Pestle Analysis for Lidl
P: As we know this factor is determined on how what degree the government intervenes in the economy. This can affect supermarkets such as Lidl in a number of ways; these are as follows, the national minimum wage and taxation. The minimum wage will affect Lidl because if the government have the national minimum wage low the level of people who want to work will be very low, this is due to the fact that people will not work for low level of pay. Taxation in the country will affect Lidl such as if the level of income tax is high the less disposable income consumers will have and the less sales that Lidl will make, so the government have a big part to play in affecting companies such as Lidl .’ The effects of the main types of taxation on businesses (in the UK) can be summarised as follows:’ | |Levied on |Impact | |Tax | | | |Income & National Insurance |Income |Affects disposable income of households | | | |An increase in income tax would potentially lower consumer spending | | | |Higher income tax may also reduce the incentive for employees to work (impact | | | |on motivation?) |
E: Economic factors that affect Lidl include high interest rates and high cost of living. The high interest rates affect the company cost of capital this determines weather the company can expand and grow or not. We know...
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