Global business environment: a case study on Sainsbury’s

Introduction

Business environmental analysis is effective for the multinational corporate brands to analyse the market to operate and ensure future suitable growth of the organisations (Yatsenko and Dmytriyeva, 2018). The aim of the study is to conduct PESTLE analysis for the organisation Sainsbury’s which is operating in the UK retail industry. The PESTLE analysis is useful to understand the political circumstances, economic growth and social development, legal compliance, technological and environmental circumstances in the UK retail market which have crucial impacts on the operations of Sainsbury’s. For students seeking environmental studies dissertation help, understanding all the possible environmental circumstances within the retail sector is going to provide the most valuable insights into sustainable business practices and strategic decision-making.

PESTLE analysis of UK retail industry

Political:

There is political stability in the UK, where government is cooperative for managing free trade and international trade agreement. The government also gives subsides and encourage the international trade activities for more export and import. However, the incident of Brexit has negative effects on Sainsbury’s to manage their international super market chain and match the affordability of the customers in the market, as customer’s spending is also decreasing after the incident (Nandonde, 2019).

Economic:

The UK is economically stable and there is high GDP and moderate inflation rate which further stabilise the market in the country. However, raising the price of fuel may raise cost of the transaction and distribution of the products. Additionally, the purchasing power parity and personal income of the customers is also rising which affects the business positively, on the other hand, there is rising expectation of high wage where it influences the firm to hire the labourers at proper wage (Bentham, 2018).

Social:

There is social development in the country and the customers prefer healthy lifestyle by choosing the quality products at effective price. The consumer behaviour towards the retail products is favourable and there is high demand for online purchase (Efstratiadi et al., 2019).

Technological:

Technological advancement boosts the performance of the organisation is successful to attract the tech friendly generations. There is big data and cloud computing which boosts the performance of the companies in managing the customers and delivering high quality customer service through developing their online portals, company own website and e-commerce services (Nandonde, 2019).

Legal:

Legal structure is also effective to protect the employees and maximise the values for the stakeholders

Environmental:

There is environmental sustainability through developing green supply chain management, reducing greenhouse gas emission and zero waste (Yatsenko and Dmytriyeva, 2018).

Key drivers of change management in Sainsbury’s

Key drivers are such as environmental sustainability where food wastage can be

managed well as well as the use of paper packaging and renewable resources provides a scope to Sainsbury’s to secure future sustainable development (Efstratiadi et al., 2019).

Technology is another drive to change where IT framework and ICT boosts the

performance of the fir through more creativity and innovation.

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Conclusion

External business environment in the UK retail industry is suitable which influence the company Sainsbury’s to develop proper strategic planning to secure future sustainable development by utilising political stability, economic growth and social development as well as technological innovation and environmental sustainably.

Reference List

Bentham, J., 2018. Business and Economics in the News–Sainsbury's and Asda-the decade's mega-merger. Teaching Business & Economics, 22(3), pp.11-12.

water-cooled refrigeration system in the food retail industry: A UK case study. Energy, 174, pp.1133Efstratiadi, M., Acha, S., Shah, N. and Markides, C.N., 2019. Analysis of a closed-loop -1144.

Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African Community. Global Business and Organizational Excellence, 38(4), pp.54-61.

Yatsenko, O.M. and Dmytriyeva, N.O., 2018. Determinants of formation and development of international e-commerce. Actual problems of international relations, (135), pp.82-100.