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---------?Literature review---PEST analysis---------

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?Literature review---PEST analysis
In order to finish the project well, the PEST analysis is essential. In the micro-environment, there are many factors affecting the success of the business. PEST analysis is a useful tool to help analysis these factors and help managers do right strategies. Management can understand easily market growth or decline through PEST analysis. (businessballs,2012)
PEST analysis, which is popular for companies to use in the United Kingdom, represents respectively Political, Economic, Social, and Technical. environmental scanning component of strategic management , it is necessary to use framework of macro-environmental factors. Moreover, PEST analysis plays a significant role in value creation of a strategy of a company. (Scribd, 2012)
Political Factors:
refer to the policy of the government, such as the degree of intervention in the economy. Political factors contain kinds of laws. It also includes what goods and services governments want to provide and which industry could get a support from government. (Tutor2u, 2012)
The industry has to comply with several legislations like emission or waste disposal when it is concerned with environment protection. oposed by EPA (Environmental Protection Agency) will affect food to non-food retailer, which will increase costs of the company. Due to food suffers from threatening with diseases such as ‘BSE’ and the ‘Food and Mouth Disease’, government will facilitate food safety laws and regulations. addition, there is a description of various nutrients, such as "light," "reduced fat", "low fat", has set the government agencies and the European standard like the European Food Authority (EFA).
The UK Competition committee and the Office of Fair trading (OFT) are keeping an eye out for the main players of the UK supermarkets. (Scribd, 2010) main players are TESCO, Sainsbury’s, ASDA and Morrisons. They occupy over half of market share of supermarket retailing of UK.
Now there is a high debt both government and customer. This makes?? customers attitudes change hugely and therefore the state of the business faces great pressure. However, despite of under adverse political factors, supermarket retailers must not only run these disadvantageous markets but also has to develop their new business for boosting competition. Typically, Sainsbury has been able to keep a steady growth under bad condition of political factors because it provides great quality at competitive price. (UKessays, 2012)
Economic factors:
. How consumers, suppliers behave within society depend on the condition of economy (learn marketing, 2012). factors mainly include economic growth , interest rates , exchange rates and the inflation rate . Economic situation has a major function on a company’s behaviour and how to make a decision. instance, . ( 2007)
There is less influence by seasonality in the UK supermarket retailing, except during the Christmas holiday, there is a rise in sales revenue. In addition, we can predict the trend of economy in the next years through economic analysis. If it is facing downturn of economy, sales would have a decrease.
Economic factors are related to companies of supermarkets because supermarkets' performance is reliant on consumers' incomes and their willingness to spend. Due to economy downturn, high inflation, so goods price is high besides people of income decrease, which reduces directly the demand for many goods. Supermarket retailers face a serious challenge. away from the control of the company, has a significant and profound impact on operation of business. (scribd, 2012) TESCO is the largest supermarket retailing in UK. Although there is still rising trend in international business, he company is still highly dependent on the UK market. For downturn of economy, affect the market concentration of the British food market risks. (Ivory Research, 2012) since the chain stores decline in sales and profits in the UK, providing 10 off ￡ 80 pounds grocery store. In addition, due to economy recession, Sainsbury think about expansion into emerging market to managed risk well.

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