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Sheng Siong Supermarket Macro Environment

Political Factor - Sheng Siong Supermarket is a proud member of the Singapore National Employers Federation (SNEF) while their managers are highly trained and recognized by the Workforce Skills Qualification Scheme recognized by the Singapore Workforce Development Agency. This ensures that their employees are highly trained and consistent in their services (Benson, Gospel & Zu, 2013). They consistently follow the political and government system of Singapore that makes their contribution to the country more appreciated by their people. Currently they are also affected by the government restriction of foreign labor but they still remain focus in the industry.

Economic Factor – According to the latest Annual Report of Sheng Siong Group Ltd. Their net profit grows up to 18.6% equivalent of at least S$38.9 million Singaporean dollars within the fiscal year of 2013. This means that as of 2013 they contributed S$1.6 million in tax from the sale of their old warehouse plus S$3.1 million in tax operation and other government taxes that reaches up to S$9 million dollars during 2013. They are contributing a high percentage of their taxes to the economic gains of their country because of their market strength Sheng Siong (2014). It is expected that the increase of food inflation will also affect their current prices as they continuously pursue supply chain arrangement coming from various suppliers to prepare for such inflation. 

Social Factor – As of 2014 they have more than 3,000 employees within their 33 stores contributing to the very high employment rate to the society. Sheng Siong Supermarket is a socially responsible group they provide contributions to the Red Cross projects while they also encourages customers to buy their Happy Family Jasmine Rice for donations. Collected rice is given to less fortunate beneficiaries Sheng Siong Annual Report (2013).

Technological Factor – using e-commerce technology,...