Sainsbury's Business Studies: Analyzing Internal & External Factors

This report provides a comprehensive analysis of Sainsbury's business, focusing on the internal and external factors that influence its operations. It begins with an introduction to business studies and Sainsbury's, highlighting its position as the second-largest supermarket chain in the UK. The analysis employs tools like PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) to assess macro-environmental forces and SWOT (Strengths, Weaknesses, Opportunities, and Threats) to evaluate the company's strategic position. The report identifies key strengths such as organizational expansion and innovative promotional strategies, weaknesses including brand switching and low margins, opportunities for organizational growth and market creation, and threats like competition and e-commerce. The conclusion emphasizes the importance of understanding both internal and external factors for maintaining financial stability and operational efficiency within the organization.

Introduction to
business
studies

Table of Content
 Introduction
 Internal and external factors which impact on business
 Conclusion
 References

Introduction
 Business studies refers to study and analysis of particular
business subject which was connected with money and
managing a business. Sainsbury is the second largest
chain of super market in United kingdom and is
headquartered in UK. The company was established in
1869 and the main objective of this organization is to
provide best quality product and services to consumers.
The research is totally based on internal and external
factors which impacts the overall business activities.

Internal and external factors which impact on
business
 Internal factors refers to those factors which
affects the company matters internally. But
external factors refers to those factors which
impact the business externally. Internal and
external both factors helped the organization to
understand their strength and weaknesses. And
then according to that organization improve their
productivity and work efficiency in organization.

PESTEL Analysis of Sainsbury
 PESTEL Analysis is a tool which is used by organization to identify the
macro external forces which are affecting the overall functioning of the
organization. The factors which is used by organisation for evaluating the
strength and weakness are -
 Political
 Economic
 Social
 Technological
 Environmental
 Legal

SWOT Analysis of Sainsbury
 SWOT Analysis is a strategic planning and management tool which is used
by organization to identify their strength, weakness, opportunities and
threats.
Strength includes -
 Expansion of organization
 Innovative promotional strategies

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Weaknesses include:
 Brand switching
 Low margins
Opportunities include:
 Organizational growth
 Creating market

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Threats include:
 Competition
 E commerce

Conclusion
 After the analysis of above information it is understood that understanding
of internal and external analysis by the management is important for run
the organization smoothly. Without analysing these two aspects company
are not able to maintain the financial stability of organization. Proper
understanding of internal and external factors also helped to run their
operational activities, departmental functions properly.

References
 Crane, A., Henriques, I. and Husted, B.W., 2018. Quants and poets:
Advancing methods and methodologies in business and society
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 Davies, I. A. and Chambers, L., 2018. Integrating hybridity and business
model theory in sustainable entrepreneurship. Journal of Cleaner
Production, 177. pp.378-386.
 Grøgaard, B., Rygh, A. and Benito, G.R., 2019. Bringing corporate
governance into internalization theory: State ownership and foreign entry
strategies. Journal of International Business Studies, 50(8). pp.1310-1337.
 Ketcham, D., Nigro, P. and Roberto, M., 2018. Do persistence and passion
matter: Evidence from the educational testing service major field test in
business. Journal of Education for Business, 93(3). pp.112-118.
 Tura, N., Keränen, J. and Patala, S., 2019. The darker side of sustainability:
Tensions from sustainable business practices in business
networks. Industrial Marketing Management, 77. pp.221-231.