Global Business Environment Portfolio Paper 2: Sainsbury's Report

This report provides an executive summary and analysis of Sainsbury's within the global business environment. It begins with an introduction to the company and its operations, followed by a SWOT analysis that identifies the company's strengths, weaknesses, opportunities, and threats. The report then examines the impact of government policies, including economic and legal factors, on Sainsbury's structure and operations. Furthermore, it delves into the influence of changes in the business environment on key departments like marketing and human resources, considering factors such as customer needs, employment rights, and economic conditions. The conclusion summarizes the key findings, emphasizing the importance of strategic adaptation and environmental awareness for Sainsbury's continued success. The report incorporates references to relevant literature and includes a table of contents, abstract, and appendices for a comprehensive overview.

Global Business Environment

Executive Summary
This report has analysis and evaluate various internal and external factor that affected the
functioning of Sainsbury. It has also examined the impact of government policy on the structure
and operations of the company. At last this report has explained the key drives that affect the
functioning of various department.

Table of Contents
Introduction to Business Studies......................................................................................................1
INTRODUCTION ..........................................................................................................................1
LO1..................................................................................................................................................1
Swot Analysis..............................................................................................................................1
LO2..................................................................................................................................................2
Impact of government on business operations.............................................................................2
LO3..................................................................................................................................................2
Impact of changes in environment on business...........................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment refers to environment of different countries and that is not
similar to the environment of home country that affect decision-making in uses of resources.
Sainsbury is founded by John James Sainsbury in 1869 it is third largest chain of supermarket in
United Kingdom. In this report Sainsbury has been taken as a company and swot analysis has
been done. At last this report explain about the impact of government and business environment
on the company.
LO1
Swot Analysis
Swot analysis is done by the company to understand its strength and weakness so that strategies
are build to gain opportunity or to protect the company form threat.
Strength: The things in which the company is excels and that differentiate it from other
companies in the market (Sarsby, A., 2016). One of the strength of Sainsbury it is famous for
providing quality products to its customers and thereby is able to increase its brand image and
customers loyalty. Strong promotional strategies and by expanding its product range into
clothing and finance the company is able to expand its market share and profit margin.
Weakness: It describes the point where the company needs improvement and its is a negative
attribute. Spite of customer loyalty program and promotion customer it is challenges for the
Sainsbury to retain customer due to high price competition in retail industry. The company also
lower it margin to cut down the cost and attract large customer but it is not beneficial in long
term.
Opportunity: It means there are chances of something good due to external factor of the
company. The company can expand its business in its domestic and international market by
selling its products online and by use of updated technology. Thus, it will help the company in
gaining opportunity that is present in the environment and expansion of market share.
Threats: It consists all such factor that affect negatively to Sainsbury company and one of the
threats is intensive competition in retail and grocery segment (Lohrke, F. T., Frownfelter
Lohrke, C. and Mazzei, M. J., 2018, July). There many competitors in the market
specially ALDI and LIDL as they are providing product at lower price at the same time
maintaining the quality of the products. So, it's certainly threats for the Sainsbury and thus the

company needs to update its technology to bring economic of scale and to attract large
customers.
LO2
Impact of government on business operations
There are various policy of the government that affect in decision-making and operations,
structure of the Sainsbury company. The way they affect the company are as follows:
Economic policy: These are the policy of the government that affect the decision-making and
performance of Sainsbury company (Qi, Y. and et.al., 2017). The market in which the
Sainsbury company operates is facing the situation of political instability and the debt of
government and consumer are also high. Thus, the political factor or policy has an adverse effect
the growth and sustainability of Sainsbury company. The new coalition government is also
planning to rise VAT that will lead to increase in the cost of the product and increase in price of
product. It also includes Government spending policy such as subsidies provide to certain
business or if government increase its spending it would lead to increase in tax rates. Thus, all
this situation and political stability create immense pressure Sainsbury on the to plan use
strategies and update its technology to reduce the cost of production.
Legal policy: This refers to all rules and regulation of the government that affect the smooth
functioning of the business (Cai, W. and Li, G., 2018). Sainsbury company undertake or
consider all rule and regulation while operating of its business that includes employment right,
national minimum wages, working hours and health and safety rule of employee and customers.
In case the company does not compile with the following rules it has to impose to fines and will
adversely affect the functioning of the business. The introduction of new legislation related to tax
on advertisement for highly process and fatty foods thus the company has to change or modified
its product thereby adopting new tax legislation. So, it can be stated that legal policy also help in
decision-making and smooth functioning of business.
LO3
Impact of changes in environment on business
There are numerous changes in the internal and external environment of the business, so
in order to be competitive the company has to adapt to these changes and make its strategies as
per requirement. The way the key drivers of environment affects the functioning of business are
as follows:

Marketing department: The function of marketing department in the company is to identify the
needs of the customer and satisfy them in an appropriate manner (SHTAL, T. V. and et.al.,
2018). It induces the customer to prefer a particular product over another and thus help in
increasing the sales and profit margin of the company. So, in order to identify the needs of the
customers Sainsbury marketer has to undertaken various social factor such as the needs,
preference, value and belief, economical factor that is the purchasing power and employment
level. By considering all these factor and using the brand image of Sainsbury company the
marketer has an opportunity to introduce new product in the market .
Human resource department: The function of Human resource department is to plan for
employee, assign responsibilities to the employee and provide good working conditions
(Dechezleprêtre, A. and Sato, M., 2017). The HR is responsible for managing the
employee by planning for their training and development, enhancing their skill and motivating
them to work effectively for achievement of organizational goals. So, the HRM department of
Sainsbury has to consider legal factor such as employment right, National minimum wages,
working hour, discriminative policy while recruit and in overall management of employees. The
HR also had to consider economical factor such as employment rates, distribution of income it
all help the HRM department in decision-making of salary of employees etc. Thus,it can be
stated that changes in environment affect as Sainsbury is able to provide quality products to its
customers because of effectively management of employee.
CONCLUSION
From the above report it can be concluded that Pestle and swot analysis help the company
in gaining competitive advantage and increasing market share of the Sainsbury. Presently this
report also concluded that policy of government affect adversely on the structure and operations
of the company. At last this report conclude that the company has been successful in adopting to
the changes of environment.

REFERENCES
Books and Journals
Cai, W. and Li, G., 2018. The drivers of eco-innovation and its impact on performance: Evidence
from China. Journal of Cleaner Production. 176. pp.110-118.
Dechezleprêtre, A. and Sato, M., 2017. The impacts of environmental regulations on
competitiveness. Review of Environmental Economics and Policy. 11(2). pp.183-206.
Lohrke, F. T., Frownfelter Lohrke, C. and Mazzei, M. J., 2018, July. What Kinds of
Opportunities are We Providing Students? A SWOT Analysis Review with Recommendations.
In Academy of Management Proceedings. (Vol. 2018, No. 1, p. 15303). Briarcliff Manor, NY
10510: Academy of Management.
Qi, Y. and et.al., 2017. The impact of operations and supply chain strategies on integration and
performance. International Journal of Production Economics. 185. pp.162-174.
Sarsby, A., 2016. SWOT analysis. Lulu. Com.
SHTAL, T. V. and et.al., 2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS, 39(12).

TABLE OF CONTENTS
ABSTRACT 2
4
CHAPTER 1: INTRODUCTION 5
1.1 Study overview 5
1.2 Aim 7
1.3 Objectives 7
1.4 Research questions 8
1.5 Rationale of research 8
1.6 Significance 9
1.7 Scope of the study 10
CHAPTER 2: LITERATURE REVIEW 11
CHAPTER 3: METHODOLOGY 19
3.1 Research design 19
3.2 Research approach 19
3.3 Research philosophy 20
3.4 Sampling 21
3.5 Data collection 22
3.6 Data analysis 22
3.7 Ethical considerations 23
CHAPTER 4: DATA ANALYSIS AND DISCUSSION 25
CHAPTER 5 : SUMMARY AND CONCLUSION 40
REFERENCES 45
APPENDIX 50