Global Business Environment

Global Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.SWOT analysis.........................................................................................................................3
2.Impact of key drivers on functional areas of business.............................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Global business environment can be define as environment where various countries with
factors that are external to home environment of the organisation, effecting its decision making
on resource utilization and abilities of the organisation. It can be categorised into external and
internal environment (Bedianashvili, 2016). External environment consist of political, social,
regulatory, tax and technological environments. For this study, Sainsbury's has been selected. It
is a supermarket chain in United kingdom. It was established in 1869. It is a large retailer of
packed groceries and fresh foods. In this study, SWOT analysis of the respective organisation
will be conducted. Furthermore, impact of key drivers which has been identified in PESTEL
analysis on functional areas like HRM, marketing, finance and R&D will be cover.
MAIN BODY
1.SWOT analysis
SWOT analysis is an effective tool which is use to identify strengths, weakness,
opportunities and threats (Barac and et.al., 2016). It helps an organisation to analyse its
competitive position and to create a strategic planning. It is majorly responsible for identifying
external and internal factors along with recent and future potential. Hence, SWOT analysis of
Sainsbury's organisation is discussed here.
Strength: It can be define as positive and internal factors of an organisation. Basically a
strength of a firm is usually its resources and abilities which can be utilize as a base for creating
a competitive advantage. Strength of Sainsbury's is that it is one of the strongest grocery retailer
in UK. It dominates the supermarket sector by 16.0%. It uses technology in its best way to
increase shopping experience of their service users. It has almost over 1415 shops.
Weakness: it can be define as lack of strengths in an organisation such as a weak brand
name, lack of resources, high cost structure and many more. Weakness of respective organisation
is that it often get failed to bear customers. Brand switching is also a major weakness of this
organisation (SWOT analysis of Sainsbury, 2019). Its low price strategy due to growing
competition in markets and to attract large number of customers is also consider as a weakness.
Opportunities: It can be define as a set of circumstances which could be beneficial for
an organisation. They are the external factors of a business that may be beneficial for overall
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