Applied Corporate Strategy Assessment (Doc)
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Added on 2021-02-21
Applied Corporate Strategy Assessment (Doc)
Added on 2021-02-21
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Applied Corporate Strategy
Table of ContentsINTRODUCTION...........................................................................................................................3External and Industrial analysis to identify Opportunities and Threats.................................3Analysis of Resources and key competences.........................................................................9SAFe criteria applied to a strategy implemented by organisation........................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONThe strategic course of action undertaken by a firm to achieve its long term goals andobjectives is called corporate strategy (Aluko and Knight, 2017). This is unique to every businessentity depending upon the requirements and situations prevailing in its environment. With thehelp of this, company aims to attain a competitive edge in market over rival firms. Enforcementof an effective corporate strategy lays the foundation to success of an enterprise (ANTREAS,2017). The present report is based upon the strategic analysis of Sainsbury’s. This assignmentconsists of macro as well as micro-environmental analysis with PESTLE, Porter’s Five Forcesand VRIO. Lastly, it consists of SAFe criteria of an applied corporate strategy.External and Industrial analysis to identify Opportunities and ThreatsSainsbury’s is one of the leading supermarkets within UK having a diverse productportfolio and a large customer base (Bell, Bryman and Harley, 2018). This entity holds 16.9%share within supermarket industry. Sainsbury’s is an integration of three divisions, namely,Supermarket, Argos and Bank (Bansal and Song, 2017). Figure 1: Retail Market of United Kingdom(Source: Retail Market of United Kingdom, 2019)Sainsbury’s stands at second position within the retail market (as illustrated in Figure 1).At this time, ASDA holds the third position in the same industry (Sainsbury's and Asda may3
have to offload 460 stores to seal merger, 2019). The merger is proposed to be executed with thesole motive of pooling the resources and facilities in order to attract a larger base of customers asthis would give a change to both the entities to grab a larger market share together ahead ofTESCO and become the leader in retailing industry (Naidoo and Gasparatos, 2018). However,the merger was supposed to take place earlier but the Competition and Markets Authority (CMA)blocked this merger saying that it would lead to increment in prices of products in retail marketand would dampen the existing level of competition (Cavusgil and et. al., 2014). At present, boththe companies are awaiting the decision of the proposal where ASDA and Sainsbury’s intend tomerge their operations for mutual benefit (Wrigley and Wood, 2018). Thus, looking upon thissituation, the management of this organisation is conducting an external analysis so as to gainknowledge of the opportunities and threats that the macro environment and industry holds forSainsbury’s.To carry out macro environmental analysis, the manager of Sainsbury’s is making use ofPESTLE framework as follows:-PESTLE AnalysisThis is an analytical tool utilised by corporations to assess the threats and opportunitiesheld by external environment for the entity. Political:This consists of factors associated with a number of governmental legislations such asentry regulations, political stability, tax policies etc. (Brewster, 2017). In this regard, the strongand stable political system of UK holds opportunities for Sainsbury’s to tap advantage in marketby gaining knowledge of existent policies and abiding by them (Charter and Polonsky, 2017).Further, this company faces constant threat owing to the probability of occurrence of politicalwars, terrorist attacks and international wars between countries (Wrigley and Wood, 2018).Thus, Sainsbury’s is required to tackle such situations by maintaining adequate stock of rawmaterials to meet the enhanced demands of customers in such times. Economic: This constitutes aspects such as credit accessibility, economic performance of a nation,interest and inflation rate, growth rate, etc. (Chang, 2016). In this regard, United Kingdom has astrong economic system having excellent manpower and infrastructural facilities that can beutilised by Sainsbury’s to adequately and relevantly makes its offerings reach to end users and4
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