BM461 Global Business Environment: Sainsbury's SWOT Analysis Report

This report provides a comprehensive SWOT analysis of Sainsbury's, a major UK supermarket chain. It examines the company's internal strengths and weaknesses, such as its low-cost strategy and employee diversity, and external opportunities and threats, including globalization and competiti...Read More

Portfolio papers
SWOT and
Operational Impact
Analysis for
SAINSBURYS

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
SWOT Analysis......................................................................................................................2
Operational Impact Analysis..................................................................................................3
CONCLUSION................................................................................................................................4

INTRODUCTION
Internal environment of factors which affect the business organisations make a significant
contribution in the growth of area of a business. SWOT analysis can be saved as a tool used by
various organisation for the purpose of analysing internal factors which affect the organisation.
This report is based on Sainsbury which is a British Supermarket chain in United Kingdom. It’s
headquarter is located in London, England, United Kingdom and it was founded by John James
Sainsbury. This report shows the swot analysis of Sainsbury and after that it also determines the
ways in which key drivers can be impact on functional areas.
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MAIN BODY
SWOT Analysis
Strength Weakness
1) Sainsbury is using low cost strategy
and they are providing various
categories of products at low prices as
compared to their competitors. By
doing this actor they are able to attract
and retain the customers from all
income segments.
2) Sainsbury can be said as a great place
to work at with employee diversity as
almost 150000 people are doing work
with this organization.
3) Mostly the Strategies for the purpose
of promotion adopted by the
organization are highly innovative and
these strategies pinch the brand
directly against to the competitors
(Ziaudeen, A., 2020). Tesco and Aldi
are the competitors of Sainsbury and it
is analyzed that Sainsbury is providing
products at cheapest prices.
1) It is a huge challenge in front of
Sainsbury to retain the customers
because of availability of many
competitors in the market.
2) Increasing competition in the retail
space added various challenges of
online retailers. For the purpose of
attracting customer, Sainsbury is
cutting down their coast and keeping
price lower than the competition
(Agyekum, E.B., 2020).
3) People of higher income segment want
to spend their money on gaining
shopping experience which is a key
differentiator. For the same purpose,
Sainsbury have to add some more
facility is like multi level parking,
well-informed salesperson, educated
salespeople, spacious aisles and many
more which result in high expenses.
Opportunities Threats
1) It is founded after the people who are
living in rural areas are not using
branded products. They have
opportunity to do the business and
provide branded products to villages. It
1) The main competitions of Sainsbury
include Aldi, Asda, Resco, Lidl and
many more.
2) Increasing globalization is a challenge
as well as opportunity for the Sainsbury
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may result in the growth of
Supermarket culture.
2) Introducing new technology which
include self-checkout machine in all the
stores of Sainsbury helps in boosting
the sales of organization.
3) They also have opportunities to do the
business in various growing economy
which include Asia and Africa (Tekin,
H. and Atabay, Ş., 2019).
(Dhakal, S., Karki, P. and Shrestha, S.,
2021).
3) Since we have to find best quality
products from world over the
competitors.
Operational Impact Analysis
Marketing Department
Marketing department is a functional department in any organisation which helps in the
promotion of business. Its main focus is to increase the sales of their products and services (Dan,
J., 2017). It is also responsible for doing research for the purpose of identifying the target
customers and audience. Its responsibilities include connecting customers to product, promotion
and PR, new business development and many more. Sainsbury is a huge brand in UK economy.
The key driven from SWOT analysis is brand image. It is the result over various promotion
activities conducted by marketing department for the purpose of promoting their product and
services. Their Marketing department is also doing research on time for the purpose of knowing
about the needs and demands of consumers. Sainsbury is the second largest chain of
supermarket, it is the only result of efforts of marketing department as their main task is to
convert the promotional message into sales.
Human Resource Department
Human Resource Department is an another functional department of an organization which
works only for human who are working in the organization. Their responsibilities include
recruiting the right people for the right job, maintaining a safe environment, employer employee
relations, compensation and benefits, Labor Law compliance, training and development and
many more. They work for the employees working in the organization by providing training
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programs so that they can improve their work performance at workplace. They help the
employees in reaching them to the desired objectives and goals of organization. Employees
working in Sainsbury are fully satisfied as the human resource management arranges various
training and development programs for their employees which help in the development of 4th
professional as well as personal skills (Rao and et. al., 2018). It is analyzed that almost 150000
employees are currently working with their organization. It is the only result of various strategies
made by HR department and training and development program which help in creating positive
environment at workplaces. Only with the help of their effective employees they are able to beat
the competition in the market. Such efforts done by management of organizations helps in thr
retaining of employees in the organization which decrease the cost as well and leads to the
improvement of both productivity as well as profitability (Faza, M.A., 2019).
CONCLUSION
From the above report, it is concluded the SWOT analyses is a tool which is used by various
organisations in order to know about strengths, weakness, opportunities and threats. For the
purpose of gaining all opportunities available in the market, it is necessary to identify them on
time. Above mentioned SWOT analysis of Sainsbury shows that there are various factors which
are working as key point of success. Along with this, various key drives are also identified along
with their effect on various key functions of organisation. Sainsbury is doing business only in
UK economy, if they want to increase profitability of organisation, they can expand their
business in other developing countries which include Africa and Asia.
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REFERENCES
Books and journal
Rao and et. al., 2018. Improving competitiveness through performance evaluation using the
APC model: A case in micro-irrigation. International Journal of Production
Economics, 195, pp.1-11.
Dan, J., 2017. The Construction of Dynamic Model of Interpretation Teaching: Based on SWOT
Analysis Method. Journal of Xi'an International Studies University, p.02.
Dhakal, S., Karki, P. and Shrestha, S., 2021. Cross-border electricity trade for Nepal: a SWOT-
AHP analysis of barriers and opportunities based on stakeholders’
perception. International Journal of Water Resources Development, 37(3), pp.559-580.
Ziaudeen, A., 2020. A SWOT analysis of human resource management in Tamil Nadu hotel
industry. Journal of Management Research and Analysis, 5(4), pp.373-375.
Agyekum, E.B., 2020. Energy poverty in energy rich Ghana: A SWOT analytical approach for
the development of Ghana’s renewable energy. Sustainable Energy Technologies and
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Tekin, H. and Atabay, Ş., 2019, September. Building information modelling roadmap strategy
for Turkish construction sector. In Proceedings of the Institution of Civil Engineers-
Municipal Engineer (Vol. 172, No. 3, pp. 145-156). Thomas Telford Ltd.
Faza, M.A., 2019. Analisis SWOT Pariwisata Halal Provinsi Nusa Tenggara Barat. Jurnal
Manajemen Indonesia, 19(1), pp.10-29.
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