Political Factors Affecting Sainsbury

Economic factors
The microeconomic environment, specific industries, firms, markets and individual; the macroeconomic environment; the national and international economic environment; effect of government policies.

Social / cultural factors
Attitudes & composition of consumers / workers

Technological factors
Affect industrial structure & production methods

Political
The political factors influencing Sainsbury supermarket industry are issues resulting from actual politic that can have an impact on the entire country.
The first of the political issues is the possibility of Scotland becoming independent. The retailers in the UK, have already responded to this with concern stating that it could lead to issues with chain of supplies, pension

An independence of Scotland would therefore mean increased prices and possibly a loss in profit for supermarkets. This may however be prevented through a reformed Scottish tax system to make the switch more seamless for supermarkets because generally Scotland does offer lower land and labour costs which could be profitable for Sainsbury supermarkets operating in Scotland (Groom, 2014).
Another political factor concerning the Sainsbury supermarket is the possibility of the UK leaving the EU. This could have a rather large impact on the industry since leaving the EU also means leaving the trade zone. If all the countries which are currently importing goods to the UK to and be sold in supermarkets like Sainsbury, could become more reluctant to sell their goods in the UK due to tariff. It could also mean an increase in cost when purchasing from other European

The average shopper's income continues to reduce, putting a lot of pressure on their household budget. Many consumers have had to cut their spending on food. This has led consumers to shop around more for their food where they can get the best offers and also made them change from brands or shopping at discounters. This trend shows the effect an economic situation can have on customers and the industries that rely so much on them. A decrease in GDP will lead to a fall in consumer spending habits which in turn leads to a decline in economic growth. This effect of the economic situation on consumer spending and their choice in supermarkets does however show that though consumers may value positive CSR they cannot afford to be taken into account as when deciding where to