Internal & External Factors: Impact on Sainsbury's using SWOT & PESTLE

This presentation provides a detailed analysis of the internal and external factors that impact an organization's business environment, using Sainsbury's as a case study. It begins by defining the business environment and highlighting the importance of both internal and external factors in achieving strategic objectives. The presentation then delves into the external factors, employing PESTLE analysis to examine political, economic, social, technological, legal, and environmental influences. Following this, it explores internal factors, utilizing SWOT analysis to identify Sainsbury's strengths, weaknesses, opportunities, and threats. The presentation concludes that understanding and adapting to these factors are crucial for an organization's success, emphasizing the value of SWOT and PESTLE analyses in strategic planning and decision-making. Desklib provides students with access to a wealth of resources, including similar solved assignments and past papers, to aid in their academic endeavors.

POWER POINT POSTER

INTERNAL AND EXTERNAL FACTORS IMPACT ON ORGANIZATION
INTRODUCTION EXTERNAL FACTORS
Business is that aspect which deals upon selling
and buying of products which is been sold by an
organization within the market. Business covers
various kind elements which help in circulating
of goods and services in more effective manner.
These elements also impact tendency of business
and various elements related to it. Business
environment is the process by which an
organization is able to work in more organized
manner with discipline and order. Business
environment is one of the most important factor
which affects growth of business. Also such
environment make goals and objectives set by an
organization achieved in more effective manner.
These are those factors which makes
influences, circumstances and situation
existing within a business to be controlled in
effective manner. Such factors have been
impacting working of business from outside.
These factors help in functioning of an
organization in more effective manner
through marking out those elements which
directly impacts its success rate within
market. These factors create certain
circumstances and situations which affects
external working of organization (Gaganis,
Pasiouras and Voulgari, 2019).

EXTERNAL FACTORS
External factors also makes an organization develop innovative techniques which makes strategic
goals to be achieved in more effective manner. External factors have been making an
organization attain stability within market. It is considered as key area of planning taking place
within an organization.
Then stakeholder analysis is been affected which directly impacts decision making of an
organization which leads upon making strategic goal achieved. These factors influence various
situations and helps management of a business done within proper structure. Stakeholders make
decision only after analyzing these factors over investment to be done within a business. In this
large number of external factors can have a direct impact on the ability of your business to
achieve its strategic objectives. In order to make sure that these factors is been analyzed in proper
manner PESTLE analysis is been done. PESTLE analysis is a tool which is been used for
analyzing of those factors which impacts business externally.

EXTERNAL
FACTORS PESTLE ANALYSIS
Political factors: These are those factors which includes policies formed by government in
relation to corporate sectors which impacts various kinds of business activities within a country.
In political factors majorly policies related to tax is been observed by an organization. If policies
formed by government are rigid then it impacts production capacity of an organization

PESTLE ANALYSIS
Economic factor: These are those factors which are based
over economic growth of an organization. Such factors
include unemployment, import and export, inflation with
those kinds of elements affecting growth of an
organization. If due to any reason import rate increases
then it becomes very difficult for an organization to
conduct any kind of imports.
It impacts Sainsbury in a way that mostly road transportation is been used for making shipping
possible across UK. If the prices of imports increases then shipping charges and other charges
increases which makes product cost increased. It eventually leads upon making revenue
generation decreased which reduces profit of Sainsbury.

SOCIAL FACTOR
Social factor: These factors are related upon trends existing within society and behaviour of
consumer in relation over spending. Further the factors make an organization like Sainsbury
understand about various kinds of factors existing which impacts taste of consumer and helps in
increasing selling of products. Therefore it is required to be analyzed by Sainsbury in a way that
quality of product is provided to consumer’s trough making finest product produced.

Technological Factors
Technological Factors: Technological factors are those factors which make dealing possible
through technological advancement which makes overall improvement of organization done in
more effective manner. It is helpful for an organization like Sainsbury through making its
production and delivery speed up. Also it makes e commerce increase which makes online selling
increases.

LEGAL FACTORS ENVIRONMENTAL
FACTORS
Legal Factor: These factors are one of the
most important factors which make various
kinds of law used for formation of an
organization. Such factors are based over rules
and regulations helps in making organization
work in smooth manner. Sainsbury is required
to follow these factors in order to avoid legal
trouble existing in future. These laws help in
providing selling of product done in legal
manner( Chukhray and Mrykhina, 2018).
Environmental Factors: Sainsbury is
supermarket chain which uses carbon footprint
which is not good for environment. So in order
to create environmental awareness Sainsbury
is required to use environmental friendly
products. The brand needs to ensure that it’s
taking active steps to curb its environmental
impact. Environmental factors dealing upon
environmental related issues

INTERNAL FACTORS
These factors impacts business of an organization internally and makes working environment
impacted of an organization like Sainsbury. Further in order to make the analysis over internal
factors done SWOT analysis is conducted. SWOT analysis is based over those strength,
weakness, opportunities and threats to be identified in more effective manner of an organization
like Sainsbury(Akhtar and Sushil, Bruijl, 2018). Further SWOT analysis has been done as
follows:

SWOT ANALYSIS
Strength
Right expansion moves: This is one of the most important strength which has helped in
increasing of profit within an organization. Since Sainsbury is small grocery stores which makes
deals within limited range of product with its right expansion move that is to categorize goods
leading over attracting customers.
Weakness
Low margins: Since competition has been growing in retail sector various kinds of competitors
has made growth of Sainsbury restricted. This made profit decreased due to rise in competition.

CONCLUSION
From the above discussion it can be concluded that business environment is that kind of
environment which helps in making an organization develop basic standard of work within it.
Business environment is developed due to impact of external and internal factors these factors
makes organization realized about the impact of particular factor over it. Then in the end SWOT
and PESTLE analysis is done in order to improve business environment.

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