Sainsbury's External Environment: Factors, Impact, and Strategies

This report provides an analysis of Sainsbury's, the second-largest supermarket chain in the United Kingdom, focusing on both its internal and external environments. It highlights key internal factors such as the company's business philosophy, strengths, weaknesses related to raw material costs and low margins, and external factors including political issues like Brexit, economic challenges such as recession, social trends favoring organic products, technological advancements, environmental responsibilities, and legal considerations. The report also assesses Sainsbury's impact on its external environment, including employment generation, provision of diverse products and services, contribution to corporate social responsibility through effective supply chains, and its role in economic growth. The conclusion emphasizes the importance of adapting to both internal and external factors for the firm's sustainable expansion. Desklib offers a variety of solved assignments and past papers for students.

SAINSBURY AND ITS EXTERNAL
ENVIRONMENT
INTRODUCTION
Sainsbury is one of the second largest supermarket
chain operating in United Kingdom with around 16.0% of market
share and 111,900 that are working hardly for growth and expansion
of business (Shtal and et.al., 2018). This poster has included crucial
information pertaining to external and internal factors that impact
on Sainsbury and the way Sainsbury has affected the external
environment of United Kingdom.
INTERNAL FACTORS
Strength: Right expansion moves and Business
philosophy
Weakness: Growing cost of raw material and Low
margin
Threat: Higher competition and Covid-19
Opportunities Digital technology and organic products
and making use of joint venture (Kiradoo, 2020).
EXTERNAL ENVIRONMENT
POLITICAL FACTOR: Brexit uncertainty is one of the most common
political issue that has negatively impacted on Sainsbury operation and
goals as UK has voted to leave European Union (Lemańska-Majdzik, Sipa
and Skibiński, 2018).
ECONOMICAL FACTOR: Currently the United Kingdom is suffering
from situation of recession i.,e high unemployment rates, decrease in
disposable income of people and inflation (increase in price of products and
services).
SOCIAL FACTOR: Organic and healthy food products and personalised
and timely services (Ivančić and et.al., 2017).
TECHNOLOGICAL FACTOR: digital marketing and Information
technology.
ENVIRONMENTAL FACTOR: Corporate social responsibilities, making
optimum utilisation of resources
LEGAL FACTOR: Employment, health and safety and leave.
How the company impact its
context external environment
Helps in generation of employment:
It has employed around 111,900
individuals in the firm
Provide products and services to
customers: Home care to personal
care to financial services.
Corporate social responsibilities:
strong and effective supply chain so
that products can be delivered to
customers in limited time and cost
(Lemańska-Majdzik, Sipa and
Skibiński, 2018).
Grow of economy: Adding more
value to GDP of country.
CONCLUSION
From the above poster it can be
concluded that both external and internal
factors impact on company operation so
it need to find alternative method that
could be used for expansion of firm.