Sainsbury's Business Environment: Strategies for Sustainability

This presentation provides a comprehensive analysis of Sainsbury's business environment, focusing on key factors impacting its sustainability. It utilizes the PESTLE framework to assess political, economic, social, and technological influences, highlighting the significant challenges posed by Brexit and the COVID-19 pandemic, including growing unemployment, economic slowdown, changing consumer behavior, and the need for hygienic products and services. Furthermore, the presentation employs Porter's Five Forces to evaluate the competitive landscape, identifying low threat of rivals, high bargaining power of buyers, low bargaining power of suppliers, high threat of substitutes, and high industry rivalry. The analysis concludes that Sainsbury's must develop effective strategies to overcome these threats, leveraging its supplier base and offering innovative, differentiated products and services to enhance competitiveness and ensure long-term growth and sustainability in a dynamic market environment. Desklib offers a wide range of similar solved assignments and past papers for students.

BUSINESS ENVIRONMENT

Introduction
 Global Business Environment is inclusive of number of factors or elements
which have tendency to affect organisation long-term sustainability in
industry. Presentation is conducted on discussion Sainsbury which is
operating as largest chain of supermarket in the provinces of United
Kingdom.

PEST
 Political:
Political factor plays most important role for organisation. Sainsbury is operating in retail industrial
sector in number of countries.
Economical:
Due to Brexit and covid-19 Sainsbury is facing threat of growing unemployment, economic slowdown and
inflation etc.

Cont.…
 Social:
Covid-19 and Brexit significantly changes the behaviour pattern of
consumers. Along with this they are now turned towards more hygienic products and
services
 Technological:
Technological advancements have impact on all the industry whether it is
operating in public private or voluntary.

Porter’s Five Forces
Threat of rivals: Low
Bargaining power of buyers: High

Cont..
 Bargaining power of suppliers: Low
 Threat of substitutes: High

Cont…
 Industry rivalry: High

Cont..
 As per the business environment analysis of Sainsbury it has been identified there are number factors such as
Brexit and covid-19 which is posing threat in front of company to ensure long-term sustainability.
 Along with it has been identified that highly competitive environment is also increasing threat in front of
company which can affect its sales and productivity in industry.
 From the analysis of global business environment, it has been identified that impact of the changes due to
Brexit and covid in the public sector have tendency to affect overall growth and sustainability of Sainsbury.

CONCLUSION
 From the above report it has been concluded that it is essential for organisation to develop strategies to
overcome threat of Brexit and Covid-19. In this with the help of large base of suppliers and offering innovative
products and services to consumers with sustainable differentiation Sainsbury can enhance competitiveness.

References
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transition economies. Eurasian Business Review, 11(2), pp.221-245.
 Miao, M., Saide, S., Ratna, S. and Muflih, M., 2021. Business Continuity Innovation in Disruption Time:
Sociotechnical Systems, Business Analytics, Virtual Business, and Mediating Role of Knowledge Absorptive
Capacity. IEEE Transactions on Engineering Management.
 Nam, V.H. and Bao Tram, H., 2021. Business environment and innovation persistence: The case of small-and
medium-sized enterprises in Vietnam. Economics of Innovation and New Technology, 30(3), pp.239-261.
 Rodenburg, K. and MacDonald, K., 2021. Enhancing Business Schools’ Pedagogy on Sustainable Business
Practices and Ethical Decision-Making. Sustainability, 13(10), p.5527.