Sainsbury's PESTEL Analysis

Sainsbury`s PESTEL
analysis
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
MAIN BODY...................................................................................................................................3
REFERENCES ...............................................................................................................................6
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EXECUTIVE SUMMARY
PESTLE analysis is one of the most important tool for an organisation to scan the
organisational external macro environment that helps to analyse the factors which directly affect
on their profitability. Respective approach helps in adding some extra factors such as
international aspects in order to compete in business environment in successfully manner.
Respective report is based on Sainsbury and impact of Macro environment factors on their works
and activities.
MAIN BODY
PESTEL stands for political, economic, social, technological and environmental with legal
factors that affect on business in both direct and indirect manner in context of Sainsbury that are
as follows:
Political factors:
In 2016 UK voted to leave the EU, that would bring serious consequences for Sainsbury
and other English supermarket chains (PESTLE Analysis of Sainsbury’s, 2019). Leaving the EU
make it very much difficult for super markets to affordably import products from abroad that
directly enhance cost of operating. With an increase in cost of foreign products likely to be
passed it into end consumer.
The another major issue faced by Sainsbury that businesses employing the lower skilled
workers from the outside of UK and it could be more difficult as respective workers are expected
to offered only a year visa which directly affect working of respective organisation in order to
gain fruitful outcomes.
Economic factors:
Employment rate is one of the most potential and positive factor for any business
division, when in an economy employment rate remain high that contributes in reduction of
inequality and prevents relative poverty (Beaven, 2019). In context of sainsbury with help of
high employment rate the purchasing power of consumers rises and they able to purchase more
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