Applied corporate strategy

APPLIED CORPORATE
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External analysis as well as business environment of organization............................................3
Internal analysis of the organization ..........................................................................................6
Strategy evaluation......................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Corporate strategy is predominately the series of actions undertaken by organizations for
managing its resources as well as risks and helps them to gain the competitive advantage.
Corporate strategy mainly encompasses the activities of organizations for achieving their
objectives as well as goals and for establishing position in market. The main aim of this report is
to analyze the business environment of Sainsbury in order to understand effectiveness of its
corporate strategy. Business environment is primarily the mixture of various internal as well as
external factors which directly or indirectly impacts the operations and functioning of the
organization.
Sainsbury is basically the supermarket chain as well as retail organization being
established in 1869 by John James Sainsbury and headquartered in London, U.K. This
organization mainly operates in supermarkets but has various subsidiaries of fuel, cafe, banks,
energy etc.
This report gives an overview of external analysis as well as business environment of
organization, internal analysis of the organization and strategy evaluation.
MAIN BODY
External analysis as well as business environment of organization
Business environment is predominately is collection of various factors both internal and
external which helps the organizations to take effective decision and affects its operations.
Pestle analyses
 Political; factor: Political unrest situation crate threat to firm as it creates problem in
sustaining in market for longer duration whereas political support, free trade agreement
works as opportunity to firm because this encourages globalisation of Sainsbury. Hence
the political instability is threat to firm. On the other hand, there, firm have the major
level of the Brexit uncertainties as the serious consequences for Sainsbury’s, among other
English supermarket chains. Leaving the European Union could make it much more
difficult for supermarkets to affordably import products from abroad. So, the Brexit
uncertainty is threat for firm
 Economic factor: High employment rate is opportunity to company whereas high tax
rates are threat to Sainsbury. On the other hand, there the serios level of implication can
be there due to the increase level of cost of fuel and raw material. the employee has the

higher level of expectation of salaries in company in term of experience and better
understanding is threat for firm
 Social factor: Culture sometimes work as threat because due to which Sainsbury fails to
meet desires of wide range of consumers. As per the aspect of socials factored there
changing level of social trends of the company terms to be an extremely important for the
Sainsbury to track for supermarket chains. On the other hand, the company discounting
theme for the loyal customer is succeed to be the opportunity of firm is proving the level
of satisfaction which have impacted in the product.
 Technological factor: Technologies are opportunity to business new technique raise
productivity that enhances profitability of Sainsbury. Sainsbury’s have the option in the
selling online food along with collecting their purchases from the respective level of local
stores as per the urgent requirement. On the other hand, the company have the negative
level of impact due Advancements in the technology the overall cost of production of the
product. This have the threat to the firm.
 Legal factor: Change in employment law are threat to business because it influences
entire operation of company. On the other hand, the company have the negative impact
due to threw laying down of government rules in order to have the stoppage in promoting
the its High-fat, salt and sugar foods to the children below 16 years of age. This leaves a
less room for Sainsbury’s to do its promotion.
 Environmental factor: CSR responsibility is fulfilling by business this is opportunity for
firm because it raises productivity of Sainsbury. The company have the major level of
emphasis of the supporting the UN sustainability goals along with working to have the
reduction of the carbon emissions and with reducing the food waste in perfect manner.
Thus, Sainsbury can focus on healthier food items as opportunity which company should
exploit is increasing its online channels. As now customers have become technology-
oriented thus company has the opportunity to invest within new sales and online
channels.
Opportunities