Since Sainsbury has stores in different countries and also has its suppliers spread out across the globe, political factors become very important for the smooth functioning of the firm. Political certainty is absolutely critical and crucial for the firm’s success. If the political factors are favourable i.e. the regime is stable then the firm can form policies and invest in the country. Else if there is political uncertainty then the firm can face different disruptions and would not be able to carry out their business as usual. Political stability affects business in many ways. If there is stable regime then they can form good policies which will continue in the future and thus would be able to get good business environment as well resources.
Sainsbury main market is UK. The political situation in UK is stable which contributes to the strong growth of the firm.
Economic factors play the most important role in the growth of the firm. Sainsbury is in the retail industry and its sales are directly proportional to the economic growth of the nation. It has been observed the growth of the retail firm is directly proportional to the GDP growth of the nation. Revenues of the firm are directly linked to the disposable income of the consumers. Disposable income increases when the economy is growing. Also if the economy is doing good firms tend to hire more people and thus the employment tend to increase which increases the chances of more sales for the firm (Humphrey, Lee & Shen, 2012).