Global Business Environment: PESTLE Analysis of Sainsbury

This report provides a PESTLE analysis of Sainsbury, a leading retail organization with approximately 500 supermarkets across the UK, examining the political, economic, social, technological, environmental, and legal factors affecting its business operations in different countries.

Global Business
environment

Table of Contents
Global Business environment .........................................................................................................2
INTRODUCTION ..........................................................................................................................2
PESTLE analysis ........................................................................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES ...............................................................................................................................4
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INTRODUCTION
Global business environment is defined as business surrounding in which a company
operates. This includes conducting business operations in international markets. The following
report includes PESTLE of Sainsbury. This is a leading retail organisation which has
approximately 500 supermarkets across UK.
PESTLE analysis
PESTLE analysis of Sainsbury will provide information about different factors that will
affect business operations of the company in different countries. These factors are given below - Political factors – These factors have a great impact on performance of Sainsbury. In
UK, the consumer debts and government debts are high so this affects consumer attitudes
(Adekola, and Sergi, 2016). As a result, business conditions of Sainsbury experience
immense pressure. The political factors in UK are not favourable, then also Sainsbury is
able to sustain growth in it's operations and profits. Economical factors – Economic factors affects Sainsbury as they directly impact on cost,
demand, profitability and price. Sainsbury is affected by increasing unemployment and
inflation in food prices. The demand of products of this company have declined due to
this. Sainbury must contemplate on expanding into emerging markets. Globalisation of
Sainsbury will help in well managing risk associated with economic slowdown. Social factors – Customers are preferring one stop shopping nowadays. Sainsbury has
included non food product and this has benefited it a lot. Other social factors that affect
Sainsbury are increasing female workforce, longevity in the population, etc. Marketing
theme of Sainsbury being ‘Cook and Save’ promotes easy to cook products which allows
the customers to make their household budgets stretch further. Technological factors – Technological factors are those by which companies can
enhance their efficiency. There is significant growth of companies if there is
technological advancement. Online food delivering of Sainsbury is increasing at high
rate. Online services of Sainsbury are available to 88% of UK households. Environmental factors – There is great pressure on business operations of Sainsbury by
environmental factors. This company has taken initiative of introducing an agenda i.e.
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‘Reduce, Reuse, Recycle’ approach that effectively manages waste, packaging and
recycling.
 Legal factors – The government policies and legislations have direct impact on
performance of organisations (Hamilton, and Webster, 2018). There was a legislation
introduced in which new tax was implemented on advertising highly processed and fatty
foods. Sainsbury has to adapt this new tax by modifying this product.
CONCLUSION
From the above report, it is concluded that Sainsbury has to follow all regulations that are
implied in different countries. Before starting business in other countries, it is analysed that all
the factors including political, environmental, social, technological, economical and legal are
affecting business operations or not. This market analysis saves both time and investment.
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REFERENCES
Books and Journals
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Online
Pestel analysis of sainsbury, 2019. Online. Available
through<https://www.ukessays.com/essays/education/pestel-analysis-of-sainsbury.php>
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