This report provides a comprehensive analysis of Sainsbury's business environment, focusing on both internal and external factors impacting the company. The report begins with an introduction to environmental business analysis, emphasizing its importance for understanding threats and opportunities. The main body of the report provides an overview of Sainsbury's, including its position in the UK retail sector, its market share, and its various business segments. A key component of the report is the application of the value chain model to examine Sainsbury's internal business environment, detailing primary activities such as inbound logistics, operations, outbound logistics, marketing and sales, and services, as well as support activities like human resource management and R&D. The report also includes a SWOT analysis to identify Sainsbury's strengths, weaknesses, opportunities, and threats. The report concludes with a reflection on the analysis and its findings.