Applied Corporate Strategy: A Case Study of Sainsbury

Applied Corporate
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
External analysis for identification of set of threats along with opportunities and assessment of
industry attractiveness............................................................................................................1
Analysis of resources along with key competences...............................................................4
Choosing one strategy implemented by the organisation in recent timings an devaluating it
with SAFe criteria...................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the competitive era, all organisations focus on applied corporate strategies for attaining
sustainability and position for longer durations. Applied corporate strategy can be stated to the
action devised by an entity in order to fulfil objectives and making improvements in business
divisions. It engrosses apparent stated vision which firms frames and seeks creating values
together with stimulate manpower for applying proper actions that meets customer satisfaction.
In this report, chosen case is of Sainsbury that was established by John James Sainsbury
in 1869 at United Kingdom. The company is largest retailers to sell groceries addition to other
merchandise commodities across the (Sainsburys, 2020). In recent years, the entity has planned
to implement the strategy that is Sainsbury Asda Merger. The report includes external analysis,
assessment of attractiveness of industry and internal analysis with suitable frameworks.
Moreover, it also evaluates the strategy through SAFe criteria.
MAIN BODY
External analysis for identification of set of threats along with opportunities and assessment of
industry attractiveness
Business environment is all about superset of various factors which have competence to
influence practices of entity on the ground at which all the facilities are operated country (Adler
and Florida, 2019). To analyse external environment, Sainsbury managers have conducted
PESTLE Analysis that is as follows:
PESTLE Analysis
The framework that assists in scanning macro environmental dimensions which may
influence organisational practices is defined to PESTLE Analysis. It comprises of six factors
which either provide opportunity or act as threat to company. The discussion of elements in
context to Sainsbury is as analysed:
Political: It consists of factors related to government intervention in the industry (Baena,
2019). UK has strong and fair political system that makes relations with nations and help
companies to trade effectively with other companies. This provides opportunity to Sainsbury to
make contractual relations with companies such as Asda and others to diversify the business in
another untapped country and attain growth.
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Economic: The element revolves around certain economy’s performance. Economic
growth, consumer disposable income and exchange rates are some of economic factors. UK’s
economy is largely impacted by the decision of no deal Brexit which act as threat for Sainsbury
as it has to close down its outlets in European Unions and also have to breach contracts with the
companies working in these areas.
Social: Factors related to culture, communication, attitude and ideology on an individual
are part of social factors (Basu and Miroshnik, 2018). In UK, it is analysed that population
changes their preferences as per the trends and this provide opportunity to Sainsbury to
understand the demand and accordingly offer products which increases sales demand and
retaining customers for longer periods.
Technological: In external environment, technological related factors are crucial
elements that must be considered by an entity. It is well said that UK is among most technically
advanced country and also have string technological infrastructure that provides opportunity to
Sainsbury to expand market via online collaborations with the help of technological analytics for
enlarging product availability to far located consumers.
Legal: All countries have various laws that are required by companies to adhere in
effective and ethical manner (Cappa, Cetrini and Oriani, 2019). Some of legislations as governed
by UK’s political system include discrimination act, health and safety law, immigration
regulations and so on. By adhering all legislations, Sainsbury gains opportunity of raising
organisational goodwill in international market.
Environmental: Ecological elements also provide diverse opportunities to organisations.
It is seen that UK’s government is working towards protecting environment and for this various
plans are implemented for the same. Sainsbury also works in the nations and it makes
contribution in reducing carbon footprints together with motivates stakeholders to eliminate
using plastic polythene instead use reusable bags. With this, the company gains opportunity of
generating incentives from political system to carry forward activities for the purpose.
According to external analysis, it has been identified that Sainsbury have various
opportunities and also faces threats. Some of analysed threats additions to threat are the
following:
Opportunities Threats
 To diversify the business in another untapped nations.  To close down its
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