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Analyse The Internal & External Factors of Sainsbury Organisation.

University: Bucks new university

  • Unit No: 8
  • Level: Post Graduate/University
  • Pages: 5 / Words 1263
  • Paper Type: Assignment
  • Course Code: BM461
  • Downloads: 167
Question :

This assessment will cover following questions:

  • Sainsbury is the second largest supermarket chain in the United Kingdom. Identify the impact of government on the operational functioning of the Sainsbury organisation.
  • How changes can impact the business organisation and its operational activity.
  • Analyse the internal and external factors of the Sainsbury organisation.
Answer :
Organization Selected : Sainsbury


Global business environment can be define as environment where various countries with factors that are external to home environment of the organisation, effecting its decision making on resource utilization and abilities of the organisation. It can be categorised into external and internal environment (Bedianashvili, 2016). External environment consist of political, social, regulatory, tax and technological environments. For this study, Sainsbury's has been selected. It is a supermarket chain in United kingdom. It was established in 1869. It is a large retailer of packed groceries and fresh foods. In this study, SWOT analysis of the respective organisation will be conducted. Furthermore, impact of key drivers which has been identified in PESTEL analysis on functional areas like HRM, marketing, finance and R&D will be cover.

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1.SWOT analysis

SWOT analysis is an effective tool which is use to identify strengths, weakness, opportunities and threats (Barac and et.al., 2016). It helps an organisation to analyse its competitive position and to create a strategic planning. It is majorly responsible for identifying external and internal factors along with recent and future potential. Hence, SWOT analysis of Sainsbury's organisation is discussed here.

Strength: It can be define as positive and internal factors of an organisation. Basically a strength of a firm is usually its resources and abilities which can be utilize as a base for creating a competitive advantage. Strength of Sainsbury's is that it is one of the strongest grocery retailer in UK. It dominates the supermarket sector by 16.0%. It uses technology in its best way to increase shopping experience of their service users. It has almost over 1415 shops.

Weakness: it can be define as lack of strengths in an organisation such as a weak brand name, lack of resources, high cost structure and many more. Weakness of respective organisation is that it often get failed to bear customers. Brand switching is also a major weakness of this organisation (SWOT analysis of Sainsbury, 2019). Its low price strategy due to growing competition in markets and to attract large number of customers is also consider as a weakness.

Opportunities: It can be define as a set of circumstances which could be beneficial for an organisation. They are the external factors of a business that may be beneficial for overall success. Growth in villages is the major opportunity for Sainsbury's to expand its business in some rural areas.

Threats: Various diversifications in an external market can be proved to be threat to an organisation. New regulations, change in customers choices and increased trade barriers are some of the threats to organisation. Competition is also a major threat of the organisation. Sainsbury's threat is tehri competition such as Resco, Lidl, Asda and Aldi.

You may also like to read - Different Types of Innovation & Technology 

2.Impact of key drivers on functional areas of business

Functional areas of business consist of marketing, sales, finance, accounting and customer service which has are majorly influenced by external and internal business environment. It is the responsibility of management to analyse these factors to deal with consequences of internal and external business environment (Hamilton and Webster, 2018). Impact of key drivers on marketing and HRM of functional area of Sainsbury's is discussed here.

You can also read - Purpose of Marketing Function of Asda Stores Ltd & Rolls Royce Motors

Impact on HRM and Marketing

Brexit: When government of UK decided to remove from European union, human resource department of the organisation was not prepared and was not aware about its effects on organisational operations. HR department of Sainsbury's was majorly effected as organisation was not able to provide enough amount of funds to HR manager to conduct number of business activities. Respective organisation also face problems in recruiting talented candidates as they would not be able to pay them enough according to their skills and knowledge.

Due to a great downfall of economy in United Kingdom because of Brexit, marketing department of Sainsbury's was also effected (Adekola and Sergi, 2016). Customers was not able to spend money for buying their products which eventually leads to decrease in sales. Customer tends to negotiate regarding prices and thus it will have a major impact on profitability and success of marketing department.

Laws and regulations: There are various laws an regulations that help Sainsbury's for better functioning of business operations. Utilization of employment, workplace safety and national minimum wages law help the organisation in proper growth and development. It creates a positive environment and discipline in the organisation. All the laws and regulations applied to the organisation has a positive effect on their productivity and profitability. Employment laws help HR department by protecting their workers from any kind of discrimination by the employers.

Another functional area is marketing that it provides a better experience to their customers (Chasdi, 2017). In context with respective organisation, marketing laws helps in to protects rights of customers by avoiding development of any kind of deceptive advertisements. It helps the organisation to avoid any kind of wrong graphics or some lines that may mislead its customers.

Technology: It will help human resource department of Sainsbury's as it will change the way through which HRM department recruit candidates and their way of storing files. It will ease the process of performance evaluation (Tallman and et.al., 2018). It will help to enhance the quality of HR practices and minimize the ratio of defects. Particular for HR department, technology help in to attract skills and talented candidates from company websites, it will help them to manage and retain talent for a longer duration. Technology brings optimization of workforce management and tos support workforce administration.

In context to marketing, it help the organisation to collect data and develop channels in order to connect with target customers. It help the marketing department to develop various kinds of advertisements tools.

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From the above study, it can be concluded that it is very important fro an organisation to analyses its business environment. It will help them to build number of strategies and planning in order to meet target goal and objectives. External business environment can be analyse from PESTEL analysis where impact of different external factors on organisation can be identified. Whereas for analysis of internal environment, SWOT analysis can be conducted which help an organisation to find out strength, weakness, threats and opportunities.

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  • Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective. Routledge.
  • Barac, K., and et.al., 2016. The capability and competency requirements of auditors in today's complex global business environment.
  • Bedianashvili, G., 2016. The Global Business Environment, European Integration and the Cultural Potential of Social-economic Development of Georgia. Globalization & Business.
  • Chasdi, R.J., 2017. Corporate Security Crossroads: Responding to Terrorism, Cyberthreats, and Other Hazards in the Global Business Environment. ABC-CLIO.
  • Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.
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