Analysis of Sainsbury's Case Study: HR Planning and Environment

This case study examines Sainsbury's job cuts in 2003 as part of a company restructuring. The analysis explores how analyzing the internal and external environments could have aided Sainsbury in its decision-making. It uses SWOT and PESTLE analyses to evaluate strengths, weaknesses, opport...Read More

Case Study of Sainsbury

Table of Contents
TASK...............................................................................................................................................3
Explain how analysing the internal and external environment would have helped Sainsbury in
above situation........................................................................................................................3
Which part of human resource planning process is the case study relating too.....................4
REFERENCES................................................................................................................................5

TASK
Explain how analysing the internal and external environment would have helped Sainsbury in
above situation
Internal environment includes all the factors within an organisation that could affect the
performance and productivity of business. The Internal environment includes financial resources,
information resources, organisation’s goodwill, physical resources, technological resources and
human resources. These factors can directly create an impact on functioning and operations of
business. The Elements of Internal environment are owners, board of directors, shareholders,
organisational culture, resources of company and firm’s image (Biswas and O’Grady, 2016). The
Organisation has a power to control these factors and take precautionary action to overcome the
issues in order to run business efficiently and effectively. External Environment includes the
forces that affect the profitability, functionality and performance of Company in indirect way.
The Business gets impacted by External factors that exist outside the boundaries of Organisation.
The Elements of External environment are divided into two categories they are micro and macro
environment. The Micro environment includes competitors, customers, intermediaries, suppliers
and many others where as macro environment includes economic, environmental, social,
political, legal and technological factors (Chidiac, 2018). For analysing the Internal Environment
the best strategic management tool is SWOT analysis where as for analysing the External
environment the suitable tool is Pestle Analysis.
Strength
 Largest Supermarket Chain in UK
 The Company has strong market share
with diversified business
Weakness
 High Food price affects the selling
price of Sainsbury.
 Faces risk from brand switching
Opportunity
 New Market Expansion
 Offering products and services to
different types of customers
Threat
 High Competition within every
segment
 Quality and price of the products

Pestle analysis
Political
Brexit has affected the
company profitability
Social
Focus more on online
collaboration
Economical
Rising fuel cost and salary is
the economic concern of
Sainsbury
Technological
Implement new technologies
in order to attract customers
and employees.
Legal
Follow the laws and regulation
of Each country in which they
are operating
Environmental
Reduction of carbon emission
Which part of human resource planning process is the case study relating too
In the Case Study of Sainsbury, company is planning to cut the jobs of Staff as it is the
process of human resource department. They are responsible to handle all the issues and conflicts
related to the employees of the Organisation. Sainsbury must ensure that the human resource
department must make an effective human resource planning process in order to manage the
Staff efficiently without facing shortage of Employees. As Human resource planning helps in
making firm more productive and profitable it includes five stages: analysis of Organisational
plans and objectives, analysis of human resource planning objectives, forecasting for human
resource requirements, assessment of supply of human resource and matching demand and
supply (Ghobakhloo, Azar and Tang, 2019). The Human resource planning is required so that
company can meet their current and future demands of Staff. The part of human resource
planning which is related to Case Study is matching demand and supply. Sainsbury is focusing
on the employees with productive outcomes and the number of staff which they required in
Organisation.

REFERENCES
Books and Journals
Biswas, S. and O’Grady, W., 2016. Using external environmental reporting to embed
sustainability into organisational practices. Accounting Research Journal.
Chidiac, M. A., 2018. The organisational self: a gestalt view of organisational functioning.
In Relational Organisational Gestalt (pp. 29-42). Routledge.
Ghobakhloo, M., Azar, A. and Tang, S. H., 2019. Business value of enterprise resource planning
spending and scope. Kybernetes.