Assessing Sainsbury Business Environment using PEST and Porter's Five Forces Models
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Added on 2023/06/12
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This presentation analyses the business environment of Sainsbury's using PEST and Porter's Five Forces models. It discusses the impact of political and economic factors on the company's operations and decision making.
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BUSINESS ENVIRONMENT
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Table of Contents INTRODUCTION PART 1 Assessing Sainsbury business environment by using PEST and Porter’s five forces models CONCLUSION REFERENCES
INTRODUCTION Business Environment is the mixture of all the macro and micro components that revolves around a company and put influence on their operations and decision making. The current presentation will be based on Sainsbury's, which falls under the category of leading supermarket in the UK.
PEST Analysis of Sainsbury's Political Political Factor that may have a major influence on Sainsbury's is the uncertainties from Brexit. It may lead to decrease organizational performance and productivity as firm may lose potential consumer and skilled employees. Economic Fossil fuels have experienced a major rise in the price and the supply is constantly diminishing which is the result of higher fuel taxes. The increased prices makes it difficult for Sainsbury's to transport goods around the state.
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Porter's Five Forces model of Sainsbury's Threat of Substitutes The food retail market in the United Kingdom does not experience much threat from substitutes and it is a major reason that Sainsbury's faces less fear of loss due to innovations. Thecompany stands at a good position in the mind of the consumers by delivering quality products at subsidized rates. Threat of New Entrants The food retail industry has a considerable amount of barriers which restricts new companies to enter the market. There are fewer opportunities for the new entrants to be successful in this sector, thus; providing comfort level for Sainsbury's in its market position.
CONCLUSION The above presentation shows factors which have an effect on the functioning of Sainsbury’s. These factors are analysed by using PEST analysis and Porter’s Five Forces model to get an overview of the business environment of the company. Sainsbury’s is effected by these factors and needs to make required changes to be successful in future.
REFERENCES Alava, R.P. and et.al., 2018. PEST Analysis Based on Neutrosophic Cognitive Maps: A Case Study for Food Industry.Neutrosophic Sets and Systems. 21(1). p.10. Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs' profitability: Evidence from European Countries.Economic Modelling.78. pp.275-292.
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