A Report on Internal and External Environmental Factors of Sainsbury

This report provides an analysis of Sainsbury's internal and external business environments. It utilizes PESTEL analysis to examine political, economic, and social factors affecting Sainsbury's, including the impact of Brexit and the increasing health consciousness of consumers. Internal factors such as corporate culture and staffing are also discussed, highlighting their influence on business operations. The report further explores how Sainsbury's impacts its external environment through trade, economic contributions, and social responsibility initiatives. The conclusion emphasizes the significance of internal factors like staffing and financing for business success. Desklib is a platform where you can find more solved assignments and study tools.

Introduction
External factors mainly comprise of the components that
present outside the business environment but have
significant impact on business strategy and operations.
Internal factors are the one that are present inside and
within the organisation thus, lead significant influence on
decision making and strategy formulation. Sainsbury was
founded in 1869 by John James Sainsbury as limited
grocery a shop in Drury Lane, London, which soon
become the largest retailer of groceries in 1922.
Sainsbury
External Environment
Use of PESTEL analysis has been made to analysis and discuss about
the effect of external factors on Sainsbury.
• Political factor- Negative impact of Brexit (Exit of UK from
Europe) is seen on Sainsbury as it hampers and affect the sourcing
of material. Beside this, high level of political instability and
random changes in trade and tax policy is also faced in political
environment of UK.
• Economic factor- The economic environment of UK seemed to
stable that have positive impact on Sainsbury but the recently the
Brexit and Covid-19 has created many challenges for Sainsbury as
management and staffing of employees become more difficult.
• Social Factor- The people of UK are becoming more health
conscious that is creating an opportunity for Sainsbury as it can
include healthier products in its portfolio and predict chart. Beside
this, the society of UK is highly active on social media which is
providing a more efficient and effective way of advertising and
promotion to Sainsbury to have lager customer base and higher
success level.
How the company impact
its context External
Environment
There are various ways in which Sainsbury is leading
impact on the external environment, an analysis and
discussion of which is provided as below:
• Political- Regular trade and exchange of goods and
services across various nation of world by Sainsbury
has lead impact on political environment as the
government of UK needs to come up with more firm
and effective trade rules and policies.
• Economical- A positive impact is being lead out
Sainsbury on economic environment as it leads to
enhancement in the GDP along with mitigation of
issue of unemployment in economy through
providing jobs to people.
• Social- Various steps are being taken by Sainsbury to
meet the needs and expectation of society through
providing them best quality product and suitable
prices.
Internal Factors
There are various internal factors which have significant
effect on business organisation a description of which is
provided as below in context of Sainsbury:
• Corporate Culture- Sainsbury is having a strong and
positive corporate culture which helps to avoid mistake
and chaos as all executive actions and values are clearly
stated and presented for success of business.
• Staffing- Sainsbury is having highly skilled and trained
employees which perform all business activity in
efficient manner which leads a positive effect on
business organisation through ensuring timely
achievement of set goals.
Conclusion
On the basis of current project, a conclusion can be
made that internal factors like staffing and financing
lead significant effect on the business operations and
success. .