Current Business Environment of Sainsbury's

Current business environment

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
SECTION- 1...............................................................................................................................3
About the company................................................................................................................3
Current business environment................................................................................................3
Private sector..........................................................................................................................4
Public sector...........................................................................................................................5
Voluntary sector.....................................................................................................................5
Relationship between different organizational functions and their linkage to organisational
objectives and structure..........................................................................................................6
SECTION 2................................................................................................................................9
Critically evaluating macro environment factors with help of PESTLE analysis.................9
Critically analyzing the micro factors which influences decision making process of
Sainsbury..............................................................................................................................11
Explaining how strengths and weakness in organization are influenced by external factors
..............................................................................................................................................13
CONCLUSION........................................................................................................................14
REFERENCES.........................................................................................................................16

INTRODUCTION
Business environment of the company consists of the both internal and external
forces that are implied on the operations of the organization and impacts it with several
opportunities and simultaneously posing the threats to its existence. The factors that lie
outside the purview of the organization shall be impacting the business as they shall remain
out of its control like the political, economical, social and technological business
environment. The current project shall be highlighting the business environment of
Sainsbury's. It shall also be reflecting the details of the different organizations coming under
the scope of different sectors like the private, public and the voluntary. Apart from this the
report shall also be representing on the organizational chart of the company. Further the
external and internal environment of the business shall be analysed using the PESTLE and
the SWOT analysis respectively to get better understanding of the competitive advantage
assumed by the business in the market.
SECTION- 1
About the company
Sainsbury's company has been established as one of the largest supermarket chains
in United Kingdom in the year 1869. It is headquartered in London, UK and over the years
has built one of the largest grocery chains. It has its operations in the various sector's grocery
shops, electricals, clothing and the homeware products and services.
Current business environment
The current state of the business environment of Sainsbury's is highly competitive as
it has a larger portion of the market share and so the various companies in the industry are
trying to gain the competitive advantage in the business. In order to cope up with the external
and internal forces of the business it can be analysed that the company has strategically
planned and formulated the strategy that they shall be exploring the various growth and
developmental opportunities while keeping the core focus on the core and high potential
market of UK. The business have manifested their strengths in the market such that they have
managed to generate value and worth of their products and services that are offered to the
customers (Gavurova and et.al., 2017). Through capitalizing on the various threats that are
posed from the external environment in the form of legal, social and the environmental
concerns, the company has established strict policies of quality control, sensory appraisal and
the re-development of the products. As it knows that the social environment these days is

following the trend of the healthy and nutrition rich food so it has to plan the food and
grocery business accordingly so that the company can prosper.
It is important for the company to evaluate the business environment within which it
is functioning as this shall be helping them in knowing all the macro environmental factors
and forces that are to be considered in the strategic decision-making of the business. The core
market of the supermarket chain is in UK which is also suffering the uncertainty related to the
implementation of the Brexit policy as it shall be redefining the trade policies, customer
groups and also shall bring tremendous reforms that are to be coped up with by the business.
Apart from that the company has also faced consequences due to the outbreak of the corona
pandemic in the society, the various lock-down, social distancing, quarantine regulations etc.
These political and the economic uncertainties are leading to the crucial decrease in the
business of the company and its associated developmental activities.
Private sector
Sainsbury's
 Background- It was started in 1869 as the partnership business by John James
Sainsbury and his wife Mary Ann. Initially they began with selling the fresh foods
and soon expanded their business into the packaged foods and the grocery items. It is
headquartered in London.
 Size- The size of the business has rapidly widened to becoming the third largest food
retailer and has established the second largest supermarket chain in UK. The business
has capitalized on establishing global footprint but still serves UK as the core market
(Fabuš, 2017).
 Mission- The mission statement of the company discloses its focus on the customer
satisfaction and value generation by offering the high quality products and services.
They want to generate competitive advantage by becoming customer's first priority.
 Objectives- It's major objective is to create value based on the initiative like the
environmental protection, sustainable development and quality products keeping in
mind the recent trend of health and hygiene.
 Purposes- They have defined their main purpose as providing the great food at the
fair prices which shall be building the loyalty and trust of the customers to retain with
the company for longer period of time.
 Legal structure- It is a private company that are bounded with certain restrictions of
issuing of shares for the gathering of the funds to carry on the business operations.