SWOT Analysis and Operational Impact Analysis of Sainsbury's

This report analyzes the global business environment and its impact on Sainsbury's, a multinational retailer company in the UK. It includes a SWOT analysis of the company and an operational impact analysis of HRM and marketing departments. The report identifies the strengths, weaknesses, opportunities, and threats of the company and suggests strategies to overcome them.

Global Business
Environment

EXECUTIVE SUMMARY
When an organisation develops their business at global level, helps them to facilitate
connection and links with other business parties. Organisations are influenced by global
environment which identifies national and international interactions. Sainsbury's is multi-
national retailer company in UK which engages itself in food, clothing retailing. SWOT analysis
helps to analyse the internal and external factors of business. There are various functional
departments in the company such as HRM, marketing, administration, retailing, customer
service many more.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
SWOT analysis of Sainsbury's....................................................................................................4
Operational impact analysis of Sainsbury's.................................................................................5
CONCLUSION ...............................................................................................................................6
REFERNCES:..................................................................................................................................8
Books and Journals:....................................................................................................................8

INTRODUCTION
Organisations are majorly influenced by the global environment. It means that
organisations are affected by the uncontrollable domestic and international interactions that
influence how an organisation operates (Lebaron, 2021). The company which is chosen is
Sainsbury's Plc, which was established by John James in the year 1869. The company
headquartered in London, UK. It is engaged in clothing, food, financial and merchandise sectors.
The report analyse the internal and external factors of Sainsbury's and operational impact
analysis on the areas HRM and marketing.
TASK
SWOT analysis of Sainsbury's.
The SWOT analysis of the Sainsbury's Plc helps to assess the strengths, weaknesses,
opportunities and threats in the company with its business tactics and operations in the UK and
other markets at global level in the retail sectors. In context of Sainsbury's, the strengths and
opportunities should used to compensate for the weak areas and to produce strategies againts
threat from competitors and rivals.
Strengths- Opportunity to cater to all types of consumers: Sainsbury's has offering their products
and services to all types of consumers (Infante-Moro, Infante-Moro and Gallardo-Pérez,
2021). They facilitate their value products to economy segment, also there are number of
branded and expensive products, also speciality products which the higher income
customers may be looking to buy. Right expansion moves: Initially, the brand started with small grocery stores which
caters limited services but lately, it expanded to convenience stores which became the
supermarket and serves daily essentials of the consumers. At present times, the
supermarket chain is well famous among four supermarket brands in the UK.
Weaknesses- Low margins: In order to attract lots of customers towards brand, the chosen firm has
been trying to cut down the costs and keep their prices at very low than their rivals which
is no longer sustainable.

 Growing Costs: With an addition to procurement costs, the chosen firm also requires to
spend on the shopping experience which determines as the key differentiator for higher
income consumers (Moktadir and Et.al., 2020). Technologies that assist self service are a
fundamental pre-requite and multilevel parking, spacious aisles, educated and well-
informed salespeople and many more, each of them is needed extra expense.
Opportunities- Growth in small towns: Now a days, the rural areas are also using branded products. At
present times, the branded products across all regular categories are a must even in small
towns. This becomes the opportunity for the supermarket chain in small towns. New customers from online channel: Over the past few years, the selected company has
invested a good amount into the online platforms. This investment has opened a new
online channel for the company. Also, in the forthcoming years, Sainsbury's can grab this
opportunity by acknowledging their customer better and fulfilling their needs using big
data analytics.
Threats- Competitors: Like all other supermarket chain in London, the chosen organisation faces
the same threat of fierce competition. In UK, there are a number of big players of
supermarket stores such as Tesco, Morrison's, ASDA, Aldi, Lidl and many more.
Specifically, Lidl and Aldi are changing the rules of game in the retailing industry. These
two companies also providing their customers with quality products at very reasonable
prices. This is ultimately becomes the great threat for the Sainsbury's.
 Decreased profitability: The demand of the highly profitable goods is seasonal in nature
and in peak season may affect the profitability in negative way.
Operational impact analysis of Sainsbury's.
Functional areas are also known as different departments within the company. There are
different functional areas within the business such as retail, customer service, marketing, HRM,
trading, Payroll, administration, finance and many more (Chari and Et.al., 2020). In context of
Sainsbury's, the two functional areas are mentioned below: Human Resource management: HRM in the company deals with employee related
matters such as writing up the job descriptions, advertisements to hire new employees in
the company and setting up interviews to test the candidates. They are also accountable

for training and development programmes for the employees, keeping records of
employee's attendance. Along with this, HRM department is also dealt with legal aspects
(contracts, fair treatment, equality or safety). The main purpose is to assist the other
functional departments and business objectives by ensuring the appropriate staff are hired
and trained to a high standard so that goods and services is of high quality. HR
department will try to find out the techniques of motivation so that employees will work
more efficiently (Burchell, 2020). They also try to ensure that the staff will take little
absence and behave well in the office premises.
 Marketing: Marketing is other functional department in the Sainsbury's which involves
range of processes concerned with what their customer wants and then facilitating them
with it. Marketing refers to an integrated process in which individuals and societies find
that current needs and wants may be fulfilled with the goods and services. The main
purpose is to research what their consumers want through market research and support
business to produce desired product, the customers are willing to pay (Raisinghani and
Idemudia, 2019). Once the correct product /service has been created then it becomes
important for the marketing department to promote the product, ensuring the prices are
competitive and is available to the buyers.
CONCLUSION
It has been concluded that when a business wants to expand their business globally and
links it with other business parties can be termed as global business. Business like Sainsbury's is
a multinational business which attracts a lots of customers by selling their products at low prices.
This helps business to grow faster across boundaries. This report analyse the internal and
external factors of Sainsbury's, which assess strengths, weaknesses, opportunities and threats of
the company. HR department relates with human resources i.e. employees which aims to recruit
right candidate for the right job and give right training to them so that their talent can be utilize
properly. Marketing department aims to target the wants and needs of potential customers so that
it can be satisfied with right product and right prices.

REFERNCES:
Books and Journals:
Burchell, J., 2020. The corporate social responsibility reader. Routledge.
Chari, R. and Et.al., 2020. Regulating lobbying: a global comparison. Manchester University
Press.
Infante-Moro, A., Infante-Moro, J. C. and Gallardo-Pérez, J., 2021. Key Factors in the Process of
Acceptance and Implementation of Artificial Intelligence in the Hotel Sector.
In Handbook of Research on Applied Data Science and Artificial Intelligence in
Business and Industry (pp. 304-322). IGI Global.
Lebaron, G., 2021. Wages: An overlooked dimension of business and human rights in global
supply chains. Business and Human Rights Journal, 6(1), pp.1-20.
Moktadir, M. A. and Et.al., 2020. Circular economy practices in the leather industry: A practical
step towards sustainable development. Journal of Cleaner Production, 251, p.119737.
Raisinghani, M. S. and Idemudia, E. C., 2019. Green information systems for sustainability.
In Green business: Concepts, methodologies, tools, and applications (pp. 565-579). IGI
Global.