Sainsbury's: Impact of External Environment and SWOT Analysis Report

This report provides an analysis of Sainsbury's, a leading UK supermarket chain, focusing on its internal and external environments. It examines the impact of external factors such as political (Brexit, taxation), economic (interest rates, wages, fuel costs), and social (health trends) factors on the business. The report also includes a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) of Sainsbury's, highlighting its strengths as a listed company and weaknesses like lower margins. It further explores how the company impacts its external environment through its products and services and its relationship with other organizations. The conclusion emphasizes the importance of understanding both internal and external factors for effective decision-making and achieving organizational objectives.

Introduction
Organizations have a major relationship with the
internal and external environment which influences
the decision-making process of the business
(Akpoviroro and Owotutu, 2018). The chosen
organization in this report is Sainsbury's, which is
second largest leading supermarket chain in UK.
The current report will include the internal and
external factors which are affecting the business.
Also, the report will discuss the ways in which
organization has creating an impact on the external
environment.
Sainsbury’s And Its Environment
External Environment
Political factor- new taxation policies, government rules and
regulations and tariffs are covered in this factor. This factor
may affect Sainsbury's negatively, because since Brexit is
announced it has already started facing some consequences.
Economic factor- rising fuels, rising wages, increasing
interest rate are highly affecting the businesses.
Social factor- new trends, health consciousness are the main
components which are including in the social factor.
Technological factor- new technologies, innovations and
system development are included in this factor
How the company impact its context External
Environment
There are two ways which shows the impact of
organization on the external enviornment.
Sainsbury's is influencing the external environment
by its products and services. As the external
factors are causing the direct and indirect impact
upon the revenue and personnel of the business
(Stoyanova, 2019). Sainsbury's is very
accountable to form the business relation with the
other organizations as well which helps to geared
up the productivity of its business. It has a crucial
factor which are affecting the business as well as
has an impact on itself, with the technological,
economic and legal factors.
Internal Factors
SWOT analysis
Strengths-
A Listed Company: Sainsbury’s is listed under the
constituents of the London Stock Exchange
Weaknesses-
Fewer margins- not only there is a lot of competition and
have riskier online retailers which lead to the most
retailers who are losing their volumes.
Opportunities-
New trends- Sainsbury's always follow the new trends
and have made the changes in its product according to
the trend. It also modifies its products new variants with
the specific consumer demand (Jaya, Nasir and Dewi,
2021).
References
Akpoviroro, K.S. and Owotutu, S.O., 2018. Impact
of external business environment on organizational
performance. International Journal of Advance
Research and Innovative Ideas in Education. 4(3).
pp.498-505.
Conclusion
From the above report, it has been concluded that
the internal and external environment influences
the business to make productive decisions. Also,
this helped the organization to achieve aims and
objectives without any barrier.