Business and Environment Analysis Report on Sainsbury's

This report provides a comprehensive analysis of Sainsbury's, a major supermarket chain in the United Kingdom, examining its business environment. The report begins with an introduction to the business environment and an overview of Sainsbury's. It then delves into different types of organizations, including public, private, and voluntary sectors, using NHS, Sainsbury's, and Oxfam as examples. The report explores the scope and size of these organizations, followed by an analysis of organizational structure, culture, and leadership styles within Sainsbury's. It also examines the interrelationship between marketing and other management functions. The core of the report involves a PEST analysis of Sainsbury's, covering political, economic, social, and technological factors, and a SWOT analysis. The report concludes by illustrating the interrelationship between the SWOT and PEST analyses, offering a holistic view of Sainsbury's business environment.

BUSINESS AND BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
PROJECT PART 1..........................................................................................................................3
P 1 Overview of different type of organization...........................................................................3
P 2 Scope and Size of the Company............................................................................................4
P 3 Interrelationship and Objectives of Organisation Structure.................................................5
P 4 PEST Analysis of Sainsbury.................................................................................................7
P 5 SWOT Analysis of Sainsbury...............................................................................................8
P 6 Interrelationship Between SWOT and PEST Analysis For Sainsbury..................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment can be defined as that environment in which macro and micro
environmental factors influences working of business. Present report will lay emphasis on
Sainsbury. It is the third largest super market chain in United Kingdom. They have a share of
15.3% share of the super market sector. Assignment will lay emphasis on the various types of
organization and their purpose. It will also focus on size and scope of organization, their mission
and vision. Report emphasises on macro environmental factors that affect working of an
enterprise.
PROJECT PART 1
P 1 Overview of different type of organization
There are various types of organizations and all these enterprises have different type of
structures. This includes the following:
Public Sector organization
These type of firms are owned and operated by government so that they provide services to their
citizens. Like for example National health service is the public health care organization which is
being established in United Kingdom. Organization is being engaged in providing free health
care services to residents of United Kingdom. (Tregear, 2015)
Purpose
Purpose of NHS is to provide high quality health care services to patients. The organization is
being engaged in providing primary health care, patient care and long term health care services
so that they can improve health outcome of patients.
Private sector organization
These type of enterprises is owned, run and governed by individuals. Owners mainly run
business to create high amount of profit. This organization has the maximum limited of member
of 200. For example Sainsbury is the private company which is the retail store organization. The
company is listed as a private company and also have objective to maximize their profit margins
to increase the growth of the company.
Purpose
Sainsbury main objectives id to increase the profit margins and achieve the competitive
advantage in the market. The company also ensure that the resources are effectively allocated
and utilized to reduce the cost of operations and increase the efficiency of the company. The
3

company have a vision to expand in the new market which also provide new employment
opportunities to the population in the market.
Voluntary Sector Organisation
This organization is the support systems of the society which provide the social upliftement to
the lower and needy class of the society. The organisation is established to increase the social
value and value of the population of the region. This will also help the people to educate and
increase the knowledge to generate more capital which will help the economy to grow more
effectively. Oxfam is the organisation which increases the awareness of the society and alo help
the poor people.
Purpose
The main purpose of the organization is to provide support to the poor and needy people and
they also help to decrease the poverty with many campaigns and welfare programs. it also focus
on increasing g the social peace. (Liu and et.al, 2016)
P 2 Scope and Size of the Company
Size
1. NHS- the organisation have employed more than 100000 doctors and 150000 nurses to
ensure the proper treatment of their patients and they also increase the technical staff
which can operate the high end machines to try the diagnosis of the patients. There are
many home care takers which help to take care of the patients at the home. NHS also
have a large network of ambulance staff which have a very effective skill of commuting
in the cases of emergencies.
2. Sainsbury- the organisation deals in the retail products and have 15% market share of
UK. The company have the 1415 shops all over the world with the employees of around
186000. The company also have different subsidiaries which operate in banking,
supermarket. The company also focus on the investing on the new market to increase the
growth of the organisation. The gross revenue of Sainsbury is around 28 billion Pounds.
(Newell and et.al., 2016)
3. Oxfam- it is the organization which is established worldwide and have spent around 1.5
billion Pounds in increasing the social welfare and also the organization withstand around
4

22 million people and still counting and they also support the women protection
awareness and women empowerment campaigns.
Scope
1. NHS- The quality of the services and treatment is vision to be improved and many
strategies are made to increase the quality of the services. The organization also
focuses on improving the methods and procedure of surgeries which will increase the
chances of better cures in the patients. The organization have majorly emphasized on
the heart diseases and increased the knowledge and skills of the doctors and the
nurses to treat the patients better.
2. Sainsbury- the company is focusing on three basic things in making the better
functioning. The company focus on the employee motivations and providing them
with the better and healthy work environment to increase the internal stability of the
organization. The company also emphasize on increasing the products and services to
increase the satisfaction level of the customers and make the better image in the
market to attract more customers. The company also focus on the after sales services
by promising them to solve all the issues and problems they face in the products and
services and the customers are free to give their feedback to their company’s site.
3. Oxfam- it is know as the legal and justice provider for those people which are
invisible and not the government try to support them. They also help to educate the
people and provide them loan to support in their livelihood and business to stand on
their feet. The organization also conduct awareness campaigns about equality and
many other moral aspects of the social background to increase the standard of living
of those people by providing them the equal chance. (Levi-Jakšić, Jovanović and
Petković, 2015)
P 3 Interrelationship and Objectives of Organisation Structure
Sainsbury is the retail supermarket which have many stores in UK and also m=have to adopt the
effective management structure to increase the efficiency of the organization. This also helps the
organization to achieve the objectives and make them increase the quality of products and
services. The organization uses the hierarchical management structure which will help to
increase the efficiency of the employees and all the level of the management respectively. Due to
5

the different organization structure it also help the management to make an effective decision
making power and also develop new strategies with better vision.
Culture
the culture of Sainsbury is very unique and very aggressive in achieve the objectives by pushing
the limits of their employees and making them more potential in doing their work. This also help
the employees to gain more knowledge and skills to perform better tasks and also develop
themselves while doing the job. The culture of the organization also help to provide a increased
coordination of the employees in understanding the vision of the organization. This culture of
Sainsbury also provide the liquidity in the organization and sense of work environment to
complete the task and also it depicts the culture, values and ethics of the employees in the
organization. (Kasemsap, 2018)
Leadership style
The organization is also very effective in adopting the leadership styles as it plays an important
roles in influencing the employees to achieve the objectives efficiency and also help them to get
motivated. As they also help the employees to provide proper guidance and support in every step
to increase the experience so that they can take their own decision and also increase the
efficiency of the employees.
Interrelationship between marketing manager and other manager of Sainsbury
 Marketing manager and finance manager- the interrelationship between marketing and
finance is from the beginning of the organization and it is very important relations among
all the relation as marketing is the resources by which the company will grow and fiancé
are the fuel through which they will increase the efficiency of marketing and increase the
sales of the company. Sainsbury have to determine the financial statement of the
organization so that they can analyze the cost of production and also formulate the
pricing policies of the products and services taking into consideration all the cost incurred
in the marketing of the products and services which will be added in the cost of the
product. (Hachicha and et.al., 2016)
 Marketing and Human Resource-As marketing help to flow the products and services in
the market to increase the sales of the company the Human resources manager are also
responsible to develop the human resources which is employees of the company so that
6

they can improve the productivity of the company as marketing is also supervised by the
HR manager to understand all the skills and potential knowledge which is needed for a
marketing manager. The hr manager is also responsible to evaluate all the skills is is
required and recruit the talents from outside and inside the company to increase the
efficiency of the company.
P 4 PEST Analysis of Sainsbury
Sainsbury have to analyse the external business environment in order to understand all the
factors and Pest analysis is the best method to evaluate the market and formulate the effective
strategies which will help the company to increase the efficiency and help to expand the
company into the new market with less risk of the various factors as Sainsbury is multinational in
and operates in different countries so the company have to determines the various factors
according to the different country. (Green and et.al., 2017)
Political factors
Sainsbury have to evaluate the political condition of the market and also have to understand all
the government policies. The company have to analyse stability of the government and also
corruption level of the government as it can result in the instability of the government. All the
laws and regulation related to the company’s natures will be studied. The company also got
impacted due to the Brexit and it also decreased the sales of the company. The company have to
make the effective strategy to increase the growth of the company.
Economical Factors
The company have to determine the inflation rate, GDP rate of the economy, employment rate
and unemployment rate. As it will help the company to understand the market condition and also
help to design the strategic planning for the products and services of the company. After Brexit
the economy of UK was decreased and it also impacted the foreign exchange rates and value of
the currency and plunged into the recession due to les liquidity in the market. (Geissdoerfer,
Vladimirova and Evans, 2018)
Social Factors
Due to change in the economy of the country the Sainsbury also have to analyse the buying
patterns and behaviours of the customers so that the company can make the effective strategy to
7

increase the sales and survive itself in the low economy without more loss. Sainsbury will
analyse the attitude, cultures to provide them with the better offers according to the information.
Technological factors
The company have to increase the efficiency by adopting the technology in the operations of the
company as it will help to decrease the cost and also help to increase the customers with more
accuracy. The company have to analyse the new market trends so that they can achieve the
competitive advantage and increase the sales in the market and generate more revenue to invest
in the research and development to grow and expand the company better.
P 5 SWOT Analysis of Sainsbury
This is the micro environment factors analysis which will help the company to increase the
growth opportunity and also help to exploit the opportunity with the help the effective research
and strategies from the research analysis. (Cumming and Zahra, 2016)
Strengths
 The company have to the proper vision to grow and expand the company. As it the theird
largest retail stores chain in UK.
 The company provides the best quality products ands also provides the satisfaction to the
customers with their products and services.
 The retention power of the company is very strong as the company introduce many
loyalty programs which attract the customers and also retain the old customers.
Weaknesses The company have to suffer from the switching of the brand of th customer as it also
help the customers to change their brands due to high competition in the market which
attract the loyal customers. Due to increase in prices of the raw material it is also very difficult of Sainsbury to
increase the cost of per products and this will decrease the profit margins of the company
due to high competition.
Opportunities The company also have the opportunity to develop an online score which can deliver its
products and services to the customers and also increase the market share of the
customers.
8

 Since the company is very old and it also have many experience in tradition management
the company can also open its stores in the villages to increase the sales and it will also
decrease the cost as the demand of the villagers will be low and there will be no
competition. (Cabrera and et.al., 2016)
Threats The company can suffer from losses if they do not ensure the efficiency and job
satisfaction of their employees. The company also have to make sure that the rivalry do not innovate the products and
services before them which will decrease the sales also make it difficult to survive in the
market.
P 6 Interrelationship Between SWOT and PEST Analysis For Sainsbury
1. The opportunities of the company which was the to expand in the villages and also
increase the satisfaction level of the customers is also the social factors of the pest
analysis which the company have analysed to develop the better strategy and increase the
efficiency of the company.
2. The Swot analysis is the micro analysis of the industry and the Pest analysis is the factors
analysis of the business environment which consists of all the aspects. As in internal
factors the company have to formulate the policies and legal structure to ensure that the
company is legal and true and fair. The political factors of the pest analysis also depict
the legal framework which the company have to adopt.
3. The swot and pest both help the company to grow and help to formulate the better
strategise by developing the effective research but the difference is that swot analysis is
internal analysis and can be controlled by the company and pest analysis is external
analysis which cannot be controlled by the company. (Ambler, Witzel and Xi, 2016)
CONCLUSION
This report had detailed information about the market research of Sainsbury and the different
structural fundamentals of management. The report had information about the different types of
organization. The organization structure is very essential as it help to provide the proper
9

framework to the organization and help to provide smooth functioning. The external and internal
analysis of Sainsbury was conducted in the report tom understand the different factors which
could affect the business growth and the sales of the company. The interrelation between internal
and external factors also helped the company to understand the market and also increased the
efficiency to analyze the factors with a broader vision.
REFERENCES
Ambler, T., Witzel, M. and Xi, C., 2016. Doing business in China. Routledge.
Cabrera, A and et.al., 2016. Definition and implementation of the Enterprise Business Layer
through a Business Reference Model, using the architecture development method
ADM-TOGAF. In Trends and Applications in Software Engineering (pp. 111-121).
Springer. Cham.
Cumming, D.J. and Zahra, S.A., 2016. International business and entrepreneurship implications
of Brexit. British Journal of Management. 27(4). pp.687-692.
Geissdoerfer, M., Vladimirova, D. and Evans, S., 2018. Sustainable business model innovation:
A review. Journal of cleaner production. 198. pp.401-416.
Green, J.M and et.al., 2017. Research priorities for managing the impacts and dependencies of
business upon food, energy, water and the environment. Sustainability science. 12(2).
pp.319-331.
Hachicha, M and et.al., 2016. Performance assessment architecture for collaborative business
processes in BPM-SOA-based environment. Data & Knowledge Engineering. 105.
pp.73-89.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Levi-Jakšić M., Jovanović M. and Petković J., 2015. Technology entrepreneurship in the
changing business environment–a triple helix performance model. Amfiteatru
Economic Journal. 17(38). pp.422-440.
Liu, G and et.al., 2016. Business model innovation and its drivers in the Chinese construction
industry during the shift to modular prefabrication. Journal of management in
engineering. 33(3). p.04016051.
Newell, S.J and et.al., 2016. The importance of corporate and salesperson expertise and trust in
building loyal business-to-business relationships in China. Journal of Personal Selling
& Sales Management. 36(2). pp.160-173.
Tregear R., 2015. Business process standardization. In Handbook on Business Process
Management 2 (pp. 421-441). Springer. Berlin, Heidelberg.
10