Enterprise stratergy

Enterprise Strategy
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Describe environmental analysis of the company with SWOT, PESTEL and porter’s five
force analysis..........................................................................................................................3
Discuss organisation’s vision, mission and overall strategy..................................................7
Describe the main challenges faced by the company with suitable strategy with explanation.
................................................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
Environmental analysis is defined as the process of analysing and evaluating the various
internal and external factors available in the environment which directly influence the
functioning and profitability of the business, it is important for enhancing the overall
performance of the organisation and for the implementation and formulation of essential
strategy, it helps business organisation to analyse the opportunity and threats available in the
market and take required action and formulate strategy. For this report Sainsbury is taken into
consideration. Sainsbury is one of the well established retailers in the UK, it is considered to be
the second largest supermarket chain. It was founded in 1869 by John James. This report
highlights the detailed description of environmental analysis if the company including the SWOT
analysis, PESTEL analysis and Michael porter’s five force analysis of the company. Also the
organisation’s vision, mission and overall strategy with market strategies is also highlighted in
this report. In addition to this the essential challenges faced by the organisation with effective
strategy is also explained in this report.
Main Body
Describe environmental analysis of the company with SWOT, PESTEL and porter’s five force
analysis.
Environmental analysis is defined as the process of analysing the external and internal
factors available in the environment having direct influence on the functioning and profitability
of the business, the environment is mixture of internal and external factors which are normally
outside the control of the business and directly influence the functioning of the business, in order
to deal with the competition and to gain competitive advantage in the market it becomes very
essential for the business to continuously analyse their environment as it will help them in
analysing their strength and number of opportunities available and the required strategy needed
in order to deal with the threat (Cheng, 2021). In context to Sainsbury, to analyse the company’s
internal and external factors certain models can be taken into consideration as discussed below:
SWOT analysis: It is defined as the essential marketing tool used by the business
organisation in order to analyse the internal factors which directly influence the functioning of
the business. The SWOT analysis stands for strength, weaknesses, opportunity and threat. In
context to Sainsbury the SWOT analysis is discussed below:
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Strength Weaknesses
 The main strength of the company is
being the top supermarket chain
around UK.
 Company has strong brand image
around the globe.
 Sainsbury has strong leadership
team and employees around more
than 200,000 individual
 Offering product at relatively higher
prices has become weakness for the
company.
 Increasing number of every
competitors in the retail industry.
 Another weaknesses for the
company is facing problem from the
brand switching.
Opportunity Threat
 Expanding market size and customer
base can be opportunity for the
company.
 Advancement in the technology can
be another opportunity for the
company.
 Expand their product lines to satisfy
large number of customers.
 Increasing competition in the market
is the major threat for the company.
 Changing taste and preference of the
consumers.
 Continuously differentiate their
products in order to deal with the
competitors.
PESTEL Analysis: It is defined as the framework used by the marketing manager of the
organisation in order to analyse the various external factors available in the environment which
directly influence the functioning and profitability of the business (Dodgson, 2018). The
PESTEL is an acronym for political, economical, social, technological, environmental and legal.
In context to Sainsbury the PESTEL analysis is discussed below:
Political factors: It includes factors like governmental policies, laws, rules of political
parties which directly influence the functioning of the business. In context to Sainsbury,
company is directly affected by the imminent Brexit, company will be affected by the increasing
import rates due to changes in the political condition and Brexit.
Economical factors: The economic factors includes factors like taxation, interest rate,
inflation rate, demand and supply rate and the consumer spending rate and so on, the well
developed economy will help in the growth and development of company and vice versa. In
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