Applied Corporate Strategy

Applied Corporate
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
EXTERNAL ANALYSIS................................................................................................................1
PESTLE Analysis...................................................................................................................1
Porter's Five Forces Model.....................................................................................................3
INTERNAL ANALYSIS.................................................................................................................4
TOWS Analysis......................................................................................................................4
VRIO Analysis.......................................................................................................................5
SAF CRITERIA...............................................................................................................................7
Suitability...............................................................................................................................7
Acceptability...........................................................................................................................8
Feasibility...............................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...............................................................................................................10

INTRODUCTION
Corporate strategy is a term which reflects upon all the processes and procedures that are
associated with increasing and improving the value of an entity. Corporate strategy not only
offers the organisation improve the competitive advantage but also enable it to succeed within
the market place (Kozmal and El-Monem, 2018). Therefore the concept of corporate strategy
becomes very important and necessary for entity to analyse for fully understanding its
application and executing all plans effectively. The present report is based on Sainsbury a
supermarket chain of United Kingdom known as one of the biggest. The present report will be
emphasising discussion on the merger took place between Asda and Sainsbury. The between two
companies is a strong area to discuss in regards to corporate strategy. Hindi project effective
external environmental analysis of Sainsbury is conducted for identifying its opportunities and
strengths available in internal and external environment of the entity. Moreover internal analysis
is also conducted of the organisation with the help of VRIO model for identifying the capabilities
of the firm and its major competencies. Lastly, the SAF model or criteria is utilised to analyse
the merger strategy of the entity.
EXTERNAL ANALYSIS
PESTLE Analysis
Sainsbury is a leading brand in supermarket and Retail industry which makes it very essential
and important that the organisational external analysis should be conducted and performed for
understanding the external influence on organisational working and strategies.
 Political Factors: The political factor revolves around the notion where political stability
of the region and reforms that shape of the working of a company within the industry and
the country is involved. Sainsbury is a firm which huge market share United Kingdom
the company holds the responsibility to align its operations with the political
requirements and position. United Kingdom is known for its political stability but you
currently the country is suffering because of certain factors like brexit and coronavirus
pandemic.
 Economical Factors: The economic actor focuses on the economic performances of the
country and the elements involved are employment, population, inflation etc. Sainsbury is
organisation with the highest market share and United Kingdom in Retail industry.
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Automatically evidence the fact that country as stable economic environment and the
economic performance is the region are prominent. But in recent years the whole country
is facing economic downfall and and stability because of brexit which is a great influence
on Sainsbury.
 Social Factors: The social factors associated with the element are the current trends
flourishing in the market, preferences of people and the likelihood to make purchase
according to their needs and requirements. A key construct which have evidently placed
change in the Retail industry as per the social environment and concern is that increasing
digitalization and preferences of people in regards to digital products and services.
Customer are moral drawn towards digital services and products which leads the change
for seems very as well the company has to online Android several changes in operations
like online and electronic payments for fast delivery and many more (Jin and et. al.,
2018).
 Technological Factors: The technological factor is inclusive of all the digital
transformation and advancement taking place in technological industry which is also
affecting other respective industries. Revolutionary changes taking place in technological
sector and industry which is also be affecting the retail sector of UK. Technological
advancement and evolution introduced artificial intelligence, robotics and better customer
relationship management which results in supporting organisations like Sainsbury to
maintain their position in the industry.
 Legal Factors: This factors is somewhat related and similar to political factor. In legal
aspect all the regulations and policies that essential for entities to comply and comply
with the highlighted. Sainsbury is surrounded by the legal environment of United
Kingdom and it is becoming complicated for the company to comply with the policies
and regulations of the country. this is because the complications are increasing as brexit
took place and the policies of United Kingdom and EU have evolved. The country have
to be focused on both the legal requirements which is getting a little bit complicated and
chaotic.
 Environmental Factors: The environmental factors have been recently introduced in the
external analysis of organisations. The factor revolves around and considered as the
major impact placed by the operations and functions of the organisation on the society
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