Pest analysis that influences the grocery market in the uk Essay

Pest analysis that influences the grocery market in the uk - Essay Example By use of PEST model, the analysis will expound on the following macro factors: political, economical, social and technological factors prevailing in the market. UK’s grocery market has been positively impacted by the government regulations. As a pertinent congruent of the UK’s economy, the government has instituted regulatory policy framework aimed at monitoring the sector. The regulatory framework provides the guidelines for a myriad key of keys issues including business registration, health and hygiene standards. Through the integration of EU provisions by the Food Standard Agency (FSA), UK’s grocery industry is subject to food hygiene standards, business set up, food safety and marketing guidelines. The government has further revised the competition law in accordance with the provisions of European Commission’s white paper dated 2014. Under article 101 of EU’s treaty on the functioning of the European Union, grocery enterprise are banned from engaging in agreements that could either lead to prevention or restriction of competition in the subject market (IGD, 2015). The Scottish independence referendum w as also a key factor in UK’s grocery market in 2014. With the prospective of a positive vote for the independence of Scotland, grocery stores were bound to experience increased overhead cost that would have eventually been passed to Scottish consumers. The positive outlook of the UK‘s grocery market has been underlined with the intensified competition in the industry. UK’s economy continues to recover from 2013 with the real GDP growth projections for 2015 and 2016 standing at 2.5 % and 2.3 % respectively (PWC, (2015). Consequently, UK’s economic growth has given rise to disposable income of UK consumers thereby leading to heightened consumer purchasing power. The leading grocery stores in the UK have further globalized their operations to fortify their financial resources through