Conduct an external environment analysis for a company (sainsburys) of Essay

Conduct an external environment analysis for a company (sainsburys) of your choice assessing the impact of the external environm - Essay Example Sainsbury’s is a leading retail chain in the UK with interests in banking and financial services is the third largest in the country. The family owned business had grown to become the largest grocery retailer in the UK and pioneers in self-service supermarkets. The company listed in the London Stock Exchange has a very large family of shareholders, and it is a constituent of FTSE 100. After a brief downfall, the company has reemerged with greater vigor in the new millennium. BBC news (2001) stated â€Å"The figures represented the third quarter in a row of sales growth "significantly better" than in 2000†¦ Sir Peter, credited with revitalizing the Prudential in the mid-1990s, has been working the same trick at Sainsbury's after replacing Dino Adriano as chief executive early last year†. External environment and HR Policies and Practice There are several tools and concepts for the analysis of the external environment in relation to a company. ... with regard to corporate social responsibility (CSR), environmental protection, ethical and demographic factors are increasingly relevant in the macro environmental analysis. Apart from the shareholders, there are number of stakeholders in a company which includes community as well as it provides necessary infrastructure and human capital for an organisation. Moreover, it is important to note that an organisation is also a part of the community. The analysis of Sainsbury’s is made with the theoretical background of PESTLE in this paper. The human resources policies and practice need to take into account the important points with reference to the external environment discussed under PESTLE analysis discussed, for exploiting the opportunities available and to avoid the threats from the external environment. PESTLE Analysis PESTLE analysis covers the macro environmental factors, and an organization's internal environment, strengths or weaknesses are not covered in this analysis. Morris & Jones (1995, p. 73) observed â€Å"To the extent that firms are adjusting their HRM practices to reflect turbulence in the environment, it would seem the HRM function is in fact becoming a more strategic function†. Therefore, the HR policies and practices are not restricted to ‘personnel’, but refer to the strategic role of HRM in the business for its sustainable development. Political   Increase in food prices, partly due to government policy to encourage bio fuels in various countries which has brought down the area under cultivation of food crops, is a cause for concern to the consumers and the industry. The allegation of price fixing is a serious impediment to the growth. Poulter (2008) stated â€Å"Supermarkets and big brands could face fines of more than ?300million after claims