J SAINSBURY ORGANIZATION

Contemporary Development in Business Management

Contemporary Development in Business Management

Part A

Answer 1

PESTLE analysis helps the business in analysing these macroeconomic changes. PESTLE analysis analyzes the affects of political forces, economic factors, social factors, technological factors, legal factors and environmental factors. Sainsbury's has to consider many political factors while making important decisions for example finding out the degree and extent of government intervention and involvement in the economic scale. Other policies are also kept in mind for example provision of goods and services according to the mentioning country and its extent of dependency on subsidiary organization. Sainsbury is also gripped by the various economic forces for example changes in tax rates and interest rates, the rate of unemployment, national GDP, exchange rates, inflation, job market and standard of living of the people (Bensoussan & Fleisher, 2008, pp. 169).

Sainsbury is also very popular for being socially active. Their social activities are influenced by the social factors of the society for example income distribution and classification and community workers etc. They have been appreciated for operating effective charities, arranging social activities, sponsoring games and working for the welfare of the animals. Another noticeable attempt by Sainsbury was its approach in employing old age people to increase the labour pool. It also made good use of all the technological factors, as their online purchasing facility, bar-coding system, self-service counters and computer proof designs clearly reflect their consideration regarding innovation in technology. Sainsbury is also very worried regarding the environmental factors as weather changes caused by global warming has become a major concern for them. Sainsbury also emphasis on all the legal factors for example they ensure the consumer laws, employment laws and health are safety laws are strictly being implemented.

Answer 2

The term international free trade refers to no or less government interference and involvement in the import and export of the businesses. Governments often tend to limit the quantity of import and export through its regulations or by imposing tariffs, taxes or quotas that limit the quantity. It is also believed that if these trade barriers are eliminated it would result in lower prices of the imported products and services (Joseph, 2011, pp. 199). WTO encourages international free trade as it benefits the economic conditions of the supplier country as well as the receiving country. These activities have benefited the supermarket industry, for example they have led to reduced prices for many imported goods and services. This has also increased the sales revenue for many retail stores, as due to less import taxes retail stores are able to offer a lot of variety at affordable prices. It is quite certain to say that these activities have affected Sainsbury positively.

Since there was an increase in the demand of British customers for hygienic and high quality fruits, which ensured Sainsbury arrange a readily and reliable supply of high- quality passion fruit, Mangoes and coconuts in stores (www.revolutionarycommunist.org). The Caribbean agriculture was in dire straits and was unable able to compete in the global farm ...