Environmental Analysis of Sainsbury's: A Marketing Report

This report provides a comprehensive environmental analysis of Sainsbury's, a major UK supermarket chain. It begins with an introduction to marketing and the importance of environmental analysis in the current business landscape. The report examines both the micro and macro environments affecting Sainsbury's. The micro-environmental analysis focuses on internal factors like product quality and marketing strategies, while the macro-environmental analysis employs a PESTLE framework to assess political, economic, social, technological, legal, and environmental factors. A SWOT analysis is then conducted to identify Sainsbury's strengths, weaknesses, opportunities, and threats. The report also includes recommendations for addressing key issues and concludes with a summary of findings and a list of references.

Marketing

Contents
Introduction.................................................................................................................................................4
TASK............................................................................................................................................................4
Environmental analysis............................................................................................................................4
SWOT analysis.........................................................................................................................................6
Recommendations...................................................................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
Marketing is defined as the activity which is used by organization for the purpose of
promoting organizational products and services in market place. Through conducting marketing
operations can company can attract large number of audiences and enhance overall sales of
business. In current dynamic business environment, it is important for the business to conduct
environment analysis and create strategies accordingly to gain competitive advantages. In this
report chosen organization is Sainsbury which is second largest supermarket chain in United
Kingdom. It is founded in 186 by John James Sainsbury and headquarter situated in London,
England, UK. Organization’s vision is to provide better quality product to customers and
maintain strong image in market. This report covers environmental analysis framework such as
Pestle analysis and SWOT analysis. Apart from that, key issues that are faced by organization
are mentioned in this project report.
TASK
Environmental analysis
Environment analysis is defined as the process through which organization can examine
internal and external factors of environment as well as their influence on organizational
performance (Hussain, and Kecili, 2019). It is strategic tool that helps Sainsbury to take
appropriate decisions and gain competitive advantages over other competitors.
Micro environmental analysis:
Micro environment analysis is the process of identifying organizational internal factors
that are closely related to the business and directly impact business operations and performance.
These factors are in the control of business so they can be managed by creating effective
policies. Sainsbury faces various internal issues that are mentioned below:
 Sometimes customers of respective organization complaining regarding the quality of
organizational food products that creates impact on organizational reputation.

 Although organizational marketing strategies are very strong but some times
organizational marketing campaigns are not conducted in systematic manner that
enhances cost of business.
 Internal management of organization is weak that create issue for business because
resources are not properly used or allotted that impacts business overall performance.
Macro environment analysis:
Macro environmental analysis is considered as the part of organizational strategic management
which enables business to analysis as well as identifies potential opportunities and threats that
might impact business performance. Through gaining information related to organizational
external environment, business can take effective decisions (Faraji, Yamini, and Gholami, 2019).
Sainsbury conducts Pestle analysis to identify external environment factors are mentioned below:
PESTEL analysis
Pestle analysis is defined as the framework of macro-environment analysis that is used by
organizations to identify external environment factors. Factors of pestle analysis in the context of
Sainsbury are mentioned below:
Political factors: It includes various factors such as trade restrictions, foreign trade
policies, taxation policies and others that create impact on business overall performance and
functionality. Sainsbury is the second largest super market store in UK and it mainly operate its
operations in the market of UK so, it is not being affected by the economic slowdown of other
nations. UK has existed in European nations that create some consequences of Sainsbury
business. Higher inflation rates impacts the performance level of organization because it reduces
customer’s expenditure (Adefarati, and Bansal, 2019). It is important for the organization to
understand these factors and develop effective strategies in order to run business smoothly.
Economic factors: Economic factors includes various factors such as interest rates,
employment rates, exchange and inflation rates that impact business performance in direct and
indirect manner. In UK customers has higher disposable income that helps Sainsbury to enhance
its sales. Apart from that UK economy is stable so business can run its operations in appropriate

manner that helps business to attain its determined goals and objectives on time with greater
efficiency and effectiveness.
Social factors: In current days, customers are aspire to shop products and services from
super markets such as Sainsbury rather than local retail stores because supermarkets provides all
good to customers under a roof. Supermarkets also come with special schemes and certain
discounts that attract larger number of customers towards organizational products and services.
Technological factors: In current business environment various technological
advancements, innovations and research and development are take place that creates positive as
well as negative impact on business performance. Sainsbury come up with the option of online
shopping of food and other products and the option of collecting their purchase from local stores.
Sainsbury also uses advertisement on social media that attract larger number of customers
towards organization and improve sales.
Legal factors: There are various legal rules and legislations that are formed by the
government and organizations must abide them in order to run business operations smoothly.
Government have creates modifications in these rules on continuous bases, so it becomes
difficult for Sainsbury to develop long term strategies and planning (Christodoulou, and
Cullinane, 2019). Introduction of new sugar tax in UK, respective organization need to modify
its products in order to deny those taxes. Organization follows other legislations like employment
law, health and safety and other to run business properly in competitive market.
Environmental factors: Environmental factors also impacts overall business
performance and efficiency. In present days, government as well as people of country expect
from an organization to become eco-friendly. Sainsbury supports U.N sustainability goals and
work working towards it. Latest technologies, waste management and corporate social
responsibilities are adopted by Sainsbury for the purpose of reducing carbon emission in
environment. All these actions builds string image of organization in market.
SWOT analysis
SWOT analysis is considered as the strategic planning and strategic management tool that is
undertake by an organization to identify its strengths, weaknesses, opportunities and threats that
are related to business competitors and project planning. Sainsbury uses this framework to take

effective decisions according to business positioning (Alanzi, 2018). Factors of SWOT analysis
are explained below:
Strengths Weaknesses
 Sainsbury is one of the largest
supermarket chain of United Kingdom
that provides variety of products to its
customers and it has experienced as
well as dedicated employees.
 Sainsbury has an excellent branding as
well as advertising across the UK
through print ads, TVCs and online
campaigns that attract larger number of
customers towards organizational
products and services.
 Sainsbury has over 1000 supermarkets
as well as convenience stores across
UK that maintains wider reach to
customers. Organization has strong
image in market that provides
competitive advantages to it over other
competitors.
 Sainsbury faces management issues that
impact its overall performance.
Organization has no appropriate system
to manage its resources and human
capital.
 Raising food prices over the world also
impacts Sainsbury because it’s
enhances organizational overall cost.
 In some cases customers find some
issues in organizational products that
create negative impact on
organizational image in market place.
Unsatisfied customers switch to another
brand that reduces organizational
market share and customer base.
Opportunities Threats
 Sainsbury can enter the markets of
emerging companies with the help of
partnership and joint venturing that will
help organization to explore business in
new market places.
 Sainsbury can implement self-checkout
machines that will help business to
open stores for 24 hours that plays
important role in boosting
 Growth and development of e-
commerce companies can create
negative impact on Sainsbury’s
performance and profitability (Teoli,
Sanvictores, and An, 2019).
 Stiff competition from other large
organization also creates threat for the
business such as Tesco, ALDI and

organizational profits. other.
 Increasing globalization also create
various challenges for Sainsbury that
impacts its efficiency and profitability.
Secondary data sources: Secondary data is defined as the data which is already collected by the
primary sources and available for the researcher for use in their own research. In this report
various secondary data sources are used for gaining information and other data related to
organization and its internal as well as external environment such as organizational official
website, government records, publishes sources, journals, bogs and other (Phadermrod, Crowder,
and Wills, 2019). All these sources provide relative information according to purpose.
Recommendations
There are various internal as well as external issues are faced by the Sainsbury that impacts its
performance and functionality. It is important for the organization to analyze these issues and
create effective strategies to overcome them. Some recommendations are explained below:
 It is recommended to organization to provide training to its management team so they can
manage all organizational operations and human resources in appropriate manner.
Management of employees led their efforts towards attaining organizational goals and
objectives.
 Sainsbury should create innovation in its existing products and provide quality products
to customers that attract higher number of customers and provide competitive adge to
organization over other competitors.
 Sainsbury should adopt latest technologies and expand business online to reach wider
customers and influence them to purchase organizational products and services.
Conclusion
As per above report, it can be concluded that marketing is the activity through which
organization can reach wider range of customers and influence them to purchase organizational
products in order to enhances business sales. It is important for the organization to conduct

environment analysis because it provides all information related to internal and external factors
of business and their influence on business operations. Organization need to develop effective
strategies to resolve all issues so business can gain competitive advantages lead towards success.

References
Books and journals
Hussain, C.M. and Kecili, R., 2019. Modern environmental analysis techniques for pollutants.
Elsevier.
Faraji, M., Yamini, Y. and Gholami, M., 2019. Recent advances and trends in applications of
solid-phase extraction techniques in food and environmental analysis. Chromatographia, 82(8),
pp.1207-1249.
Adefarati, T. and Bansal, R.C., 2019. Reliability, economic and environmental analysis of a
microgrid system in the presence of renewable energy resources. Applied energy, 236, pp.1089-
1114.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability, 11(21), p.6046.
Alanzi, S., 2018. PESTLE Analysis. Project Management.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International journal of information management, 44, pp.194-203.