BM461 Global Business Environment: Sainsbury's Pestle Analysis Report

This report presents a Pestle analysis of Sainsbury's, examining the political, economic, sociocultural, technological, legal, and environmental factors influencing its global business environment. The analysis highlights the impact of Brexit, rising fuel costs, changing consumer preferences towards healthy eating, online shopping trends, government policies (such as the sugar tax), and plastic waste issues. The report also identifies both internal and external drivers of change, such as market fluctuations, competitor activity, technological advancements, and evolving government regulations, which necessitate strategic adaptations. The findings emphasize the importance of adaptability for Sainsbury's to maintain competitiveness and achieve its objectives in a dynamic business landscape. The report references relevant academic sources to support its findings.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
Pestle Analysis for UK................................................................................................................3
Drivers of changes.......................................................................................................................4
REFERENCES................................................................................................................................5

Pestle Analysis of Sainsbury
 Political: UK has been planning to part its way away from European Union. This Brexit
decision can make it ambitious for retailers to affordably trade goods from foreign
(Gagneur and et.al., 2018). Increase in foreign goods cost will also affect end user, this
decision mean Sainsbury's will require to force hard to its customers so that they
continuously spend as such as possible, in order to increase sales. Economical: Rising fuel cost- diesel and petrol price is increasing quickly but certainly.
It is more expensive for organisation to transport goods around country supermarkets as
for Sainsbury's it will be reflected in the form of increased cost. This may result in terms
of lower profit margins or increased prices for the targeted customers. Socio culture.: Increasing trend of healthy eating practices in UK demonstrates the
changing Sociocultural direction towards health consciousness. This direction towards
making healthier dietary alteration is significant for Sainsbury’s, since change to
consumer choices and social trends is essential for long term success.
 Technological: Online shopping: Sainsbury’s also provide alternative option of online
shopping to its customers along with availability of physical stores. More so than always,
user want to order their food from the condition of home (Bérubé and et.al., 2016). The
arrival of e-commerce in the food industry is still in initial phase and does not face fierce
competition. Legal: Government policies and legislation is directly effect on Sainsbury business
transaction. For example -' New sugar tax 'present by UK government and aim of him to
reduce 20% sugar from drink as well as banned promoting high fat salt, and sugar food
and drinks to the children below 16 year of age. Environment: Plastic waste: By using single-use plastics for packaging purpose,
supermarkets faces various environmental difficulties. It is necessary for to look for ways
to manage plastic waste such as offering bonus to its customers bring their own handbags
for purchasing.

Drivers of changes
Internal and External drivers is the trigger for an organisation for developing and implementing
organizational strategy. Each and every organisation need to change in drive within the
organisation in such as that are facing the demonetisation, falling down of market price ,
competitors increasing in market, low cost strategy, dissatisfaction with own organisational
employee, higher demand of productivity, technology changes , changing in government policy
and identifying human resource problems, political changes that are all causes while
organization doing (Hardcastle and et.al., 2017). Change in our strategy drives and
implementing new drivers for achieving their goals and objective. Drivers can change only by
the organisation itself.

REFERENCES
Books and Journals
Bérubé, S. and et.al., 2016. Motivational techniques to improve self-care in hemophilia: the need
to support autonomy in children. BMC paediatrics. 16(1). p.4.
Gagneur, A. and et.al., 2018. A postpartum vaccination promotion intervention using
motivational interviewing techniques improves short-term vaccine coverage: PromoVac
study. BMC public health. 18(1). p.811.
Hardcastle, S.J., and et.al., 2017. Identifying content-based and relational techniques to change
behaviour in motivational interviewing. Health psychology revie., 11(1). pp.1-16.