Exploring Sainsbury's within the Global Business Environment

This report provides an overview of Sainsbury's within the global business environment, utilizing a PESTLE analysis to identify the political, economic, social, technological, legal, and environmental factors impacting the company. It highlights the influence of Brexit, economic shifts due to events like COVID-19, evolving consumer preferences for health and diet, technological innovations, legal compliance, and environmental responsibilities. The analysis emphasizes the importance of adapting to environmental changes, optimizing resource utilization, and focusing on opportunities to maintain competitiveness and growth in the market. The report also underscores the need for Sainsbury's to address challenges such as increasing import rates and changing consumer behaviors to sustain profitability and market position.

Global Business Environment

TABLE OF CONTENTS
Presenting an overview of the Global Business Environment in the context of Sainsbury........2
REFERENCES................................................................................................................................5

Presenting an overview of the Global Business Environment in the context of Sainsbury
PESTLE Analysis of Sainsbury
Sainsbury's is the second largest supermarket chain in the U.K. By having the largest
chain, it has many competitors which may affect the profit of the company (Brenner, 2018.).
Company can identify those factors by doing PESTLE analysis which help the company to know
about political, economic, social, technological, legal and environmental factors affecting the
business.
Political factors of the Sainsbury are related to tax policies, trade barriers, tariffs etc.
These factors determine the involvement of the government in the business organisation. The
currently affected political factor to Sainsbury's company is imminent Brexit. This means that
England will not be a part of European that will increase the rates of import. By this, product
prices will be increase and customers may shift to the other brand.
Economic factors has a great impact on the Sainsbury. Due to covid people are only
buying those products which satisfy their basic needs. The firm transport their products so if the
diesel or petrol price increases that will leads to increase in the prices of the products. This will
become more costly for the people to buy that product. The increased prices may lower down the
profit of the business organizations.
Social factors affects the Sainsbury is like the U.K. People are now health and diet
conscious so Sainsbury's has to deal in those products which are healthy for the people. In order
to maintain the growth, the company has to change its menu from fast food to healthy foods.
This will increase the profitability of the company. The taste and preferences of the people
change on regular basis so the firm should focus on the needs and wants of the people according
to their diet.
Technological factors includes the innovations that should be adopted by Sainsbury. The
company must use new online payment methods like swapping of card or payment through
mobile which makes customer easy in the paying the bills. The company should use the
analytical methods to increase their sales and to run smoothly in the competitive market.
Legal factors includes the laws like employee law, discrimination law etc. which may
affect the Sainsbury. These factors affect both internal and external sides of the company. It
helps the company to introduce the changes which helps the company in growth of the business.

The company must change the factors according to its customers because there is stiff
competition in the market.
Environmental factors of the Sainsbury are related to pollution, energy source, laws related to
the macro-environment etc. Firm must focus on the environment these macro-factors. The
company is producing carbon footprints it may affect the environment conditions (PESTLE
Analysis of Sainsbury’s, 2021). The company should use environment friendly products will help
the company to be in the competitive market. Firm must avoid using plastic bags to its customers
on the purchase of the products. It can give their customers eco-friendly bags for carrying the
products and should use proper waste management system.
Impact of PESTLE in the business environment
Sainsbury must focus on the changes in the environment. By adopting changes, firm can
earn a good profit and increase its growth in the market. The company should use optimum
resources which will lead to decrease in the waste of the resources. As this analysis will help the
company to predict the coming changes like increase in the price of the products due to Brexit
which may decrease the profit so the firm can take actions against it. Sainsbury must focus on the
opportunities rather than focusing on threats.

REFERENCES
Books and journals
Brenner, B., 2018. Transformative sustainable business models in the light of the digital
imperative—A global business economics perspective. Sustainability. 10(12). p.4428.
Online:
PESTLE Analysis of Sainsbury’s. 2021. Online. Available through:L
<https://www.marketingtutor.net/pestle-analysis-of-sainsburys/>.