Strategic Analysis of Sainsbury's Plc within Business Environment

This report provides a comprehensive analysis of Sainsbury's Plc's business environment, exploring various organizational types and the growth of international business. It examines Sainsbury's as a public limited company, contrasting it with private and voluntary organizations. The report details key business functions within Sainsbury's, such as Human Resources, Marketing, and Operations, and illustrates their interrelationships through an organizational chart. Furthermore, it applies PESTLE analysis to identify macro-environmental factors impacting the company and conducts a SWOT analysis to highlight its strengths and weaknesses. The report concludes with a critical reflection on the findings and their influence on decision-making processes within Sainsbury's Plc. Access more solved assignments and resources on Desklib.

Business and Business
Environment
Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction to provide an overview of different types of organizations and the growth of the
international business environment.............................................................................................1
An explanation of each of the chosen organisations...................................................................2
Examining certain business function in the business organisation and creating organisational
chart to explore interrelationship between different function:....................................................4
Using PESTLE analysis identify and discuss the various macro environmental factors that
have an impact upon the organization.........................................................................................6
Apply a SWOT or TOWS analysis to your organization to identify their key strengths and
weaknesses...................................................................................................................................7
Present a critical reflection of key findings and evaluate how they influence the decision-
making process............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The business environment is the marketing term that is used for referring the factors and forces
that can affect the ability of the organization and it also supports in maintaining a successful
relationships with the customers. Business environment is basically the total of all individuals,
organizations and other forces that is outside the control of the industry but can impact the
production of the organization. For running any business it is very important to understand the
environment of the organization. The business environment is the summation of all the all the
external and internal factors that can impact the organization (Kaplan, R.S., and et.al, 2018). The
report will describe the type, size and scope of the Sainsbury’s Plc. Company and the
interrelationship of the various functions within an organization and how they link to
organizational structure. The positive and negative influence/impact the macro environment has
on business operations and the internal strengths and weaknesses of the Sainsbury’s Plc.
Company will also be elaborated in the report as well.
MAIN BODY
Introduction to provide an overview of different types of organizations and the growth of the
international business environment.
There are various types of organizations available in the market like public limited, private
limited and many more. Each and every association have their individual arrangement and that
permits them to contract in the marketplace and this helps in getting more growth in the
international business environment. The first type of business organization is public organization
and these organizations are track by the administration and these are also called as public
division group. In United Kingdom 18.2% of the entire people is working in public segment
organization. The public associations are self-supporting areas where they got reserve from
public possession. Public restricted organizations are halfway risk firms that sell and exchange
their stake on the stock trade. Sainsbury’s is a public limited company which means that the
general public of UK can purchase stake from stock exchange. The next one is the private sector
organization and it is one of the important part of the economy as it runs by the sole trader or
entrepreneur. The main aim of the private sector organization is to give employment to the more
employees as compared to the public sector organization. For example the private sector
organizations are divided into many parts like sole proprietorship, partnership, small and mid-
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sized business and many more. Also the US have major areas of strength for an area since it has
a free economy where as in china a large portion of the representatives are taken part in open
area. The last one is the voluntary organization are freely formed and developed by the
individuals .there are many benefits of the voluntary organization like non-profit distribution
principle is one of the most beneficial factor of voluntary organization. It helps in defining the
worth of the organization (Al-Mamary, Shamsuddin, and Aziati, 2019). Another advantage of
voluntary organization is they do not generate a direct revenue stream. They hinge on on others
for monetary capital. The voluntary organizations are majorly classing into small scale
industries. The international business environment is the atmosphere or surroundings where the
international companies look out for their business and this plays a very important role in the
development and growth of the country. The growth in the international business is also called
as globalization and this depends upon many factors like changes in technologies, politics,
economics, labor cost and import and export regulations. The international business environment
is important for growth because it helps in expansion, managing the life cycle of products,
technological advantages, and new opportunities for business, earning foreign exchange and
investment in infrastructure. This encourages the country’s specialization in the brand that are of
good quality and affordable.it also helps in increasing the growth while providing employment
to the individuals.one of the benefit the organizations gaining from the international business
environment is increment in the revenue by selling the products and services in the market
where the price is higher comparatively. There are numerous types of international business
environment like importing and exporting, licensing and franchising, outsourcing and
offshoring, joint ventures and strategic partnerships, multinational companies and foreign direct
investment (Accounting, and Accounting, 2020). The scope of international business
environment like it focus on explicit matters and prospects that rise in the business environment
when functions worldwide.
An explanation of each of the chosen organisations
The organizations have been broadly classified into three major categories which are public
limited, private limited and voluntary limited. A public limited company is basically a business
that has been managed by the directors and which are owned by the shareholders. A public
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limited company helps in offering shares to the public.it is also known as PLC and this is
different from sole trader and partnership as in this the business exist as a distinct unit to their
owners and offer defence from obligations and responsibility. A public limited company offer
shares to the public. The main product and services provided by the public limited organizations
are that they provide limited liability to the owners and to the management .they offer share to
the public and have limited liability on them and these will benefit the company in raising the
capital for the organization. The public limited companies must appoint two directors and also a
company secretary and file the return in every 12 month (Bennett, and Snavely, 2020). The
mission and business objective of public limited companies is to provide betterment to the
society by giving good services to them. They include public properties and administrative
administrations like public transportation, streetlamps, and wellbeing strategies for the people
who are working in open area associations. The organizational structure of a public limited
company is two-tiered in which either they have a board of director and an executive board or a
supervisory board. Minimum Three directors are required for making a public limited company
and also a minimum share of 5 lakh rupees id required. Similarly Sainsbury's is a public limited
organization which implies that the overall population of UK can buy stake from stock trade.
The organization is growing their business by offering their portions to the clients and this
assists the organization with acquiring benefit and increment the market worth of the
organization. The principal motivation behind Sainsbury Organization is to give their items on
the web and to fulfill the clients by giving sound and sterile food items.
A private limited company is an organization which has
been privately settled by the entities for minor businesses. The obligation of the individuals from
a confidential restricted organization has been restricted to how much offers held by the
organization. The portions of private restricted organization can't be exchanged publically.
Because of the small business the number of shareholders involved are also very less for
instance 50 shareholders in the United Kingdom. Also there is no need of minimum capital
requirement for establishing a private limited company. The organizational structure of a private
limited company have at least two administrators and also can have a maximum of 15 directors.
At Least two stockholders are required for permissible registering of a Private Limited company
and also entire 200 workforces can work in a private limited company but not more than this
(Sainsbury, 2021). A voluntary organization is an organization in which whether the employees
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getting paid or not and it has been governed by its own members without any external control. A
voluntary organization have the most simplest organizational structure and it is good for small
scale activities and do not require any leasing premises and employees as well. The mission and
business objective of voluntary organization non-profit distribution principle as it helps in
defining the importance of the company and the other business objective of voluntary
organization is it does not create a direct income stream.
Examining certain business function in the business organisation and creating organisational
chart to explore interrelationship between different function:
Business functions within an organization can be defined as the activities carried out by an
enterprise. The business functions of the companies can be classified into core business
functions and other is support business functions. Core business functions are the activities of a
business yielding income. The core business functions makes the primary functions of the
business organization. On the other hand the support business functions are the supporting
activities which has been carried out by the enterprise in order to facilitate the core business
functions and also the production activities. Similarly the Sainsbury’s companies also have some
business functions and these business functions are interrelated with each other (Wind, 2021).
The main business functions the Sainsbury’s Plc. Company have in their organization are
operations, human resource and marketing.
Human Resource Management –The Human Resource management within the organizations
helps in managing and controlling the system and their main function is to behold the employees
within the organization. The HR department are also responsible for identifying new talent,
sourcing them, hiring and recruiting them according to their talents and skills and which
becomes a good asset for the company as well. Maintaining relations within the team is very
important and the Human resource is there for managing all the inter relations in the
organization. This business functions there are many advantages like hiring workforce, retaining
employees, enhance the effectiveness of the organization, handle the disputed and queries of
employees and also motivate employees (Salma, and Shaheen, 2019). On the other hand there
are also some disadvantages also and which are costly setup, it also lacks the universal approval
academic base because of its recent origin, some of the improper development programs and
also lack of information about the workers affect the effectiveness of the organization.
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Marketing management- The marketing management business function manages the
marketing activities within the organization and they have a great relationship with the human
resource department as well as they are the one who do these activities. The team recognizes
customer requirements and necessities and cultivates the appropriate marketing mix procedure is
to gratify them. There are many features of marketing management business functions like
Market enquiry, Merchandise development, Worth, Broadcasting, Distribution, Customer
capability Business functions are interconnected to achieve the company success. Every business
function is inter related with each other and their aim to achieve success and growth rate. The
advantages of using marketing management in the Sainsbury’s plc. Company is it helps in
promoting the business to a target audience, this supports in understanding the needs and
requirements of the organization. Also there are some disadvantages the companies have to face
like high cost of marketing, time and effort does not provide a good return (Gidley, 2020).
Operations process- This business function is also known as production process. The ability of
operation procedure permit them to distribute products and services or offer diverse forms of
support, comprising: Transforming sources of info similar to untreated materials and portions
into profits, assuring adequate possessions are available for formation. Achieving an important
point of skill. Trusting the key performance indicator.
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Inter-relationship
between business
function
Goals &
objectives
Vision & mission
Strategy
Functional areas
Organization
culture
Organization
structure
Decision making

Using PESTLE analysis identify and discuss the various macro environmental factors that have
an impact upon the organization
Macro environment within the organization refers to the factors which can indirectly affect the
working operations and function in which they work. This mentions to all those exterior
environmental issues that affect the success, strategies and decision making of the organization.
The macro environment of the Sainsbury’s Plc. Company has been broadly categorized into two
diverse groups and which are financial and non-financial issues. The economic environmental
factors are those which include macroeconomic parameters, economic system and many more.
The non –economic factors involves various government policies, demographic factors, social
system and technological development. There are many factors in the macro environmental
factors and which are political factors, economic factors, social factor, technological factor, legal
factor and environmental factors (Perera, 2019). The PESTLE analysis of the Sainsbury’s
company helps in analysing the products and services on its business strategies and it also helps
the company in understanding the market dynamics and improve the business.
The Political factors can be explained as it is the second largest super
market in the UK and this company mainly operates in United Kingdom therefore it is not
affected by the economic slowdown in the other countries. UK has been exited from the
European nation and because of this the company is facing the issue of inflation rates as it gets
higher. The Economic factor is also getting affected by the inflation rate as the higher inflation
rate and income growth rate the demand for purchasing the products and services from the super
markets are getting decreased(Fengyi, 2021). Investing in nations with good economic freedom
can be a good option for the Sainsbury’s as it has been noticed that nations with more economic
freedom are usually have more avenues for growth and development. The Social factor in
Sainsbury’s company is that customers are more likely to purchase the products from
supermarkets as they can get the products under one roof and the supermarkets also come up
with some discount schemes and because of this customer purchase more than they think and
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therefore this increases the sales. The technological factor in the company is that it is providing
the latest technology from its vehicles and also selling the food by online mode and the
advancement in the technological factor decreases the production cost of the company
(Nandonde, 2019). The legal factors are by the introduction of the “sugar tax” in UK the
organization need to change the products to deny those taxes. The environmental factor is that
the company is eco-friendly.it has started the process of reducing the waste in the BEEF and
lamb supply chain and reducing the carbon emission.
Apply a SWOT or TOWS analysis to your organization to identify their key strengths and
weaknesses.
The SWOT analysis of the Sainsbury’s Plc. Company is a tool that can support the company in
determining what it does best right till now and helps in develop a successful strategy for the
future. This exposes the areas where individuals are holding back or how the competitors can get
profit. This helps in identifying the strength, weakness, opportunities and threats of the
Sainsbury’s Plc. Company and all these factors are interrelated with each other for providing
powerful strategies for gaining success and growth rate.
Strength of Sainsbury’s- The Sainsbury’s plc. . Company is listed under the constituents of the
London stock exchange and from this individuals can buy shares and trade whenever they want
to. The strategies used by the company are very innovative and can directly use against the
competitors. The company have a great hold on the customers because of providing high quality
products and have a good relationship with the customer base (FATRICIA, 2018).
Weaknesses of Sainsbury’s-the weakness of the company has been refer to those areas which
require improvement and some of the weak points of Sainsbury’s plc. Company is the company
is reducing the margin by keeping the price lower for attracting customers, increase in prices
because of the pandemic situation, financial instability, expensive for some customers and brand
switching.
Opportunities for Sainsbury’s –Sainsbury’s is one of the largest supermarket and they have
many opportunities like it provide a service of 24*7 and this makes the process easier and
increase the sales, the company have a very huge network in the UK and get an opportunity for
expanding their business according to the latest trends, global expansion,, economic shift and
growth in villages (Xiao, Chen,and Yu, 2021).
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Threats in Sainsbury’s – Sainsbury’s have many threats and it is very essential to mitigate the
issues before they become a victim to the company. Some of the threats or barriers faced by the
company are COVID-19 Pandemic, globalization, competitors, controversies and the last one is
change in the rules and regulations.
Present a critical reflection of key findings and evaluate how they influence the decision-making
process
The Sainsbury Organization incorporates numerous miniature elements which helps in
developing the association all the more successfully by giving different methodologies to
support in this aggressive climate and the a portion of the variables are clients, workers for hire,
hopefuls and other selling intermediates. Because of the rising idea of clients the Sainsbury
Organization is in under tension for expanding the assembling cost of the items however because
of numerous outcomes looked by the organization like expanding in the cost of petroleum and
diesel and this is making the costs of food items extremely high and this happened in view of the
job of BREXIT.The organization ought to take some advantage of the possibility of giving the
socio culture in the organization which has monstrously changed the food results of the
organization and presently coming about they are giving new food less calories and fat in them.
Expanding in web-based requests of the items in the organization makes the organization more
useful and beneficial (Simon,2020).The Sainsbury Organization has been expanding the rescue
and reuse of byproducts and decreasing the carbon discharge in the nature for expanding the
ecological maintainability and this training is expanding the interest of investors in the
organization. For the Sainsbury organization has framed an excellent brand name and notoriety
among the clients which helps in expanding the market region outside the actual limits. For
diminishing the hurtful environment influences the organization ought to focus on utilizing
paper packs which are reusable instead of utilizing plastic sacks. Similarly the strength and
weaknesses in the SWOT analysis helps in evaluating the awareness of the areas in which the
company demonstrates the strength and acknowledge its weaknesses (Vecchiato, 2019). The
strength and weakness of the organization are interrelated with each other it provides area of
potential improvement and then they address the weaknesses to build upon the strengths.
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CONCLUSION
The report have there are many types of organizations and these organizations have various
size , scope , vision ,mission , business objectives and some legal and organizational structure. In
the report the organization structure of the Sainsbury’s Plc. Company has been described with its
type, size and scope. For running any business the business functions are required like
operational process, marketing management and Human Resource Department. All these factors
of Sainsbury has been illustrated in the report. For determining the internal and external factors
of the Sainsbury’s Plc. Company the PESTLE and SWOT analysis has been elaborated and how
they are interrelated with each other. The impact of micro and macro on the decision making
process is also described in the report as well.
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REFERENCES
Books and references
Kaplan, R.S., and et.al, 2018. The strategy-focused organization: How balanced scorecard
companies thrive in the new business environment. Harvard Business Press.
Al-Mamary, Y.H., Shamsuddin, A. and Aziati, N., 2019. The different types of business
organizations: A review. International Journal of Research, 1(7), pp.333-339.
Accounting, F. and Accounting, C., 2020 .Financial Analysis of Sainsbury’s An Example of
Financial Analysis.
Bennett, J.T. and Snavely, W.P., 2020. Nonprofit organizations. In The Encyclopedia of Public
Choice (pp. 722-724). Springer, Boston, MA.
Sainsbury, D., 2021. Women's political representation in Sweden: Discursive politics and
institutional presence. Scandinavian Political Studies, 27(1), pp.65-87.
Wind, Y., 2021. Marketing and the other business functions. Wharton School, University of
Pennsylvania, Marketing Department.
Salma, U. and Shaheen, F., 2019. Developments of Information and Communication
Technology in Relation to Human Resource Management. Putaj Humanities & Social
Sciences, 20.
Gidley, J., 2020. Sainsbury s brings graduate recruitment in-house. Strategic HR Review.
Perera, R., 2019. The PESTLE analysis. Nerdynaut.
Fengyi, Z., 2021. The Analysis of Asda-Sainsbury’s Merger/Acquisition. Journal of Finance
Research, 5(1), pp.1-6.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence, 38(4), pp.54-61.
FATRICIA, R.S., 2018. SWOT ANALYSIS OF SAINSBURY’S SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan, 5(1), pp.19-35.
Xiao, B., Chen, Q. and Yu, Z., 2021, April. Research on the Investment Value of Sainsbury’s.
In 2021 6th International Conference on Social Sciences and Economic Development (ICSSED
2021) (pp. 108-115). Atlantis Press.
Simon, H.A., 2020. Rational decision making in business organizations. The American economic
review, 69(4), pp.493-513.
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Vecchiato, R., 2019. Environmental uncertainty, foresight and strategic decision making: An
integrated study. Technological Forecasting and Social Change, 79(3), pp.436-447.
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