Report on Internal and External Factors: A Sainsbury's Case Study

This report provides a comprehensive analysis of the internal and external factors affecting Sainsbury's, a major UK supermarket chain. It utilizes SWOT and PESTLE frameworks to evaluate the company's strengths, weaknesses, opportunities, threats, and the impact of political, economic, social, technological, environmental, and legal factors on its business performance. The analysis highlights Sainsbury's strengths, such as its expansion and skilled workforce, and weaknesses, like low food business margins. Opportunities include leveraging new technologies for marketing and consumer insights, while threats involve growing competition and the impact of Brexit and COVID-19. The report also discusses how Sainsbury's impacts the external environment through its pricing strategies, focus on nutritional products, and efforts to reduce plastic packaging, contributing to economic growth and environmental sustainability. Ultimately, the report underscores the importance of managing both internal and external factors for sustained business success.

INTERNAL AND EXTERNAL FACTORS
External and internal factor that affects the organisation
SWOT analysis a framework which is used to determine the internal
environment of the organisation which affects the business activities. With
this organisation can look into their functionality so that they can improvise
for better business goal achievements. It involves the factors which are-
Strength: It shows company’s strength which helps them in driving the
revenues. For Sainsbury company their strength is their good expansion
strategy which lead them to convert their limited convenience store into the
supermarket. Their skill full workforce who are proficient in their field to lay
out any complex task within organisation. They also have the potential
customer base which makes company to become largest supermarket
chain of country. They have the better work place culture which promotes
the productivity, and better leadership is found at work place which
motivates the employees towards the goals and objectives.
Weakness: As the retail market is continue growing and Sainsbury have
the low margin for the food business, also brand switching is challenge for
the Sainsbury company. Another weakness is found as only operating
market.
Opportunity: Emergence of the new technologies are providing
opportunity, as it increases the demand of digital platform for marketing
(Petrova, 2018). Another opportunity for the company can be to utilize the
technological analytics to understand the consumer insights.
Threat: Growing competition is the biggest threat for the company, also
there is intense competition is seen among the industry. Covid and Brexit
is another threat for company to continue their growth in market.
INTRODUCTION
For business Both internal and external factors play a significant role, it impacts the
business performance. Organization always make sure to manage their functionalities
closely for performing better (Islami, Mulolli and Mustafa,2018). Sainsbury a largest super
market chain of UK, they have diversification in their product and service which they deliver
world-wide. This report will cover the internal and external factor of organization. Following
report will cover the SWOT and PESTLE analysis which discuss the range of external
factors that impacts the organizational business. It also discusses the ways where
organization impact on external environment.
Pestle analysis
Business analysis tool in order to examine the external or macro environment which
affects the business functionalities.
Political: It involves the governmental rules and regulation like taxes which have great
influence over the business economy. Brexit a political decision has majorly impacted the
super market industry and Due to this supply chain have been heavily disrupted, this
impact can be seen on Sainsbury company as well, it causes barrier for the company to
continue their trade globally.
Economical: It involves the interest, inflation, unemployment rate and other factors. Rising
price over diesel and petrol have major impact as it ultimately makes more expensive for
transportation of goods and services. In retail sector all goods are carries from logistics
thus, for the Sainsbury, they have to account all increased prices. Which also means that
they have to move strategically in order to sustain in market.
Social: It involves the cultural, demographic trends and other factors. It has been identified
that population of the UK is usually shifting to the health conscious diet which impacts the
retail industry. As Brands are required to change their products and to add healthier option.
Thus changing behavior of customer impacts the company’s performance (Grigorieva,
2019). Thus Sainsbury company also adopting the consumer demand for long term
success of their business.
Technological: Emergence of new technology analytics as big data and artificial
intelligence have more impact over the global world. It helps the organisation in delivering
the fast and better services. Thus Sainsbury’s Advancement in the technological analytics
will lead company to predict the expected sale of particular product, which helps the
company to grow in their market fields.
Environmental: Involves the climatic condition, sustainability factor. Thus Supermarket
chains are more responsible for increasing the carbon footprint in the environment. In such
it is the major duty of the companies to come forward and reduce their plastic for packaging
to decrease level of pollution. It affects the business sustainability, thus Sainsbury need to
take preventive measure to commit to green products which helps in accomplishing
business sustainability.
Legal: Employment laws and other laws and regulation which the business required to
follow in order to prevent from legal activities. As for the Sainsbury if they miss to meet any
regulatory then they might have to face the vulnerable consequences.
Different ways where the organisation can impact on external
environment
Sainsbury company have good brand image in the market thus their
strategies have impact over the external environment. Their way is to offer
the product on fair or affordable prices which can every customer base can
easily avail it (Ostapenko, 2021). Thus it helps in boosting the economy,
because if the market has better cash inflow then it is good for the
economy. Another factor which the company impact on the external factor
are as, they have the better food product which involves the organic food
ingredient as well as company ensure it that their product will deliver the
health nutritional values. Thus their moves are completely satisfying the
need of the people who prefer the nutritional or health conscious product.
As for the environmental factor it is important for the businesses to meet
the sustainability, thus company is also focusing on reducing their plastic
packaging in order to meet the environmental sustainability (Slupska,
Drewniak and Karaszewski,2020). Sainsbury company also supports the
community with their better approach, they provide the qualitative products
and services that satisfy the needs of every age group customer.
REFERENCES
Grigorieva, L.I., 2019. INTERNAL CONTROL: ELEMENTS OF THE
SYSTEM AND ITS ANALYSIS. In Aspire to Science (pp. 375-379).
Islami, X., Mulolli, E. and Mustafa, N., 2018. The effect of industrial and
internal factors to the firm’s performance. Acta Universitatis
Danubius. 14(5).
Ostapenko, E., 2021. Development of the standard of quality of life in rural
areas in the system of institutional building of the internal
environment of the regional economy. In E3S Web of
Conferences (Vol. 285, p. 01009). EDP Sciences.
CONCLUSION
From the above report it is illustrated that both internal and external environment have
great impact over the business performance, if they are not maintained carefully then it
also gives negative impact. Above report have discussed the internal and external
framework analysis for the organisation which covers the SWOT and PESTEL framework.
It also discussed the external factor on which the organisational business impacts. It
discussed as how organisational strategies helped in boosting the economy or impact on
other external factors.