Strategic analysis of a company and its competitive environment Essay - 4

St footstepgic summary of a company and its competitive environment - Essay ExampleExternal Business Environment digest Macro Environment PESTLE analysis of UK can be used in bon ton to clear the macro-environment of UK that is influencing the dimension of aliment selling industry of UK. Political In recent years, UK government has decreased consumption on retail industry in terms of cut in subsidy and putting step-up fair price burden on aliment retailers. On the other hand, UK governments decision of reducing corporate tax to 22% has helped solid food and other retailers to save additional amount of money from operation (verdict Research, 2013). scotch Consideration of research handle of Nicholson (2011) and Verdict Research (2013) reveals the GDP growth of UK was less than 0.1% while unemployment rate was close to 8% in recent years and due to ongoing economic crisis, consumer spending on retail food items has also been decreased by close to 3%. From economic perspecti ve, food retailers argon facing in directionary pressure which is decreasing their scope to avoid rising price of food retail merchandises. Social According to Verdict Research (2013), UK customers argon showing the demand for healthy and more nutritional food choices in recent years due to increased health awareness and change in life style. On the other hand, demand for online retailing has also been increased among youth and teenagers and working professionals. Therefore, food retail chains have the option to invest elections in developing online distribution channel in order to cater demand of young customer segments. Technology Nicholson (2011) reported that most of food retailers are banking on latest technologies much(prenominal) as RFID, electronic data exchange, ERP, Big Data analytics in order to not only speed up the value chain process but also view customer purchasing behaviour. Environment UK government has already advised large scale retailers (including food, groc ery, clothing etc) to slenderize carbon emission by 20% in the value chain within 2015 and due to such regulatory pressure, food retailing companies are also adopting the concept of green supply chain perplex to reduce carbon emission in the value chain (Verdict Research, 2013). Legal In UK, European concretion labour law are being followed food retailers in order to handle human resource and labour related issues while Food Safety Act, 1990 is being used in the country to examine control of quality in offered food items (Food Law Practice Guidance, 2012). . Business Trend Consideration of the report of Nicholson (2011) reveals the fact that UK food and drink retailing segment has been under consistent pressure for last tierce years due to intertwined factors like the banking crisis which decreases access to funds for retailers, decrease in household food retail expenditure due to ongoing economic crisis, marginalization of consumer spending on food retail items, cost increase of unemployment rate in the country etc. Due to conjoint negative impact of the mentioned factors, growth of UK food retail segment has been slumped for last few years. Such downturn can be depicted in the following manner Figure 1 UK Food Retailing Expenditure Growth Trend (Source Verdict Research, 2013) It is evident from the above diagram that consumer spending on retail food items has been decreased or remained flat for last three years in UK. Verdict Research (2013) reported that volume growth for food & grocery retailing was only 0.1% in UK and