Understanding the Business and Economic Environment

Understanding the
business and economic
environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Industry Analysis........................................................................................................................3
Structure of the chosen industry..................................................................................................4
STEEPLE Analysis.....................................................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment encompasses all those factors which basically affect the overall
operations of the company and includes customer, competitors, stakeholders, suppliers,
regulations and certain government activities. Economics is the study of scare resources which
ensures the better allocation and its effective use and measures the great variety of other complex
issues which is concern to the society. It is the main concern which is related to the higher
success and the growth of the community in which they are having the overall consideration in
the market(Panda and Gupta, 2022). This report is based on the Sainsbury's which is the public
limited company that is operating their business in the retail sector, It is the second largest chain
of supermarkets which is operating its business in UK as they are having 16% share of
supermarket sector. An organisation is founded in 1869 by John James Sainsbury & its
headquarter is in London, England, UK. This respective report will analyse the industry
analysis and also explain the structure of the retail industry. Moreover, it will cover the
STEEPLE Analysis in which determinants of demand and supply is being explained and also
define the competitiveness in the target market.
MAIN BODY
Industry Analysis
Industry analysis is the branch of specific branch of manufacturing, trade and services. It
is vital to understand the industry in which the company is operating its services and it is also
essential for the business by which they understand the market secnerio and the operations.
Retail industry is being chosen from the UK standard industrial classification(SIC 2007).
Moreover, There are various types of business which are operating in the same industry and
includes small supermarket, conventional stores, supermarket and online trading. Morrisons and
Asda are the leading supermarket chain which is suffering by reducing the overall sales of the
company and it is being derived and evaluated that all the functions is being controlled by the
industry by which the firm can sustain in the market in long run.