Understanding the Business and Economic Environment of Sainsbury: A STEEPLE Analysis

FE4055QA
Understanding the
Business and
Economic
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Pick one industry to identify the UK Standard Industrial Classification (SIC 2007) and
choose a UK public limited company (PLC) from the industry. ...............................................3
The most influential and essential elements of the business environment is the formation of
the industry. Discuss the structure of your chosen industry briefly............................................3
Consider the business organisation and the nature of company (a UK PLC) in context with the
structure of the industry. ............................................................................................................4
STEEPLE examination to analyse the exterior business of the company over the last 5-10
years. Explain each factor separately..........................................................................................4
Economical factor analysis.........................................................................................................5
Research and discuss the business problems and challenges the chosen company faces and
criticise on the external effects of a business decision on
themselves/customers/employees/rivals and on the public at large............................................6
CONCLUSION...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Sainsbury established as distributor of unprocessed food and with time it enlarged in
packaged groceries such as tea and sugar. Sainsbury established as a partnership firm in 1869
and it was owned by John James Sainsbury and Mary Ann. It was started as a shop in Drury lane,
London. Inside this report provided one industry of Standard Industrial Classification of a Public
Limited Company and influential elements of business environment and briefly discussed
structure and nature, STEEPLE factors and economical factor analysis(Appio and et. al., 2019).
Pick one industry to identify the UK Standard Industrial Classification (SIC 2007) and
choose a UK public limited company (PLC) from the industry.
The Standard industrial Classification provided by UK were used in allocating the
occupation establishment and further statistical components by the kinds of economic task in
which the standard industrial classification are engaged. It also gives a framework for the
tabulation, collection, analysing and presentation of data and it is used in promoting
uniformity(Hart and et. al., 2019)Companies use this classification because it is used to identify
the their existing and their potential consumers at the same time. Sainsbury has this classification
because it is a standard which is important for the organisation to have this authentication in their
business because it provides the eligibility of the organisation for government contracts. And the
SIC is updated several times in the years 1958, 1968, 1980, 1992, 1997, 2003. Sainsbury has this
because it provide the consumer a form of reliability and getting quality food and supplies.
(Kajanus and et. al., 2019)
The most influential and essential elements of the business environment is the formation of
the industry. Discuss the structure of your chosen industry briefly.
Sainsbury uses hierarchical organisational structure. Hierarchical structure includes
having different levels of authority, it is a chain type formation which includes giving and
providing commends to individual as per the management levels present in the organisation so
that the targets can be achieved in the organisation on time . These structures of the organisation
can effect Sainsbury in the terms of retailing( Lynch, T. and Khan, T., 2020) Because Sainsbury
operates in retailing industry. It can effect on the economy of the country because they are
selling the goods on directly connecting with the consumer's, so it can decrease the sales of the