Business in Practice 1: Sainsbury's Factors and Impact Report

This report analyzes the business operations of Sainsbury's, a leading UK supermarket chain, examining the impact of both internal and external factors. The report utilizes PESTLE and SWOT analyses to evaluate the political, economic, social, technological, legal, and environmental factors affecting Sainsbury's, as well as its strengths, weaknesses, opportunities, and threats. The report highlights how Sainsbury's is impacted by factors such as Brexit, changing consumer preferences, and technological advancements. It further explores how Sainsbury's impacts its external environment through customer relationships, green marketing, technology adoption, and adherence to legal procedures. The conclusion emphasizes the significance of these factors for Sainsbury's overall performance and growth.

Business in Practice
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
Explain how internal and external factors impact on specific business.................................1
TASK 4............................................................................................................................................2
Explain the different ways in which an organisation can impact on external environment...2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
A busines is defined as an organisation that is engaged in the commercialization or the
industrialization. They can operate their operation on two motive profit oriented and non-profit
organisations(Gabryelczyk and Roztocki, 2018). There are various factors which impact the
functionality of business enterprises and the chosen organisation for this report is Sainsbury, it is
the top leading supermarket chain in the United Kingdom which is established by John James
Sainsbury in 1869. This report will cover the impact of internal and external factor on business
and how an organisation will impact the external environment of the business.
TASK 3
Explain how internal and external factors impact on specific business.
There are various means by which an organisation can be affected an for analysing the
external environment, PESTLE analysis is being conducted and for analysing the internal
environment, SWOT analysis is being conducted.
PESTLE Analysis
It is the framework of analysing the macro environment of the business that how an
organisation is being affecting with the external environment. It includes political, economic,
social, technological, legal and environmental factors. In context of Sainsbury, these factors are
describing below:
 Political factors: These are the factors which is concerned with the taxation rate political
stability policy etc. (Foss and Saebi, 2018). Sainsbury is the global organisation which is
operating their business in different reason so it is not possible to and forced all the
Government rules must be followed in their operations so it negative impact on business.
On the other hand sainsbury's a UK based company and the government of UK stable so
it will benefit in the smooth functioning of their business.
 Economical factors: These are the factors which includes inflation rate, disposal income
of the consumer etc. There is a huge impact of Brexit that decline the GDP and reduce the
earning of the company.
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 Social factors: deserve the factor which includes demographics cultural trends attitude
change accept and young generation is obsessed with the junk food but salad and shakes
take over it Sainsbury have to to produce organic food so that they can maintain aur
contribute in healthy life of an individual (Bertschi-Michel, Kammerlander and Strike,
2020).
 Technological factors: These are the factors which includes the change in the technology
are the companies in innovating their process or product. Sainsburys using advanced
technology in meeting the current trends in the market and offering online mode of
business to their potential customers so that they can cover a large market.
 Legal factors: These are the factors which includes the employment law and tarrif and
trade restrictions. Sainsbury's operating their business in the lawful manner but
sometimes it quite tough to follow all the law in order to operate their business in
appropriate manner(Baldoni, Baroglio and Micalizio, 2018).
 Environmental factors: These are the factors which come in consideration after
emphasising on corporate social responsibility. Sainsbury has committed to reduce the
use of carbon and single use plastic by initiating to offer packaging through organic
material.
SWOT Analysis
Strength Weakness
 Companies having diversify business
with strong market share.
 Sainsburys generating consistent
profitability with strong balance sheet.
 Food product have to low profit
margin due to which they are
experiencing reduction in revenue.
 There is a single operating market for
the company.
Opportunities Threat
 Company can expand their global
market by introducing online mode of
business.
 Innovation in there technology
analytics so that customer insights can
be measure in order to understand
 There is huge impact of Brexit on the
prices of Sainsbury.
 Intense competition in retail industry
that is reducing the profitability of the
company.
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them.
TASK 4
Explain the different ways in which an organisation can impact on external environment.
There are different ways by which an organisation can impact the macro environment
which are enlist below-
 Create effective relationship with customers: when the organisation do that effective
market research and understand the needs and wants of their potential customer it will
help in building a strong relationship with them so that they can retain their loyal
customer.
 Initiate green marketing: It is the process of promoting the products that contribute in
sustainable environment so that company can establish a strong brand image in the
market.
 Adopt advance technology: In today's world everyone is seeking for a advance product so
in order to get the higher profitability and growth in an organisation (Athanasopoulou,
Haaker and de Reuver, 2018). They must adopt a innovative and advanced techniques so
that they can make the required change in their various operation in order to meet the
objective of the business.
 Follow legal procedure properly: it is the aspect which says that an organisation can
create a powerful impact on external environment by following all the rules and
restrictions that in force by the government in order to run their business in lawful
manner so that they can establish a good brand image in the market.
It is analyst from the above discussion that there are various factor by which organisation
is in fact in the external environment of the business pirates bay implement exchange and their
technology and run their business and lawful manner in order to attaining high profitability and
growth.
CONCLUSION
It is concluded from the above report that there are various internal and external factor
that is impacting the business. PESTLE Analysis has been conducted and there is a positive
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impact of social and technological factor. another and there is a negative impact of political and
legal factor on the business. Organisation is impacting the external factor by doing market
research, building a good relationship with customers adopt and innovative techniques in their
business so that they can attain the high level of profitability and growth.
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REFERENCES
Books and Journals
Athanasopoulou, A., Haaker, T.I. and de Reuver, G.A., 2018. Designing digital tooling for
business model exploration for the Internet-of-Things.
Baldoni, M., Baroglio, C. and Micalizio, R., 2018, November. Goal distribution in business
process models. In International Conference of the Italian Association for Artificial
Intelligence (pp. 252-265). Springer, Cham.
Bertschi-Michel, A., Kammerlander, N. and Strike, V.M., 2020. Unearthing and alleviating
emotions in family business successions. Entrepreneurship Theory and Practice, 44(1),
pp.81-108.
Foss, N.J. and Saebi, T., 2018. Business models and business model innovation: Between wicked
and paradigmatic problems. Long range planning, 51(1), pp.9-21.
Gabryelczyk, R. and Roztocki, N., 2018. Business process management success framework for
transition economies. Information Systems Management, 35(3), pp.234-253.
Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: family
business innovation and the human, social, and marketing capitals. International Studies
of Management & Organization, 48(1), pp.88-104.
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