Evaluating External and Internal Factors Affecting Sainsbury's Growth

This report examines the significant impact of external and internal factors on business organizations, specifically focusing on Sainsbury's, a leading retailer in the United Kingdom. It emphasizes how understanding these factors is crucial for developing and implementing effective strategies to achieve organizational goals. The report details how uncontrollable external variables, such as economics, governance, competition, consumers, and the environment, along with internal elements like employees, corporate culture, operations, and finances, influence the organization. A PESTLE analysis is conducted to explore political, economic, social, technological, legal, and environmental factors affecting Sainsbury's. The report concludes that managing these external and internal impacts, aided by technology, is essential for maintaining productivity and profitability, and highlights the need for continuous adaptation to changing conditions to ensure sustainable business growth. Desklib provides a platform to access similar solved assignments and study resources for students.

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Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Describe and discuss how the external and internal factors affect a specific business or organization....3
Describe and discuss the different ways in which business or organization can impact on the external
environment.............................................................................................................................................4
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................6

INTRODUCTION
This report is based on importance of impact of external and internal factors in an organization
and how it can help and assist organization in developing and implementing the strategies within
an organization which can help in achieving desired goals and objectives. It is important to
understand the importance of different factors which can affect organization as it can help in
boosting productivity and profitability of organization. Uncontrollable variables like as the
economics, governance, rivals, consumers, as well as the environment would have an impact on
an effective quality management system. Internal elements including such employees, corporate
culture, operations, and money, on the other hand, appear to do it within its control. This report is
based on Sainsbury which is based in United Kingdom and one of the leading retailers in UK.
MAIN BODY
Describe and discuss how the external and internal factors affect a specific business or
organization
Exterior aspects are very important, conditions, or occurrences that even a company cannot
manage and that impact the business manager's key investors' management decisions. The wide
variety of external forces might just have a direct influence on the company's capacity to fulfil its
specific priorities. Employment numbers and changes, asset prices, and expendable income
patterns are all examples of financial circumstances. Technological developments, such as
improvements between how customers use and acquire components, such as the usage of
technologies to make purchases, as well as how decisions impact how businesses acquire and
deliver things That growing number of working women, for example, seems to have had a
beneficial impact on internet sales. Modifications in workplace safeguarding laws and
guidelines, for example, might have an influence on the how businesses operate. Companies
offering promotional items including such winter clothes or swimsuits, for example, were
influenced by environmental conditions.
This term "intrinsic factors" refers to everything which is within the firm and inside its influence,
whether material or conceptual. Once these characteristics have been identified, they are
categorized as the strengths and weaknesses. Vitality is defined as a factor that has a beneficial
impact on the organization. But at the other side, if a component obstructs the future

performance, this is a weakness. There seem to be a number of factors that must be considered
inside the organization.
Human resource management could be a corporation's strongest asset in the current global
economy; because thoughts with expert care - instead of physical assets - were progressively
wherever monetary value is generated. Workers may be a corporation's advantage or liability,
based on the degree of relevant knowledge, mindsets towards employment, effectiveness, and
other factors. For instance, if a company has competent and motivated employees, these will
undoubtedly be its most valuable resource.
Exterior variables influence aspects beyond the control of the firm. Taking into account the
external world helps businesspeople to implement appropriate changes to the marketing
technique to make it more visible to the external world. There are indeed a variety of factors that
are considered exterior components. Its present economic environment, legislation, response
model, and consumer needs are just a few of the most notable and significant elements to
mention.
Describe and discuss the different ways in which business or organization can impact on
the external environment
PESTLE of Sainsbury
Political Factors
Exiting the Rest of Europe could make it so much more difficult on merchants to purchase
products of many nations on such a spending plan. Even though an increase in the cost of various
options will almost definitely get passed over to the customer directly, one such choice means
organization would also have to work that much harder to retain customers shopping as
frequently as required in order to maintain profitability.
Economic Factors
An economic concern facing Sainsbury's is income growth according to employee needs.
Sainsbury's, along with many other merchants, employs a large number of employees and doing
regular tasks such as grocery packing and cashiering. Apparently organization employees are
expected to get paid enough more than anyone would ever be paid by organization before.

Social Factors
According reported either by individuals regarding wherever their business is conducted, justice
is attracting interest. This socially responsible work involves paying a higher price for processed
foods throughout regularly to secure that perhaps the commodity is farmed economically at a
much more reasonable price.
Technological Factors
Organizations all around the world are understanding as much about their operations owing to
statistical advances, such as the utilization of Business Intelligence and Advanced Manufacturing
ideas. Companies including Sainsbury's might just have utilized advancements in analytics to
create very exact models which anticipate whatever sort of products might market (to eliminate
consumption) or at what price.
Legal Factors
While Sainsbury's offers various degrees for customization, this should ensure that perhaps the
basic changes it makes are not hindered by the company's business operations. Therefore, in
terms of meeting the ever-changing demands among its potential clients, every company should
be on their toes at all times. Excessive interruptions in major themes may result in huge financial
supremacy issues and competitors being equipped to provide positive customer service value.
Environmental Factors
Large supermarket chains like Sainsbury's and TESCO, for example, might well be assured that
they significantly change to either the plastic problem, although without leaving a massive
ecological footprint. Through packing items in single plastic, large supermarkets impose an
enhanced health load because they can handle. Organization will also have to keep up with
innovative waste-reduction strategies, also including giving deals to customers who buy items
unbound and bring their personal packaging and bags.

CONCLUSION
This report concludes about the importance of external and internal impact on business and also
concludes about how these factors in external and internal environment can be controlled with
the help of technologies. This report concludes about the effect of external factors on
organization productivity and profitability.
REFERENCES
BOOKS AND JOURNALS
Aron, A. S. and Molina, O., 2020. Green innovation in natural resource industries: The case of
local suppliers in the Peruvian mining industry. The Extractive Industries and Society, 7(2),
pp.353-365.
Benková, E., Gallo, P., Balogová, B. and Nemec, J., 2020. Factors affecting the use of balanced
scorecard in measuring company performance. Sustainability, 12(3), p.1178.
Stoyka, A., and et. al., 2020. Features of application of innovative development strategies in
international enterprise.
Stuart, E. A. and Lesko, C. R., 2020. The promise, and challenges, of methods to enhance the
external validity of randomized trial results. Clinical Pharmacology & Therapeutics, 108(6),
pp.1132-1134.