Global Business Environment: Sainsbury's SWOT Analysis Report

This report provides a comprehensive SWOT analysis of Sainsbury's, a major British retailing company operating in the global business environment. The analysis identifies the company's strengths, such as its expansion moves and business philosophy, and weaknesses, including brand switching challenges and low margins. It also explores opportunities like growth in villages and potential partnerships, as well as threats such as intense competition and globalization. The report further examines the operational impact of the SWOT analysis on the marketing and finance departments, highlighting how the analysis influences marketing strategies, customer satisfaction, and financial planning. The conclusion emphasizes the importance of timely SWOT analysis and the need to convert threats into opportunities to enhance profitability and customer satisfaction.

Global business environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY ..................................................................................................................................3
P1 SWOT Analysis:.....................................................................................................................3
P2 Operational impact analysis:...................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment is the international trade. It is defined by the different
countries, with internal and external factors. These different factors influence in decision making
of resources. Global business environment mainly captures certain factors which can affect the
business by technological change, and globalization consequences (Bedianashvili., 2016).
Sainsbury is the second largest British retailing company in UK. It has more than 1,16,400
employees working there. It covers approx. 16% of the market share. This report covers SWOT
analysis of the company and also examine the ways in which SWOT analysis can impact various
functional areas of Sainsbury.
MAINBODY
P1 SWOT Analysis:
It is a simple and a powerful tool help in determining the strength,weakness,
opportunities and threats of the organisation. Strength and weakness of the company are internal
to the company as they can easily handle or changed with in the organisation . opportunities and
threats are things going outside the business and we do not have any control over them. SWOT
analysis help in finding how business is determining its growth and achieving its target. It help in
determining the strength , Weakness, opportunities and threats of the company and presented in a
simple two by two grid. It helps in finding the realistic and the fact based data of an industry.
Firstly the swot analysis id used only by the business not it is also used by the government , non
profit organisations and the individuals also (Doh, Luthans and Slocum, 2016).
Strength:
 Right expansion Moves: It makes an expansion from the small grocery shop with the
limited products to the largest super market it covers the large part and have the growth.
In UK Sainsbury is the top supermarket.
 Business philosophy: It helps the customers to do well at the low cost so that every one
can afford it easily. This helps in creating the brand image and create a customer loyalty
with the low cost strategy.

Weakness:
 Brand switching: The brand also faces the lot of challenges when the company switch
the brand. It help in breaking the loyalty and the promotions of the customers. Sainsbury
is still facing this problem of retaining the consumers.
 Low margins: The increasing competition in the market and the risk of the online
retailers have lost the volume of most retailers(Hamilton and Webster, 2018). Because of
this Sainsbury start keeping the cost lower which is not sustainable for the longer period.
Opportunities:
 Growth in villages: The days people in the villages do not use the branded products but
now the people in the village start using the products which has increase an opportunity
of Sainsbury to sale the product more in villages.
 Partnership: It helps in emerging the new market of the companies through the joint
ventures or the partnership so that the new markets can be explored easily.
 Economies: Sainsbury may also expand its market in the growing economies so that they
can earn the profit from the developing nations also like Africa, Asia etc.
Threats:
 Competition: The company has tough competition in the market as people can easily
shift to other company. Competitors like Tesco, Aldi are some of the competitors of
Sainsbury.
 Globalization: Increasing the globalization in the markets helps in facing the challenges
of Sainsbury.
 Local distributors: Increase strength of the local distribution is also the biggest threat
for the company as the company has to pay the high margin to its distributors by which
the company earns the less profit (Kokodey, Gnezdova and Lomachenko, 2018).
 Skilled workforce: Their is the limited skilled workforce in the market which help in
reducing the profit of the company.

P2 Operational impact analysis:
SWOT analysis creates various impacts on the functional departments of the business.
The department which is choosing is finance and marketing. Marketing and finance department
are the most important departments in the company. Let discuss about the impacts on these
departments.
Impact on Marketing department:
Marketing department play a important role in every company. SWOT analysis creates a
huge impact on marketing department. As Swot means identifying companies strength,
weakness, opportunities and threats. In Sainsbury, marketing departments focuses on customer
satisfaction rather than making profit. It is generally done for the internal environment of the
company. Marketers in Sainsbury define and manage a brand of the company. They conduct
certain campaign or programmes to advertise the company's product or services. Swot helps the
company in analysing customer needs and preferences. The product which they are attracted to
etc. this identifies type of product which customers prefers. This creates opportunity for the
company to create that type of product or improve their product quality (Shageeva and et.al.,
2017).
Impact on finance department:
Finance department is a major functional department of the company. As a finance
manager, he needs to make that budget in which quality of goods is made and also company
maintains its cost. This is a very tough task. SWOT analysis impacts on the finance department
also. As if customer does not like the product or services provided by the company Sainsbury,
then he will not buy it and it create impact on finance department. Because finance manger needs
to maintain the budget in which he purchase the product from suppliers. Also finance department
ensures that his company earns competitive advantage. He needs to maintains the cost at which
customer attract towards there company not on the other competitors (Adekola and Sergi, 2016).
For that quality and durability of product is seen by finance manger. Also he needs to maintain
the salary of all the staff. This all required proper research and analysis of market and
competitors.

CONCLUSION
The company is effectively working in the UK market. It creates SWOT analysis on timely basis
and identify the task which is needed to perform to create those threat into opportunities. But it
takes time to evaluate the internal factors of the business environment. This impact s on all
functional departments of the company. Company should clearly finds the ways the opportunities
which it can turn into its strength. This helps the business in increasing its profitability and
customer satisfaction.

REFERENCES
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Bedianashvili, G., 2016. The Global Business Environment, European Integration and the
Cultural Potential of Social-economic Development of Georgia. Globalization &
Business.
Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business:
Introduction to the special issue.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Shageeva, F.T and et.al., 2017, September. Training the achievement-oriented engineers for the
global business environment. In International Conference on Interactive Collaborative
Learning (pp. 343-348). Springer, Cham.