Pestle Analysis of Sainsbury’s and Key Drivers of Change

Global Business
Environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
Appendix..........................................................................................................................................4

INTRODUCTION
In the report light will be put upon the pestle analysis of Sainsbury’s and the key drivers of
change that the management should be taking. The report will going to achieve external
environment analysis and for that Sainsbury’s is taken as the case organization.
MAIN BODY
PESTLE analysis of Sainsbury’s
Pestle analysis is the tool and framework to analyse and monitor the key factor that
influence the external environment on the organisation (Perera, 2017). The following is the
pestle analysis of Sainsbury’s.
Political factor
The political factor of Sainsbury’s has impacted very severely as UK took decision to
leave European union and it would make more difficulty for Sainsbury’s to affordably import
products from abroad. As cost will be increased and burden will be passed on to consumer
(Vallati. and Grassi, 2019).
Environmental factor
The responsibility of every organisation operating has a responsibility towards the
environment in which they are operating as Sainsbury’s also contributing in the emission of
carbon dioxide. So it is the responsibility of this supermarket to become more environmental
friendly and minimize the ecological damage (Nandonde, 2019).
Key drivers of change that management should take into notice.
Some key drivers of change that the management should be taking notice in their
deliberations for the future direction of the firm are:
Political factor – Management of Sainsbury’s should take political uncertainty over
Brexit as a key driver of change because of this uncertainty customers are holding back and not
spending and buying from Sainsbury’s and due to this profits are going down. Products like
meat, fish and dairy items will be reduced because of Brexit which means proportion of products
coming in Northern Ireland from Britain needs to be checked (Clarke. and et.al., 2017). As
compared to Sainsbury’s competitors it has been bearish in case of Brexit. Above all these