Evaluation of Corporate Strategy using SAFE Criteria

Applied Corporate
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Assessment of external analysis of business environment and industry.....................................3
Identify and discuss organisation’s resources and unique capabilities........................................7
Evaluation of corporate strategy using SAFE criteria...............................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Corporate Strategy encompasses set of hierarchical course of actions or plans that justify
long term corporate goals and objectives (Corporate Strategy. 2016). This corporate strategy
describes vision of an organisation that provide direction to sustain its competitive edge.
Moreover, it explain overall value, culture, set strategic objectives of organisation. It justify
fundamental framework of plan which describe what to be attain and how to be achieved.
Corporate strategy is an on-going process which enables organisation to modify itself according
market situations or conditions. Sainsbury is one of second largest chain of supermarkets within
United Kingdom. It is largest trading and Retail Corporation which deals in wide range of
consumable goods. Sainsbury is big organisation which is divided into three segments that is
Sainsbury’s Supermarkets including convenience shops, Sainsbury banks and Sainsbury’s Argo.
Company has its headquarters situated in London. Company has more than 1415 physical stores
across UK. Sainsbury has wide product portfolio which includes Hypermarket, supermarket,
convenience shop, forecourt shop etc. This research report contains brief information associated
with external analysis of business environment around which following organisation operates its
business and describe how these factors create opportunities and threats. It justify industrial
analysis in which company is incorporated. Moreover, it justify internal capabilities of
organisation by analysing its resources.
MAIN BODY
Assessment of external analysis of business environment and industry.
External analysis is associated with study or examination of Macro environment which
includes such factors that have ability to influence or shape organisational behaviour and its
operations. These factors bring various opportunities and threats along with them. These
opportunities enables organisation to achieve its competitive edge effectively and threats creates
many hurdles to achieve its objectives and goals (Rugman and Verbeke, 2017). Sainsbury is one
of flourish and well establish organisation and it is important for its management to conduct
regular research in order to gather relevant information of market trends. Such information
enables organisation to operate its business units according to requirements and developments of
market. Proper utilisation and analysis of these factors helps firm to act as first mover and take
advantage of opportunities before its rivalry firm.

PESTEL ANALYSIS IN CONTEXT OF SAINSBURY
Pestle analysis justify as framework or method to monitor various elements which are
associated to macro environment and has negative or positive impact over performance of
organisation. Present business environment is influencing whole UK retail market and this
business environment is comprises of two sub-environment macro and micro (Puranam and
Vanneste, 2016). Today, UK is facing various challenges due to Brexit, Corona outbreak and
many other reasons which bring immense impact over operations of retail organisations.
 Political: these factors are highly associated with government intervention, political
environment which influence the entire economy or certain industry. Presently, UK is
facing adverse political impact over its economy and retail industry due to Brexit and
Corona outbreak uncertainty. Brexit referendum is an agreement in which Britain voted
to get separated from European Union. This bring immense impact as it increases import
and export policies. This act as Threat for Sainsbury as company faces many difficulty to
affordably import its products from abroad. Along with this due to Corona crises it
impact over company’s demand and supply of its products (Bereskin and Hsu, 2016).
 Economical: these factors are associated with economic conditions, policies and systems.
Currently, UK has instable economic situations due to Brexit and other global
uncertainties which brings enormous impact over its production, prices, transport, income
of consumers. It creating threat for Sainsbury operations as company is highly reliable on
transporting its products through road based transport across UK and due to high increase
in fuel charges may affect its sales in market.
 Social: these factors are associated with socio culture, taste and preference of consumers.
UK has diversified socio cultural environment with large population. In present scenario,
citizens of UK are highly inclined towards healthy and diet food items as they are getting
highly conscious regarding organic and natural products. This brings enormous
opportunities for firm to enlarge its brand extension by developing and producing new
organic products to cater requirements of its consumers. Also, firm can expand its
business to other countries also (Pyles, 2016).
 Technological: these factors are related to advanced technique of production and
distribution of goods to its end-user. UK has advanced technical hubs which facilitates
immense opportunities for retail organisation. Sainsbury embrace technology in many