This report analyzes the business strategy and the role of Human Resources (HR) within Sainsbury's, a UK-based retail company. It begins by highlighting the importance of understanding internal and external environments for effective HR functioning. The report employs PESTEL analysis to examine external factors like political, economic, social, and technological influences, and their impact on Sainsbury's, including challenges from globalization, economic fluctuations, technological advancements, and social trends like the demand for organic foods. It also compares PESTEL with SWOT analysis, highlighting their respective uses in analyzing external and internal environments. The report then explores HR strategies and practices, including the influence of organizational culture, talent acquisition, and employee engagement. It details key stages of strategy formulation and implementation, including planning, positioning, formulation, implementation, and evaluation, and emphasizes the role of HR at each stage, such as being a strategic partner and change agent. Furthermore, the report discusses HR's contribution to business ethics, using Good Corporation as an example, and examines how HR responds to change through models like the triple bottom line, focusing on selection, staffing, and change management. The report concludes by discussing various data sources used for business planning and contextual data relevant to Sainsbury's.