BM461 Global Business Environment: PESTEL Analysis of Sainsbury Report

This report presents a PESTEL analysis of Sainsbury, a major UK food retailer, examining the key external factors influencing its operations. The analysis covers political, economic, social, technological, environmental, and legal factors. Political factors include the impact of consumer debt and government policies, while economic factors address unemployment and inflation. Social factors highlight consumer trends and workforce demographics. Technological advancements and environmental concerns, along with legal and regulatory changes, are also considered. The report identifies key drivers of change that management should consider for the future direction of the firm, supported by references in Harvard format. The report is designed to fulfill the requirements of the BM461 Global Business Environment module.

BM461 GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
MAIN BODY.................................................................................................................................................2
PESTEL Analysis of Sainsbury..................................................................................................................2
REFERENCES................................................................................................................................................4

MAIN BODY
PESTEL Analysis of Sainsbury
It is the UK biggest food retailer which has around 1428 stores across the world with around
111900 employees working with them in their company (Pestel analysis of Sainsbury, 2021).
They cater across 18 million customers in a week. The pestel analysis of the company is done
below
POLITICAL FACTORS: the management of the company has to face the great impact on their
performance under this factor. In today’s era they have to face the problem that is regarding to
the debts of the consumers and government as they are very high. The impact is regarding the
attitudes of the customers as from this business has to experience great pressure. The strategies
of the company are not regarding operating the business on the basis of market condition but
along with this they also have to develop their business continually. But among all this they are
also making steady growth by offering their customers great product with quality and
competitive price.
ECONOMIC FACTORS: It plays an important role in the company as it affects the profits,
demands, prices and cost. The management of the company focuses on this factor as they have to
the problems that are related to the growing unemployment, economic slowdown and inflation in
their food prices which is the important element of Sainsbury. As high prices of food product
will result in decreasing the demand and production of their food products.
SOCIAL FACTORS: The management of the company focuses on all the customers’ trend they
have also adopted the strategy that is related to the one-stop shopping which means that
customers want all the products under one roof. Also the company is focusing on their social
factors by increasing workforce of female that is to create the longevity in the population which
will further result in declining the domestic meal (Brenner, 2018).
TECHNOLOGY FACTORS: The factors have resulted in positivity in the business operation of
the Sainsbury. As they grow their business by performing different activities that is on web or

online which have resulted in growing their demands in certain areas. The company also starts
using the new technology to give all the benefits to their customers.
ENVIROMANTAL FACTORS: It results in the great pressure on the management and
organization to act in responsible manner for keeping the environment safe (Chasdi, 2017). They
have taken various initiatives that is regarding the area by making strategy that is related to the
Reduce, reuse and recycle that manages recycling, waste and packaging. Also they are making
the initiative to reduce the operations that are regarding reduction of carbon footprints.
LEGAL FACTORS: the different policies and the legislation of the government have the direct
impact on the operations and the actives that are performed by the organization. The manger or
the marketing departments of the companies have to keep the focuses on the changes that are
made by the government that is related to the tax and other policies (Dunn and Jensen, 2018).

REFERENCES
Books and Journals
Brenner, B., 2018. Transformative sustainable business models in the light of the digital
imperative—A global business economics perspective. Sustainability. 10(12). p.4428.
Chasdi, R.J., 2017. Corporate security crossroads: Responding to terrorism, cyberthreats, and
other hazards in the global business environment. ABC-CLIO.
Dunn, S.L. and Jensen, J.D., 2018. Judaism and Jewish business practices. International Journal
of Business Administration. 9(4). pp.73-88.
Online
Pestel analysis of Sainsbury.2021. (online). Available through:
<https://www.ukessays.com/essays/education/pestel-analysis-of-sainsbury.php>