Sainsbury Macroenvironment Essay

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Sainsbury’s Macro Environment 1) Economical factors Each government has an important impact on each company. Like other companies, Sainsbury was affected by a lot of economical factors as: * Taxation charges * Economic growth * Inflation * Exchange rates * Changes in income Each factor has a different impact on company. For example, the taxation charges force the company to increase the price of products to achieve the desired profit. If the taxation charges are low the price of products is lower and when the taxation charges are high, the price is higher. Another factor is inflation. Inflation changes from year to year and affects more and more the customer. If in 2000 with 100£ you bought 100kg of sugar, now in 2011 you can buy only 50kg of sugar. The economic growth can affect your company in a bad manner or in a good manner. For example, now we deal with a crisis period and large companies like Sainsbury suffer a lot. The economic growth also has some employment effects. We can see a rise in the number of people employed by Sainsbury and this affects the United Kingdom economy. Now in 2011 we deal with a crisis period and appear some changes in population income. The number of companies that went in a bankrupt or are nearly to bankrupt has been increased and this results a large number of unemployed people, which means a decrease in sales. Sainsbury also established a bank in 1997, part of Lloyds Banking group. Sainsbury’s Bank offers a lot of services like travel money, car, health and life, pet insurances. Also Sainsbury Bank covers loans, savings accounts and has his own credit card and security. 2) Technological factors “Forces that create new technologies, creating new product and market opportunities” – Kotler P.& Armstrong G., 2008. Principles of Marketing Twelfth Edition Technology for Sainsbury’s is significant
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