CECOS College Business Environment Report: Sainsbury's Analysis

This report provides a comprehensive analysis of Sainsbury's business environment, focusing on the external and internal factors impacting the company. It begins with an introduction to the business environment and then delves into a SWOT analysis, highlighting Sainsbury's strengths, such as its market position and brand value, as well as its weaknesses. The report then examines the PESTLE factors, exploring the political, economic, social, technological, legal, and environmental influences on the company, with a particular focus on the impact of political factors such as trade regulations and the UK's relationship with Qatar. The interrelationship between macro-environmental factors and Sainsbury's strengths and weaknesses is also discussed. The conclusion emphasizes the importance of organizations having a clear purpose and role, with Sainsbury's purpose being to serve society by offering healthy food products. The report references several academic sources to support its findings.

BUSINESS AND
BUSINESS
ENVIRONMENT

TABLE OF CONTENT
◦ Introduction
◦ SWOT analysis
◦ Pestle analysis
◦ Inter-relationship with macro environmental factors
◦ Conclusion
◦ References

INTRODUCTION
◦ Business environment comprises of all the external and internal environmental factors affecting business.
Company which is selected for this report is Sainsbury's which is the second largest supermarket chain in
United Kingdom.
◦ Presentation will lay emphasis on SWOT analysis
◦ It will also focus on PESTLE analysis

PESTLE ANALYSIS
◦ Political Factor- The United Kingdom political relations with Qatar is impacting Sainsbury's. The Qatar
investment authority, the sovereign wealth fund holds 26% stakes. It affects the management operations
of Sainsbury's. Bureaucracy and interference of government in Sainsbury's plc (What is PESTLE
Analysis? A Tool for Business Analysis, 2018). Trade regulations and tariffs prohibits the Sainsbury's plc
from doing expansion.
◦ Positive impact- The political stability in United States in helpful in expanding market share of
Sainsbury's plc.
◦ Negative impact- The rate of debts on government and on Sainsbury's consumer is very high and have
directly impacting the purchasing behaviour of Consumers of retail industry

SWOT analysis
◦ Strengths
◦ Sainsbury's is the second largest Supermarket chain in United Kingdom. Sainsbury's has 600
supermarkets and over 800 convenience store. Sainsbury's has 150,000 employee strengths.
◦ Sainsbury's has excellent brand value in the market. Sainsbury's do advertising across the United
Kingdom through TVCs, Print advertisement and Online campaigns.
◦ Each store of Sainsbury's typically shares around 30000 lines. The Sainsbury's has listed on the London
stock exchange and FTSE index.

Interrelation of macro-environment factors with strengths and
weaknesses of Sainsbury's
◦ Political factor – The political stability in United Kingdom becomes the strength of Sainsbury's which is
helpful in expanding their business.
◦ Sainsbury's has open up 600 supermarkets and over 800 convenience store it’s just due to political
stability in United Kingdom. Political factors like Trade regulations and tariffs in retail industry act as a
barrier for Sainsbury's plc and restricts it from doing expansion, this becomes a weakness for Sainsbury's
plc.

CONCLUSION
◦ The conclusion can be drawn from this project report of Business and the business environment is that
every organization has its own purpose and role for doing the business whether it is a profit organization
or a non-profit organization.
◦ The J Sainsbury's plc purpose is to serve the society by offering healthy food products

REFERENCES
◦ Chang, J.F., 2016. Business process management systems: strategy and implementation. Auerbach
Publications.
◦ Cumming, D.J. and Zahra, S.A., 2016. International business and entrepreneurship implications of
Brexit. British Journal of Management. 27(4).pp.687-692.
◦ Falkner, R., 2017. Business power and conflict in international environmental politics. Springer.