Analysis of Internal and External Factors in Business Studies

This report provides an introduction to business studies, focusing on internal and external factors that impact an organization's performance. It explores the strengths and weaknesses of a company, including innovative promotional strategies and the need for competitive pricing. The report delves into external factors using PEST analysis, addressing political factors like Brexit, economic factors such as inflation, social trends towards healthy products, and technological advancements. It examines the impact of these factors on various departments, including HR, finance, and marketing. The analysis concludes that understanding both internal and external factors is crucial for a company's profitability and sustainability. The report references several academic sources to support its findings.

Introduction to Business Studies

 Introduction
 Internal factors
 External factors
 Internal and external factors
 Conclusion
 References
Table of content…

Business studies refers to the wide subject that helps in showing the various
aspects of the business that includes finance, marketing, human resources,
business environment etc. in this business environment is the collection of
internal and external factor that will impact the whole organisation ability
and capacity of working and its profit organisation.
Introduction

Strength
 The main strength of the company is that the innovative promotional
strategies that are adopted and used to place a high brand position in the
marketplace and gain the competitive advantage in the marketplace.
Weakness
 To grow the competition in the competitive market they need to set the
price on the low margin. This will add the risk in a way it increases the
cost of production as compare to selling the products.
Internal factor

CONTINUE…
Opportunities
 The main opportunity is the
village where the company
see more growth because
now a days village people
are also using the branded
products.

External factors
 To external analyse the
manager of the Sainsbury’s is
used to PEST analysis so that
they will find the opportunities
and threats that was taken
place in the company at the
time of earning profits.

 Political factor – In this factor political condition of the UK is
not stable because of Brexit. in this UK is voted for leave the
EU Union this will create a threat to the Sainsbury’s as they
cannot easily import the raw material for the abroad because
of increasing t5he cost of the foreign products.
 Economical factor – This factor includes the inflation rate,
supply and demand, exchange rates etc.
CONTINUE…

 social factor – as per the today’s world people of the UK is
more demanding the healthy products and avoid to eat junk
food because of their health related issue like obesity.
 Technological factor –This factor is very demanding and
trending in the 21st century as people are more addicted to use
the advanced technology and spending more of their time on
internet.
CONTINUE…

 HR department – one of the major weaknesses is that
increasing the salary of the employees this will reduce the
overall profit of the Sainsbury’s.
 finance department – In this the as a external factor political
factor is included that shows that because of Brexit company
face the problem of importing the products on the low cost and
this place a force on the finance department to increase the
price of product and push the customer to spend high.
Internal and external factors

CONTINUE…
 Marketing department- it
place an major opportunities
as they place an effective
promotional tool to attract
the large customer base.

 From the above analysis of the report it is to be concluded that
doing the analysis of the business firm in an external and
internal way create a big advantage for the company profits
and its sustainability.
Conclusion

 Cleary, T.J., Dembitzer, L. and Kettler, R.J., 2015. INTERNAL FACTOR STRUCTURE AND
CONVERGENT VALIDITY EVIDENCE: THE SELF‐REPORT VERSION OF SELF‐REGULATION
STRATEGY INVENTORY. Psychology in the Schools. 52(9). pp.829-844.
 Cuypers, I.R., Ertug, G. and Hennart, J.F., 2015. The effects of linguistic distance and
lingua franca proficiency on the stake taken by acquirers in cross-border
acquisitions. Journal of International Business Studies. 46(4). pp.429-442.
 Igliński, B. and et. al., 2016. Renewable energy production in the Łódzkie Voivodeship.
The PEST analysis of the RES in the voivodeship and in Poland. Renewable and
Sustainable Energy Reviews, 58, pp.737-750.
 Pudelko, M., Tenzer, H. and Harzing, A.W., 2015. Cross-cultural management and
language studies within international business research: past and present paradigms
and suggestions for future research.
 van Hoorn, A. and Maseland, R., 2016. How institutions matter for international business:
Institutional distance effects vs institutional profile effects. Journal of International
Business Studies. 47(3). pp.374-381.
 Watson, J.C., 2017. Establishing evidence for internal structure using exploratory factor
analysis. Measurement and Evaluation in Counseling and Development. 50(4). pp.232-
238.
 Yuliansyah, Y., Rammal, H.G. and Rose, E., 2016. Business strategy and performance in
Indonesia’s service sector. Journal of Asia Business Studies.
References