Sainsbury's Internal And External Environment

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Introduction In the following report we will be going over our analysis and findings during the process of our study of Sainsbury’s internal and external environment. Sainsburys is currently the second largest chain of supermarkets within the UK, with a current supermarket sector share of 16.9%. Sainsbury’s was founded in 1869 and today operates in over 1,200 supermarket and convenience stores, and has over 161,000 employees. We will be looking at a number of areas internally and externally and see how they are effectively or not effectively performing. External Environment PESTLE analysis The PESTLE analysis is a tool which ‘allows a manager to identify the key macroeconomic factors that influence the future development of the business’ 50MINUTES. (2015, pp. 5). The PESTLE anaylsis consists of six factors which are political, economic, social, technological, legal and environmental. Political factors Makos (2015) states political factors are mainly based on the country’s current political situation. The types of political factors that affect Sainsbury’s are, government policies, taxes laws and tariff, stability of government along with others. In relation to the environmental factor, this regulation was put forward due to the amount of plastic bags handed out by supermarkets in England as in 2014 it rose to 7.64 billion-200 million more than in 2013. Campaigners argued that the bags blight streets, spoil the countryside, and damage
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