Business Assessment Report: Sainsbury's Business Context Analysis

This report presents a business assessment, focusing on the micro and macro factors influencing a firm. It begins with an introduction to business assessment and its importance for achieving organizational goals. The report then delves into micro factors, including competitors, employees, suppliers, and media, analyzing their impact on business strategies and competitive advantage. It provides a PESTEL analysis of Sainsbury's, examining political, economic, social, technological, environmental, and legal factors. The report further explores ethical behavior and sustainability, emphasizing corporate social responsibility, communication, and charitable causes. The conclusion summarizes the findings, highlighting the significance of business assessment and ethical practices for profitability and attracting customers. References to relevant books and journals are included to support the analysis.

Context of Business
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
Micro factors - .......................................................................................................................1
PESTEL analyses of Sainsbury .............................................................................................2
LO 2 ................................................................................................................................................4
Ethical behaviour and sustainability ......................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
Business assessment help the enterprise to achieve the goals and also help to grow and
expand in smart ways. In these report it will cover how the micro and macro factor affect the
firm. Further it will highlight that how individual and organisation manage sustainability and
how the firm behave in ethical way in relation to social , culture , economic and environment
factors. .
LO 1
Micro factors -
Competitors – The first micro factor that affect the firm in nature of business environment is
competitor as now days' competition became very tough as it gives direct impact on business
strategies. It is important to analyses the competition and to have competitive advantage as every
firm enjoy monopoly. It is necessary for the organisation to analyses the product of competitor
and also to provide the benefit to the customers which the competitor is not providing so that
customers get attracted and it directly increases the sales (Mason, 2017).
Employees – Employees are considered as the asset of the company as skilled and well trained
employees help the firm to achieve the goals of the organisation . For this proper and time to
time training are to be given to the employees. As if the employees does not work in effective
and efficient way then it will affect the Sainsbury to the large extent .
Suppliers – Suppliers plays important part in the organisation as it influence the firm 's business
strategy as suppliers provide raw material to the Sainsbury and if the relationship with the
suppliers is not strong then it will directly impact the production process. If the services of the
suppliers are not provided on time then it affects the sales of the firm.
Media and social Media – It is necessary for the organisation to maintain strong relationship
with the media as in the modern environment media plays a major role as if it shows negative
aspect of the Sainsbury then it will directly impact the buying behaviour of the firm hence , it
will affect the profit of the firm (Phadermro , Crowder and Wills , 2019).
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PESTEL analyses of Sainsbury
Political factor
Political factor have a great impact on the business in nature of modern environment as
the factor include different types of policies, fiscal policy, trade barrier, foreign trade policy ,
instability in the economy etc. As if the policy enforce by the government is not favourable to
Sainsbury then it might affect the working of the business and it will directly impact negatively.
As in modern environment there is low employment level so government is encouraging retail
industry to provide job to unemployed people (Wang and et.al., 2016).
Economical factor
Economic factor are the factor which impact the economy to the large extent. It includes
taxation policy, inflation rates, interest rate, disposable income of the consumer and
unemployment rates. If the inflation rate increases then it will directly affect the buying power
of the customers and it will have negative impact. On the other hand if income level of the
customers rises then the sales of Sainsbury increases and it will give positive impact. These
factor have direct and indirect effect on the working of Sainsbury.
Social factor
Social factor effect the retail industry as in changed in nature of modern business in
global environment as it include the preferences, taste, belief, eduction status, cultural factor and
lifestyle. If the education level of the country is low then it will directly affect the sales as
customers and in impact in negative way. Nowadays people are more conscious about their
health and prefer healthy food over oily one so Sainsbury has to kept in mind about the
preferences of the customers (Policy, 2016).
Technological factors
As technology is moving fast day by day and Sainsbury has string command on online
marketing and also in modern business customers are more preferring online marketing and
home delivery concept hence it eliminating the cost of labour. Sainsbury is also investing huge
amount on technology advancement to gain competitive advantages. And also it will give
positive impact to retail industry as it has open more doors for selling goods and services .
Environmental factor
Recent trends has influence UK clothing retail industry As in modern business customers
are serious about the environment and force industry to use environment friendly materials.
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Sainsbury has also reused and recycle the products to minimise the wastage and also it
committed to minimise the carbon footprint by 2020.
Legal factor
Legal factor include new rules and regulation which is enforced by the government. It
required proper study to carry the business. Recently government of UK has introduced sugar tax
aims to reduce content in sugary drinks by 20% which will impact the Sainsbury. As it will
influence the production of the industry as it will affect negatively.
LO 2
Ethical behaviour and sustainability
The individual and the organisation responsibility to behave in the ethical manner in relation to
social cultural, economic and environment issue. The first way to behave ethically is to full fill
the corporate responsibility for that it will help Sainsbury to improve its brand image so that
more customers get attracted towards the brands. Second ethical behaviour is to communicate
with the customers and the employees in appropriate manner that is polity, so that it will leave a
good mark on the customers. And also provide after sales services to build good relation with the
customers . The third way to manage sustainability and behave ethically is to do charitable
causes so to build goodwill of the company and also it is necessary for the individual and
organisation to work fairly and in honest way to gain competitive advantage. (Ruziwa, 2015).
CONCLUSION
From the above study it is concluded that business assessment help the company to fulfil its
goals and to generate more profit. And also in these report it has highlighted the micro and macro
environment factor in nature of modern business. Further it has concluded that the business has
to behave ethically and manage sustainability by fulfilling corporate social responsibilities and
also work in fair and honest manner so to attract many customers.
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REFERENCES
Books and journals
Mason, R. O., 2017. Four ethical issues of the information age. In Computer Ethics.(pp. 41-48).
Routledge.
Phadermrod, B., Crowder, R. M. and Wills, G. B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management.44.pp.194-203.
Policy, P., 2016. What is pestle analysis.
Ruziwa, M., 2015. PESTLE analysis vital for strategic decision making. COMTEX News
Network, Inc. Africa News Service.
Wang, H. and et.al., 2016. Corporate social responsibility: An overview and new research
directions: Thematic issue on corporate social responsibility.
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