Analyzing Sainsbury's: Business Report on Strategy and Globalization

This business report provides an in-depth analysis of Sainsbury's, a leading supermarket in the UK, focusing on its organizational structure, strategies, and the impact of internal and external factors. The report utilizes SWOT and PESTLE analyses to evaluate Sainsbury's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors affecting its operations. It also examines the interrelationship between different functions within the organization, such as marketing, IT, production, and sales, highlighting both the advantages and disadvantages of these interrelations. Furthermore, the report explores the influence of globalization on Sainsbury's strategy and decision-making processes, emphasizing the challenges and opportunities presented by an increasingly interconnected world. The analysis indicates that effective strategies have enabled Sainsbury's to overcome negative impacts, and globalization presents both growth opportunities and challenges that need to be addressed for continued success.

BUSINESS REPORT ON
CHOSEN ORGANISATION

Executive summary-
Organization has developed effective strategies that enabled to overcome the negative
impact of factors that has been determined by using PESTLE and SWOT analysis models. The
forces has considered as external and internal elements that in turn lead to increasing
organizational practices and also affect negatively upon its current tactic. Furthermore, from the
current study, it has determined that globalization open new ways for business success and
growth, and also create challenges for the same in term of creating barriers that affect venture
success and progress. The interrelation between each function in firm structure has enhanced
business performance.

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1- The type, scope and size of organization.................................................................................3
2- Analysing the interrelationship of functions on organisation structure...................................3
3- Internal and external influencers via a SWOT and PESTLE analysis on Sainsbury's............5
4- Influences of globalization on organizational strategy and decision-making.........................7
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
A business report is the key source that help an entrepreneur or other people to develop
better understanding related to success and growth of a company, either small or large. It is also
considered as collection of essential data and overall analyses, of an organization that aid to
make appropriate report easily available to a firm. The current assignment will be based on
Sainsbury's, which falls under the category of leading supermarkets in the United Kingdom. The
study will explain the size, and scope of company, and interrelationship of functions on
organizational structure. It will also define the external and internal influencers via PESTLE and
SWOT analysis on business operations. Furthermore, the report will define the influence of
globalization on decision-making and organizational tactic.
TASK
1- The type, scope and size of organization.
In the UK Sainsbury's has establishes its excellent brand image, which in return lead to
increase customer base and profits. It falls under the list of public limited type of companies, that
has operated their ventures in retail industry, with key resources that individual organization
utilize to achieve target aims and objectives. The size of chosen supermarket is vast, because it
has more than 600 supermarkets and 800 convenience outlets, where customers reach easily and
purchase products that they prefer to buy from long time, according to their favourite shopping
list. With more than, 180,000 candidate’s organization take initiative to proceed further in form
of expansion and existing operations' management. The scope of supermarket is quite easy to
comprehend via its objective that it may develop to specify further action and that is to work
with carbon trust. The main motive of this action is to appropriately define an ambitious scope of
3 target that may need reduction of absolute GHG emission up to 30% within 9 years, and to
align to below 2 C.
2- Analysing the interrelationship of functions on organisation structure.
The Sainsbury's uses hierarchical structure, which is quite beneficial for organizational
success and growth. This displays the chain of command in the firm and orders that are given
from high and then passes it up to low level. In this form of structure, all the candidates are
segregated into different sections according to their capability and work effectiveness (Diana and
et.al., 2019).

Within hierarchical structure, varied departments work together and they may have
interrelation with each other, on certain basis (malysheva and et.al., 2018). The interrelation
between the various business function may put direct impact on organizational success and
progress in the world of business.
Interrelation between marketing and IT-
Marketing uses a lot of IT, system like CRM, data warehouse this is a large level projects
and it is the responsibility of IT staff to support the marketing activities. As apps are becoming
progressively essential to the marketing IT needs to employ the required software to influence
these activities. The IT also has a vital role in keeping informed of ever-changing technologies,
along maintaining an awareness of how these may be of benefit to future marketing strategies.
Both department work in collaborative and coordinative manner, on the basis of sharing
information and taking help from each other for purpose of solving technical issues.
Interrelation between production and sales:
The production and sales may work together in order to give buyers the best quality
product that satisfy and fulfil their expectations. The interrelation of production and sales is
every essential as it may contribute to increase the performance of the enterprise. The
coordination between the sales and production fulfil the buyer’s desires and also enhance the
company's net profits.
Advantages
The relation between each department or functions in the organization may provide a lot
of benefits to the company, in form of increasing productivity. The interrelation helps in
describing the failures and success of a merchandise the relation plays a striking part in plan of
action formation, system theory and also learning organizations (Feng and et.al., 2020). Workers
with more progressive skills may execute the works or task speedily and this may cut down the
work related mistakes. This will help in aiming for the advancement and development. The key
benefit of interrelationship between each department, either marketing with IT or production
with sales, is productivity. As organization may take pleasure of increasing productivity which
may provide desire outcomes in form of generating revenue.
Disadvantages:
Along with providing benefits, the interrelation between all departments or functions may
affect negatively, as it encompasses some disadvantages that directly impact hierarchical

structure. The interrelation may also create lack of group coordination and there may be
problems in working with each other efficiently (Jia and et.al., 2019). Some employees may be
territorial or many individual refuses to cooperate. This type of unhealthy coordination may to
lead to delays, decreased commitments towards client’s waste of time and resources and also late
in completion the production or marketing of the products. The relation between marketing and
other units may create clashes in the workplace that impact organizational productivity and
operational efficiency, which is not suitable for its rapid growth in the retail sector.
3- Internal and external influencers via a SWOT and PESTLE analysis on Sainsbury's.
SWOT analysis helps Sainsbury's to analyse the internal factors, that put direct impact on
organization's success and growth. This analysis indicates the factor which may affect venture
and drive attention toward strategic plans (Benzaghta and et.al., 2021). The analysis of
Sainsbury's are discussed below:
Strengths of Sainsbury's refers to key elements that organization may utilize to achieve
target aims and objectives.
 Workforce- The chosen supermarket may have skilled and talented workforce, among
which each candidate is able to conduct strategic and effective initiatives, for purpose of
achieving target aim (Strength, Weakness, Opportunity, and Threat (SWOT) Analysis,
2021). They are able to gain competitive advantages, which is not that easy for any
company to do that appropriately.
 Unique strategies- The best strategy that organization may adapt to make brand
productive and progressive are low pricing tactic. It may utilize this tactic as key strength
that help to retain customers and gain the attention of more, who are able to promote
venture after obtaining appropriate satisfaction.
 Social media and online presence- The existence of social media and other online
platforms may work as the best organizational strength, which may enable management
to take pleasure of building wide customers base.
Weaknesses of Sainsbury's indicates the improvements brands needs the most. Which
are discussed by few points:
 Fewer Margins- The market competition is on the peak; many retailers are having the
loss. The Sainsbury's reduced their market price for attracting more customers.

 Switching brands- The Sainsbury's are planning to switch the brand, it is riskier for
them. That can be the loss for the company to retain the customers.
Opportunities for Sainsbury's helps them to find out the way to improve their business
which are the following:
 Latest trends- In the market the trends change every month then also Sainsbury's, finds
out the way to accept the new opportunities which helps for their growth in market.
 Global expansion- The Sainsbury's has an opportunity for expanding their business to
another country and attempted to merge with another country, but they find the
opportunity in UK to make their business more attractive.
Threats on Sainsbury's which means they have many threats for their business. Which
are discussed below:
 Competitors- Many companies are giving the harder competition to Sainsbury's, they are
inventing new technologies which is general threat but affect their business significantly.
When the competition level in the retail industry is high, it may impact negatively upon
chosen supermarket.
 Rules and regulation- Changing regulations has a bad impact on the Sainsbury's
performance, government changing different laws which is affecting their market
condition.
PESTLE analysis of Sainsbury's
PESTLE analysis help Sainsbury's to recognize the external factors which are affecting
the business. PESTLE analysis is discussed below:
Political factors- This factor is highly affecting the Sainsbury's current situation after the
exit of the Brexit. This means government remove the England from the part of European union.
Which has higher importing rates, this impacts the condition of Sainsbury's. Thus, many
customers they are losing after increasing the rates (What is PESTLE Analysis? An Important
Business Analysis Tool, 2020). Political factors such as trade rate, political stability, etc. may put
direct effect business growth and success, as it may drive its attention toward making those
decisions and plans that help to reach desire outcomes.
Economic factor- If the petrol and diesel prices are getting high like this than this
become a major loss to the Sainsbury's production. They have a source of working by road only

and transports their products over the UK. After this much of competition in the market that
affects the wages as well.
Social factor- In this current situation which is occurred after pandemic the UK people
are shifting towards the healthy diet. They are avoiding the fast foods and started eating the
healthy foods. The Sainsbury's have to provide the new products which are healthy and diet
conscious for the UK people. This factor may put positive impact on success and growth of
company in term of increasing profitability and productivity, which make organization
competitive and allow standing in the market in this manner for longer time.
Technological factor- There are many supermarkets and Sainsbury's is the second
largest in the UK. In advance technological factor helps for analysis that precisely used to
develop big and proper models, that indicates how many of granted product which are good to
sell. The improvement and execution of these methods are certainly modified the profits of
Sainsbury's. There are few other supermarkets in UK which provides an offer for online
shopping options and Sainsbury's is one of them.
Legal- This factor may also put direct impact on organization in negative manner,
because of some regulatory chances related to employment and work place safety, which affect
the way it may develop plans and tactics in the context of both concepts. It may drive its
attention toward taking making possible change in the employment and work place safety related
tactics, which may consume time and efforts as well.
Environmental factor- The supermarket chains like Sainsbury's, is highly producing the
carbon footprint which is affecting the overall environmental condition in negative manner. The
current climate change has a reflection of the pollutions and seasonal changes. Environmental
factor indicates the plastic wastes and non-renewable energies. It may drive the attention of firm
toward taking strategic action in form of eliminating carbon footprint that affect business
performance positively.
4- Influences of globalization on organizational strategy and decision-making.
Globalisation- It can be represented as the liberation from barriers to trading crosswise
the domestic borders to modify and accumulated the combination of production processes. In the
recent time, globalization is considered as one of those external factors that may put straight
impact on supermarket (Kyove and et.al., 2021). It may affect firm decisions and strategies, in
positive manner in form of driving their attention toward strategy formulation such as businesses

expansion. Sainsbury's is covering the big growth and development of the internationalization
which helps to symbolize a chance for the group. It may also enter the emerging globalisation
industry same as other organizations do. The research of costs fixture into the four largest brand
names in the united kingdom's industry can have few negative issue in the business and for every
rival. It will be directing to keep the brand picture that firm has with the customers. Whereas, the
authorities are about to changing the rate of tax, which will relieve a heavy quantity of money.
Sainsbury's has to move the business and label of the product's, change according to the concept
of the food and drinks laws. Along with positive, globalization may affect negatively, in form of
increasing work pressure on employees, because of which Sainsbury's may make possible
change in existing plans and decisions accordingly.
Driving factors-
International business-
The demand for organizational structure and other forms of change because of
international venture sustainability, may affect negatively upon supermarket in term of
increasing emerging needs for varied things. It may affect in form of making changes within
current plans that consumes time and efforts as well.
Competition-
Another driving factor is current one, which may drive the attention of management in
Sainsbury's toward forming plans that may utilize to gain competitive advantages and give tough
competition to other supermarket brands such as TESCO, ASDA, etc.
Markets-
Any form of change in the context of current market need and trend may directly or
indirectly put impact on Sainsbury's in positive manner, as it already takes initiative to stand
competition and strong (Aschemann-Witzel and et.al., 2021). It may put attempt to identify
trends and customers’ needs that had changed according to a new trend that people prefer to
follow. It may drive the concentration of company and its management toward adding more
value within existing items and introducing something new.
Cost and trade-
Another drivers of factors that is essential for company to take into its consideration are
current. It is fact that when the cost related to raw materials and other things might be increased

it may affect negatively upon supermarket, in form of increasing budget. Trade is also impact in
specific manner, as it depends on trade policy govern by the UK government.
Digital revolution impact on Sainsbury's business tactic-
This factor may put positive impact on organizational tactics in term of enhancing
performance and driving attention toward implementing new digital marketing technologies that
contribute to generate excellent brand awareness globally (Jawad, Naz and Maroof, 2021).
Digital revolution allow company to implement new technology and create their profile on
varied digital advertising sites such as Instagram, where millions of people have created their
accounts. Thus, it may contribute to increase profits and productivity, as well as performance
level, which is beneficial for further brand success.
Lifestyle change in use of social media impact on business practices-
It is fact that when the life style of individuals by using social media has change, it may
put direct impact on Sainsbury's practice in negative manner in form of driving management
attention toward changing the process and system related to distribution as well as supply and
demand.
CONCLUSION
On the basis of above discussion, it has been concluded that PESTLE and SWOT
analysis provided a lot of benefits to supermarket, as it has driven the attention of management
toward forming the best plans and tactics that they had utilized into practical manner. It has
enabled them to take pleasure of increasing organizational performance and productivity as well
as profitability, which makes company competitive for longer. Furthermore, by summing up
above discussion, it has been summarized that firm has given tough competition to rivals in form
of enhancing its strengths and increasing organizational as well as operational productivity. It has
developed those effective strategies that overcome the adverse impacts of globalization, which
falls under the category of those drivers that impact a venture.

REFRENCES
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