STEEPLE Analysis of UK Supermarket Term Paper Example | Topics and Well Written Essays - 2500 words

STEEPLE Analysis of UK Supermarket - Term Paper Example STEEPLE (Social, Technological, Environmental, Economic, Political, Legal and Ethical) analysis is amongst the most effective tools that are used to monitor changes taking place in the environment of the business (Brown, 2007; Griffith & Harmgart, 2008); the analysis is done to identify all important factors that can have a significant impact on any organisation operating in the UK supermarket industry. Li (2008) and Vasquez-Nicholson (2011) emphasized that Morrison PLC is a dominant brand in the UK supermarket industry as it derives its competitive edge by doing STEEPLE analysis frequently. It has successfully achieved its target market size by exploiting all strengths and availing opportunities present in its external environment. STEEPLE Analysis of UK Supermarket Every market is significantly impacted by both micro and macro environmental factors, but macro environmental factors have more influence on operational activities of a business (Jarett, 2012). Each factor of STEEPLE ana lysis with its relation to the UK supermarket industry is discussed below: Social Analysis The current trends of consumers in the UK market depict that they are moving from one stop shopping to a bulk buying mode as there are various social changes happening in the country. Supermarkets have availability of various non-food items which are usually on sale in the market. There have been demographic changes because there is an increase in old people, the number of female workers is increasing, and there is a significant reduction in homemade meals (Davis and Relly, 2009). There is more emphasis on the private label share of every business mix, efficiency in supply chain, and improvements in operational activities so that the overall cost of business is reduced. Most of the retail giants in the UK are now shifting to local suppliers for their purchases and stock requirements (Vasquez-Nicholson, 2011; Waterman, 2007). In addition, consumers’ demand of products and services has ch anged because of their social conditioning along with their beliefs and attitudes (Lyan, 2007). Technological Analysis Technological developments have enhanced the service level of supermarkets in the UK as they have benefitted both consumers and companies. With the help of technological gadgets, products are available quickly, personalized services are offered to customers and shopping has become convenient (Akter, 2012). The major systems that have enhanced UK supermarkets’ functioning are Electronic Point of Sale, Efficient Consumer Response, Electronic scanners and Electronic Funds Transfer System; these systems have assisted inefficient distribution and merchandising activities so that requirements of each company are effectively communicated on time to the supplier (Grugulis, Bozkurt and Clegg, 2010). Environmental Analysis All organizations have to show that they engage in environmentally friendly activities; there is increased pressure on various managers and companie s for acknowledging their social responsibility and they are required to behave in a beneficial way for the society (Smith, 2004).