My company Sainsbury is a "UK based food retailer with vested interest in financial services. The company comprises Sainsbury supermarkets, convenience stores,an internet based home delivery shopping service and Sainsbury Bank. The group is headquartered in Holborn, London and it recorded revenues worth pounds 17151 million during the fiscal year 2006-2007, an increase of 6.8% over 2006." (Data monitor plc.,2007)
This essentially implies that the factors impacting any one of it's strengths such as it's internet based home delivery shopping facility, changes in demand/supply or organic foods that form the most profitable component. Even factors that impact it's banking service i.e. Sainsbury Bank may impact Sainsbury plc on the whole. There are several internal as well as external factors.
The internal factors help the internal analysis part of the equation since they focus to provide a detailed evaluation of the internal analysis part of the equation since they focus to provide a detailed evaluation of the internal environment's strengths/weaknesses. These factors include several such as "company culture, market share, brand awareness,financial resources.." (netMBA,n.d.).These will be internal to the organization; whilst external factors include competitors, in this case ASDA and TESCO that are leading supermarkets in the UK as well. However, the last four mentioned factors are mainly the macro environmental factors and maybe employed in a PEST analysis. PEST stands for political, economic, social and technological factors that have an impact on the economy. In Sainsbury's case these may be sanctions on the import of a certain kind of fertilizer used for growing organic foods that ends up affecting it's organic food sales and hence, it's profitability. Interest rate fluctuations due to an over all economic downturn may lead to lower profits as well. Apart from this, several other macro environmental variables that have an impact include: "pricing regulations. industrial safety regulations,labor costs,inflation rates, interest rates,education, culture, technology's impact on product offerings, like Internet selling etc."(netMBA, n.d.)
The three main opportunities that are basically the outcome of the environmental factors that impact it and that Sainsbury can make use of in the future and convert into it's strengths are the following:
Increasing demand for it's organic based products
According to the Data monitor, "increasing consumer awareness of health and environmental issues along with an increasing resistance towards genetically modified (gm) food products and GM farming, has led to the rapid increase in the demand for organic food."(Data monitor plc, 2007). According to the UK Telegraph, "Sainsbury's sales have risen once again thanks to the growing popularity of it's organic and premium food ranges. The company which had come under pressure from investors to sell off its property assets is pushing ahead to recovery and it's strong quality food offer has helped it take customers away from rivals such as TESCO and ASDA"(UK Telegraph,2007)
This clearly indicates that organic foods have become a Sainsbury trademark with more and more of the supermarket outlets being revamped to include the greens section equipped with quality based organic food supplies.
Nowadays, more and more