Sainsbury's: An Analysis of Internal and External Environment Factors

This report provides an analysis of Sainsbury's, a major UK supermarket chain, examining both its internal and external environments. The external factors discussed include political (e.g., Brexit's impact), economic (inflation, consumer spending), social (changing consumer preferences), technological (opportunities for data analytics), and environmental factors (climate change). The internal analysis covers Sainsbury's strengths (experienced leadership), weaknesses (rising food prices), opportunities (market expansion through joint ventures), and threats (global competition). The report highlights the importance of adapting to the changing business landscape, including consumer demands, and the need to address environmental concerns. The report considers the impact of the economic environment, the importance of technology, and the need to address the challenges posed by the external environment.

Business environment is the total of all the internal and external factors
affecting the organisation (Hur, Shannon and Wolf, 2016). The report
includes the factors affecting Sainsbury's supermarket. Its the second chain
of supermarket who holds a share of 16.9% in the country. It offers banking
services that expanded its range of products that established subsidiaries into
various sectors.
POLITICAL- Sainsbury mainly operates in U.K that affected by the economic
slowdown in other nations. The inflation rates got high after U.K's exit and also
the great Britain pound hits it all time low which further caused declined in
customers expenditure.
ECONOMIC -With same inflation rates getting high and income growth
rate remaining more or less the same demand that is to developing in market
whose economy is growing at a much faster pace than the average globe
economic growth (Hamutoglu and Basarmak, 2020).
SOCIAL -In order to stay relevant in current socio-cultural climate the brand will
need to change its policy that affected supporting the farmers instead of profit
increment.
TECHNOLOGICAL-There are aspects of it that the brand can improve in order to
provide their customers a better user experience. If the brand starts using
analytical data systems that would be able to better understand the demographical
needs of their customers.
LEGAL-This need to ensure that the systematic changes it introduces are
theoretical business structure that effect the changing needs to customer base the
company also need of the customer base of company also need to meet the
demand.
ENVIRONMENT- The current climate changes movement gaining momentum
throughout the UK that needs to ensure that it's taking active steps to curb its
environment impact.
STRENGTHS- It has an extremely experienced leadership team and each
store typically stocks around 30,000 lines of which around 20% are own-
label goods that sponsored several events.
WEAKNESS- Rising food prices over the world have impacted brand by
selling at higher prices that result the stiff competition within every
segment of the retail sector.
OPPORTUNITIES- Sainsbury can enter into markets of emerging
companies through joint ventures or partnership to explore new market
also support by expanding into growing economies (Qomariyah, 2019).
THREATS- Increasing the challenges that affect globalization that always
source the best financially viable products from world via competitors.
OPPORTUNITIES- Sainsbury can enter into markets of emerging
companies through joint ventures or partnership to explore new market
also support by expanding into growing economies (Qomariyah, 2019).
Internal and external environment
INTRODUCTION
Internal Factors of Sainsbury
External Factors of Sainsbury Impact on busi
The external element are affecting factors tha
which it allows businessmen to take suitable
plan to make it more adoptable to the extern
trained and have negative attitudes to th
challenges for the company to address. It also
confidential information and trade advantag
this the leading company entrepreneurs shoul
their customer's interest. If the company is no
customer demands then the company will fac
products that will consumed by the customer.
Reference
Hur, J.W., Shannon, D. and Wolf, S.
relationships between internal and
technology integration in classrooms. Jo
Teacher Education. 32(3). pp.105-114.
Hamutoglu, N.B. and Basarmak, U.,
Barriers in Technology Integration: A St
Journal of Information Technology Educ
van Osch, B.A., 2019. Vulnerability in he
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