Report: Analysis of Sainsbury's Global Business Environment Factors

This report provides an analysis of Sainsbury's global business environment, focusing on the impact of various external factors. The introduction provides a brief overview of Sainsbury's, a major retail company operating globally. The core of the report utilizes the PESTLE analysis framework to evalu...Read More

Global business environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Sales of Sainsbury........................................................................................................................3
Pestle Analysis:............................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business that are operating its function globally has to analysis and evaluates various
factors of Global business environment to gain competitive position. Sainsbury is public
company that was started in 1869 in Holborn, London by John James Sainsbury. It operates in
retail industry that provides products such as food, clothing and home care product to meet daily
requirement of company. It is located in 1415 with 116,400 employees to offer qualitative
services to customers. It operates its function in north-east of England, northern Ireland and
Scotland so it has to analysis internal and external factors of environment that impact on
company operations.
Sales of Sainsbury
Company has earned 29.007 revenue in 2019 by merging with ASDA as it was increasing
threat of company in retail industry. Sainsbury has increased its market share and sales of
company to 0.6 % and become big 4 big retailer in UK market. Company is mostly facing threat
of increase competition in retail industry as large number of companies are operating in it and
offering same products and services (Kawecki and Nowack, 2019). Thus, company by
maintaining qualitative and brining continuous innovation is able to satisfy needs of customers.
Pestle Analysis:
It is tool that is used to make strategies of company for gaining competitive advantages
by identify external factors that impact on Sainsbury. Thus, important for Firm in increasing
profitability and performance in the industry.
Political factor: It refers to policies, rules and regulation of government that impact on
functioning of Sainsbury.
Opportunities:
 Free Trade policy of government helps company to expand its business across nation.
 Reduction in Tax as public company.
Threats:
 Decrease in company sales and profitability due to political instability.
 Increase in cost of production due to less import.
Economical Factor: It includes interest rate, income and living standard of people in an
economic that helps company in forming various strategies to gain competitive advantages
(Ortas, Burritt and Christ, 2019).

Opportunities:
 Company can hire employees at lower rate
 Company can introduce new product if economic condition of UK is good.
Threats:
 Increase in cost of input.
 Limited market due to reduction in investment.
Social Factor: It includes factor such as preference, taste, belief of people living in the society.
Opportunities:
 Increase demand of organic food.
 Customers prefer more qualitative products.
Threats:
 Continuous change in customer taste and preference.
 Increasing demand of customers to reduce cost of products
Technological Factor: Various technological change and innovation, awareness of technology
development among people in the industry.
Opportunities:
 To reduce cost of production.
 Marketing of product through use of social sites.
Threats:
 Increase cost of company.
 Technology changes rapidly.
Legal Factor: It refers to legal laws and rule of government that firms need to follow for smooth
operation of business (Kowo, Akinrinola and Sabitu, 2018).
Opportunities:
 Build strong brand image.
 Customers satisfaction.
Threats:
 Cannot operate independently.
 Impose to penality.

Environment Factor: Company should ensure safety and protection of environment while
operating its function.
Opportunities:
 Employees and customers satisfaction.
 Effectively utilization of resources.
Threats:
 Increase cost of production.
 Limited resource.
CONCLUSION
From the above report it can be explained that political, economical, social,
environmental and legal factors provide opportunities as well proves to be threat for Sainsbury.
Thus, company by identifying such threats and opportunities is able to gain competitive position
in the industry.

REFERENCES
Books and journals
Kawecki, D. and Nowack, B., 2019. Polymer-specific modeling of the environmental emissions
of seven commodity plastics as macro-and microplastics. Environmental science &
technology. 53(16). pp.9664-9676.
Kowo, S., Akinrinola, O. and Sabitu, O., 2018. Macro environment and performance of
multinational agricultural enterprises: a case from Nigeria. Agricultural and Resource
Economics: International Scientific E-Journal. 4(1868-2019-382). pp.31-40.
Ortas, E., Burritt, R .L. and Christ, K. L., 2019. The influence of macro factors on corporate
water management: A multi-country quantile regression approach. Journal of cleaner
production. 226, pp.1013-1021.

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