University Assignment: BM461 Global Business Environment Report

This report provides an analysis of the global business environment, focusing on the multinational retail company Sainsbury's. The report utilizes the PESTLE framework to examine the political, economic, social, technological, legal, and environmental factors impacting the company. Political factors, such as Brexit and UK's relationship with Qatar, are discussed. Economic factors, including the impact of GBP decline, are analyzed. Social factors, like consumer demand for organic and healthy food, are considered. Technological advancements and their cost-saving benefits are highlighted. Legal factors, including regulatory permissions, and environmental factors, such as Sainsbury's sustainability practices, are also evaluated. The report concludes that PESTLE analysis is crucial for strategic planning and achieving business goals.

The Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The global business environment basically are the external factors that affect the
functioning of business in global market (Uluskan and Godfrey, 2018). The chosen company for
this report is Sainsbury which is a multinational retail company situated in London, UK. This
report contains PESTLE analysis of the chosen company.
MAIN BODY
There are several external factors that affect the activities of a business. These external
forces are explained with the help of PESTLE analysis which is as follows:
Political factors: The political factor that is currently affecting Sainsbury is BREXIT.
Due to this many terms and conditions for trading are unclear to the company and this is the
reason which is leading to many confusion in the company. The another factor affecting
company is political relationships of UK with that of Qatar as holdings of more than 25% in
Sainsbury.
Economical factors: There is a steep declined noted in the GBP after the BREXIT which
has impacted the earning. This has also affected Sainsbury. BREXIT have affected many
decisions of the business and its activities due to which the company is not making effective
decision which is impacting their earnings.
Social factors: The company mainly is selling more fast food items. The customers are
demanding organic products, high quality and healthy food. The company is practising its
activities in sustainable ways which has helped it to get support from its customers. There is also
high demand of organic food in the market which is also being fulfilled by the Sainsbury. To
meet the needs and demands of the customers, Sainsbury is doing practices in well systematic
and organised manner.
Technological factors: Using high and advance technologies held in saving lots of cost
by the company (Duca and Gherghina, 2018). Sainsbury also is using advance technologies
which has also reduced the cost of production of the company. Being advanced in the technology
is very important for the company as it provides company with competitive advantage over
others.
Legal factors: the company have to take many regulatory permissions and approval
which often lead Sainsbury to delay the process of making decisions. Legal complications most

of the time delay the business and its activities due to which business face loses. For any new
activity to be performed by the company, they have to check legal rules and regulations which
sometimes delay the process and cause lose to the company.
Environmental factors: The environmental factor are also very important as it is the duty
of all to protect environment (Luiz, Ganson and Wennmann, 2019). Sainsbury have also adopted
many practices at its company like they have minimised and reduced the emission of carbon. The
company have also reduced the operational waste as they are focusing more on recycling it. The
company is making strategic plans for sustainability.
CONCLUSION
From this report it is concluded that PESTLE is very important to determine the factors
that affect the business and its activities globally. With its helps a company can plan accurate
strategies which will help company to achieve its goals and succeed.

REFERENCES
Books and Journals
Duca, I. and Gherghina, R., 2018. CSR Initiatives: An Opportunity for the Business
Environment. In Ethics and Decision-Making for Sustainable Business Practices (pp.
187-202). IGI Global.
Luiz, J.M., Ganson, B. and Wennmann, A., 2019. Business environment reforms in fragile and
conflict-affected states: From a transactions towards a systems approach. Journal of
International Business Policy, 2(3), pp.217-236.
Uluskan, M. and Godfrey, A.B., 2018. Business environment-supply chain framework and
benchmarking supply chain structures: Haiti versus China. Benchmarking: An
International Journal.