Corporate Strategy

Corporate Strategy
INTRODUCTION.......................................................................................................................................3
External analysis to identify a set of opportunities and threats and assess industry attractiveness...............3

Internal analysis to identify the organization resources and unique capabilities and demonstrate this to
link to competitive advantages....................................................................................................................5
Strategy evaluation......................................................................................................................................8
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Corporate strategy refers to a highest strategically plan that is used to identify the overall
goals and directions and the path on the basis of which a company achieve its activities related to
strategic management. It is based on the long term vision direction that is related to overall
success of the organization. Sainsbury’s is one of the largest chain supermarkets in the United
Kingdom, established in 1869. It deals in superstore, hyper store, supermarket, convenience shop
and forecourt shop. This individual report is based on the analyses of external and internal factor
of the company so that they easily identify the opportunities, threats, strength and weaknesses
which present in the organization at the time of accomplishing the goal for the longer
sustainability and increasing the sales and profits in the market place. At last it includes the SAFs
analysis which is very significant to know the overall suitability, accessibility and feasibility that
was present at the time of making strategies. To identify this is very important because is the
core method of making any strategic plan for the success of any business (Rugman and Verbeke,
2017).
External analysis to identify a set of opportunities and threats and assess
industry attractiveness
Macro environment
It refers to a analysis of external factor that affects the overall activities that is performed
in the business enterprises. It is depended on the economy as a whole which includes
employment, gross domestic product, inflation monetary policy and the spending. In Sainsbury’s
manager use to examine it to produce a products and earns more profits.
PESTLE Analysis
It refers to that condition in which company can analyzing the various circumstances like
opportunities and threats that will impact on the sales and profits of the Sainsbury’s. in this
manager need to identify the PESTLE that are as follows(Mazzei and Noble, 2017). Political factor- This factor affect the business activities in the UK, as there is Brexit
occur in the country which affect the whole economy of the country. In context of
Sainsbury’s, this will impact the overall sales as they declines the consumer spending
because of inflation occur in the nation this will create a threat in the company as they
negatively affect the sales and profits. It will also create opportunities as many consumers
lost to competitors that provide same products because of Brexit(Thompson, Strickland
and Gamble, 2015).
 Economical factor- This factor affects the Sainsbury’s business in a way that the
employees are expecting to increase their salary because of inflation in the country. And
there are large number of workers present in the supermarket increment in the salary
affect the total revenues of the firms this will leads to the occurring of threat. But at the

same time because of increase in the salary of workers they work very productively as
they earn higher profits with high sales.
 Social factor- In UK, people are more conscious about their health and they prefer to
purchase organic and healthy food and drinks. To became successful and for longer
stability in the market they provide healthy food and beverages to their customers that is
body-conscious. Supply the food as per the demand of the customers is the basic motto of
the social factor. Is is the great opportunity for the company to produce healthy and
organic food so that it will increase its sales and profits and longer survival in the market.
 Technological factor- Today’s current environment is based on the use of advance
technology and they spend most of the time on the digital technology. In context of
Sainsbury’s they provide online shopping and click and collect services for the people
who place orders online which is very convenient for the consumers to collects it. It
create the opportunities as they attracts more customers and increase the sales and profit.
 Legal factor - It is related to the government legislation and policies that affect the
performance of the organization. They introduces a law related to the new tax on
advertising highly fatty foods. In context of Sainsbury’s they take as a opportunity as
they adapted the tax policy and modifying its goods that fulfills the legal requirements. It
also create threats for the company as sugar tax in the UK as they suggest to reduce the
content of sugar in the drink that will impact the profits of the firm.
 Environmental factor- In context of Sainsbury’s they produce a environmental friendly
products and use of recycled materials. It will create a major challenge in front of them to
use the zero waste products that is not harm the environment resources. And it will helps
in increasing the sales and profit of the firm. As they also helps in longer susvival of the
firm.
Porter’s five forces model
This model helps in analyzing the business and helps in examine the industries
attractiveness to sustain different levels of profitability. In Sainsbury it is used to assess the
attractiveness, sustainability in the market place as it is food retailing industry in UK. It explains
porter’s five forces model that is explained below( Adamides, 2015).
 Power of suppliers- Suppliers in the supermarket have contains low bargaining power
as there are many suppliers are present in the market that provides raw material at low
cost. In context of Sainsbury’s, they but raw material from the suppliers at low cost. If
the suppliers are not provides the inputs at low cost then firm switch them and buy from
another one. Purchase a inputs from lower rates helps the company to earn more profit
margins and sales.
 Power of buyers- In context of Sainsbury, customers and buyers have high degree of
bargaining power as there are many other retail supermarkets that present in the market
like Tesco, Morrison etc. and they also provide same type of goods offerings to their
customers. This makes the consumers to switch the other brands on the basis of price.