Business Strategy: Impact of Macro Environment and Internal Analysis

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Application of appropriate framework analysis impact and influence of macro environment
on the organization and its strategies-..........................................................................................3
P2 Analysation of internal environment and capabilities of the organization using the
appropriate framework-...............................................................................................................6
P3 Application of Porter's Five Forces Model and evaluate competitive forces of given market
sector for company -....................................................................................................................7
P4 Applying range of concepts and models and devising the strategic plan for company-........8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Strategy is set of various competitive actions and moves which business uses
for attracting customers, competing with rivals successfully, raising their performance and
gaining the organizational goals and objectives.
J Sainsbury's Plc was established by John James Sainsbury in 1869. Company is trading
as Sainsbury's which is third biggest chain of supermarket in United Kingdom. Company has
over 1415 shops across UK. The above report includes impact and influence of macro
environment of organization. For accessing the internal environment Swot analysis of the
organization is to be done. The report further carried forward with application of Porter's five
Forces model for evaluating the competitive forces of given market. Report ends with the range
of concepts and developing the strategic plan for the company.
MAIN BODY
P1 Application of appropriate framework analysis impact and influence of macro
environment on the organization and its strategies-
PESTLE Analysis :
It is the technique of understanding the impact of external factors on macro environment
of J Sainsbury Plc. The analysis is done to understand all six factors which can be political,
economic, social, technological, legal and environmental which directly affects the company's
overall growth and its business & market strategy. It can be further described below-
Political Factors-
UK's political relations with the Qatar impacts the company as the Qatar has its share in
the company which is of 26% and thus the Sainsbury is diversely affected by the political crisis
in the country. Situation of Brexit had a major impact on the Sainsbury's business which have
affected food business very much. The value of the pound has been declined due to the impact of
Brexit which have also leads to have a recession in market so that the purchasing power of the
consumer has been reduced and consumers doesn't have much amount of money to spend (Teh
and Corbitt, 2015). So t his have adversely affected the all the businesses in United Kingdom.
The pricing of the food products have also been declined which affects the profit of the
company.

Economic Factors -
The major effect on the economy due to the Brexit. The Brexit situation has created the
inflation in the market. So all the businesses in the UK are adversely affected by this and their
profits and sales have been reduced due to recession in market. This ha also affected the business
of the Sainsbury as well. Due to Brexit effect Sainsbury has taken over the Agros for having a
financial upliftment but it has affected the business as the company had to pay for their losses
due to the Agros (Bentley-Goode, Newton and Thompson, 2017). The pricing of the food as also
been affected the profit margin of the company and thus company couldn't get that much profit
and revenue which would be gained by them.
Social Factors-
The sustainable business practices by Sainsbury's help to gain the huge customer support.
And the company is moving forward and adopting different sustainable practices in their stores
which is helpful for them in attracting huge customer base. The demand for organic food is rising
which leads company to attract the wide range of consumers to the stores. The company has
stated to include the organic and glutton free food and nowadays consumers are more health
conscious so this will be helpful for company in gaining huge customer attraction by availing
this food products in their food range. The sale of company can also be increased by using online
food shopping for their customers so that it can be very convenient for the customers to buy that
product directly with one step.
Technological Factors-
Company can implement the technological inundation in their company so that it can be
helpful for company in competing with their rivals. They can include the data driven analytics
for deriving their retail consumer insight. Digital services have also been introduced by the
company like online food shopping and click-collect-services which is helpful in attracting the
wide range of consumers to the company. This service allows consumer to place their orders
online from their cell phones, mobile and PCs and can easily collect their orders from nearby
local supermarket (Burlton, 2015). The online retail sales of the company has been increased by
80% and the orders which are being placed had also raised by 20% during this financial year
which is helpful for company to update with the rapid change in the behaviour of consumers.
The new application has also been introduced by them where the consumer can find their orders