Analyzing Sainsbury's Business Environment: PEST & Porter's Model

This presentation provides an analysis of Sainsbury's business environment using PEST and Porter's Five Forces models. It highlights the political and economic factors impacting Sainsbury's, such as Brexit uncertainties and rising fuel prices. The analysis also covers the threat of substitutes an...Read More

BUSINESS ENVIRONMENT

Table of Contents
 INTRODUCTION
 PART 1
 Assessing Sainsbury business environment by using PEST and Porter’s five forces models
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business Environment is the mixture of all the macro and micro components that revolves around a
company and put influence on their operations and decision making.
 The current presentation will be based on Sainsbury's, which falls under the category of leading
supermarket in the UK.

PEST Analysis of Sainsbury's
Political
 Political Factor that may have a major influence on Sainsbury's is the uncertainties from Brexit.
 It may lead to decrease organizational performance and productivity as firm may lose potential
consumer and skilled employees.
Economic
 Fossil fuels have experienced a major rise in the price and the supply is constantly diminishing
which is the result of higher fuel taxes.
 The increased prices makes it difficult for Sainsbury's to transport goods around the state.

Porter's Five Forces model of Sainsbury's
Threat of Substitutes
 The food retail market in the United Kingdom does not experience much threat
from substitutes and it is a major reason that Sainsbury's faces less fear of loss
due to innovations.
 The company stands at a good position in the mind of the consumers by
delivering quality products at subsidized rates.
Threat of New Entrants
 The food retail industry has a considerable amount of barriers
which restricts new companies to enter the market.
 There are fewer opportunities for the new entrants to be successful in this
sector, thus; providing comfort level for Sainsbury's in its market position.

CONCLUSION
 The above presentation shows factors which have an effect on the functioning of Sainsbury’s.
 These factors are analysed by using PEST analysis and Porter’s Five Forces model to get an overview of the
business environment of the company.
 Sainsbury’s is effected by these factors and needs to make required changes to be successful in future.

REFERENCES
 Alava, R.P. and et.al., 2018. PEST Analysis Based on Neutrosophic Cognitive Maps: A Case Study for Food
Industry. Neutrosophic Sets and Systems. 21(1). p.10.
 Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs' profitability:
Evidence from European Countries. Economic Modelling. 78. pp.275-292.