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Unit 14 Business Management Assignment


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.

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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.

Read Also: Analysis of enterprise environmental factors

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