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outline on Food Retail Industry in the UK


outline on Food Retail Industry in the UK. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. In 1972 the company was placed on the London stock exchange. The family members maintained eighty-five per cent of the shares. In 1979 they went into partnership with GB Inn BM a retail company from Belgium. And started a chain store using their Home base. Soon after buying Texas Home care in 1995 the size of the home base became tripled. In 2000 Home base was sold by Sainsbury. Currently, it is planning to relocate to King cross the support centre store from Holborn.&nbsp.

The pestle model can be used to analyze the macro environment factors that are likely to affect the business, for example, the changes in the in taxes imposed, trade laws, change in government policy, and change in population and many more others. The model takes into consideration the following factors. Political, Economic, Social, Technological, environmental and the legal factors.

ThPolitical Factors:

The Government announced last month that's it's intending to decrease the taxes it is imposing to the corporation companies by two per cent (from the current thirty per cent to twenty-eight per cent). This will have a big impact on the corporation Sainsbury included they will be able to save a lot of money. The money they will have saved will be allocated to an alternative use. (Department of Treasury 2008).

There were allegations in the UK about the retailers who were fixing prices. The government has established a commission of enquiry. The investigation is mainly done to the biggest four retail industries who have been accused of the malpractices J. Sainsbury included. This is going to affect Sainsbury despite the fact that they have already established themselves with their customer. As many of their customers will have a negative perception about them, they will think that they have all along been cheated. (Doherty 2008 page 15)

The good infrastructure which the government has provided like good roads has also impacted positively on them, as this has made their goods to move with ease.

In 1997 the government (Labour party) established the Monetary Policy Committee. The body was given the mandate to set the rates of interest. Despite this being political it had an impact on the economy of the country which in turn affected the profits earned by Sainsbury in their banking business.

The food problem that the world is currently undergoing has made the prices of the food to increase. This has greatly increased the cost of expenditure which Sainsbury is using to buy food. Their profit margin is expected to reduce to some small percentage. The prices of most commodities have raised in the supermarket a fact that is attributed to the current food shortages. All these are expected to have an impact on the profit margin that is the profit margin is expected to reduce. (Sir Henry 2007 page 23)

The current economic turmoil being&nbsp.faced in the UK has made the Government take some political measure which is not going on well the Sainsbury. The prices of their share at the London stock exchange have fallen down due to the inflation being faced not only in the UK but in the whole world. (Sir Henry 2007 page 23)Sainsbury has given a lot of incentives to its consumers due to the competition they are facing. The competition in the market has been so difficult to the extent that they have also to do a lot of advisement to the public. This is an extra cost of advertisement and of giving incentives has actually reduced their profit margin to some significant level. According to Sainsbury annual report of 2007, the retail company spent over twenty per cent of their earning into giving incentives and in paying for advisements.

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