Analysis of Macro and Internal Environment of Sainsbury

UNIT-32
ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Factors that affect the Macro environment of Sainsbury.............................................................3
PEST analysis..............................................................................................................................3
STEEPL analysis.........................................................................................................................4
Evaluation of internal environment.............................................................................................5
SWOT analysis............................................................................................................................5
VRIO analysis..............................................................................................................................5
Porters five forces analysis..........................................................................................................6
SOSTAC MODEL.......................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES\...............................................................................................................................1

INTRODUCTION
A strategic process is inclusive of decision-making process within an organization. It
includes data from internal sources as well as external sources for the same. The present report is
based on Sainsbury which is a UK based company. The present report involves an analysis of
macro environment with the help of PEST and STEEPLE. On the other hand, in order to
determine the internal environment of the company, it will make use of SWOT and VRIO
analysis. The report also includes a strategic management plan that has tangible and tactical
strategic priorities and objectives with respect to Sainsbury.
MAIN BODY
Factors that affect the Macro environment of Sainsbury
For the purpose of determining the macro environment of Sainsbury, PEST and STEEPLE
analysis have been conducted.
PEST analysis
Political factors
A few years back, United Kingdom made a decision to leave European Union. This has
affected various brands negatively operating within the country including Sainsbury. Sainsbury
imports various products from different countries across the world, the exit of Britain from the
European Union has created troubles for the company.
Economic factors
There are a number of economic factors that are affecting the operations of Sainsbury.
These factors include rise in the prices of fuels, rise in salaries and increasing competition within
the industry (Fengyi, 2021). The rising fuel prices have led to an increase in transportation cost
of the company, the increasing competition within the industry has made it hard for the company
to survive.
Social factors