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PEST Analysis - UK Food Retail Political From a wider macro perspective, the UK is a reasonably attractive market for large retailers because it is a stable democracy which, despite economic austerity, remains one of the wealthiest nations in the world. According to the latest research from the OECD (2012), the UK is in fact the eighth richest nation, and when this is coupled with a stable political climate (certainly compared to nations such as Syria or dictatorships), it is relatively easy to conduct business in the UK…
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The greatest concern of the major multiples, especially Tesco in regards to political activity, relates to the rulings of the Monopolies and Mergers Commission which can prevent supermarkets from establishing themselves in certain locations because of anti-competition legislation. Similarly, legislation relating to anti-competition activities, such as price fixing and cartel-like activity, can prompt investigation from the Government body known as the Office of Fair Trading (OFT 2011). However, such investigations on a national scale are relatively rare and the large supermarkets are seldom investigated for such activity. There is also a need to consider legislation and regulation, the UK food and retail sector is covered by numerous laws, codes of practice and regulations. One such regulator, Food Standards Agency, has a statutory right to protect the public the consumer in relation to food and drink such as correct labelling, food sell by dates, hygiene etc. There is also European legislation, General food law and Codex (Food Standards Agency 2012). ...
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