Internal and External Factors Impact on Business: Sainsbury's Report

This report examines the impact of internal and external factors on business operations, using Sainsbury's as a case study. The report begins by defining the business environment and differentiating between internal and external factors. Internal factors discussed include the company's resources, organizational culture, and the vision and mission statements, while external factors encompass economic, political, social, technological, legal, and environmental considerations. The report details how Sainsbury's is influenced by these factors, including its competitive environment, interactions with customers and suppliers, and the impact of technological advancements and governmental policies. The report concludes by highlighting the importance of considering both internal and external factors in strategic decision-making, emphasizing how a company's activities also influence the external environment.

Introduction
The business environment can be connoted as the external
forces, institutions and factors which are beyond the control
of business and affect and influence the working of company.
There are many internal factors also which affect the working
of companies and these includes the competitors, customers,
government, suppliers, etc. . The environment in which a
business operates is dynamic in nature as it changes with
changing time and needs of the society. It is not static but
rather it is complex and changeable. The organization chosen
for this report is Sainsbury which is a supermarket chain
dealing in retail industry. It was founded in the year 1869.
This report shall cover the relationship of business with its
external environment
Internal and External factors
Internal factors
Internal factors include the strength and
weakness of the business which affects as to how a
company can meet its objectives. Some of the internal
factors which affects the business of Sainsbury are
discussed below-
Finance and resources
Organizational culture-
Employees and managers
Vision and mission statement-
How external and internal
factor affect business
organization.
External factors
External factors consist of those
circumstances, influences and situation which is beyond the
control of business which affects the decisions of business
made by owner and its stakeholders. There are many external
factors which have direct impact on ability of business to
accomplish its objectives.
Political
Economic
Social
Technological
Legal
Environmental

Impact of business on the external
environment
The activities of corporations provide specific impact on the business
environment. Every company operates in external environment so it
is important for its to pay attention to it so that it can analyze the
impact of business on external environment. The activities of
Sainsbury have a direct influence on external environment and it is
discussed below
Competitive environment
Economy
Customers and suppliers
Technology
Governmental policies
Internal and External factors
Conclusion
It is concluded from the above report that every
business has huge influence on its working due to business
environment. There are two types of factors, external and
internal factors of business environment which affects the
working of business. The external factors includes political,
social, technological, economic, environmental and legal
factors which influences the business and the working of
company also affect the external factors. On other side, the
internal factors includes the employees, culture of company, its
vision, mission, funds, resources and many others. These all
affect the working of business as the company has to make such
decisions which are set in harmony with it.
References
Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management. Macmillan International Higher Education.
Stacey, R.D., 2016. The chaos frontier: creative strategic control for business. Butterworth-Heinemann.
HASBI, and et.all., 2020. Analyzing of External Environment Force and Islamic Business Ethics on Baitul Maal Wat Tamwil Performance through Organizational Commitment. Journal of
Applied Economic Sciences. 15(1).