Sainsbury's: Internal & External Business Environment Analysis Report

This report provides a comprehensive analysis of Sainsbury's business environment through internal and external assessments. Internal analysis includes SWOT and VRIO models, identifying Sainsbury's strengths (e.g., supermarket expansion, effective low-cost strategy), weaknesses (e.g., low switching costs, high market competition), opportunities (e.g., shifting customer preferences), and threats (e.g., intense competition, COVID-19 impacts). The VRIO analysis evaluates Sainsbury's resources based on value, rarity, imitability, and organization. External analysis utilizes the PESTLE model to examine political (e.g., Brexit), economic (e.g., COVID-19 impacts), social (e.g., diverse customer base), technological advancements, legal regulations, and environmental factors affecting Sainsbury's. The report emphasizes the importance of strategic management in navigating these factors to achieve business goals.

Internal and external
analyses

INTRODUCTION
Business environment analyses refers to those analyses under which the management of the
company has analyses various internal and external factors related business. Large number of
factors are there which exist in the marketplace which create effect on the business but the
impact of these factors is high on the company. It is responsibility of managers of the company
that they make focus on issues of the management and try to solve them effective manner so that
their negative aspect can be mini minimised. The little changes occur in business can results in
damage to the company. There are number of analyses are present in the market which can
provide assistance to managers of the organisation in effective manner for purpose of evaluation
of internal and external factors. The nationally of internal and external factors are essential for
the management because as it assist managers for development of effective strategies in the
organisation in the organisation. Strategic management is one of the important part of the
business which enables the company to achieve their goals and objectives in effective manner.
Sainsbury is the organisation which is taken here to demonstrate this report. This report is based
on the internal and external analyses of business. There are different types of models are used
here which helps to conduct internal and external analyses of business.
TASK
Internal and external anlyses of the business on ten basis of different strategic model
There are different in internal factors are present inside the organisation which has serious
impact on the business (Arshed and et.al., 2021) . The analysation of these factors are very
important because it helps the administration of the arrangement to evaluate different types of
internal factors. There are many models are present in the organisation in relation to this issue
SWOT analyses is one of the well known and valuable strategic model which can helps the
management to measure the inside factors of the business.
SWOT analyses of Sainsbury
It is considered as effective and important strategic model which managers of different types of
business has used in their organisation to evaluate different internal factors affecting their
business (Yuniarti, 2019) . The analysation of internal factors is considered as crucial for purpose
of management of organisation as it provide them assistance in the process of strategy
development and helps them to becomes more competitive in the market. There are four factors

are present in this model such as Strength, Weakness, Opportunity and Threats. All the four
factors has different dimensions and also the discussion in context to the same are mentioned
underneath:
Strength
 One of the greatest strength of the Sainsbury is their expansion under which the
management of the company has expand their business in super markets (Coopersmith
and et.al., 2022) . The management of the company has operate small stores in the market
of United Kingdom and the level of their expansion is that now the company has operated
super markets in the markets of United Kingdom.
 The management of Sainsbury has followed effective business philosophies which is one
of their core strength in the market (Felix and Wilford, 2019) . The management of the
company has developed effective low cost strategy in their organisation under which they
have provide the product at low prices which attracts the customers towards them.
 The management of the company able to target diversified range of customers from the
market which helps them to operate at least cost in the market.
Weaknesses
 The switching cost of the product of the company are very low which enables the
customers to switch on other products of the market. There are many companies are
present in the retail sector of the market which makes the concept more difficult for the
management of the organisation.
 The management of Sainsbury has operate their business in highly competitive market
which is one of their greatest weakness. The high level of competition in the market has
disable the company to gain high profit margins from the market. The profit t margins of
the company becomes minimise due to the competition in the market.
Opportunities
 one of the greatest opportunity for grocery markets is that the preference of the customers
from the remote areas are also shifted towards the supermarkets (Franco, 2021) . It is one
of the valuable opportunity for the business because it enables the company to increase
the number of their customers.
 The taste of the buyers are shifted towards the purchase of product from the supermarkets
because of the freshness and the number of factors.

Threats
 The market of United Kingdom has some big players which has developed high
competition in the market. The high competition in the market is one of the great threat
for the company (Gielen and et.al., 2022) .
 It is essential for the company to ensure development of effective framework that has
evaluate the matter of covid. Covid pandemic one of the greatest negative threat for all
the businesses of the market because it disable the company to operate their business in
normal manner.
VRIO analyses of Sainsbury
VRIO refers to those model which is used by many company of the world to evaluate the
strength of their resources in the market. It is considered as valuable and essential model for the
strategic management that provide assistance to management in order to verify the effectiveness
of their resources on the basis of various factors. There are four factors are existing in this
framework of strategic management such as Valuable rare imitable and organisation. The brief
discussion related to these factors in relation to Sainsbury are given below:
Valuable
 The financial resources of the Sainsbury are considered ton be valuable because it helps
the institution to expand their business in the marketplace.
 The administration of the company has provide local food product in the market which is
very rare for them because it assist them organisation to earn more and more revenue
from marketplace.
 The management of the company has managed and controlled large number of employees
in their organisation which are very valuable for the management because it helps the
company to become more competitive in the market.
 The patents which the company has developed are considered to be valuable (Hack and
et.al., 2020) .
Rare
 The financial resource of the Sainsbury are considered to be rare because it developed by
the organisation from their hard work which is not available to all companies.

 The local food which the management of the company has provided by the company in
the market are not rare. The main reason behind this is that many companies has provided
these types of foods in the market.
 The group of skilled and effective employees of the company are considered to be rare
because it is very difficult for other types of companies to develop such type of
employees in their management (AlHashmi, 2020) .
 There are different types of patents are developed by the company are very rare because
it protect the product of the company to be copied by other companies.
Imitable
 The financial resources which the management of the Sainsbury has hold in their
business are very costly to be imitable by the other company. These resources only
developed by the profits of long term.
 The local food are very easily imitate by the management of other companies because
other companies can developed these resources by development of research and
development department.
 The employees of the organisation are very not costly to be imitate by other companies
because it can be developed by providing proper training and motivation to the
employees.
 The patents which is developed by the management of Sainsbury are not possible to
imitate by the other companies.
Organised
 The financial resource of the company are very organised as it is developed by the
company by the hard work and their effective way of resource allocation.
 The patents of the company are not organised as the management of the company are not
used their resource with maximum potentials (Hinderliter and et.al., 2022) .
External analyses of organisation on the basis of model
External factors can be described as those factors present in the external environment of the
business which is required to be analyse by the management of the organisation because it
enables the management to minimise the external threats from the market. Pestle analyses is one
of the important model which can be used here to analyse the external factors of the business.
PESTLE analyses of Sainsbury

It is considered as an important strategic model which can be utilised many companies to analyse
the impact of various external factors on the business of the company (Sandau, 2021) . The brief
discussion related to the same are given below:
Political
It is related to those factors of the PEST analysed which is related to the impact of government
policies and regulation on the business of the organisation. It is one of the most important and
dominating factors of the external analyses Due to which the managers has to make focus so that
their negativity can be minimised (Srakar, 2018) . One of the most biggest external factor which
enables the organisation is Brexit it is one of those factors under which all the trade agreements
and the treaties which the management of the United Kingdom has with European Union has
been terminated. The companies of UK has faced extensive problems in such nations.
Economical
It is affiliated to factors of the Pestle analyses which is accompanying to the impact of economic
policies on the business of the organisation. It is one of the crucial factor which the management
has to consider in the management of the organisation (Vikranth and et.al., 2021). The economy
of all the countries are facing extensive condition from the negative impacts of the business. The
covid pandemic has enables all the economies to reflects negative growth in the market.
Social
This component of the pestle analyses is accompanying to the impact of tradition and culture of
the country on the business of the organisation. There are large number of buyers are present in
the market which is differentiated on the basis of the cast, religion and other basis. It is very
important for the management of the organisation that they develop those product in the market
which has satisfy the needs of all the customers so that the criticism cannot be developed in the
market. The market of United kingdom has contains different types of people so it is necessary
for the people to maintain effective framework in the organisation.
Technological
This factor is important factors in business as on basis of it, business can gain competitive
advantage in marketplace place. It create impact of technological advancement on operation
process of the organisation. Different new and advance technology are there which developed in
the market regularly which makes the business of the organisation more competitive and

attractive in the market. These technologies not only enables the employees to reduce the efforts
of the employees but also helps the management to attract the customers towards the company. It
is very important for the management of Sainsbury and due to this, business needs to invest
properly in different types of research and development activities in market, so that new and
advance technology can be developed in the market.
Legal
It is a component of Pestle analyses of an the organisation that deals with varioues rules and
regulations made by the government for the business of the organisation. The main aim behind
development of rules and regulations over business is to maintain law and order in a contry as
well as its market place so that the rights and benefits of all the stakeholders can be developed in
the market. It is very important for the management of Sainsbury that they follow all the rules
and regulation so that their business can be increased by large number.
Environment
There are large number of environmental factors are present in the market which has operate
their business in the market. There are large number of environmental issue are present in the
market which the management of the organisation has developed effective framework in the
organisation. It is very important for the management of the organisation that they develop
effective framework in the market which has developed strategies related to the environment.
Risk assessment of company and their action plans to mitigate.
There are large number of risk and negative factors are present in the market which provides
negative returns to the company (Khatibi, Mehdipour and Marashian, 2021). The availability of
the risk are very negative for the company because it enables the management to consume their
time. There are many risk are present which the management of Sainsbury has faced in their
business and the brief discussion related to the same are given below:

CONCLUSION
On above discussed report, it is concluded that the analysation of internal and external factors
considered as an important factors for business as it provide assistance and guidance for
development of effective strategies in the market. This report is concludes on the internal and
external analyses of business. There are different types of models are used here which helps to
conduct internal and external analyses of business are developed in this report.

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