PESTLE Analysis of Sainsbury's: A Business Environment Review

This report provides a comprehensive PESTLE analysis of Sainsbury's, a major UK supermarket chain. The analysis examines the external macro-environment, considering political, economic, social, technological, legal, and environmental factors. The report details how each factor impacts Sainsbury's operations, from government policies and economic growth to consumer behavior, technological advancements, and environmental regulations. The study highlights the strategic importance of PESTLE analysis for Sainsbury's, emphasizing its role in strategic planning, product development, and management. The report concludes by summarizing the overall influence of the PESTLE factors on Sainsbury's, emphasizing the importance of adapting to these external forces for continued success in the competitive UK supermarket industry. The report also touches upon legal and ethical considerations, highlighting the importance of compliance and corporate social responsibility.

Business Management

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
PESTEL analysis of Sainsbury's......................................................................................................4
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................8

INTRODUCTION
PESTLE analysis is the concept of the strategic planning tools for the organisation.
PESTLE analysis is the process of identification of the business operation It positively affects the
working environment of the organisation. PESTLE analysis is the development and understanding
of the business environment. This factor analyze the control and influence of the business. It helps
in strategic planning and is useful in other management. This is important for the organisation
strategic planning, product development and management planning. The identification of the
external factors is the PESTLE analysis is the consideration of the Political, Economic, Social,
Technological, Legal and Environmental issues. The consumer behaviour makes change in the food
and retail industry. Sainsbury's need the adoption of management position and satisfaction to its
customer. The present report carries out analysis of current situation of a company. Consumer in fair
price of the quality of production the Sainsbury's the looking for the new fashioned the consumer
and the value of the cost and they refused. Overall, in Sainsbury's, this framework would be used to
scan the external macro environment.
PESTLE Analysis
PESTLE analysis is known as the tool used for analysing the external impact on the firm.
This is useful in planning of new product and services of the organisation. PESTLE stands for six
individual factors in which P denotes Political, E for Economic, S for Social, T for Technological, L
for Legal and E for Environmental aspect. Environment is the external factor and helps in the
identification of risk. PESTLE analysis of the organisation is development of management strategic
and brings out solutions of the problems and carry out business in an effective manner. (Telegina,
2016). PESTLE analysis affects their organisation in understanding their external factors very well.
Is the competitors to get the strategic advantage as the political and legal environment to preparing
the changing of the things. Each element of PESTLE analysis effects the organisation.
P - Political
 E - Economic
 S - Social
 T - Technological
 L- Legal
 E- Environmental
Sainsbury is an organisation which follows Pestle analysis. The UK supermarket industry is
Sainsbury. The success of the Sainsbury and running of the internal and external for the success and

the helping for external environment. It is the food retailer based in UK. In a food production the
company sells the rang of products which includes their own Sainsbury bank of the financial
services. Sainsbury use PESTLE system to the make of analysis procedure in use of the the external
environment. PESTEL analysis did this in a successful manner (Cadle, Paul and Turner, 2010). It is
also strategic planning and analysis of the techniques. It is the helping Sainsbury to operates
presently and in future externally. Sainsbury established in the 1869 and has 872 operating stores.
The company has huge amount of employees of about 150,000 in UK.
PESTLE analysis of Sainsbury's
Political Factors:
This includes the effect of government policies on the business performance. Political factors
include government policies, foreign and trade policy, internal political issue, tax policy and trading
policy that impact on an organisation. This effects the company’s government and political actions.
The company which is based in UK and has great influence the of political factor in the country.
Sainsbury faces the challenges of globalization continuosly. Political factors have high influence on
Sainsbury’s performance. Due to instability in political environment, company get directly affected.
Thus, company needs to understand those political factors which can impact the firm and make
changes in business operations accordingly. (Thomas, 2007). The effect of economic factors to
impact the employees politics changes the attitudes of employee and the political increases the
stress level of the increasing of the employees. Political factors affect Sainsbury’s by increasing the
risk factor. An example of increasing and decreasing tax is that raise in tax directly effects
Sainsbury’s business. The political effect on Sainsbury are trade control, competition regulation,
employment law, tax policy, traffics, consumer protection and e-commerce. The main effect of an
organisation of these political factors they are political established, impact on economy, change in
regulation and mitigation of risk. Management can be affected as company needs to make changes
in its policies and procedures in order to carry out business in successful manner.
Economic Factors:
These factors affect the business in decision making and the company ability to profitability.
Economic factors include- Economic growth, interest rates, inflation rates, exchange rates,
international trade and exchange rates. The factors are effecting goods, services and money..
Economic factor of Sainsbury includes rise in cost value. Other factors of Sainsbury are demand,
price, cost and profitability (J. Sainsbury SWOT and PESTLE analysis, 2018). The affect of
Sainsbury the economic factor the high inflation and unemployment and the decrees of demand
production because the food production the highest price. The economic slowdown the two
important elements effect inflation of food price and unemployment which are very significantly

important for the company.. In this element of factors affecting of food product in decrease the
production of rampant unemployment and the high price of food production the demand of
decreases the production of food production. In UK, the unemployment is constantly rising.
Sainsbury’s manages the economic problems of the slowdown. However, management does not
have the problem of finding employees for the organisation but Sainsbury’s is the problem of labor
cost results in minimum wages of employee. The economic factors most impact of the demand of
consumer goods are employment. Due to recession, company’s spending power goes down and it
suffers from loses. In such situation, it becomes tough for the company to pay its employees. Apart
from this, management needs to keep an eye on factors that are affecting the firm such as interest
rate, recession, GDP etc. According to this, management needs to formulate strategies so that it can
overcome the negative impact of economic factors.
Social Factors:
Social changes also affect the organisation. The culture changes in the business environment
are the unique character of the people in the environment. The social factors include culture. The
demand of a company is affect of social factor. Social factors include- Population growth rate, age
distribution, health and safety consciousness, career attitudes, cultural and social conventions. The
good opportunity for Sainsbury’s is the increasing social trend in the healthier food. The social
factors are increasing the female workforce and the result is decline in the domestic meal making.
Sainsbury’s respond in social activities such as charities, sponsor games and any more. It the
responsibility of the society. Sainsbury has a management theme i.e “ Cook and Save” which
means promotion of the production and easy to cook. The production of easy to cook to customer
make the budget stretch future (PESTLE analysis, 2018). The social factors affect of the employees
the positive and negative impact of the production. Social impact includes the depression of
employees on the workplace. Moreover, the social factors include health and safety, worker union at
workplace etc. Social factor affects the wealth of family and lifestyle
Technological Factors:
Technological factors should be used correctly which extremely effect business. These
factors are related to development of technological aspects. It directly effects the business in terms
of technological, social , and these factors effect the management of the organisation. Technological
factors include – Research and innovation, automation, technology incentives and more. These
factors is used the organisation the new ways of production goods and services. The use of
technology is correct for retailer and the many things are used by big retailer in the technological
field. Technological factor used by Sainsbury for positive impact. The growth of the business used
the online expand the capacity in demand will be increasing. Sainsbury the expanding of the
business is use of the online food delivery services and the services will be continuous improvement

the online services the Sainsbury increase of sales. In UK, the online food delivery service is
available. This is an advantage of the great technology used for Sainsbury’s online food delivery
services and the very profitability for Sainsbury. Technological factors have become new way of
communication with employees and has affected job efficiency. Employees take opportunities to
improve training and use technology for developing new skill sets and development (PESTLE
analysis, 2018). Technological factors have affected the business through internet connectivity.
Technological helps the organisation of developing the mnagement strategic is understand the
consumer behavior. The example of technological factors is internet and automated process. Every
organisation makes the use of internet by creating its own website and creates communication to its
employees and its customers. Automated process the benefits of a company reducing the cost of
cost of manufactures, retail stores and suppliers.
Environmental Factors:
Environmental factors are related to weather and in climate change. It effects the
organisation externally and internally. In the organisation is affect of the change of climates.
Environmental factors include climate changes, impact of advance weather, geographical location,
pollution and climate. These factors affect the demand of a company.. The factor throws impact on
management and employees’ performance. The safe environment is a social responsibility of the
organisation which is the motive for healthy and safe environment and is responsibility of any
organisation but Sainsbury itself fulfils its responsibility. It has introduced Reduce, Reuse,
Recycle' approach. This efficiently manages waste, packaging and recycling. Sainsbury’s has
proved that reduction of carbon footprint is contributing lot of impact on the environment.
Environmental factors impact of the employees Noise, lighting, color and air quality of affect the
employee productivity. In addition to this, these factors affect the management and the organisation
both internally and externally. affect its includes the internal relationship of organisation and the
external factors includes the economic factors. Moresover, it considers the environment problems
like pollution, global warming, overpopulation, climate changes and natural resources’ depletion.
Therefore, management of the firm needs to take action in order to protect the environment. Along
with this, employees should focus on supporting the management for creating strong image.
Legal Factors:
Legal factors includes law, regulation and legislation which effects the business. Legal factors
include- consumer law, employment law, health and safety law, tax regulations and more. Legal
factors and polices directly effects the performance of the management and employees
performance.. Sainsbury has many legal issues. The government has introduced laws like new tax
on advertisement and tax on highly processed foods. Sainsbury has smartly adopted the new tax
laws and made modification in its products. Sainsbury many legal laws and maintain the such of

issue laws including employment laws, consumer laws, competition laws. Legal factors the protect
their employees. Employee protection connected to the laws and regulation of health and safety of
work and the protect of against regulations. Legal factors are connected to tax and the examples of
legal factors affecting the management and employees are consumer law, copyright law, health and
safety law, employment law, import/export law, fraud law, discrimination law etc. that affects the
business. The law affect of the way of management and employees performance..
CONCLUSION
From the overall study, it has been concluded that PESTLE analysis is very useful in
Sainsbury’s. It has the seriously affected of the environment. It has benefited the production and
pricing of goods and has achieved the goals and values. Is the Six different group is affect of the
Sainsbury and the useful techniques in the impact of the management and the impact of the
employees. The techniques are very useful inpolitical, economic, social, technological,
environmental and legal terms. PESTEL’s two main factors has seriously affected the environment.
This used that the organisation is improved the environment and advantages of developing the
organisation. Sainsbury used the PESTEL analysis factors which has affected the organisation by
developing the employee skill and new techniques and used the idea for developing of the
organisation. Economic factors are the decision power of the organisation and social factors
demands the production and political factors are affected by the government policies.

REFERENCES
Books and Journals:
Cadle, J., Paul, D. and Turner, P., 2010. Business analysis techniques: 72 essential tools for success.
BCS, The Chartered Institute.
Telegina, D. (2016). SWOT and PEST analysis (Doctoral dissertation, Sumy State University).
Thomas, H. (2007). An analysis of the environment and competitive dynamics of management
education. Journal of Management Development. 26(1). pp.9-21.
Online:
J. Sainsbury SWOT and PESTLE analysis. 2018. Online. [Available through:
<https://www.swotandpestle.com/j-sainsbury-plc/>.
PESTLE analysis. 2018. Online. Available through: <https://doing-what-matters.com/pestel-and-
swot-analysis-of-sainsburys-2543/>.
PESTLE analysis. 2018. Online. [Available through:
<https://www.scribd.com/doc/29850067/Managing-Markets-J-Sainsbury-s-PLC>.