Sainsbury's Market Environment: PESTLE and SWOT Analysis Report

This report provides an environmental analysis of Sainsbury's, a major UK food retailer. It evaluates micro factors like product, marketing, and management issues, and macro factors through a PESTLE analysis, covering political, economic, social, technological, legal, and environmental aspects. A SWOT analysis summarizes internal strengths and weaknesses, as well as external opportunities and threats. The report concludes with recommendations for Sainsbury's to focus on health-conscious products, adopt new technologies, enhance online sales, and implement a participative leadership style for sustained growth. Desklib offers similar solved assignments and past papers for students.

Assessment 1 Individual
Report

TABLE OF CONTENTS
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Environmental analysis of company...........................................................................................3
SWOT analysis in order to summarize the issues.......................................................................5
RECOMMENDATIONS.................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to the collection of the internal and external factors that helps
the organization to know about the market. The current report is based on Sainsbury which is the
second largest food retailer in the UK markets. The company used to sell variety of food
products and have the large target market. As it is one of the largest supermarket it used to have
14.9% of share in UK market. In this current report there will be evaluation of micro and macro
factors that is faced by the company. The micro factors will include the product, management
issues, etc. and macro environment will be discussed by using the PESTLE analysis. Further this
will include the SWOT analysis based on the external and internal issues and recommendations
as well.
MAIN BODY
Environmental analysis of company
Internal factors: The internal factors are those elements that are under the control of the
organization. This includes the plans, policies, products, management, etc. which helps the
company to grow in the market. The internal factors and issues of Sainsbury is as described
below:
1.Product issues: This is the most important issue that used to have negative impact on
the macro environment of the company (Manomenidis, Panagopoulou and Montgomery 2019).
As people are health conscious after the happening of COVID- 19 so they are consuming less
fast food products produced by the company. This makes the company to be in big consequences
and this used to have direct impact on the goals.
2. Marketing issues: It is the internal problem faced by the company in order to have the
target market. As the cited company is the second largest company they must have the marketing
issues as it used to sell the variety of products. The company used to sell its products but it is
somehow difficult to have the marketing of the products which used to affect the internal
environment of the company.
3. Management issues: The management is the crucial factor in any organization and if
the company is not having proper management it used to create the issue (Lechhab and et.al.,
2022). As it is the leading food retailer so it must have the proper management in order to have

proper productivity. The employees in the company should manage the work which have them to
have better management in the company.
External factors: The external factors are those factors which are outside the control of
the company (PESTLE Analysis of Sainsbury's, 2022). The External factors affecting the
company is as described below by using PESTLE analysis framework:
Political factors: This is one of the most affecting external factors which used to have
great impact on the company. By the happening of Brexit, Sainsbury has affected a lot as there
were many changes in the political factors.
Economic factors: The cited company is highly dependent on the transportation through
roads rather than ships in the UK market. As there is continuous increasing in the fuel prices
which used to have negative impact on the transportation of the products across UK (Dmitrijeva
and et.al., 2020). The rise in the new food retailer will always be the strong economic factor on
the company.
Social factors: This factor includes the needs and wants of the customers in the market
and used to have big impact on the target customers. As there are continuous changes in the taste
and preferences of the customers which is somehow difficult for the company to manage that. As
people are health conscious which used to have less selling of the products produced by
company.
Technological factors: In the today’s era there are rapid changes in the technology in the
market. Sainsbury must adopt the new technology that helps them to have faster production and
helps in improving the customers experience. They must have the market campaign that supports
them to have increase in sales.
Legal factors: As the cited company is one of the largest brand they must follow the legal
policies and changes in the market. By having the quick changes in the needs and wants of the
customers they must follow the legal rules in order to adopt such changes. By following this it
helps them to have compete in the market.
Environmental factors: The company used to produce the high level of carbon that used
to have negative impact on environment. The current changes in the climate used to have great
impact on the profitability of the company. Sainsbury must adopt the changes which helps them
to have better productivity and profitability.

SWOT analysis in order to summarize the issues
The SWOT analysis is the framework that helps the company to identify and analyse the
strengths, weaknesses, opportunities and threats of the company. This helps the organization to
have better awareness in order to make the proper decisions in the business (SWOT analysis of
Sainsbury, 2022). The SWOT analysis based on internal and external factors of Sainsbury is as
described below:
Strengths: The strength of the company is that it is the listed company on the London
Stock Exchange. The feedback of the customers is also very good as this used to provide the
variety of products in the market (Chu, 2018). Sainsbury has the unique strategies in order to
have promotion of the new and existing products in the market. By having the online presence
makes the company to have increase in the target customers. Selling the products online helps
the company to get the frequent feedback from the customers.
Weaknesses: The weaknesses refers to the areas that helps the business to must focus on
that helps them to have better productivity. As there is lots of competition in the market the
company has to adopt the new technology which decreases the profitability. In order to compete
with the competitors the company has to do reduction in the price margin to attract the
customers. As it is somehow expensive for some customers as the products of the company is
expensive.
Opportunities: As the Sainsbury is the one of the leading supermarket in the markets of
UK it has different opportunities. They can have the self- checkouts technology which makes
them to provide the all time services to the customers. They can also open their small stores in
the areas where there is non-availability of the food products. The company can have the global
reach which provides them the opportunity to have target market and increase in profitability as
well. By opening the stores in the rural areas helps the company to have better working and more
selling of the products. This will result in the growth of the supermarket in the areas for the food
retailers.
Threats: The big threat for the company is that they used to face the product and
management issues in the market. Sainsbury has the large number of customers which used to
have impact on the growth and profitability of the company. As there is continuous changes in
the needs and wants of the customers which makes the company to have impact on social factors.

As it is seen that the company is leading in the market which helps them to adopt the new
and innovative technology in the market. By following the policies and political changes it
makes the cited organization to grow in the market. It is also seen in the magazines and on
internet research that the company is growing so well which makes them to have more
customers. The company must also focus on the changing market which provides them new
opportunities to grow in the market.
RECOMMENDATIONS
In order to have the proper and non- stop growth the company must focus on the below
stated recommendations:
1. It is recommended to the company that they must focus on the products produced
by them (Chen and Antonelli, 2020). As people are now more health conscious,
so the company must produce the health conscious products. This will help them
to have more target customers in the markets of UK.
2. It is also suggested to the company that they must adopt the new technology
which helps them to have the faster production of the products. This will support
the company to have better production in the market.
3. Further it is also suggested to the company that they must have their more focus
on the online selling of the products (Naidoo and Gasparatos, 2018). As due to
COVID the people are now more focused on the online shopping of the products.
4. Moreover, it is recommended to Sainsbury that, they must have the participative
leadership style. This helps them to participate the employees in the decision-
making and motivates the employees.
CONCLUSION
From the above report it is concluded about the environmental analysis of Sainsbury. The
report has evaluated about the micro factors by stating the product, marketing and management
issues in the company. Further the report has described the macro factors affecting company by
evaluating the PESTLE framework. In this the factors described are political, economic, social,
technological, legal and environmental factors. At last this report has also described about the
issues by using SWOT analysis and recommendations on the following. The recommendations to
the company has evaluated that the company must focus on the things in which they are lacking.

REFERENCES
Books and Journals
Manomenidis, G., Panagopoulou, E. and Montgomery, A., 2019. Resilience in nursing: The role
of internal and external factors. Journal of nursing management. 27(1). pp.172-178.
Lechhab, T. and et.al., 2022. Sets of internal and external factors influencing olive oil (Olea
europaea L.) composition: A review. European Food Research and Technology. pp.1-20.
Dmitrijeva, J. and et.al., 2020. Context matters: how internal and external factors impact
servitization. Production Planning & Control. 31(13). pp.1077-1097.
Chu, K. M., 2018. Mediating influences of attitude on internal and external factors influencing
consumers’ intention to purchase organic foods in China. Sustainability. 10(12). p.4690.
Chen, P. J. and Antonelli, M., 2020. Conceptual models of food choice: influential factors
related to foods, individual differences, and society. Foods. 9(12). p.1898.
Naidoo, M. and Gasparatos, A., 2018. Corporate environmental sustainability in the retail sector:
Drivers, strategies and performance measurement. Journal of Cleaner Production. 203.
pp.125-142.
Online
SWOT analysis of Sainsbury. 2022. [Online]. Available
through:<https://www.marketing91.com/swot-analysis-of-sainsbury/>
PESTLE Analysis of Sainsbury's. 2022. [Online]. Available
through:<https://www.marketingtutor.net/pestle-analysis-of-sainsburys/>