This activity would provide adequate information on the acquisitions and business events, major relationships needed, business trends and also the comprehensive analysis of strength and weakness of companies external and internal environment. 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 any 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 based on national financial policies. The change in demographic profile with respect to the age, socio-cultural preferences, attitudes to various polices and habits, gender priorities in shopping pattern are the major sociological parameters to be incorporated in the analysis. ...Show more