Supermarket Environment in the UK and Europe

573 WordsJan 30, 20182 Pages
This audit begins with the general analysis of the supermarket environment in the UK and by extension in Europe. All the factors are studied (Appendix 1) but there will be a particular emphasis on the economical, socio-cultural and technological ones. - Economical: these factors are so important to the supermarket industry because they can influence the costs and prices but also the demand. It also includes the economical cycle from growth to decline that affects so much the different industries in the world (Cheverton, 2004). It is crucial to understand the economical trends as businesses can then plan their next move. → One of the most important factors for the supermarket industry is the unemployment rate of the country. Indeed, the latest number of BBC news business (2014) shows that there were 2.33 million unemployed persons in the UK in the three first months of 2014. This factor combined with the consequences of the 2008 economic crisis heavily affects the demand and then the production of certain products. Following the Euromonitor reports on European consumption of 2013, consumers are more willing to spend their money on prepared meals, which affect the supermarkets overall sales. (2013) → Another important economical factor is the quasi saturation of the supermarket industry in the UK. Between the main four leaders, which are Tesco Plc., Asda Ltd, Sainsbury Plc. and Morrison Supermarket Plc., there are no more competitive possibilities except for hard
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