Report: PESTEL Analysis of Sainsbury's Global Business Environment
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This report presents a PESTEL analysis of Sainsbury's, a major player in the retail market. The introduction highlights the importance of understanding the global business environment for strategic decision-making. The main body delves into each component of the PESTEL model: political, economic, social, technological, environmental, and legal factors, and how they impact Sainsbury's operations. For example, the report discusses the influence of Brexit, inflation rates, customer needs, technological advancements, environmental regulations, and employment legislation. The conclusion emphasizes the value of the PESTEL model in identifying opportunities and threats, ultimately aiding Sainsbury's in achieving its business goals. The report references academic sources to support its analysis.

Global business
environment
environment
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL model............................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL model............................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................2

INTRODUCTION
Global business environment can be describe surrounding in which company is
performing and conducting business task. It is essential for organisation to analyse and evaluate
business environment in order to develop better and effective strategies (Christensen, 2016).
Chosen company for this project is Sainsbury. This is dealing in retail market and it was founded
by John James Sainsbury. This report will includes PESTEL model that will assist company in
determining different factors of business environment.
MAIN BODY
PESTEL model
This is effective model that is significant for identifying and analyse the various factors
of business environment. PESTEL stands for political, economical, social, technological,
environmental and legal factors of organisation environment.
Political factor – This factor consist of different elements such as government policies,
rules and regulations, Brexit, taxation policies and many more. All of these political factor will
affect over the Sainsbury business. For example increase in Brexit uncertainties will lead impact
on functioning of supermarket in European market.
Economical factor – Economic factor is essential part of organisation and it will lead to
impact on profits and sales of business. This includes interest rates, inflation, exchanges,
demand and supply and so on. Increase in inflation rates in UK will lead to directly affect over
business practices and performance.
Social factor - It is crucial for organisation to consider social factors while performing
business practices. Sainsbury company is providing high quality products to customers that is
according to the needs of customers (Kokodey, Gnezdova and Lomachenko, 2018). This
organisation is able to develop and maintain strong relationship with its customers that will lead
to enhance business.
Technological factor – This factor is crucial for business as it will influence over
effective and efficient functioning. There are different high technology in UK market which is
1
Global business environment can be describe surrounding in which company is
performing and conducting business task. It is essential for organisation to analyse and evaluate
business environment in order to develop better and effective strategies (Christensen, 2016).
Chosen company for this project is Sainsbury. This is dealing in retail market and it was founded
by John James Sainsbury. This report will includes PESTEL model that will assist company in
determining different factors of business environment.
MAIN BODY
PESTEL model
This is effective model that is significant for identifying and analyse the various factors
of business environment. PESTEL stands for political, economical, social, technological,
environmental and legal factors of organisation environment.
Political factor – This factor consist of different elements such as government policies,
rules and regulations, Brexit, taxation policies and many more. All of these political factor will
affect over the Sainsbury business. For example increase in Brexit uncertainties will lead impact
on functioning of supermarket in European market.
Economical factor – Economic factor is essential part of organisation and it will lead to
impact on profits and sales of business. This includes interest rates, inflation, exchanges,
demand and supply and so on. Increase in inflation rates in UK will lead to directly affect over
business practices and performance.
Social factor - It is crucial for organisation to consider social factors while performing
business practices. Sainsbury company is providing high quality products to customers that is
according to the needs of customers (Kokodey, Gnezdova and Lomachenko, 2018). This
organisation is able to develop and maintain strong relationship with its customers that will lead
to enhance business.
Technological factor – This factor is crucial for business as it will influence over
effective and efficient functioning. There are different high technology in UK market which is
1
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significant for successfully and effectively performing business activities. Through innovative
technology respective company will be able to successfully perform business practices.
Environmental factor – This factor includes the environmental aspects such as
ecological system, air pollution, water pollution and various others elements that will affect over
functioning of business. Sainsbury company is following all rules and regulation that will assist
in successful performance of business and enhance organisational practices.
Legal factor – There are different legislation that is developed by UK government
regarding employment, health and safety and many more (Safar and et.al., 201). All of these
legal affect will have direct influence over decision making of business and affect organisational
performance. For example increase in basic sales or wages will affect over profitability of
business. Respective organisation will have to take accurate decision as per the employment
legislation.
CONCLUSION
From the above report it can be concluded that it is essential for organisation to analyse
and evaluate the different aspects of global business environment in order to take better and
effective decisions. This will help organisation to understand and determine the major threat or
opportunities for business. Through this organisation will be able to successfully enhancing
business practices and attain goals.
REFERENCES
Books and Journals
Christensen, J., 2016. Digital Economics: The Digital Transformation of Global Business. BoD–
Books on Demand.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Safar, L. and et.al., 2018. Concept of SME business model for industry 4.0 environment. TEM
Journal, 7(3), p.626.
2
technology respective company will be able to successfully perform business practices.
Environmental factor – This factor includes the environmental aspects such as
ecological system, air pollution, water pollution and various others elements that will affect over
functioning of business. Sainsbury company is following all rules and regulation that will assist
in successful performance of business and enhance organisational practices.
Legal factor – There are different legislation that is developed by UK government
regarding employment, health and safety and many more (Safar and et.al., 201). All of these
legal affect will have direct influence over decision making of business and affect organisational
performance. For example increase in basic sales or wages will affect over profitability of
business. Respective organisation will have to take accurate decision as per the employment
legislation.
CONCLUSION
From the above report it can be concluded that it is essential for organisation to analyse
and evaluate the different aspects of global business environment in order to take better and
effective decisions. This will help organisation to understand and determine the major threat or
opportunities for business. Through this organisation will be able to successfully enhancing
business practices and attain goals.
REFERENCES
Books and Journals
Christensen, J., 2016. Digital Economics: The Digital Transformation of Global Business. BoD–
Books on Demand.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Safar, L. and et.al., 2018. Concept of SME business model for industry 4.0 environment. TEM
Journal, 7(3), p.626.
2
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