Analyzing Sainsbury's Business Environment using PEST and Porter's Five Forces Models

This presentation analyzes Sainsbury's business environment using PEST and Porter's Five Forces models. It identifies external factors affecting business operations and competitive forces affecting the business. The PEST analysis covers political, economic, social, and technical factors, while the Porter's Five Forces analysis covers competitive rivalry, bargaining power of buyers and suppliers, threat of substitutes, and threat of new entrants.

BUSINESS ENVIRONMENT

TABLE OF CONTENT
 INTRODUCTION
 MAIN BODY
 ANALYZING THE FIRM’S BUSINESS ENVIRONMENT USING BOTH PEST AND PORTER’S FIVE FORCES
MODELS
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business environment of company comprises all the factors which affect firm
operations.
 Sainsbury is being recognized as a largest supermarkets selling groceries, food
products and non-food products to large numbers of consumers.
 Company is offering quality food at reasonable and competitive prices. This
presentation will provide details relating the firm business environment by using
PEST model and porters five forces model.

ANALYSING THE FIRM’S BUSINESS
ENVIRONMENT USING BOTH PEST AND
PORTER’S FIVE FORCES MODELS

PEST ANALYIS OF SAINSBURY
Political factors Economic factors Social factors Technical factors
 The company is affected by
Brexit as this has occurred
uncertainty in importing
various raw materials at
affordable prices.
 With the high inflation rates
into the market the sales of
the company’s products is
being impacted, as it has
lowered down the sales of the
company and decreases the
profits with certain portions.
 With the rise in the fuels cost
in the countries has major
impacting the companies
transportation processes as
for transporting good from
one place to another.
 Sainsbury has large number
of employees working into
chain off supermarkets of
various countries with the
rise in the salary expectation
will affect the companies
operations as it reduces
profits margins of the
company.
 Changes in consumers taste
and their preferences, as
recently maximum number of
consumers are shifting to
obtain quality and organic
products. The health
conscious consumers will
prefer buying dietary products
and not the fast food and
packaged food.
 With the rise in sustainable
practices for adopting and
selling the products to
consumers impacts consumer
buyer preferences .
 With the technical
advancement as for producing
the products to consumer
which helps in saving cost of
manufacturing. by adopting
analytics an various technical
tool for reducing the queuing
time of lines for purchasing
products in store has impacted
companies operations.
 By using various analytics
helps in increasing companies
marketing for increasing sales
of various products

PORTER’S FIVE FORCES ANALYSIS
 Competitive rivalry
 Bargaining power of buyer
 Bargaining power of supplier
 Threat of substitutes
 Threat of new entrants

CONCLUSION
 From the presentation it can be concluded that, Sainsbury operating as the chain of supermarkets in
the country and selling large number of products to consumers.
 By analyzing its macro environment by using PEST has helped in identifying external factors
which is affecting business operations.
 Also, by using porters five forces model has helped in analyzing the competitive forces which is
affecting business .
 Five forces analysis aids in identifying the areas for implementing various strategy for increasing
profits and growing performance of company.

REFERENCES
 Matovic, I. M., 2020. PESTEL Analysis of External Environment as a
Success Factor of Startup Business. ConScienS. p.96.
 Aityan, S. K., 2022. Comparative Analysis. In Business Research
Methodology (pp. 395-411). Springer, Cham.