Business Environment Analysis Report: Sainsbury's Company Assessment

This report provides a comprehensive analysis of Sainsbury's business environment. It begins with an introduction outlining the importance of analyzing internal and external factors affecting a company. The report then delves into Task 1, which covers the relationship between Sainsbury's organizational functions and its objectives, emphasizing the importance of marketing, human resources, finance, research and development, and production departments. Task 2 focuses on determining the positive and negative influences of the macro-environment on Sainsbury's, using a PESTLE analysis to assess political, economic, social, and technological factors. The report also includes an internal and external analysis to identify strengths and weaknesses, as well as an exploration of how these factors interact with the external macro-environment. The analysis supports the objectives of the company, including maximizing sales, increasing customer base, and expanding the number of stores globally. The report concludes with a summary of the key findings and provides relevant references.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 and P2................................................................................................................................1
Covered in PPT.......................................................................................................................1
P3 Relationship between organisational functions and its objectives....................................1
TASK 2............................................................................................................................................3
P4 Determine positive and negative influences of macro environment on business.............3
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.......................................................................................................5
P6 Interrelation of strength and weaknesses of company with their external macro
environment............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
In current time time period, company manager mainly focus on developing and making
sound and pleasant environment within an organisation and also maintaining efficiency and
performance of an employee in better manner. Along with this, there are different factors which
directly affect on company as well as their employees. Through this, this is essential for
analysing and evaluating the whole causes by using different techniques and methods effectively.
This project is based on Sainsbury which is international retailing firm and it is located in united
kingdom (Bryman and Bell, 2015). This is the second biggest chain of supermarket and its
market share is around 16% along with this, they are maintaining strong relation with
organisational operations and objectives that should be evaluated. In this report, describe the
PESTLE and SWOT analysis that can be identifying company internal and external environment
of an organisation.
TASK 1
P1 and P2
Covered in PPT
P3 Relationship between organisational functions and its objectives
SAINSBURY is popular and famous store which was established by two brothers and put
their maximum efforts for developing such company. Along with this, it is one of the leading
brand which attract large number of customers towards their services in the united kingdom. The
main motive of this two partners is to expand their business operations and its functions in all
over the world (Aterido, Hallward-Driemeier and Pagés, 2011). It is required for firm is to
satisfying their buyers needs and demand so they will be gaining high amount of profitability in
better manner. They have approximately 10,000 stores in all over 18 countries and they are offer
effective goods and services for satisfying their needs and requirements of desired buyers.
Generally, Sainsbury is big organisation which need to perform different number of business
operations and its functions for getting their set goals and objectives in proper manner (Bryman
and Bell, 2015). Thus, there are several roles and responsibilities that can perform by entire
employees for satisfying their all needs and requirements regarding domestic as well as
international buyers. On the other hand, the most essential function and operation of company is
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to interlinked with each other and getting success of the firm which are doing effective working
functions and conditions. In addition to this, there are different aspects of Sainsbury which
involves Human resources, research and development, financial team, promotional team.
The cited company will play an essential role in getting high level of growth and success
in effective and appropriate way (Carroll and Shabana, 2010). Such working capacity help in
accomplishing potential goals and targets of an organisation. After analysing and determining all
these things so this has been analysed that market share and development rate is higher then this
will measure and evaluate rivals actions while doing effective working conditions. For enhancing
dealing, they required to developing hierarchical structure which is helpful in assess in chief and
along with this, staff members are play an important role and duties in effective and appropriate
manner. The main motive of this business is to assist in handling with improving deals,
satisfying all requirements, level of benefits and fulfil customers needs and demand. There are
certain inter-relationships components of an organisation along with abilities and capabilities that
are described as follows: Marketing – This department is one of the most essential which will play an important
role for promoting effective or creative goods and services for their customers and serve
at the market place (Charter, 2017). Along with this, the main aim of this marketing
division is to enhancing the profit and sales ratio for attaining more customers in better
manner. Along with this, there are different business functions and activities which help
them in achieving things by doing specific functions such as pamphlets, brochures and
using various changes for increasing in earning high amount of income and revenue of an
enterprise. This will assist in making good and effective reputation of the organisation at
market place. Human resource – In this department, the HR manager play an essential role in
managing and maintaining all business operations and its function sin better manner. On
the other side, the main purpose of this firm is to fulfilling all vacant position within an
organisation as per their requirement. The major duty of human resource manager is to
manage and maintain all employees work and also make coordination among staff
members which assist in acquiring potential goals and targets of the firm in proper way.
This is another role of HR manager is to develop sound and pleasant environment of
working. They are responsible for conducting various motivational program for
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encouraging their employees towards personal and development for achieving effective
goals and targets in better manner. Finance – Capital is determined as backbone of the whole organisation due to this all the
major business operations and functions are implementing by using accurate funds
(Chesbrough, 2010). In this, the team of finance has been developing and making correct
budget in proper manner. The investors and creditors is importantly for getting success
and growth of an organisation. Research and development – SAINSBURY organisation will play an essential role in
gathering and collecting required data and information which can used by them while
developing effective decisions in proper manner. Along with this, research and
development department help firm for manufacturing process so this will assist in
evaluating and understanding the choice and preferences of different groups of
customers. After getting awareness about needs and demand of various buyers,
production team can easily preparing and designing accurate products and services.
 Production department – In this department, the growth and success of association is
mainly depend on manufacturing teams so they are responsible for making creative and
innovative goods for offering various types of products for their domestic as well as
international buyers (Commander and Svejnar, 2011). Along with this, for designing all
qualitative products and services as per their customers choice, taste and current trends of
an organisation that can easily eliminating their company sales.
In a business organisation, activities and performance of employee play a most important
who provide their contribution to accomplish firm's future goals and objectives in effective
manner. They are the key strength of firm who faces several challenges to grabbing opportunities
from target market to getting high business advantages. Organisational operational and
functional activities are based on their performance and working approaches. Business structure
and its framework is based on employee effective and efficiency level in company. There are
different types of organisational structure are given below as - Geographical – In this procedure work and responsibility of employees are classify
according to geographical values. For this employees needs to cover a specific area of
market to provide higher satisfaction to customers easily.
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 Based on different functions – This will be helpful for employees and candidate to get
better opportunity according to their ability and experience from target market. This
activities are based on marketing, finance and human resource department. Through each
and every employee of organisation provide their effective contribution to accomplish
organisational goals and objectives in effective manner. Merchandise organisational structure – This things can be very small but they consume
full time of employees. For this work contribution and time management is very
important. All the person have their own perception on various things which provides
others to thinks something different in this way also. Through this process, individuals
learn different things to improve their skill and develop their own personality for
professional lifestyle.
 Based on customers- For a business organisation, it is required to provide their quality
services on the bases on customers requirement and need. Through this they can easily
build their own image in target market. It has been summarised several information of
market and customers requirement to getting higher benefits and growth.
TASK 2
P4 Determine positive and negative influences of macro environment on business
A business used to operate in dynamic business world where chances of duplication and
changes are more in tenure. It is really essential to draw and determine valid and appropriate
aspects in frame so that define outcome could not get assess otherwise not (Dahan and et. al.,
2010). Sainsburry have to evaluate their macro environment properly with appropriate strength
and weakness so that they used to expand and maintain working operations in define manner of
course. Below is a PESTEL analysis of define association with positive and negative influences
of each one of the consideration:
Basis Strength Weakness
Political: This is associated
with political and government
of a country. Although, for
business evaluation of political
consideration is really essential
For Sainsburry one of a major
positive attribute get related
with cutting down tariff. It is
really essential for business to
evaluate this aspect in better
One limitations would be
related with sudden changes
and modifications on working
policies which impacted upon
on operations badly.
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so that effective and beneficial
aspects get assess.
manner so that supportive
working operations get
execute.
Economical: This define about
the economical condition of a
company like depression,
recession, inflation etc.
Sainsburry evaluated that UK
have a stable economical
condition where large number
of individuals are employed
and have better spending level
as well.
A major limitations could be
related with Brexit where
economical condition used to
move down in worst frame
once this contract used to take
place.
Social: This attribute of
business related with social
aspects where customers
majorly get targeted.
Business have good interaction
with clients as well as their
performance of corporate
social responsibility enable in
making good reflection
towards society.
Business venture used to pay
sometimes legal penalties due
to utilisation of livestock. This
used to made negative
influence on society and
impact on association as well.
Technological: This related
with utilisation of digital
technology so that better
operation and wide number of
customer reach could become
possible.
Sainsburry launch their
application as well as they also
provide online facility to pay
for the products and services
which clients consume.
A major limitation for
Sainsburry could be termed for
the theft while online payment.
This need to assess and
understand in better and
determined manner for
overcome.
All these factors are really important to understand by managers of Sainsburry so that
they could facilitate and perform effective and beneficial working (Craig and Campbell, 2012).
This result them in gaining and deriving such strategies which further support them in gaining
competitive edge so that betterment and effective outcome get drawn in near future course. This
result in defining beneficial and effective gain in nature.
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P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses
A business have certain targets and consideration which management want to
accomplish. Sainsburry also have few number of aspects which need to assess and understand in
proper manner so that beneficial and effective gain could be evaluated (Drucker, 2017). In such
aspect, some targets and objectives are really important to formulate so that beneficial attribute
get determine which further assist in future growth and better operations in nature:
 To maximise sales by 510%
 To increase 20% customers at globalised market
 To open 50 more stores around the globe
All these targets get assess and determine when management have good performance of
working as well as define each and every attribute to their associates properly (Fernando, 2011).
Hence, with such aspect, there is a need to identify SWOT analysis of business venture which
facilitate and support in refining things properly which enable in gaining competitive edge and
become leader at global market world in retail sector:
STRENGTHS WEAKNESSES
One of a major strength for a business is
delivering better quality products and
services. Although, they have wide range of
products and have good connection with
suppliers so that products demand get fulfil
at each and every course of moment. Another
strength would be related with discount
vouchers provided by an organisation. This
enable them in gaining and defining better
strength so that effective working get done.
A major weakness for Siansburry which need to
improve in better and determined manner is
strategies and policies consideration.
Management face penalties due to utilisation of
livestock which reflect harm to their wide
number of customers base. This is a major
weakness for an association which need to
improve in recent and frequent course of manner.
OPPORTUNITIES THREATS
At global market world, there are various
kind of opportunities get evaluated. They
have an option to open more stores so that
Certain threats for an organisation would be
related with shift in customers as well as Brexit.
This work as major threat for which management
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maximum number of customers get attracted.
Along with this, they also have an option to
increase customer base by 20% which enable
and support in gaining and generating
maximum profit in consideration.
need to craft such strategies which enable them to
deal with. This assist in drawing and managing
operations effectively so that all kind of major
threat could be deal out in signified frame of
manner.
P6 Interrelation of strength and weaknesses of company with their external macro environment
Macro and micro environmental factor have making strong relation with each other due
to this they are performing fluctuations in single components in various manner that are totally
inter affiliated with each another (Hamilton and Webster, 2015). Potentiality and shortcoming of
business entity are associated with external elements of environment with their roles and duties
towards manufacturing associations. The company manager compare with their internal factors
related with macro environment such as political, social, technological, legal, economical and
environmental. The inter-relationships between strength and weaknesses of company with macro
environment which are described as under: Economic factors – In this, exchange rate at market area, modifications in interest rate.
For example, if an enterprise having limited funds or reserves so currency of such type of
agency that can not impact their business. Political and legal – In this factors, legal rules and regulations are highlighting which has
been followed by firm while smoothly running of business operations and its functions
(Klapper, Lewin and Delgado, 2011). There are some availability of talented and skilled
people that help an organisation for dealing with various current challenges. Social and cultural – For overcoming with some issues and problems, so company need
to select skilled and talented employees who have ability to gain optimum resources in
better manner.
 Technology factors – At the time of selecting business they need to adopt advanced
technology and methods so that they can easily achieving some work of business
activities at minimum period of time.
CONCLUSION
As per the above mentioned report it can be analysed that Along with this, there are
different factors which directly affect on company as well as their employees. In current era,
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there are various types of business enterprise which are mainly deal with different goods and
services but they are doing working system of all organisation that are totally various from each
other. In an organisation, there are three major types of sector such as private, public and
voluntary industry with their legal structure and the main motive of this firm can be described.
Thus, there are several roles and responsibilities that can perform by entire employees for
satisfying their all needs and requirements regarding domestic as well as international buyers.
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REFERENCES
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Online
What SWOT Analysis is in simple words. 2017. [Online]. Available through:
<http://pestleanalysis.com/swot-analysis-examples/>.
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