Wednesday, September 25, 2019
The International Grocery Industry Term Paper Example | Topics and Well Written Essays - 1750 words
The International Grocery Industry - Term Paper Example In every economy, there has to be a government that makes up laws that definitely affect the way an entity sets its way of business. The legal entity is concerned in setting marketing standards like prices, distribution strategies of particular goods, how to treat employees and sometimes where to set up a market or an enterprise. The legal sector can either reduce or increase the competitive nature of a company. The British government has set strict rules on how different entities can deal with food and drinks products which highly affects the Tesco supermarket. The laws that have been set affect the packaging and labeling of the products. This is so because the products are perishable and they are consumed by very many people thus a small mistake in packaging and labeling can lead to numerous deaths which are against the objectives of the government; to protect the general public. It is right for the goods to be packaged well to avoid contamination and moreover, the labeling will al low the consumer to know the expiring date of a product, the ingredients of a product and if it is a counterfeit good or an original good. The laws have made the production costs to increase thus the price of the products have to increase. It has posed a great challenge to Tesco as it had to increase the retail prices thus threatened consumers to look for other options. Moreover, the banking sector of Tesco has been able to deal with the strict government laws made to protect the general public from being exploited by the banks. Royal Bank of Scotland had a joint venture with the Tesco Personal Finance system thus it has enabled the Tesco company to deal with the strict banking laws as they have a half-half share. The share in costs makes Tesco to half the burden thus enable it to make more profit and to be stable. This has seen the company making a profit of Ã¢â ¤130 million in February 2007. By making such profits, the Tesco Company is expected to have bought the Royal Bank of S cotland (Nash, 2006, pp. 23-56).