Analysis of Sainsbury's Business Environment: A Report

This report provides a comprehensive analysis of Sainsbury's business environment, encompassing both internal and external factors. The internal analysis focuses on Sainsbury's values, mission, objectives, and organizational structure, particularly highlighting its matrix structure. The external environment section explores various factors, including political influences (e.g., Brexit), economic conditions (inflation), social trends (consumer preferences), technological advancements, legal regulations (sugar tax), and environmental considerations (sustainability goals). The report emphasizes how these factors impact Sainsbury's operations, personnel, and revenue, and how the company manages these external influences. References from academic sources are included to support the analysis.

Introduction
Business environment refers to the things that external
firms and industries which affect their organizational
operations. It also encompasses of the different set of
conditions that are related to, economic, social, political
and institutional in business operations. Sainsbury’s is the
second largest chain of supermarkets in UK which has
14.9% of share in the supermarket sector that was
founded in 1869.
Sainsbury and Its Environment
External Environment
Political factors:
Being the second largest super market store in UK Sainsbury is going
to be affected by the economic slowdown in other nations. UK is
exited from the EU which has had consequences on the business
Economic factors:
The increase in the inflation rate is an external effect that
represents the increase in the expenditure for the company. This
impacts the demand for the goods in the supermarket stores with a
diminishing trend
Social factors:
The aspiration of shop needs to be in the supermarket like
Sainsbury’s than shop from the local retail store. Super market
generally has some special schemes that the people provide the
customers with a certain discount benefits.
Technological factors:
Introduction of new and latest technology in the operations of this
organization has been the reason due to which it has been able to
increase its efficiency.
Legal factors:
Introduction of the sugar tax in the UK is a very good example of
how the company needs where modified in its products to deny
those taxes and save the earnings.
Environmental factors:
The government and the people of the country are considered to be
the expert of an organization that are eco-friendly. Sainsbury’s
actually supports the UN sustainability goals and its working
towards as well.
How the company impact
its context External
Environment
For Sainsbury the external environment is a very
important as it is directly or indirectly affecting the
business operations, personnel and revenue. The
external environment of the company changes
constantly in ways beyond the company’s control. The
executives and managers of Sainsbury can also track
these changes and minimize their consequences.Internal Factors
Value system:
The values of Sainsbury’s include better value and
innovation in the food item for the customers.
Mission and Objectives:
Ensuring the customers healthier lives, sourcing with
integrity, respect for environment and making positive
difference to the community and better work place.
•To develop and design of store and distribution centers
to reduce impact on achieving customers.
•To deliver the customers by incorporating quality
principles with everyday routines products.
•To provide outstanding quality and choice for the
customers in their supermarkets.
Organizational structure:
Sainsbury is a company that utilizes a Matrix structure.
References
Contractor, F.J. and et.al., 2020. How do country
regulations and business environment impact foreign
direct investment (FDI) inflows?. International Business
Review. 29(2). p.101640.