and
leadership practice: A critical analysis. Canadian Journal of
Education/Revue canadienne de l'éducation. 44(1). pp.vi- viii.
RFERENCES
Books and Journals
Maer Jr, C.M., 2021. Book Review: Expulsion or Oppression of Business
Associates. Denver Law Review. 39(2). p.130.
Henderson, R., 2021. Reimagining Capitalism in a World on Fire: Shortlisted for the
FT & McKinsey Business Book of the Year Award 2020. Penguin UK. Easterby-
Smith, M. and et.al., 2021. Management and business research. Sage.
Offer discount and innovative products: In order to remain competitive, it is also analyzed that
Sainsbury implement different innovative products. This in turn assists the company to attract
customers. Along with this, employee will be more effective and also meet
Market survey: To meet the demand of customers and increases their loyalty, company also conduct
survey which entails that the business should implement the technique that helps to meet the defined
aim (Maer Jr, 2021). This strategy assists to stay ahead in the competition and also enhance the overall
performance within market.
Conclusion
By summing up, it has been concluded that to run
effectively company must consider internal and external
factor, also develop strategies to cope up with such issues.
Along with this, it also monitors the external factors and
develop ways to overcome the same.
Way used by company to determine the impact of
external environment
Complied with advance technologies: In order to minimize
the negative impact of technology upon the business,
Sainsbury uses effective tools (Henderson, 2021). Like it
uses artificial intelligence in order to improve the business
operations and also attract the customers towards it.
External factors:
Competition: Strong competition always encourage innovation, creativity, ready to
compliance with customer needs and performance of employees. Thus, company must
prepare to accept the change so that they will remain at top within a strong
competition.
Customers: They helps a business to improve sales and that is why Sainsbury always
try to meet the demand of customer by offering the best products (Easterby-Smith and
et.al., 2021). There is a fluctuation within market, but through effective staff, it comply
with the changes to meet demands.
Technology: There are numerous
techniques opt by company in order to
meet the external factor. Such that offering
product online, soon implements AI and
robotics etc. This in turn shows that
company is able to meet such external
factor in order to remain competitive
(Smith and Gorse, 2021).
Factors
Internal
Employes
Leadership
Comany's culture
External
Competition
Technology
Customers
Company’s culture: Having a positive culture will
encourage employees to improve the productivity
(Kajigaya, 2021). That is why, management of a
company will ensure that it has a positive culture
which in turn assist to improve the brand image.
Leadership: Opting a best leadership style will improve
the productivity and performance of a company.
Similarly, the leaders of Sainsbury opt democratic
leadership style in order to manage the overall
performance and lead business towards right path
Business in Practice
Presenting internal and external factor
Internal factors:
Employees: They are the key pillars of a firm and must be treated properly. With the
effective guidance and tools, they can reduce the cost and boost sales. That is why,
Sainsbury ensure that it take care of their employees because they influencer customers
directly.
Introduction
In the competitive era, companies must ensure about
internal and external factors. Similarly, the present
study is based upon Sainsbury, one of the top
supermarkets in UK. It will describe the internal and
external factor that affect business environment and
then presents ways that can impact upon external
environment.