Sainsbury's: SWOT Analysis and Operational Impact in Global Business

This report presents a comprehensive SWOT analysis of Sainsbury's, examining its strengths, weaknesses, opportunities, and threats in the global business environment. It highlights Sainsbury's successful expansion, own-label products, and innovative promotion strategies as key strengths, while also addressing weaknesses such as substitute availability and increasing prices. The analysis identifies opportunities like 24-hour services, mergers, and growth in new markets, alongside threats from globalization and intense competition. Furthermore, the report analyzes the operational impact of potential losses, emphasizing the importance of identifying critical business processes, protecting data, mitigating financial disasters, and preparing for industry trends. The report concludes that this analysis is beneficial for Sainsbury's, enabling it to maintain operational speed, enhance service flexibility, save costs, and improve profitability by using solutions like "Wesuupply" to track orders and manage product availability, ultimately aiding in risk mitigation and effective communication during crises.

Global Business Environment.
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Contents
MAIN BODY...................................................................................................................................3
Presenting the SWOT analysis of Sainsbury...............................................................................3
Analysing the operational impact analysis..................................................................................4
REFERENCES................................................................................................................................6

MAIN BODY
Presenting the SWOT analysis of Sainsbury.
Swot analysis is perfect tool that helps in identifying certain strengths and weakness of the
firm so that better decisions could be taken Also, for the retail firm like Sainsbury that is having
large number of convenience stores and selling variety of goods below is detailed SWOT
analysis for the firm:
Strengths
Right expansion moves: The firm has been able to sell variety of goods starting from the
limited range to large variety and has now become one of the most known as well as top
supermarket brand in UK and other regions of the country (SWOT analysis of Sainsbury, 2022.).
Own label products: Also, Sainsbury sells all its products that are made under their own
label that has able to develop greater trust and loyalty among its existing customers. Moreover,
through this policy the firm is able to attract new customers for the firm.
Innovative promotion strategy: The firm is actively involved in introducing new
strategies for promotion so that more customers are ready to purchase the goods and thus helps in
increasing the overall revenues.
Weakness
Availability of Substitutes: There are various number of competitors in the markets that
are selling variety of products under different categories (Thrassou and et.al., 2020). Thus, niche
focused companies are able to earn more market share than in comparison to firm like Sainsbury.
Increasing prices: With the upcoming of situations like pandemic there is atmosphere of
economic uncertainty and limited availability of resources. Thus, sales of the company have also
been reduced that further impacted operations of the business.
Low margins: The firm has also been facing the pressure of cutting down the costs of
various products so that it could operate in various markets successfully.
Opportunities
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24 hours’ services: Sainsbury has developed self-checkout points at its outlets that will
allow the customers to purchase products at any point of the day. Thus, this technology would
not only make the buying process faster but will also help in increasing sales of the business.
Mergers: The firm also have the opportunity to the merge with another companies while
expanding into new regions (Uluskan and Godfrey, 2018). Thus, it will help to reduce the overall
manufacturing costs and also helps to build brand image and generate greater revenues for the
firm.
Growth in villages: The company has the opportunity to start is business in new market
especially in remote areas so that more people have the benefit to consume products that are not
available locally. Moreover, this could be done by the firm either through online or offline
mediums.
Threats
Globalization: In the times when new technology is coming in the market and goods
could be sold in any parts of the world Sainsbury has threat of new small retailer entering into
the market with innovative products at lower costs (Shekshnia, Kravchenko and Williams, 2018).
Competition: The company is facing intense competition from various small and large
retailers operating in UK market. Thus, it has created pressure on the firm to introduce new
policies and redesign organisation structure so that it could survive in the market for longer time
period.
Analysing the operational impact analysis.
This type of analysis helps firms in identifying the impact of loss that is through any kind
of operational or technological resource. Moreover, loss in kind of system or network might
affect number of business processes at any organisation workplace. Furthermore, this type of
analysis is very helpful doing detailed study about how certain products or services are delivered
during any point of time. In context of Sainsbury it can be said that such type of analysis helps
the firm in
 Identifying all the important process of the business on which success is depend.
 Developing better plan that will protect all relevant company data and assets.
 Mitigate all types of potential financial disaster so that business could be run in
smooth manner (Cherunilam, 2021).

 Preparing for the upcoming latest industry trends so that competitive advantage of
the firm could be maintained for the longer time period.
Moreover, to conduct such type of analysis the quoted firm prepares the impact team that will
ensure that all results that are gathered are accurate. Also, various vital business process is being
identified so that in dept. knowledge could be gathered. Further, a questionnaire is created so
that information could be collected in right manner. Finally, after the collection of the
information, a detailed report is being prepared that will help to analyse the current business plan
and identify further changes if required (Čepel and et.al., 2018). Thus, through this analysis
Sainsbury is able to identify the future threats and the approx. time duration of such threats while
carrying out certain business activities. Moreover, through closely analysing the worst case
situations that is going to be happen in the future quoted firm is able to save losses and resources
in advance thus ensuring success of the business over the years.
Thus, it can be said that this analysis is been beneficial to Sainsbury as it helped in
maintaining the speed in carrying out different operations, allowed customers to enjoy flexibility
in services, saving various operational costs and enhance the profitability of the business for long
run. Also, it has allowed the firm to keep the business organized and in case of Sainsbury its uses
the “Wesuupply” solutions that keep the track of orders across the entire network of the business
and also manage in making products available to the customers (Möller, Nenonen and Storbacka,
, 2020). Hence, this analysis proved very beneficial for firm like Sainsbury as it is operating on
large scale against several competitors. Thus, for collecting the proper feedback from the impact
team the quoted firm is able to develop certain risk mitigation activities so that maximum losses
could be avoided. Also, in times of any financial crisis such as COVID 19 the business impact
analysis provides certain tools that will help in keeping track of all remote employees working in
different parts and establish better communication across various levels of department.
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REFERENCES
Books and Journals.
Čepel, M. and et.al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Möller, K., Nenonen, S. and Storbacka, K., 2020. Networks, ecosystems, fields, market systems?
Making sense of the business environment. Industrial Marketing Management. 90. pp.380-
399.
Shekshnia, S., Kravchenko, K. and Williams, E., 2018. CEO school: Insights from 20 global
business leaders. Springer.
Thrassou, A. and et.al., 2020. Editorial Introduction: The Changing Opportunities and
Challenges of SMEs in Contemporary Business. In The Changing Role of SMEs in Global
Business (pp. 1-13). Palgrave Macmillan, Cham.
Uluskan, M. and Godfrey, A. B., 2018. Business environment-supply chain framework and
benchmarking supply chain structures: Haiti versus China. Benchmarking: An International
Journal.
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