Sainsbury's Analysis: Impact of External and Internal Factors Report

This report provides an analysis of Sainsbury's, focusing on both internal and external factors that influence its operations and performance. It begins by highlighting the importance of understanding these factors, referencing frameworks like SWOT and PESTEL analyses. The report then delves into Sainsbury's external environment, discussing the impact of political factors such as Brexit and its effects on import rates. It also examines economic factors, particularly the company's reliance on road-based transport, and social factors, including changing consumer behaviors. The report also addresses technological factors, such as the implementation of e-commerce to adapt to the current technological advancements. Furthermore, the report discusses the company's internal factors, including its strengths as a major supermarket chain and its weaknesses, such as rising food prices. The analysis emphasizes the importance of adapting to these factors for business growth.

Introduction
Organisation is affected by both internal
and external factors and that's why it is very
necessary for the organisation that they
should identify internal and external factors
with the application of some important
frameworks (Kaya and et. al., 2021). For
that purpose, there are two important
frameworks such as SWOT analysis and
PESTEL analysis model.
Sainsbury And Its Environment
External Environment
Political Factors: Sainsbury identified that the
biggest political factor which impacted is Brexit. It
is identified that now European Union and England
has no longer relationship. This gives a great
impact on import rate as it increase due to
separation of European Union and England.
Economic Factors: It is identifying that Sainsbury
is depend on road based transport as it is highly
dependable on ships for the purpose of transferring
their products in order to sell their goods.
Social Factors: Social factors are consists of
customer changing behaviour, socio cultural
climate which gives a great impact on Sainsbury.
Technological Factors: Day by day the regular up
gradation in technology becomes very challenging
for Sainsbury as it gives a great impact on the
success and growth of business. For considering
technological factor, Sainsbury introduced their E-
Commerce store which becomes very helpful in
order to cater the current technological friendly
generation (Alanís Navarro, Alanís Cantú and
Barón, 2020).
How the company impact its
context External Environment
It is analysed from the above discussion of
external and internal factors that there are many
factors of external environment provide
opportunities as well as threats to the company.
That's why it is very necessary for organisation
to critically analyse the impact of external
factor. If company analyse that it provide
opportunity to the organisation then they take
action accordingly and if they found that
external factor becomes threats for organisation
then they should take immediate action in order
to reduce the challenges.
Internal Factors
Internal factors are consists of all factors
which include the core competencies and
capabilities of organisation which gives a
great impact on success and growth of
Sainsbury (Haddoud and et. al., 2019).
Strengths:
•It is identified that Sainsbury is one of the
largest supermarket chain in England.
Weaknesses:
•It is analysed by Sainsbury that rising in
food prices gives a great impact on their
selling price.
References
•Alanís Navarro, J. A., Alanís Cantú, R. and Barón, A.,
2020. Internal & external causes determining the
academic performance of the university student. RIDE.
Revista Iberoamericana para la Investigación y el
Desarrollo Educativo, 11(21).
•Haddoud, M. Y., and et. al., 2019. Internal and external
determinants of export performance: Insights from
Algeria. Thunderbird International Business
Review, 61(1), pp.43-60.