The business i have chosen for this assignment is Sainsbury’s because it’s one of the top three uk big supermarkets.
It is the second largest chain of supermarkets in the United Kingdom. Founded in 1869, by John James Sainsbury, the company became the largest grocery retailer in 1922. In 1995, Tesco overtook Sainsbury’s to become the market leader, and Asda became the second largest in 2003, demoting Sainsbury’s to third place for most of the subsequent period until January 2014, when Sainsbury’s regained second place.
Sainsbury’s was first founded in Holborn which is located in the west end of central londonThe biggest supermarket is tesco. Sainsbury coming in second which means that biggest competitor is tesco. The difference is market share between Sainsbury and tesco is only 12%. It has 1,415 stores in the uk and their headquarters are in london.A PESTLE analysis is a framework to analyse the key factors influencing an organisation from the outside.
A pestle analysis helps when assessing the risk arising. I’ll examine the factors. Pestle analysis is a simple and a popluar tool that helps you analys Political:The current political party in charge is the conservative who have about 318 seats. The Conservative proposed cutting free school meals for thousands of children in Britain – a policy introduced during the coalition years. Ms May had intended to replace them with free school breakfasts. But lacking any parliamentary authority and considerable opposition to the plans, it is another policy that could be dropped in its entirety. She wanted to replace it with free breakfast meals instead. This would have affected sainsburys because they would have to donate some food which means they wouldn’t make any profit but it would good publicity.
If people saw that sainsbury’s are donating to those in need people would love to shop with them. This could also gain people’s trust as people would believe that sainsbr is a decent supermarket and they wouldn’t sell dodgy products.Another proposals by Conservatives is to increase the minimum wage.The Conservatives plan to increase the national living wage to £8.
75 by 2020. The minimum wage for 16-17 years old is £4.05.European state can apply to become a member. Increasing minimum wage has an effect on sainsbury as they would have to raise prices of their product in order to generate enough income to support their more highly paid minimum wage employees, which could ultimately create a ripple effect for other shops and industries, resulting in a slightly higher cost of living, resulting in another push to raise minimum wage again.If business must pay their minimum wage employees more, they cannot afford to hire as many employees.
According to a Federal Reserve Bank of Chicago study, “10 percent increase in the minimum wage lowers low skill employment by 2 to 4 percent and total restaurant employment by 1 to 3 percent.