Global Business Environment: PESTEL Analysis of Sainsbury's (BM461)

This report presents a PESTEL analysis of Sainsbury's, a major UK supermarket chain, examining the external factors influencing its global business environment. The analysis covers political factors (e.g., government stability, Brexit impact), economic factors (e.g., inflation, fuel prices), social factors (e.g., consumer trends), technological factors (e.g., online platforms, AI), legal factors (e.g., employment laws, trade regulations), and environmental factors (e.g., plastic reduction). The report identifies key drivers of change, including customers, competitors, technological advancements, and legislative changes, highlighting their impact on Sainsbury's operations, profitability, and brand image. The conclusion emphasizes the positive influence of technological and social factors and the negative impact of political and legal factors, offering insights for strategic decision-making. The report utilizes the PESTEL framework to evaluate Sainsbury's performance within the global market.

Global Business
Environment

INTRODUCTION
Global business refers to the international trade in which the company is doing the
business across the world with the consideration of establishing recognised brand image in all the
regions. Globalization is driven with the several factors which includes political, technological
and economical factors in the different countries that are completely unfamiliar with the
domestic country that impact the organisational decision and their resources. Sainsbury's is the
chosen organisation for this report, It is the second largest supermarket chain in the United
Kingdom which is established by John James Sainsbury's in 1869. This report will analyse the
factors that is impacting the external factors of the business by using the PESTLE Analysis.
PESTLE Analysis
It is the framework of analysing the external factors that is impacting the functionality of
the business. It includes the political, economical, social, technological, legal and environmental
factors and in context of Sainsbury's, analysis of their macro factors is describe as follows:
Political factors: these are the factors which includes the government stability, taxation
rate, trade policy etc. Sainsbury is a UK based company e and there is a stable government in the
UK so it will help the company to run their business operation in and smooth manner. On other
and brexit has impacted the whole business operations badly and affects their profitability and
growth.
Economical factors: these are the factors which includes export and import duties,
inflation rate, disposable income of the consumer etc. There is a rise in fuel prices which leads to
increase the price of transportation due to which Sainsbury has is facing decrease in their profit
margin.
Social factors: these are the factors which includes cultural trends, demographics, attitude
change etc. As this is becoming the general tends of having jusk food but over the time salads
and shake have take over it and Sainsbury try to meet out the prospective demand of the
customers in order to establish a good brand image in thhe market.
Technological factors: these are the factor which includes innovation and the
development in the various operational activities so that company can meet out their desired
goal. Sainsbury is offering their product and services on online platforms so that they can cover a

large market and generator higher revenue and profit and also using artificial intelligence in their
business operation so that they can move towards digitalization.
Legal factors: the factors which includes employment legislations trade regulations and
restrictions etc. Sainsbury is operating their business globally hands this is quite tough for the
company to follow the the rules and restrictions of each country in order to run their business in
and successful manner.
Environmental factors: these are the factors which influence the surrounding
environment and the impact of ecological aspects. Sainsbury is operating their business and
reducing the use of plastic and they can offer their customer to buy the product loose in order to
minimise the use of plastic.
The key driver's for change are customers, competitors, technological development and chage
in legislation that is impact the orperations of Sainsbury so they have to identify the loopholes
and the reasons of facing uncertainty in order to get high revenue and profitability through which
they can establish a good brand image in the market.
CONCLUSION
It is concluded from the above report that there are various external factors which is
impacting the the micro environment of the business. This report has conducted the pestel
analysis and it is is analysed that political legal factors have the negative impact on business and
technological social factors have the positive impact of business. Moreover, the drivers of
change which is identified by pestel analysis are customers, competitors, technology
development and change ine legislations.

CONCLUSION

REFERENCES
Books and Journals