Comprehensive Report: Sainsbury's Global Business Environment Analysis

This report provides a comprehensive analysis of Sainsbury's, a major UK supermarket. It delves into various aspects of its business environment, including marketing strategies, financial performance, and human resource management. The report examines the marketing department's strategies, including the marketing mix (Product, Price, Promotion, Place). It also assesses the finance department's role in fund management and financial stability, and the human resource department's responsibilities in talent acquisition and employee development. Furthermore, the report explores Sainsbury's organizational resources and competitive advantages, highlighting its network distribution channel. A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and a TOWS analysis are included to provide a strategic overview. The report concludes with a summary of key findings and references relevant sources.

Global business environment

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Marketing Department............................................................................................................1
Finance department................................................................................................................2
Human Resource Department.................................................................................................2
Organisation resources...........................................................................................................3
Competitive advantage...........................................................................................................3
SWOT Analysis......................................................................................................................3
Competency and capabilities..................................................................................................4
TOWS ANALYSIS................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment defined the different environment aspect in which the various
sovereign countries takes part in the common platform that influence the decision making that is
affected by the available resource and capabilities. It is a business environment that has broad
effect of the different business that is performed all around. This report is based on the
Sainsbury’s that is the largest supermarket in UK and founded by the John James Sainsbury in
the year 1869. This report includes the marketing, financial, human resource department
information, competitive advantage, and organisation structure and swot analysis.
MAIN BODY
Marketing Department
The marketing Department is responsible for conducting the promotional and advertising
activities for the organization. Through these promotional and advertising activities they educate
their targeted group about their products, services, ides or any sort of message. Marketing
department is responsible for making a strong marketing plan which helps the company in proper
establishment of their products or services into the market place. The marketing plans or
strategies include the marketing mix. Marketing mix is the 4 P’s from which the company tries to
make their plans (Ansoff and et. al., 2018). These P’s of marketing mix and how these help the
company, Sainsbury, in making the strategies for marketing is as follows:
Product: Here product is the item which the company meant for sale. The Sainbury’s product
items which it sells into the market are the products.
Price: Price is the value or the cost of that item (Burke, 2013). Here the cost or the value is the
price for the product which the customer is ready to pay in return of the product.
Promotion: promotion is the method of advertising or educating the target group about the
company’s products or the services. The company Sainbury does its promotion through building
public relations, TV advertisement, social platform promotions and much more.
Place: Place refers to the venue at which the customer can get the products for the company.
Here the place can be both online and physical stores. An online store includes the company’s
own website and physical stores may include the Sainsbury stores which the company has
opened at various places in UK. There the people or the customer can avail the products.
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As the company, Sainbury, is very much famous into the market and it also runs globally,
it has now built up a strong market which has helped the company in its growth and success. The
company has very different and strong market through which it can easily expand or diversify
itself. It is taken as strength for the company. Apart for this, the company also has a great value
for its products which has helped in building a good goodwill into the market place. When a
company has a good goodwill into the market, the investors gets ready to invest more in the
company.
Finance department
The role and responsibility of finance department is to handle the flow of funds and
maintains a true and healthy financial position of the company (Drury, 2013). The finance
department of Sainbury is responsible to allot the funds or budgets to different departments,
invest into the different portfolios, and gives suggestions to the company to where to put money
and where to not. The finance departments hold all the money which the company has. As the
Sainbury’s is big company their financial position is very much strong. When the financial
situation is very good then it would help the company in bringing the good and secure conditions
for the company. It is said that the financial condition of the organization should be very good
and strong so that the company should have the ability to face any dynamic change.
Human Resource Department
The human resource department of a company is responsible for hiring and selecting a
talented work force for the company (Easterby-Smith, Thorpe and Jackson, 2012). The talented
employees take the organization to very next level. Apart from this the task and responsibility of
human resource department is also to organize training and development program for the
employees to motivate them and to help them in increase their productivity level. The HR
department also takes care of employees’ issues or any kind of problem and tries them to solve it.
This department also maintains the details of every employee working into the organization.
Here details include the personal details, performance details, promotions, salary, and allowance
and so on.
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Organisation resources
Sainsbury’s must follows the hierarchical structure under which all the different function
must get performed in different levels and in that the lower level department manages and
control subordinates in effective manner.
Competitive advantage
Competitive advantage refers to an element or a factor which only present into the
company. This factor or element makes the company very much different from all the companies
running into the industry. For example, the network distribution channel of Sainsbury is very
much different from the other companies. By such network, the company manages to supply the
products or materials at time and they also save cost. This element makes the company different
among the lot.
SWOT Analysis
The SWOT analysis is the analysis of company’s strengths, weakness, opportunities and
threats. Before making any future strategies company does these analyses so that they can form
the strategies accordingly (Fayol, 2016). The SWOT analysis of Sainsbury is as follows:
Strengths:
 The company has a good goodwill into
Weakness:
 The technology which is used by the
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the market place
 It has the strong network for
distribution for resources and products.
 The company’s products price is very
much lower than the prices of other
company’s products.
 Sainbury’s has established its business
into various countries.
 It has the strong financial position.
company is quite out dated which
somewhere or the other works as a
disadvantage to the company.
 The company is also lacking behind in
talented work force.
 Sainbury investment in research and
development department is very much
low.
 The company also is not very much
good in forecasting the demand for the
products which creates problem for the
company.
Opportunities:
 Opening up the new markets in various
regions in which they have not entered
yet.
 Diversification in their product range
can help the company a lot.
 Generation of new and more customers
from online platforms.
Threats:
 New and present competition which is
faced by the company.
 Changed economic rules and
regulations can hampers the operations
of company.
 Raising the cost of raw materials can
work as a threat for the company, as
their cost would get increased by this.
Competency and capabilities
It includes the different rivals that are presented in the market and having the business
that is carried out by the Sainsbury’s (Huczynski, 2012). Whereas, on the other hand capabilities
are the abilities of the business to perform different function n effective manner and gain the
maximum profit.
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TOWS ANALYSIS
Components Opportunities Threats
Opening up the new markets New and present competition
Diversification in their product
range
Raising the cost of raw
materials
Strengths SO
(Maxi – Maxi)
ST
(Maxi – Mini)Goodwill
strong network
Weaknesses WO
(Mini – Maxi )
WT
(Mini - Mini)scrawny location strategies
constrained comprehensive
presence
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CONCLUSION
From the report presented above, the importance of functional departments has been
present. The functional department may include marketing department, finance department and
human resource department. The report also has included the SWOT and TOWS analysis of the
company.
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REFERENCES
Books and Journals
Ansoff, H. I.,and et. al., 2018. Implanting strategic management. Springer.
Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA, 26.
Drury, C. M., 2013. Management and cost accounting. Springer.
Easterby-Smith, M., Thorpe, R. and Jackson, P. R., 2012.Management research. Sage.
Fayol, H., 2016. General and industrial management. Ravenio Books.
Huczynski, A., 2012. Management gurus. Routledge.
Kaplan, R. S. and Atkinson, A. A., 2015. Advanced management accounting. PHI Learning.
McAfee, A.,and et. al., 2012. Big data: the management revolution.Harvard business
review, 90(10), pp.60-68.
Rothaermel, F. T., 2016. Strategic management: concepts(Vol. 2). McGraw-Hill Education.
Stark, J., 2015. Product lifecycle management. In Product lifecycle management (Volume 1) (pp.
1-29). Springer, Cham.
Weske, M., 2012. Business process management architectures. In Business Process
Management (pp. 333-371). Springer, Berlin, Heidelberg.
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