Sainsbury's Business Environment: PESTLE & Internal Analysis

This presentation provides an analysis of Sainsbury's business environment, examining both internal and external factors that impact the company's operations. The internal analysis identifies strengths such as being listed on the London Stock Exchange and utilizing social media for consumer engagement, along with weaknesses like high prices and financial instability. Opportunities include adapting to the latest trends and expanding into emerging markets, while threats involve intense competition, changing regulations, and the impact of events like COVID-19 and Brexit. The external environment analysis covers political, economic, social, technological, legal, and environmental (PESTLE) factors, detailing how each influences Sainsbury's strategies and performance, including adapting to changing consumer demands, complying with legal standards, and embracing sustainable practices. The presentation concludes by emphasizing how these external factors shape Sainsbury's operations and strategic decisions.

Introduction
Business environment is mainly defined as the forces and
factors which impacts the business and its operations. With
identifying the factors which impacts the business helps in
adapting the opportunities for improving the performance in the
business. Sainsbury is recognized as the multinational
supermarket with serving wide range of food and non food
products to the consumers by addressing their demand while
serving in the highly dynamic market. This poster presentation
discus the internal and external factors of the business, also
discussing the ways in which the company is impacted by its
external environment.
Sainsbury And Its Environment
External Environment
Political factors: political rules and regulation mainly impacts the business
and its operations while operating in the dynamic environment (Memon and
et.al., 2019). These factors mainly including the Brexit restrictions being
imposed by the government, political stability, trade restrictions, regulations of
the industry and the Covid restrictions made by the government affects the
business and its operations.
Economic factors: Changes in the economy impacts the business as the
inflation rates, interest rates, living cost, income level of the consumers,
consumer spending power, labour costings and the economic decline level and
the growth hinders and impacts the Sainsbury and its operations.
Social factors: societal factors mainly includes changes in the consumer
tastes, preferences and the needs with the development in the economy
(Nandonde, 2019). These force mainly includes changing buying behaviour of
the consumers, due to Covid shifting towards more organic and vegan
products , changing lifestyle habits, population, demographics. Fashion and the
diverse culture impacts the company operations.
Technical factors: Due to the advancement in the economy with adopting the
globalisation, different factors and forces influences the business as by
adopting innovation, shifting the business on online platform, establishing e-
commerce providing convenience to the consumers, social networking, security
adopting latest technologies to faster production and adopting the changing
trends.
Legal factors: For sustaining in the dynamic environment, the business must
opt all the legal compliances and the rules being imposed by government. With
this the business must comply for the employment rules, labour law, wages act,
health and safety concerns and regulations (Distanont and Khongmalai,
2020) . This helps in growing the business and sustain into dynamic
environment.
Environment factors: these are the environmental influences and restriction
being imposed by the government in UK, as to comply and adopt different
sustainable practices for working in the county, CSR must be followed,
procuring. Thus, the retailers in the business must adopt all the practices for
reducing the impact on the environment.
How the company impact its context
External Environment
The external factors of the business mainly effects the Sainsbury
operations by:
• The changing rules and regulation and the political insatiability
mainly impact the Sainsbury operations as it has to adhere all
the changing rules as of the Brexit restrictions, and the
restrictions being imposed by the government due to the
Covid pandemic induced the consumer to serve online by
establishing the websites and e-commerce business platform.
• Further more, due to the economic changes the high level off
unemployment hinders in hiring the skilled and quality
workforces to operate and work in Sainsbury. Also, the decline
in the GDP with the Brexit impositions impacts the earning of
the Sainsbury.
• The social factors also hinders the workings , with the change
in the demand the consumer needs impacting the business,
as with the Covid it influences the company to adapt more
organic and vegan products in nature. Further more, to work
with adopting several sustainable business practices for
securing and limiting the impact in the environment.
• Further more, with the advancement of the technology mainly
helps the business to increase its sales by shifting the
business on online platform and adopting the systems as the
analytics which helps in deriving the consumer insights.
• With the legal and the environment factors impacts the comply
and enforces to comply with adapting the measures to limit the
impact on the environment as to attain the set business
objectives.
Internal Factors
Strengths of Sainsbury:
• Being listed in the stock exchange of London, the
company is addressing the consumers feedback and using
different strategies for promotion for increasing the sales.
• By presenting the company on the social media helps in
maintaining health relation with the consumers and sustain
in the competitive environment.
Opportunities
• Adopting and serving with considering all the latest trends
helps the company to attain competitive position in the
market.
• By expanding the business into emerging countries ad
global market helps in adapting and serving large target
consumers.
Threats
• The main thereat of the company is highly competitive
environment impacts the business and its services in the
market.
• Changing rule and regulations of the government impact
the business operations.
• Covid and Brexit impacted the company.
Weakness:
• Charging high prices and attain few margins impact the
business.
• Financial instability impacts the business and the workings
to establish the set targets.
References
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East
African Community. Global Business and Organizational Excellence, 38(4),
pp.54-61.
Long, T. B., Looijen, A. and Blok, V., 2018. Critical success factors for the
transition to business models for sustainability in the food and beverage industry
in the Netherlands. Journal of cleaner production, 175, pp.82-95.
Distanont, A. and Khongmalai, O., 2020. The role of innovation in creating a
competitive advantage. Kasetsart Journal of Social Sciences, 41(1), pp.15-21