Sainsbury's Strategic Analysis: PESTLE Framework and Implications

This report provides a PESTLE analysis of Sainsbury's, evaluating the external factors influencing its business operations. It examines political factors like Brexit's impact on trading policies, economic instability, and changing social trends affecting consumer demand. The analysis also covers technological advancements, legal requirements for market sustainability, and environmental considerations for ethical business practices. The report concludes that understanding these external factors is crucial for Sainsbury's to grow and compete effectively in the market. Desklib offers a wide range of study tools, including past papers and solved assignments, to support students in their academic endeavors.

English skills
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Contents
Introduction.........................................................................................................................................3
Pestle analysis of Sainsbury................................................................................................................4
Conclusion............................................................................................................................................5
References............................................................................................................................................6
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Introduction
At the present time, there are numerous concerned thing that is needed to be done by every
organization so as to get the sustainability. The company needs to analyses different
consequences that it may face while carrying out the operations and its functions in the
market. With the help of Pestle analysis, the Sainsbury will be able to get to know how and
what steps it needs to take to sustain and compete in the marketplace.
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Pestle analysis of Sainsbury
As asserted by Metzger (2014), Pestle analysis is the method that will be used by the
Sainsbury company to understand the market needs and changes that get takes in the
competitive world. This is very useful for the company to perform so that it can be able to
understand all the factors externally that may affect the functioning of the firm. The first
element is a Political factor, Due to the call of UK for Brexit, entire policies and norms have
been changed which is having a great impact upon the operations and activities of the
company (Zalengera, et. al., 2014). Changes in the trading policies, restrictions, and
limitations to the exchanges all have a direct link with operations of the retail company
(Sainsbury). Economic is another factor which is also playing a vital role in the
organisation’s operations. As to run the business in a smooth and effective manner, it
becomes very necessary for the organisation to take notice of the fact the economic condition
of the nation has to be stable. But again, due to the Brexit factor company is suffering as there
is a high level of un-stability in the market in terms of the economic state.
The social factor is one of the major parts that contribute to the development of destruction
of the business activities. The need of society always changes as per the changing trends,
henceforth to meet the demand of customers is very difficult. Changing needs and trends are
to be met by the company to retain its position in the market. Technological factor the most
important element of Pestle Analysis. There is a frequent change in the technology in every
sector, it is also having an impact on organisation’s activities (Sargeant and Jay, 2014).
The legal factor is the policies and laws that are needed to be considered so that legal
necessity of a firm to sustain and retain in the market could be able to get accomplished.
There is a high need for the company to understand the need for legal aspects do that
company can manage all its operations with respect to laws and norms (123writing, 2018).
Environmental factors are also very necessary to be concerned so that company can
contribute effectively to the safeguarding the surroundings. The environment is to be saved
and protected unless company may have to face the ethical and environmental issue.
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Conclusion
It is understood from the discussion that external environment is having a great influence on
operations and activities of the company. This will also be helping the company to get grow
and develop in the competitive market. With the Pestle analysis, the factors that have a direct
impact on company’s operations have been understood here.
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References
 123writing. (2018). PESTLE and SWOT analysis of Sainsbury’s 2016-2017.
[Online]. 123writing. Available at: http://www.123writing.com/free-sample/pestle-
and-swot-analysis-of-sainsbury%E2%80%99s-2017. [Accessed: 3rd March 2018].
 Metzger, K. (2014). Business analysis of UK supermarket industry.
 Sargeant, A. and Jay, E. (2014). Fundraising management: analysis, planning and
practice. Routledge.
 Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and
Gondwe, K.T. (2014). Overview of the Malawi energy situation and A PESTLE
analysis for sustainable development of renewable energy. Renewable and
Sustainable Energy Reviews, 38, pp.335-347.
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