Sainsbury's Business Environment and Macro Factor Analysis

This report provides a comprehensive analysis of Sainsbury's business environment, examining the interplay of internal strengths and weaknesses with external macro factors. It begins with an introduction to the business environment and provides an overview of Sainsbury's operations, including its history, global presence, and employee base. The report then delves into a detailed analysis of the PESTLE factors (Political, Economic, Social, Technological, Legal, and Environmental) and their impact on Sainsbury's. It highlights how factors like Brexit, technological innovation, and government regulations influence the company's performance. The analysis also covers how Sainsbury's leverages its strengths, such as low pricing strategies and healthy food offerings, to capitalize on opportunities and mitigate threats within the business environment. The report references various academic sources to support its findings and concludes with a summary of the key takeaways.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
P4. Covered into PPT..................................................................................................................1
TASK 4............................................................................................................................................1
P5. Covered into PPT..................................................................................................................1
P6. Explain interrelation of strengths and weaknesses with external macro factors...................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business environment refers to an atmosphere in which business enterprises operate their
business activities and operations. It can be sum or collection of all extrinsic and intrinsic
components like workers, consumers, suppliers, management, owner, government, customer’s
needs and expectations, supply and demand, social needs, market trends and economic changes
etc. This assignment is based on Sainsbury which is the second largest chain of supermarkets in
the UK (Brennan, Canning and McDowell, 2020). This organisation was incorporated in 1869 by
John James Sainsbury and is headquartered in London, UK. The organisation operates its
business globally with the help of 1415 outlets and contribution of 116,400 employees. This
written document will cover information about the positive and negative impacts of macro
environment. Further, will define information about internal and external analysis to explain
strengths and weaknesses. Interrelation among macro and micro analysis will also define in this
document.
TASK 3
P4. Covered into PPT
TASK 4
P5. Covered into PPT
P6. Explain interrelation of strengths and weaknesses with external macro factors
The interrelation of capability and weaknesses of Sainsbury with external business
components is mentioned as under:
Political factor- The free trade aspect of this factor positively impacts the company because
with the help of it the firm can operate its business in different nations and markets or offer
different brand and commodities to people of diverse income group with the purpose of fulfilling
their needs and demands (Hamilton and Webster, 2018). It will also help in capturing large
market size and share as well as increase sales and profits of the company.
Economical factor- Brexit is the main component of this macro analysis factor that
negatively affects the company and arise a weakness of venture. Due this inflation occur and cost
of commodities and material arise that unfavourably affect the company. In Sainsbury most of
the transportation of the firm is done by rod transport so maximisation in fuel price also arise that
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negatively influence the venture. Cost of products also increased by administration cause of
inflation which affect sales and customer base of enterprise.
Social factor- The management of the company offer its products at low pricing strategy
because people mostly prefer to purchase goods and services at low or discounting pricing (Çera,
2019). So by using this kind of cost of commodities, the firm can increase sales and consumer
base. Healthy and quality food item is strength of the firm that help in improving bran image and
retaining customers till long term.
Technological factor- Technical innovation is the main technological factor that positively
affects the company in term of occurring as strengths. In Saisnbury, the management use
innovation promotion strategy like Brand match promotion and social media promotion
positively influence business venture as with the help of it organisation can get attention of
number of people and promote its goods and services cross wise the world. This will assist in
developing customer base, sales, profit and productiveness of respective firm.
Environmental factor- Currently, COVID19 is the main environmental factor that
unfavourably affects the business of company and arising as weakness of Sainsbury. Due to
negative impact of this factor the sales and profits of the firm is decreased. High level Carbon
footprints are also creating negative impact over environment which affect the brand image of
the firm.
Legal factor-Sainsbury operate its business internationally changes in rules and regulations
of government affect the business of firm and occur as weakness (Quinlan, 2019). In UK, the
government develop new law as Sugar tax due to which the national authority stop publishing its
high fat, and sugar foods to the children below 16 years. This unfavourably affects the business
of enterprise in form of decreasing sales and profit margins.
CONCLUSION
This has been summarised from the above define content that business environment is an
area and atmosphere where business organisations can operate their business activity and
operation with the purpose of providing satisfaction of consumer’s needs and demands and
gaining profits from market. There are different external and internal environmental factors of
business environment that influence business of enterprises in favourable and unfavourable
manner.
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REFERENCES
Books & Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South Western
Cengage.
Çera, G., Breckova, P., Çera, E. and Rozsa, Z., 2019. The effect of business enabling policies,
tax treatment, corruption and political connections on business climate. Acta Polytechnica
Hungarica. 16(4). pp.113-132.
Trisakhon, C., Onputtha, S.O. and Peamchai, P., 2018. The Effect of External Business
Environment on Business Performance of Small and Medium Food Processing Enterprises in
Bangkok and Metropolitan Area. International Journal of Applied Computer Technology and
Information Systems. 8(1).
Painter-Morland, M., 2019. Business ethics as practice: Ethics as the everyday business of
business. Cambridge University Press.
Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing. SAGE
Publications Limited.
Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press, USA.
Martincevic, I. and Kozina, G., 2018. The impact of new technology adaptation in
business. Economic and Social Development: Book of Proceedings, pp.842-848.
Viriyasitavat, W., Da Xu, L., Bi, Z. and Sapsomboon, A., 2018. Blockchain-based business
process management (BPM) framework for service composition in industry 4.0. Journal of
Intelligent Manufacturing, pp.1-12.
Belas, J., Belas, L., Cepel, M. and Rozsa, Z., 2019. The impact of the public sector on the quality
of the business environment in the SME segment. Administratie Si Management Public, (32),
pp.18-31.
World Bank Group, 2018. Doing Business 2018: Reforming to Create Jobs: Comparing
Businessregulation for Domestic Firms in 190 Economies. Internation Bank for Reconstrucion
and Development/World Bank.
Online
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PESTLE Analysis of Sainsbury’s. 2020. Available Through: < https://pestleanalysis.com/pestle-
analysis-of-sainsburys/>.
SWOT analysis of Sainsbury. 2020. [Online]. Available Through:
<https://www.marketing91.com/swot-analysis-of-sainsbury/>.
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