ANALYES OF SAINSBURY`S

What Is Macro Envionment: The major external and unmanageable factors that pressure organizations decision making and affects its performance and strategies is called Macro Environment.Macro environment can be studied through different analysis,There are several but mainly used are PESTLE analysis and SWOT analysis. Sainsbury`s Overview: Sainsbury`s was established by John James and Mary Ann in the Year 1869 as a small dairy shop.In very short time the store became Popular for selling good and quality products at very low price,and as a result further store branches folowed over time.Also as a result of its fame and huge market this group floated onThe London Stock Exchange in the year 1973.Sainsbury is the Great Britain based food retailer with business interests in economic services.The group comprises Sainsbury`s supermarkets,convenience stores,an online based home delivery service and Sainsbury`s bank whos head-office is in Holborn London.The manpower is about 151,000. J Sainsbury plc consists of Sainsbury`s __509 supermarkets and 276 stores__and Sainsbury`s bank.A large Sainsbury`s store offers around thirty thousand goods and an increasing number of stores also offer various non-food goods and services.165 stores also manage an online home delivery service.

Macro Environment Factors: PESTEL Analysis: Is simple and used broadly to understand the big depiction of Political,Economical,Social-cultural,Technological,Environmental and Legal.This process is used for future predict.There are many factors which are affecting the macro environment that will influence on the decision making of the managers.Tax changes,new lays,political associated trades,barriers,government policy etc... PESTEL Analysis (macro-environment) of Sainsbury`s: The management decision making of any company or organosation depends on many macro environmental factors.These engage Tax changes,new lays,political associated trades,barriers,government policy etc It is essential to study them in detail so that management can take a better decision in managing future aspects.And to study these in detail PESTEL analysis is used.Sainsbury`s is a well known organization which is having a large customer base and large capital base. PESTEL forces of Sainsbury`s: Poltical forces:
1.European union extensions 2.Taxation system and policies 3.Globalize business 4.Euro region

Economic forces: 1.Allocate market 2.Price increases 3.Trad charge 4.National GDP and revenue 5.Job market and redundancy 6.changing rates of interest

Social forces: 1.Different view to work 2.community works 3.population based on age 4.Revenue arrangement and distributions

Technological forces: 1.Class of technological obsolescence 2.Creation 3.Modern and new product Innovation and improvements Legal forces: 1.Service based law 2.Monitoring health and safety 3.Law for competitors Environmental forces: 1.Green house cause 2.Environmental issues 3.worlwide warming 4.Animal safety

Political forces: Are referred to policies that are linked to government such as the degree of involvement in the cost-effective level.What product and services does the mentioning country want to afford?What scope does it depend in subsidizing organizations?Sainsbury`s is forced by these factors.
Economic forces: The economic changes of any government have crash on local business.These contain taxation charges,inflation and exchange rates,economic growth,interest rates.So business subjective by the economical factors has impact nationally as well as globally.Sainsbury`s is automatically wrapped up by those forces. Social forces: Its very significant for any business to understand the standards and the culture of the society even before starting the business.These changes in social trends can impact on the demand for a firm`s product and the availability of individuals to work.This may also includes tastes,habits,dislikes,traditions, Civilization,demographic etc ..

Sainsbury does perfectly follow these factors.It is working successful charities,sponsoring games,arranging social activities,raising fund for creature benefit,and many more. Tecnological forces: New technologies generate new products and new processes are created by modern technology. Technology is The systematic application of scientific or other organised knowledge to practical tasks. Online shopping,bar coding,and computer aided design are all improvements to the way we do business as a result of better technology.These developments can help consumers as well as organizations providing the products.Internet shopping,bar coding and computer proofed designs are all advancement to the way.Sainsbury`s do to run their business as a result of better technology.Sainsbury`s is now using the self service counter. Environment forces: Changes in temperature can impact on many industries including farming,leisure and tourism and insurance as well.With major climate changes happening due to global warming and with better environmental awareness this external farces is becoming an important issue for Sainsbury`s to consider. Legal forces: Sainsbury`s is in the restrictions of legal forces locally,nationally,globally.These are very close to the legal enforcement in which firms manage.The beginning of discrimination of age and disability discrimination,legislation,show ID,etc.. SWOT Analysis: Is done on internal and external environment one of the most important strategic planning method.The environmental fators in the organization are separated into internal and external fators.Internal factors are additional confidential as strengths or weakness and the external factors are additional confidential into opportunities or threats.Such an analysis of the strategic environment is referred to as SWOT analysis.SWOT analysis provides all the information that is necessary to match the organizations capabilities to the competitive environment in which it runs.How SWOT analysis fits into environmental scanning is show as SWOT Analysis Framwork:

Strengths: Organisations strengths are its assets and capabilities that can be used as a origin for increasing competitive advantage. Examples: .Brand names .Cost advantage from proprietary know-how .Patents .Good will among customers .Favourable access to distribution networks Weakness: The absence or lack of certain strengths is viwed as weakness. Examples: .Lack of access to the best natural capital .Weak brand name .Poor standing among customers .Lack of patent defense In some cases weakness is also a stresngth and vice versa of the company. For example,if a company has large manufacturing competence it is measured a strength and also a weakness if the large investment in manufacturing competence prevents the company from reacting quickly to the changes in strategic environment. Opportunities: This relates to the external environmental analysis.This reveals the opportunities for the firm to grow its profits. Examples: .Removal of international skill barriers and .An unfulfilled customer need .Loosening of policy .Arrival of new technologies Threats: Not only opportunities a company or organisation also acquire some threats that occurs because of external environment. Examples: .New system and .Improved skill barriers .shifts in consumer tastes away from the firms products .Appearance of replacment products SWOT Analysis of Sainsbury`s: Strengths:

.This is a very physically powerful company with huge traders who are involved and trust valuable to the company.Also it had 509 supermarkets and 276 stores,thus became a recongnized trader. .To extend in business every company has to depend on customers.It is said that `Customer is God`, as a admired and evident company Sainsbury`s followed the saying and won its customers belief and developed a good customer support. .Had a huge series of supermarkets with 509 supermarkets,276 stores and a bank. .Also it had huge volumes of stock so it helps in dropping the price tag. Weakness: .Having 509 supermarkets and 276 stores it is having high protection charge. .Because of heavy stocks if product is failed huge stock will be available. .Having massive staff make them pay more. Treats: .Having many discount offers company may lose profits on convinced products .As UK is having many supermarkets there is always serious achievement among ASDA,WALMART,TESCO,etc.. Opportunities: .It is a huge success in United Kingdom and now planning to expand into Eastern Europe. .Also had large cutomer base and there is scope for huge employment. .Having good volumes it is planning for new activities.

QUESTIONS ABOUT SAINSBURY`S

Q.1 Does the industry offer good prospects for attractive profits? Q.2 What strategic moves are rivals likely to make next?

Q.3 Does the industry offer attractive opportunities for growth? Q.4 What kind of competitive forces are industry members facing and how strong is each force? Q.5 What are the key factors for competitive success in the industry?