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

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