BM461- Global Business: Sainsbury's PESTLE Analysis & Key Drivers

This report provides a PESTLE analysis of Sainsbury's, a UK-based supermarket chain, within the global business environment. It examines the political (Brexit), economic (fuel prices), sociological (health consciousness), technological (self-checkout machines), legal (sugar tax), and environmental (carbon footprint) factors impacting the organization. The report identifies key driver changes Sainsbury needs to undertake, such as finding alternative transportation methods and reducing carbon emissions. The analysis concludes by emphasizing the importance of understanding these external factors for Sainsbury's future strategic planning and sustainability. Desklib provides a platform for students to access this and other solved assignments for their studies.

COVER PAGE
AURELIA NICOLAE
BNU: 22019492
GROUP J3
BM461-GLOBAL BUSINESS ENVIRONMENT
CW1-ANALYSIS PORTFOLIO
TUTOR-LINDA PLENTY
SUBMISSION DATE-29.10.2021

TABLE OF CONTENTS
Introduction………………………………………………………………………………………4
Main Body………………………………………………………………………………………..5
PESTLE ANALYSIS…………………………………………………………………………….6
Key driver changes that need to be taken by Sainsbury in
future………………………………………………………………………………………………7
Conclusion…………………………………………………………………………………………7
References…………………………………………………………………………………………8

Executive summary
The main aim of this assignment was to study the global business environment. The methods
that are used for the research are primary and secondary. PESTLE analysis was used to study
the macro-factors that affect an organization.
Introduction
This assignment is a brief description of the global business environment. The analysis of the
business environment has been analysed. The changes in the business environment are
discussed further in the brief. PESTLE analysis of the firm was done to understand the drivers of
transformation that should be undertaken by an organization for betterment.
Sainsbury is a UK-based organization that was formed in the year 1869 by John James Sainsbury
(Sainsbury, 2021). It is a chain of supermarkets. Sainsbury is the second largest among all its
competitors.

Main body
PESTLE ANALYSIS
Factors Impact
Political Organizations are benefiting
in the post ‘Brexit’ period
(Bbc.com, 2021).
Sainsbury imports products
at a cheaper rate from
countries in Europe. The firm
can raise maximum profit
after Brexit is removed. They
can use the money to invest
in buying other goods.
Sainsbury can think of
expanding in European
nations.
(Positive impact)
Economical The fuel prices in UK have
increased.
The main mode of transport
used to deliver its products
to the customers is
Roadways. Sainsbury’s
products are shipped all over
the UK. The hike in petrol
and diesel prices is causing
the firm to face losses. If they
increase the shipping
charges, their customers can
switch to their competitors.
(Negative impact)

Sociological In modern times, people are
becoming health conscious.
After the COVID-19 times
people are now becoming
health conscious. Hence
people have changed their
eating habits. Most of the
revenue of Sainsbury is
generated by the fast foods.
To keep up with the
customer requirement of a
healthy lifestyle, Sainsbury
must include healthier
products in their sales.
(Negative impact)
Technological Self-checkout machines are a
boon for the organizations.
Sainsbury has installed self-
checkout machines
(Sainsbury, 2021). These
machines assist the
employees of the firm.
Customers can checkout
themselves and the firm does
not have to hire more
employees for the same. This
saves the money and time of
Sainsbury.
(Positive impact)
Legal UK government has imposed
sugar tax.
The organizations cannot sell
products with excess sugar or
salt. Due to this act,
Sainsbury cannot sell such

products and cannot
advertise them to kids below
the age of 16. Sainsbury had
to discard the foodstuff and
drinks with excess sugar.
(Negative impact)
Environmental Supermarkets contribute to
carbon footprint and plastic
waste.
Sainsbury also contributes a
lot to its carbon footprint
(Smith et al., 2017). Carbon
emission must be reduced by
the firm. Along with this, the
firm packs its products in
plastic contributing to
pollution.

Key driver changes that need to be taken by Sainsbury in
future
Sainsbury must find out alternative transportation methods. If they increase the prices of
shipping their customers will switch to the competitors. Also, the fuel will be depleted if they
waste it. The future of Sainsbury lies in using modern technology like drones.
Apart from this Sainsbury also must take care of the environment and reduce carbon emissions.
They must also find an alternative to plastic to pack their products.
Conclusion
The external factors affecting Sainsbury were studied. Also, the kind of impact they have on the
firm was classified so that firm can take actions for the future accordingly.

References
bbc.com, 2021. news [online] Available at:
https://www.bbc.com/news/politics/uk_leaves_the_eu
[Accessed 23 October 2021].
Sainsbury, 2021. About us. [online] About.sainsburys.co.uk. Available at:
https://www.about.sainsburys.co.uk/about-us
[Accessed 23 October 2021].
Smith, D.C., Fulton, E.A., Apfel, P., Cresswell, I.D., Gillanders, B.M., Haward, M., Sainsbury, K.J.,
Smith, A.D., Vince, J. and Ward, T.M., 2017. Implementing marine ecosystem-based
management: lessons from Australia. ICES Journal of Marine Science, 74(7), pp.1990-2003.