PESTLE Analysis, Leadership Styles, CSR and Covid-19 and Brexit Impact on Sainsbury

This report covers PESTLE analysis, leadership styles, CSR and Covid-19 and Brexit impact on Sainsbury, the second largest supermarket chain in the UK.

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
Illustrate PESTLE analysis of chosen company.........................................................................4
Evaluation and recommendation of the leadership styles for the organisation Sainsbury..........5
Assessment of corporate social responsibility of Sainsbury......................................................7
Effect of Covid 19 and Brexit on the company Sainsbury.........................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is defined as the commercial activity which is done for the purpose of earning
profit. In simple words, it is selling and purchasing of goods and services in order to make
expansion and growth of the company in the international market (Simoni Schaper and
Nielsen2022). An organisation is involved in framing various strategise and planning which
assures them long term success in the competitive market. The internal and external factor has
greater impact on the performance of the organisation as it influence the behaviour of each
members of the organisation and direct them towards the achievement of organisational goal
(Oxford Analytica2022). The organisation chosen for this report is Sainsbury which is second
largest supermarket chain in the United Kingdom. It was established in the year 1869 by the John
James and Mary Ann Sainsbury in Holborn, London (Fengyi2021). This report will cover
PESTLE analysis which is done to identify the external factor and its impact on the chosen
organisation. Further, it will analyse the strength and weakness of the company and also provide
the recommendation for usage of leadership style to strengthen the organisational performance.
Also, it will identify the role of Corporate Social Responsibility of the chosen organisation.
TASK
Illustrate PESTLE analysis of chosen company.
Sainsbury is the leading grocery store and second largest supermarket chain of the United
Kingdom. It provides variety of products and fresh foods to the consumers and have brand value
in the global market.
The PESTLE analysis of Sainsbury is done below:
Political Factors: It refers to political agendas and governmental policies that brings major
change in the growth and expansion of an organisation. The current political stability in the UK
legal system is boon for the Sainsbury organisation. It contributes in enhancing the overall
performance of the organisation. The imposition period has deeply impacted the operation and
function of the company and reduction in trade tariffs ease the export of the product in other
countries.
Economical factor : It includes employment ratio, literacy rate, inflaton rate etc. that affects the
performance of the organisation which brings major change in their financial resources. The

depression and recession period and can bring widespread change in the UK economics and may
also affect the growth of the company. In context to Sainsbury, unpredictable event of Covid
pandemic has majorly affected the grocery industries and demand of such items had increased
suddenly due to uncertain lockdown in the country.
Social Factor : this is an important factor which must be taken into consideration for identifying
the need and demand in the market. Every product is made keeping in mind the taste and
preferences of the consumers so, that they can use their product and earn profit from such supply
of goods. In context to Sainsbury, they are providing quality products and services to the
consumer's in order to meet their expectation and it would help them in gaining brand value and
good position in the competitive market.
Technological factor : Due to globalisation and industrialization, the demand of technology
tends to increase as it ease the efficiency and productivity of the organisation. In context to
Sainsbury, technology and various application is used to supply the product and can be ordered
digitally. It reduces their cost, wastage of resources and enhance the profit earning capacity of
the organisation. Therefore, it is important for the organisation to keep check on the upgradation
of technology to bring change in their innovative product.
Legal Factor: It includes new rules, regulation and standards which are made to ensure safety
and health standards of the products. The safety and security of the consumers is the paramount
objective of every organisation. In context to Sainsbury, they are bound with the statutory
requirement and legal compliances to meet the safety standards of the grocery items.
Environmental Factors : These factors include cost effective method and sustainable use of
product that not only minimise the pollution but also reduce their expenditure. The scarcity of
resources stressed out the future needs so it is important for the organisation to utilise the
available resources in most effective manner (Henry 2021). In context to Sainsbury, the cost
effective technique are beneficial in the success of the organisation.
Evaluation and recommendation of the leadership styles for the organisation Sainsbury.
Leader play most important role in the management of an organisation as they are responsible
for directing, managing, supervising and monitoring the core activities of the organisation. He
guides the team and lead them towards the achievement of organisational goal (Razak Sarpan
and Ramlan 2018). They assign certain roles and responsibilities to the team members and
contributes in developing their skills and knowledge which are crucial for the effective

functioning of an organisation. There are various leadership styles which are pronounced by
different theorists and mentioned below in details:
Meaning
The leadership model defines the concept of leadership and its role in influencing the
behaviour of the individuals. They are responsible for identifying the skills and knowledge of the
members and involving them in the process of decision making. The diversification and
transformation has been taken place in the business environment with the help of leadership style
and approaches. However, there are six style of leadership which are discussed below:
Affiliate leadership: This form of leadership style is used to bring positivity in the work
environment. It aims to create sense of belongingness and harmony among the team members.
The leaders are responsible to encourage the efforts and commitment of employees which can
satisfy them at workplace. In context to Sainsbury, employees are the asset and main reason
behind the success of such organisation.
Democratic leadership: In this type of leadership style, employees are free to make their
independent thoughts and behaviour in order to integrate and collaborate the individual for
achieving the organisational goal. In context to Sainsbury, it may bring satisfaction among the
employees and leads to employees engagement within the organisation. The diversified thoughts
and ideas sometimes add value in the success of the organisation.
Commanding leadership: This form of leadership style, dealing with the command and
direction which is given by the leaders in order to accomplish the task within a specified period
of time. The leaders are the target oriented and supervise each and every activity that are taken
place within the organisation. In context to Sainsbury,
leaders assigned authorities to their subordinates and team members are answerable to their
leaders for the accomplishment of task (Hall White and Morrison 2022.). It create systematic
work environment and burden of work on management authorities.
Pace setting leadership: In this style of leadership, leader put more efforts to reach the quality
and quality output to reach the maximum goal of the organisation. In context to Sainsbury, this
approach is used to increase the productivity and production of the product to meet the need and
demand of the consumers. As it also brings satisfaction among the employees because leader's
guidance reduces workload and pressure on them.

Authoritative leadership: This form of leadership style focus on the quality of the team as each
members must be result oriented to enhance the work performance of the organisation. In context
to Sainsbury, leaders are directed and guides their teams to accomplish the goal within a
specified period of time. It creates positive environment and establish good relation between the
workers of the organisation. This is one of the main reason behind the satisfaction of their
employees.
Coaching leadership: Every members of the organisation have some strengths and weakness
so, it is the duty of the leader to identify those barriers and guide them to overcome their
weaknesses. In context to Sainsbury, skilful and knowledgable employees meets their
commitment and working as per the requirements of the organisation. The leader also provides
them training and skill development programme to overcome the associated challenges so, that
their skills can contribute in the success of the organisation. It would also aid the worker to grow
and enhance their talent to strategies the policies of the organisation.
The post Brexit period brings major change in the UK economy which includes high rise in the
manufacturing rates, rise in trade tariffs etc. However, the leadership style aids the Sainsbury and
smoothen the functioning of an organisation. They are mainly focus on their employees because
their satisfaction can only add value in the growth of the organisation. They are responsible for
mitigating the associated risk and guiding the employees during dynamic and uncertain business
environment. Also during lockdown, they had provided many incentives and bonus to ensure
their standards of living due to economic shutdown in UK.
Assessment of corporate social responsibility of Sainsbury.
The Corporate Social Responsibility is the social and ethical responsibility of every
organisation. It is the most effective tool which helps them to create large base of consumers and
establish their brand value in the market. The CSR is one of the strategic tool used to meet the
demand of the society and enhance the goodwill of the company. It is believed that the social
welfare is fundamental objective of every organisation. A company can maximise their profit
only when they understand their social responsibility and moral duty towards the society. The
successful organisation uses the CSR policies by conducting various donation and educational
programme to contribute their part in the welfare of the individual who are living in a society.
The primary objective of CSR is to secure the interest of the stakeholders. The use of sustainable

technique and cost effective method are one of the best example of CSR generally used by the
company in the modern business world (SPAGNOLO 2019).
The different kinds of duties and responsibilities performed by the Sainsbury includes following:
Ethical responsibility: This responsibility is dealing with the social welfare and duty that are
fulfilled by the organisation. They are conducting the various programmes for the vulnerable
group of person such as children ,senior citizens, women etc. An organisation is also legally
obliged to treat every individual equally irrespective of their caste, sex, religion, sexual
orientation etc. They policy of minimum wages, paternity/maternity leaves are also falls under
the ethical responsibility. In context to Sainsbury, they are providing the quality and standard of
life to their employees through various schemes and incentives to promote their safety and
security (BiniSimoni and Giunta2019). The safety and food standards has been made to ensure
the safety and health of the consumers.
Philanthropic responsibility: It refers to the responsibility of the company towards the weaker
and backwards section of the society. They gives importance to the under privileged child, and
people who have no proper means of living and contribute their responsibility by way of
donation and contributions in monetary terms. In context to Sainsbury, the charity has been done
by them in order to provide monetary benefits to the NGOs, old age people and underprivileged
groups etc. it is one of the effective tool used to satisfy the social need and promoting the welfare
of the people.
Environmental responsibility: It is one of the important aspect of CSR in which company owes
several responsibility to benefit the environment buy suing the cost effective technique and
sustainable methods to prevent the wastage of resources. The harmful use of chemicals and
effluents not only endanger the life of the individual and also affects the society at large. In
context to Sainsbury, they are using the sustainable technique to prevent the pollution and its
impact on the livelihood (Joshi 2019).
In present context, it can be seen that almost all the business corporations are facing
economical, societal and environmental related factors. All these factors includes economical
recession, increasing population, excessive use of natural resources, inequality and many more.
In case of Sainsbury, it has made efforts by making strict policies on Corporate Social
Responsibility. The management is focusing making policies which will promote sustainable

approach in order to develop eco-friendly products, employee friendly norms and many more.
This will bring positive outcome to Sainsbury and built strong brand image (Sughra 2020).
Earlier, the directives of Corporate Responsibility were not being followed by the
Sainsbury, but with the change of time and circumstances it was seen that companies are taking
directives of CSR more seriously and implementing its policies in order to meet its intentions.
Many giant organisations are following CSR which influenced other organisations to adopt
because customers are more aware about the companies policies and they can easily identify
which company is following CSR. Therefore, to compete the market, it is very essential that
company under their charter or constitution must enshrined CSR policies. This will enhance the
brand image of the institution. This will attract the customer as they preferring companies
following CSR policies.
Effect of Covid 19 and Brexit on the company Sainsbury
At time of Brexit transition period all the sectors in United Kingdom were majorly
affected because of its withdrawal from United Kingdom. Before Brexit, the application of laws
were derived from the European Parliament which were equally applied to all the member state
in their domestic affairs. But, immediately after its withdrawal from EU, all the laws and
agreements with EU were suspended and UK become parliamentary sovereign which can decide
and make its own laws. The impact of Brexit led to economic slow down as no trade were active.
To resume back on trade UK need to prepare and make new trade agreement with European
Union in order to built new trade relation with other organisations.
The industrial and corporate sector affected the most as no cross border trade was
allowed. The retail industry suffered huge loss as they could not meet the customer demands.
Apart from local customers such industries had lost their cross border customer too. This affect
company loss its customer base which resulted in reduce of sale. The manufacturing and
production department of companies were remained shut down as no raw material was available
due which demands raised and cost increased in retail industry. Sainsbury was not an exception
in this case as it had also suffered many difficulties in terms of sales and it had experience that
its brand image is depreciating due to Brexit effects. Customers chose to go for new brands as
they do not show interest in buying their cloths. There was increased in corporate tax which put
extra burden on the retail industry. Industries has also seen that people left their job and returned

back to their native place after Brexit. This resulted into more expenditure on companies as they
need to recruit new candidates, provide training (Farnsworth 2021).
The unprecedented COVID pandemic was the worst disaster which had caused deep
impact on the business sector throughout the world. Especially, the luxurious brands and tourism
industry affected the most. During that phase only medical and grocery industry were at
demands. The other industries were completely shut down as there was no scope left for them
but to remain closed. In context of Sainsbury, it is a giant supermarket which offers multiple
products and services under the one roof. It has also suffered loss because of strict COVID
norms as no gathering was allowed at any place. Sainsbury has a giant outlets which where
customer foot falling is large and government issued complete lock down at such place. But,
Sainsbury was offering online services which kept its vitality survivable as the customer during
lockdown preferred online purchasing. The existing customer of Sainsbury opted online services.
In lock down period only digital commerce platform survived and generated good huge profit
(Atherton,2019). The no touch delivery system made online sale delivery even more possible
during such time. The public were not allowed to come out of their houses unless any
emergency. The COVID period has affected business corporations, sole traders, customers, job
holders.
The present status of Sainsbury is that it has adopted many measures and strategies to
fight such situations after experiencing unprecedented disaster and Brexit. The management is
more aware and focused on developing plans which could save them form such situations
(Chan2020). The company is emphasizing on customer needs and desires and manufacture
products by as per their preferences. The company should design its digital platform where can
can interface with customers and give them effective service (Sow and Aborbie2018.). Effective
online services will bring more orders and give company another platform to keep its
productivity.

CONCLUSION
From the above report it is evident that the functionality of business operations is a matter
of concern as it needs to be effective and productive in order to make an individual acknowledge
about the functions and operation of a business. In this report different leadership style are
defined and explained which are used by business organisations. Such leadership style are used
for enhancing functionality of business organisation. In this summarize is made on factors which
impact business operations through PESTLE analysis. In the contemporary business worlds there
is new concept which emerged as new model for elevating business value is Corporate Social
Responsibility( CSR). For every business organisation CSR is most essential directives which
must be implemented in order to enhance business value and its market. In this report, a
summarised extract on impact of Brexit and Covid on industries and business corporation is
examined,especially on the retail industry. To support this report the organisation chosen is
Sainsbury which is the second largest supermarket chain situate in UK. Further, in this report the
use of online digital platform at times of bad situations like lockdown is discussed and how they
keep company at survival point is discussed in this report.

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