BM461 Global Business Environment: Sainsbury's PESTEL Analysis Report

This report presents a PESTEL analysis of Sainsbury's, a UK-based grocery and retail company. The introduction defines the external environment and the relevance of PESTEL analysis for strategic decision-making. The main body applies the PESTEL framework, examining political, economic, social, technological, environmental, and legal factors impacting Sainsbury's. Each factor is discussed in detail, highlighting its influence on the company's operations and future direction. The conclusion summarizes the key findings, emphasizing the importance of external environment analysis for effective strategy formulation. The report also includes references to supporting literature in Harvard format.

External Environment
Research and Analysis
Portfolio

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

INTRODUCTION
External Environment refers to the different types of macro factors which create a
particular influence on the overall decisions which are made within the organisation. The
different types of companies are required to take it into consideration (Kuznetsova and et.al.,
2017). The company which has been chosen for this report is Sainsbury's. It is a British
Company which deals in groceries and other related products and services. In this report, detailed
focus will be made on the use of PESTEL analysis to derive the conclusions and
recommendations which will be useful for the company in the future.
MAIN BODY
The use of PESTEL analysis can be made within the organisations so that they are able to
effectively and efficiently ensure that they are able to derive conclusions and recommendations
which can be helpful in the future (Spitsin and et.al., 2018). The application of this analysis for
Sainsbury's is as follows-
Political factors- These type of factors are important for an organisation because the
political conditions can change a lot. Sainsbury's has to consider the political factors of the
countries in which it operates so that the appropriate strategic direction is made available to it for
the future.
Economic factors- The influence of these factors is important for the companies because
they are required to consider the changing economic situations in the countries where they are
operating. Sainsbury's has to take these factors into account which will be quite helpful for it in
ensuring that the economic growth rate can be enhanced in the right manner.
Social factors- These factors are important for the organisations because they have to
make sure that the consideration to the society can be given by them. In the context of
Sainsbury's, the influence of these factors is important to be considered because the company is
required to ensure that the situation prevailing in the society can be considered for making the
desired changes.
Technological factors- The influence which is put by these particular factors has to be
considered by the organisations because technology is quite dynamic in nature and can change
quite frequently. In Sainsbury's, they are quite important because they will help the company in
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order to be able to determine the strategic direction which has to be taken by the company in the
future.
Environmental factors- Nowadays the customers are quite conscious towards the
environment. Thus it can be said that these particular factors create a lot of influence on the
customers. In the context of Sainsbury's, it is important that an influence on these factors is
considered so that the actions can be taken to produce environment-friendly products.
Legal factors- The companies are required to make sure that the different types of legal
requirements related with the business are given due importance for the purpose of conducting
business activities. In Sainsbury's, it is quite important that the legal rules and regulations of the
countries in which it is operating are considered which will help in ensuring that a proper
strategy will be formulated for conducting business activities.
CONCLUSION
From the above report, it can be concluded that the External Environment Analysis
means conducting an analysis on the basis of the influence of the different types of macro factors
and the influence which they put on the organisations. For this purpose, the use of PESTEL
analysis can be made so that the companies are able to effectively and efficiently formulate their
strategies in the right manner for the future.
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REFERENCES
Books and Journals:
Kuznetsova, N. V. and et.al., 2017. External environment as a factor of ensuring the
competitiveness of organizations in the regional market of medical services.
Spitsin, V. and et.al., 2018. Development of innovative industries in Russia under unfavourable
external environment. Equilibrium. Quarterly Journal of Economics and Economic
Policy. 13(3). pp.467-485.
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