Sainsbury PLC Coursework Example | Topics and Well Written Essays - 1000 words

Sainsbury PLC - Coursework ExampleThis activity would bequeath adequate information on the acquisitions and furrow events, major(ip) relationships needed, business trends and also the comprehensive abridgment of personnel and weakness of companies external and internal purlieu. The methods chosen for undertaking environmental analysis of Sainsbury are PESTAL analysis, SWOT analysis and Porters Five Forces. Also the utility of The Willian Finnie Model, Crook, Ketchen and Snow modelis also included.PESTAL Analysis The word PESTAL is the acronym for a set of factors that influences every business environment. They are listed as Political, Economic, Sociological, Technological, Legal and Environment .The change in political system in region, introduction of new tax laws, regulations and policies like introduction of green policies, changes in the European Union business regulations are the political factors affecting the business environment. The key economic factors that influence the long term strategic planning of Sainsbury are changes in the interest rates, prevailing inflation rates, unemployment and long term growth potential drop based on national financial policies. The change in demographic profile with respect to the age, socio-cultural preferences, attitudes to non-homogeneous polices and habits, gender priorities in shopping pattern are the major sociological parameters to be incorporated in the analysis. The possible technological changes also need to be understood inorder to assess the environmental influences on the business. This could be change in logistics, change in customers travel pattern, better means of business operations, introduction of cost-saving engineering science in production and also advances in communication changing the business life cycle time. The personal environment of the business operation is also a vital issue influencing the business growth of Sainsbury. This is link up to the waste management issues, pollution c ontrol and incorporation various sustainable business operations. One of the major legal issue that influences the business environment of the compevery is health and safety norms in cheek of any expansions, mergers or acquisitions.SWOT AnalysisThe analysis of Strengths, Weakness, Opportunities and Threats of Sainsbury and its competitors taking into account both internal and external influences could cede better clarity in the strategic planning process (Novicevic et al, 2004). The specific indicators identified in the case of Sainsbury are as follows (Sainsbury , 2006 b & c)StrengthsWeaknessOpportunitiesThreatsHuge number of loyal customer base.High composition and ability to retain the business leadership in UK operationsBetter brand equity overlap scalabilityRelatively more expensive than competitorsLimited growth opportunitiesIncrease in the stores crosswise the country.Enhancing the sales across the Internet.Further improvement in service & productsHigh buying powers of Tes co, Wall mart/Asda or Morrisons. earthshaking number of low priced supermarkets.Porters Five Forces.They represent five independent parameters that influence any business environment (Porter, 1991). Industry Competitors The huge competition exist between different supermarket chain operators. Sainsbury has positioned as a soaring quality supplier of food products. It constantly reinvents its operation to thwart the treats raised by its close competitors