BM461: Global Business Environment - Sainsbury's SWOT Analysis Report

This report provides a comprehensive analysis of Sainsbury's, a major UK-based supermarket chain, within the context of the global business environment. The report begins with an introduction to the global business environment and its impact on various businesses. It then presents a detailed SWOT analysis, identifying Sainsbury's strengths (e.g., market leadership, large workforce), weaknesses (e.g., competition, rising food prices), opportunities (e.g., entering emerging markets, technological advancements), and threats (e.g., globalization, changing consumer values). Following the SWOT analysis, the report examines the operational impact on key functional areas such as marketing, HRM, finance, and R&D, highlighting how these functions are crucial for managing activities and achieving business goals. The report concludes by summarizing the key findings and emphasizing the importance of strategic analysis and adaptation in the global business environment.

Global Business
Environment
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Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
SWOT analysis............................................................................................................................1
Operational impact analysis.........................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCE..................................................................................................................................4
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INTRODUCTION
Global business environment is the environment in different sovereign countries that
involves various factors and focused on operation. In global business environment different types
of business are running where analysis is conducted by business concern to identify the impact
(Lopes, and et.al., 2019). The report is based on Sainsbury, that is large size supermarket UK
based operating business effectively. The report covers SWOT analysis and operational impact
analysis.
MAIN BODY
SWOT analysis
SWOT analysis: This framework is used by management of Sainsbury to know the
strength and weakness that is defined below:
Strength Weakness
 Sainsbury is the largest supermarket
chain across UK.
 The number of employees are more
than 150000 and operating business
effectively.
 This focused on leadership team that
motivates employees to work more.
 This use excellent branding and
advertising in UK.
 The company is facing the stiff
competition in the market.
 Rising in the food prices all over the
world.
 Changing in people demand and taste
(van Wijnen, Ragas and Kroeze, 2019).
Opportunities Threats
 Sainsbury enter in emerging market via
joint venture and partnership firms.
 This use new technology and
innovation in providing products.
 Providing 24/7 shopping and customer
help line services.
 Hiring skilled and talented staff at the
workplace.
 Increasing globalization.
 Increasing changes in current values.
 Occurring of pandemic and epidemic
that directly affects the organizational
sales.
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PESTLE Analysis – This is a tool that uses by all enterprises to know which factor
might be affected the organizational productivity and performance. The PESTLE analysis in
context to Sainsbury is defined below:
Political: Sainsbury is the largest supermarket chain in UK which is affected negatively
due to Brexit between England and UK which has reduced the organizational sales and
profitability. In case of stability of UK government, such organization will be operate its
business effectively (Cepel, Belas and Dvorsky, 2019).
Economical: In UK, with rising inflation rate and less income rate demand of products
and services which are selling by Sainsbury and other retailing sector can be affected negatively.
This reduced the organizational sales and profitability as sales percentage going to slow down. In
case, inflation rate has been reduced then will be opportunity to grow their business and sales.
Social: Now a days customers focused on buying products from super market where all
products and services are available under one roof. The management of Sainsbury understand the
requirement of their customers and provide the products and services across UK that can help to
increase the organizational functions (Morrison, 2020).
Technological: With the support of this factor Sainsbury’s performance affected
positively as it launched e-commerce store where products and services could be get by
customers easily or their door. This also helps to introduce the new products and services in
changing environment which can help to develop the organizational sales.
Legal: In UK sugar tax introduced, where Sainsbury is trying to modify its products to
ignore those taxes and save money. This offer its products by getting approval from regulatory
authorities that supports their business in changing environment and increase the organizational
sales.
Environmental: This factor is related to environment where government and people who
live in a country expect that company to be eco-friendly. In this, Sainsbury supports U.N.
sustainability goals and managing the all functions. This also focuses on minimum wastages and
high level of customer satisfaction which can help to develop the organizational functions and
improve the brand image in changing environment.
Thus, from the analysis it has explained that some factor in relation to external affected
the performance and profitability of Sainsbury and it support to operate too.
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Operational impact analysis
In an organization there are different functions which are important to run as it helps to
manage all activities ad roles. In Sainsbury different functions are HRM, marketing, finance, and
operation. The explanation of different function are as:
Marketing – This is main function for Sainsbury which is used by marketing management
for the purpose of promoting, selling, and influencing the number of customers. This can help to
increase the organizational sales and profitability by increasing sales and productivity
effectively. The marketing management introduced new product and services by understanding
demand and needs.
HRM- This function is used to arranging and managing the human being at the workplace
who understand their roles and perform it clearly. The human resource manager of Sainsbury is
using HRM function to identify vacancy and recruit the employees accordingly which can help
to run the business and attain the higher performance (Pradeepa and Ganeshrajan, 2019).
Finance – This is another function which requires arranging and managing the cash in
organization. This is also used by finance management to keeping the cash records, allocating
budget in to different activities and generating the money by developing the organizational
performance. This also helps to attain the competitive advantages as prices are set by managers
which influence customers and increase the sales.
R&D function – For running any business it is important to conduct the proper research
analysis which states what customers are demanding and how they can be satisfied. The
management of Sainsbury used this function to identify needs and current trend in the global
environment then make decision to provide the products and services (Jones, 2019).
From the all function it has been evaluated that Sainsbury is using all function for the
purpose of running its business in global environment which can help to attain the business goals
and objectives effectively.
CONCLUSION
From the report it can be concluded that a business is operated at the global level after
using the SWOT and Pestle analysis that can help to know which factor can be affect the
business. Technology is used to bring the new innovation and products at the workplace which
can help to develop the organizational performance. HRM, finance, marketing, and R&D which
used by business concern for the purpose of managing all activities.
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REFERENCE
Books and journal
Jones, G. G., 2019. Global Business. The Routledge companion to the makers of global business.
van Wijnen, J., Ragas, A. M. and Kroeze, C., 2019. Modelling global river export of
microplastics to the marine environment: Sources and future trends. Science of the total
environment. 673. pp.392-401.
Pradeepa, S.V. and Ganeshrajan, V., 2019. STRATEGIES FOR EMERGING BUSINESS
ENVIRONMENT. Advance and Innovative Research, 6(1). p.32.
Cepel, M., Belas, J. and Dvorsky, J., 2019, September. The impact of significant political factors
on starting a new business. In European Conference on Innovation and
Entrepreneurship (pp. 220-XVI). Academic Conferences International Limited.
Lopes, S. C. P., and et.al., 2019. Dynamic Business Model: Capture of value and generation of
sustainable competitive advantage. In Handbook of Research on Business Models in
Modern Competitive Scenarios (pp. 99-116). IGI Global.
Morrison, J., 2020. GLOBAL BUSINESS ENVIRONMENT: Towards Sustainability?. Red Globe
Press.
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