Global Business Environment: PESTLE Analysis of Sainsbury's (2020-21)

This report provides a PESTLE analysis of Sainsbury's, a major UK supermarket chain. The analysis examines the political, economic, social, technological, legal, and environmental factors impacting the company's operations. The report discusses the impact of Brexit, inflation, changing consumer preferences, technological advancements, and environmental concerns. It concludes that political and legal factors have a negative impact, while technological and social factors have a positive impact. The key drivers of change identified are customers, competitors, technological development, and changes in legislation. The report uses secondary research and Harvard referencing. The assignment fulfills the requirements of the BM461 Global Business Environment module, focusing on external environment research and analysis. The report highlights the importance of identifying external factors to ensure the future success of the company.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
PESTLE Analysis........................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Global business refers to the international trade in which the company is doing the
business across the world with the consideration of establishing recognised brand image in all the
regions. Globalization is driven with the several factors which includes political, technological
and economical factors in the different countries that are completely unfamiliar with the
domestic country that impact the organisational decision and their resources. Sainsbury's is the
chosen organisation for this report, It is the second largest supermarket chain in the United
Kingdom which is established by John James Sainsbury's in 1869. This report will analyse the
factors that is impacting the external factors of the business by using the PESTLE Analysis.
PESTLE Analysis
It is the framework of analysing the external factors that is impacting the functionality of
the business. It includes the political, economical, social, technological, legal and environmental
factors and in context of Sainsbury's, analysis of their macro factors is describe as follows:
Political factors: these are the factors which includes the government stability, taxation
rate, trade policy etc. Sainsbury is a UK based company e and there is a stable government in the
UK so it will help the company to run their business operation in and smooth manner. On other
and Brexit has impacted the whole business operations badly and affects their profitability and
growth.
Economical factors: these are the factors which includes export and import duties,
inflation rate, disposable income of the consumer etc. There is a rise in fuel prices which leads to
increase the price of transportation due to which Sainsbury has is facing decrease in their profit
margin.
Social factors: these are the factors which includes cultural trends, demographics, attitude
change etc. As this is becoming the general tends of having jusk food but over the time salads
and shake have take over it and Sainsbury try to meet out the prospective demand of the
customers in order to establish a good brand image in he market.
Technological factors: these are the factor which includes innovation and the
development in the various operational activities so that company can meet out their desired
goal. Sainsbury is offering their product and services on online platforms so that they can cover a

large market and generator higher revenue and profit and also using artificial intelligence in their
business operation so that they can move towards digitization.
Legal factors: the factors which includes employment legislation trade regulations and
restrictions etc. Sainsbury is operating their business globally hands this is quite tough for the
company to follow the the rules and restrictions of each country in order to run their business in
and successful manner.
Environmental factors: these are the factors which influence the surrounding
environment and the impact of ecological aspects. Sainsbury is operating their business and
reducing the use of plastic and they can offer their customer to buy the product loose in order to
minimize the use of plastic.
The key driver's for change are customers, competitors, technological development and chage
in legislation that is impact the operations of Sainsbury so they have to identify the loopholes and
the reasons of facing uncertainty in order to get high revenue and profitability through which
they can establish a good brand image in the market.
CONCLUSION
It is concluded from the above report that there are various external factors which is
impacting the the micro environment of the business. This report has conducted the pestel
analysis and it is is analyses that political legal factors have the negative impact on business and
technological social factors have the positive impact of business. Moreover, the drivers of
change which is identified by pestel analysis are customers, competitors, technology
development and change ine legislations.

REFERENCES
Books and Journals
Hampden-Turner, C. and Trompenaars, F., 2020. Riding the waves of culture: Understanding
diversity in global business. Hachette UK.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal, 8(4), pp.517-535.
Brondoni, S.M. ed., 2018. Competitive Business Management: A Global Perspective. Taylor &
Francis.
Tingbani, I and et. al., 2019. Terrorism and country-level global business failure. Journal of
Business Research, 98, pp.430-440.