Political Factors Affecting Sainsbury

POLITICAL - Sainsbury’s performance will be greatly affected by the political factors of United Kingdom. As the government and consumer debts being very high presently there, as a result it impacts greatly on attitudes of customers due to which business conditions experience very high pressure. It has not only to operate in these market conditions but also has to continually develop its business. In general, it can also have negative impact because of ongoing price fixing investigation among the big four UK retailers as Sainsbury is one of these and being at the forefront of this assertion. Allegation can hamper its image among public in market as public feel that they are cheated. Inspite of the political factors not being favorable in the

The rise in fuel cost and ongoing food crisis globally might be the economical factor that will affect Sainsbury because rising cost will affect the supply chain of Sainsbury which causes increase in its product prices and global food crisis will result in rise in purchasing costs for most of the things in supermarket which will pass over to customers by increase in price for most things and its product demand will decrease due to its high prices. At the same time due to improvement in consumers household income, reduction in unemployment rate and growing real wages recovered consumers confidence in purchasing goods they missed during recession

It has to maintain many different types of legal laws such as consumer, competition laws, safety, employment, health and safety laws etc. UK Legislation has introduced new tax on advertising highly processed and fatty foods and Sainsbury adapted this new tax by modifying its products as well as by compiling it with legislative requirements. Sainsbury has to follow more and more packaging and labeling policies to deal with stringent laws of food and drinks which will be additional financial burden on the company. It is well bounded by many legal issues such as discrimination and fair treatment legislations, alcohol selling age legislations, national minimum wage policy, etc and has to pursue these legislations for its well being and failure to do this will result in many