Global Business Environment: PESTLE Analysis of Sainsbury's

This report presents a PESTLE analysis of Sainsbury's, a leading international supermarket chain. The analysis examines the external factors influencing the company's operations within the global business environment. The introduction provides a brief overview of PESTLE analysis and introduces Sainsbury's. The main body delves into the political factors, specifically the impact of Brexit, economic factors such as cost prices and worker salaries, social factors related to health consciousness, technological advancements like e-commerce, legal considerations, and environmental concerns including carbon footprint and plastic waste. Each factor is analyzed in terms of its implications for Sainsbury's, identifying potential threats and opportunities. The conclusion summarizes the key findings, emphasizing the importance of adapting to these factors for continued success. The report references relevant sources to support the analysis.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
References........................................................................................................................................3

INTRODUCTION
PESTLE Analysis is referred to the scanning of external environment for a business to
be able to stand in a particular country. It mainly consist of political, economic, social,
technological, legal and environmental factors (What is PESTLE Analysis? An Important
Business Analysis Tool, 2020). Sainsbury is one of the leading international supermarket
company founded in 1869 in UK. It deals with groceries, eatables, home products and
electronics. The following discussion is based on PESTLE analysis of Sainsbury.
MAIN BODY
Political Factor: The political factor is drastically over-changing Brexit. Which means
now England is not a part of European union resulting in increment of import rates. This
condition is causing increase in product prices leading to lost in customers. In context of
Sainsbury, this factor can be a threat for the growth of firm because spoiling political relations
between two nations results in drop down of market share of Sainsbury.
Economical Factor: The economic factors are cost price and high expectation salary of
workers. In case of Sainsbury, the firm is highly dependent on road transport all across the UK.
This leads to the increment cost of petrol which results in higher product prices. Moreover
recently higher wage movement has also started in UK so it is necessary to look into the salary of
it's employees to hold on it's shareholders. This is one of a threat of Sainsbury through which
they have to cope up with ( Perera, 2017).
Social Factor: The social factor is increment of health conscious people. In context of
Sainsbury, the firm is majorly making revenue by selling it's fast food items but shifting of UK
people towards healthy food affected the firm's sales and profit margins. So this factor is another
threat for Sainsbury.
Technological factor: The technological factor is introduction of E-commerce to tech
friendly people. In case of Sainsbury, recently the firm has introduced the E-commerce
technology for those who are comfortable in online shopping rather than traditional one. This is
the opportunity for Sainsbury to improve it's technical services for better experience for it's
customers. This can help the firm to increase in sales and revenue generations (Policy, 2018).
Legal Factor: The legal factor is again related to Brexit economical factor. In context of
Sainsbury, due to Brexit, there are many decision making and policies need to be changed by
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firm without any delay. Because due to high competition, if another brand did these changes then
customers can switch to them. So this is the opportunity for Sainsbury to save it's market share
by applying changing in polices so that it can maintain it's competitiveness in the industry.
Environmental Factor: The environmental factors are increasing environmental
conscious people. In case of Sainsbury, firm is producing large carbon footprints and increment
of plastic waste. This is the opportunity for the firm to avoid all these productions which directly
affects external environment so that it can grow it's customer and develop it's status as
environment friendly organization (Shtal & et. al., 2018).
CONCLUSION
It is concluded that the PESTLE analysis of Sainsbury imparts a huge perception into the
current state of the firm in a industry and how it can improve by analysing it's threats and
opportunities. Though Sainsbury has stability in the market with all it's innovations and
marketing strategies but these are the current factors that can affect it's operations and have to
face these by overcoming all the threats associated with it.
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References
Books and Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Policy, P., 2018. What is pestle analysis.
Shtal, T. & et. al., 2018. Methods of analysis of the external environment of business activities.
Online
What is PESTLE Analysis? An Important Business Analysis Tool. 2020. Available through
<https://pestleanalysis.com/what-is-pestle-analysis/>./
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