Global Strategic Management and CSR

This report evaluates the external business environment and dynamic capabilities of Tesco and Sainsbury, analyses and compares their current CSR initiatives, and assesses potential CSR strategies. It also discusses the role of sustainability offerings.

GLOBAL STRATEGIC
MANAGEMENT AND CSR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Evaluating the external business environment and the dynamic capabilities..............................3
TASK 2............................................................................................................................................6
Critically analyse and compare current CSR initiatives..............................................................6
TASK 3............................................................................................................................................9
Assess and compare potential CSR strategies.............................................................................9
Discuss the role of sustainability offerings................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Global strategic management refers to the activities and the processes that enables the
businesses to take the advantage of the competitive opportunities across the whole world. There
are many factors internal and external that affect the business strategies. Effective managers of
the firm develop tools in order to analyse the business environment. Corporate Social
Responsibility (CSR) refers to the concept of management according to which organizations
combines environmental as well as the social concerns in their business operations along with the
stakeholders (Lee, 2021). Tesco and the Sainsbury are the leading retail industries in United
Kingdom. Tesco is one of the largest multinational groceries and general merchandise company
and its headquarter is in England. Sainsbury is of the leading chain of the super market that
provides groceries and the other general goods as well as the services to the customers. This
report shows the evaluation of the external business environment related to the competitiveness
and their responses to the globalization of the market and technology. It also shows the current
CSR initiatives of both the companies that point out the advantages and the risks associated. In
this report the potential CSR strategies that enhance the success of the organization will also be
discussed.
TASK 1
Evaluating the external business environment and the dynamic capabilities
The external business environment consist of various external factors that directly or
indirectly affect the activities of the organization. Pestle analysis is one of the most effective
strategy that can be used to analyse the external business environment. The external factors
includes political, economical, social, technological, environmental and the legal factors.
Political factors - Political factor includes the policies that are run by the government and also
the interference of the government in the company (Shtal and et.al., 2018). This factor also
includes tax policy, tariffs, reforms etc. Now a days the government of UK and even the whole
world faces the financial instability. Tesco is one of the leading retail company in the market of
UK and performs its duties in creating employment opportunities. This will increase the demand
of its products and also diversifies the workforce. On the other hand the political environment in
the UK is not favourable for Sainsbury as the government debts are very high. The less effective
strategies made by the Sainsbury affect the overall activities and the functions of the firm.

Economical factors – These factors are related to the economic conditions of the company
(Dcosta, 2018). The companies in UK faces the problem of currency inflation, higher interest
rates, increased taxation level, etc. The effective strategies made by Tesco such as low prices of
the products become favourable in terms of economy Likewise, Sainsbury can also able bear the
high interest and the tax rates with the availing of more product share and reducing the cost of
production.
Social factors – It mainly includes the customers and the social organizations. The common
social factor that affect the working of the companies is the demand and the preference of the
customers (Frue, 2020). The demand directly affect the company's profit. In order to attract new
as well as the existing customers Tesco increased the number of non food items. This will be
helpful in enhancing the sales of the firm and also increases its productivity. On the other hand,
Sainsbury provides quality products to its customers along with effective after sales services.
This will affect the sales and the growth of the company.
Technological factors - It refers to the new technologies that are introduced in the market. It
also includes the social media platform mainly the online shopping websites. These
technological factors are affecting the production and sales of the company's product. The new
and advanced technologies have brought various opportunities for Tesco. Tesco invested
properly for the advancement of the technology. It provides goods and services to the customers
online also that attract the new consumers because of the changing preferences and the demand.
On the other hand, Sainsbury also various approaches in respect to technological changes
including the adoption of digital approach with respect to sales and meeting the need of
customers i.e. offering online sales and resolving their disputes.
Legal factors – These factors includes the rules, regulations and the laws made by the
government of the country (Bronskaia, 2018). The organizations are also having their own
policies that have to be followed by them. The government policies and the legislations also
directly affect the working of the Tesco. It provides best quality products to the customers and
also consider the laws related to the safety and the protection of the employees. On the same
way, the legal factors including laws related with operation of business and other environmental
laws also affect the functioning of the Sainsbury.
Environmental factors - Environmental factor includes waste disposal laws, environmental
protection laws, etc. The ethics of the business enforce every organization to acknowledge the

environmental factors. Tesco is committed to reduce the carbon footprint in order to safe the
environment by 50% and it also put efforts in minimizing the waste produced in their stores.
Tesco also purchase the raw material from the sustainable sources. Whereas on the other hand
Sainsbury is one of the leading supermarket chain and is responsible for a large carbon footprints
and the firm will need to recognize the new and proper ways to become more environmental
friendly in order to reduce the ecological damage caused by their operations.
a) Relative competitiveness
The relative competitive position of an organization refers as the market share of a
business that are divided by the share of its competitor. Tesco and Sainsbury have a large
number of competitors in the market. In terms of occurring changes in the external environment
and changing taste and preferences of the customers the relative competitiveness raises for the
Tesco and Sainsbury. In the same way as both are retailing firms and with the presence of large
number of substitutes and other companies the extent of competition that is share by Tesco and
Sainsbury is high.
It would be right to said that in order to achieve further competitive advantage the policy of
providing the best quality products at low prices and also maintains a wide range of the products
would prove to be wrathful.
b) Responses to globalisation of markets and technology
Globalization of markets and technology includes the growing interdependency among
the economies of the whole world and the increasing speed of the technological diffusion. The
main aim of Tesco is to become a market leader in foreign countries. The firm enters the foreign
market through joint ventures with the local firms in order to get the maximum benefits. Tesco
used various effective strategies for the globalisation of markets and technology. It includes local
operations, elements of flexibility, multi format offering to attract customers and the building of
the brand. On the other hand the investments and the strategies made by Sainsbury in terms of
digitalization and technology would be counted as its steps and measures in response towards the
making of globalization of market and technology. The company only gave emphasis on the
establishment of supermarket chains in the foreign market.

TASK 2
Critically analyse and compare current CSR initiatives
Corporate Social Responsibility refers to the commitment of the organizations so that
they can be able to behave properly and ethically and should also contributes towards the
sustainable economic development (Agudelo, Jóhannsdóttir and Davídsdóttir, 2019). It also
includes all the stakeholders and the improvement in their live that contribute to the society as
well for the business. It takes place when the company consider its overall impact economically,
socially and environmentally and also starts taking initiatives in order to ensure the positive
outcomes. The enterprise can be able to better serve the society as a whole and can also improves
its public image and relations by taking the CSR initiatives. Following are the three CSR
initiatives taken by the Tesco and Sainsbury-
1. Reducing carbon footprints- Tesco takes the CSR initiatives in many ways and also
tries to serve the community and the society. Tesco have already committed to reduce
the carbon footprints by 60% so that it can be able to contributes towards the
environmental sustainability (Climate Change, 2021). Tesco also made various new plans
and strategies to serve the customers as well as the communities. It's plan includes the
reduction in the carbon footprints and the elimination of the deforestation by the firm's
products. It also put hard efforts to make their packaging fully recyclable and
compostable by 2025. On the other hand Sainsbury is responsible for the large and the
increase in the carbon footprints. Sainsbury is now putting the steps forward in order to
minimize the carbon footprints from their business operations. This will help the
enterprises to achieve the purpose or the objective of serving the shoppers better in
everyday life. It is also helpful in acting as a responsible business for the community and
the stakeholders.
Advantages
The reduction in the carbon footprints gave various benefits to the society, communities,
business, environment, etc. It is helpful in the reduction of the effects of the global warming to
the environment. It upgrades the quality of the air that becomes beneficial for everyone
(Advantage, 2020). The other advantage is it saves the money as the reduction of the energy
shrinks the carbon footprint and also reduces the other expenses of the firm. Reduction in the

carbon footprint also decrease the waste disposal and is helpful in identifying the inefficiencies
within a business.
Risks
There are some risks or the problems associated with the reduction in carbon footprints
such as it increases the prices of the products that are provides by the companies. On the other
hand some organizations go out of business in order to save the goodwill or the brand value of
the firm in front of public. It also causes higher and the increased unemployment rates that
directly and adversely effect the whole economy. It also results in the low percentage of the
profits and also reduces the efficiency of the company.
2. Engaging in charity work- Tesco provides healthy living and the education initiatives
and also provides good working conditions to the employees. Tesco support for charities,
promotes inclusivity and put efforts in order to advance the human rights in the supply
chain (Charity Partnership, 2021). It provides efforts to achieve food security and the
improvement in the nutrition and also promotes the sustainable agriculture. Tesco support
various relief works to fulfil the basic necessities of the society. On the other hand
Sainsbury also contributes towards the society and the community by working with the
food banks and also provides donations in order to support the local communities. It put
efforts to found the members of Fare Share charitable institution and wants to work with
them to redistribute the surplus food.
Advantages
An execution of this CSR initiative will assist the organization in attainment of its goal
along with enabling it highly satisfied employees. With the performance of charity work and
enabling nutrition diet and food security it play an important role towards its society and
surrounding (John and et.al., 2019). With the providing of food banks and enabling support to
local communities will enable the companies to attract the society and the people along with
their support. This will also proves to be very helpful in terms of goal attainment of companies
with the people support.
Risks
Every initiative and activity bear certain level of risk. With reference to performing of charity
work and initiative the major risk that is involved is concerned with the finance. This means with

the performance of this task the company may face the financial distress and issues that may lead
to have a major impact towards its functioning and working. In case of changing business
situation and occurrence of loss, continue with such policy would lead to directly impact the
company in terms of finance loss and distress.
3. Participating in fair trade - Some other current CSR initiatives taken by Tesco is to
purchase the raw material for the manufacturing of the products from the sustainable
sources. It also participate in fair trade of products and provides good and premium
quality products to its customers (Jullian, 2021). It provides best services to the
customers and also follows the trade rules and the reforms made by the government.
However, Sainsbury also participate in the fair trade deals and tries to put efforts in order
to purchase fair trade from the suppliers of the raw material. It also put hard efforts to
make the society, consumers and other stakeholders satisfied and happy.
Advantages
With the perusing of fair trade policy would lead tom play an important role in respect to
the company and its customers. This means with the aspect of fair trade the companies can make
purchase of raw material at the normal rate which will enable them to sale their product at the
normal and minimum rate. This will enable the companies to meet the need of its customers
which will further assist the company in terms of attainment of its goal and objectives (Bhardwaj
and et.al., 2018). it will also assist in building long term relation with the concerned stakeholders
including the customers and the suppliers.
Risks
The risk that are associated with the concerned practice is related with the requirement of
high proportion of time. In the same way another risk is related with the high requirement of
funds. This is because in order to make the process sustainable there is a requirement of funds
which may lead to raise the expenses of the company. Likewise, if this process will be made
more strengthen then it will lead tom impact the breaking of relationship and good terms with the
suppliers.
It is to be noted that in order to make running of various CSR policies the stakeholders play
an important role in terms of supporting it and make it executed. The major stakeholders that is
included are suppliers, society, customers, competitors, government and various other. With the

active role of the concerned stakeholder, the execution of the policy would be able to get
executed adequately.
TASK 3
Assess and compare potential CSR strategies
Promotion of healthy and inclusive workplace culture:
As employees are the major stakeholder with respect to an organization which need to be
satisfied and at the same time counted as one of the important element of the companies CSR
policy (Nave and Ferreira, 2019). Promotion of healthy and inclusive workplace culture would
be counted as one of the major potential CSR move which need to be taken by the companies
including the Tesco and Sainsbury. An adoption of health and inclusive work culture would play
an important role in terms of motivating the employees and inclined their efforts towards the
goal of the company. This potential CSR policy would further lead to play an important role
towards the success of the organization.
Designing of goals with measurable impact:
This is also counted as one of the major CSR policy which the organization can take in
future. as setting up of business goal is the common aspect but making the goal with the
measurable impact i.e. how the proposed action and step of the organization would lead to have
an impact towards the society, its customers, business, suppliers and other concerned
stakeholders. This is an important potential CSR strategy because with the changing situation it
is highly important for the companies i.e. Tesco and Sainsbury that they need to make focus
towards the other aspects including the society, supplier and other concerned stakeholders. This
policy would lead to have a direct impact towards the company and its profitability because with
such policy the goal of all the concerned stakeholders would be fulfilled.
Soliciting feedback and its engagement in the organization:
This is also counted as one of the major and potential CSR policy because with the aspect
of listening the social feedback of the internal and the external stakeholders of the companies the
chances of success would be raised and strengthened. As CSR policy need to meet the needs of
the society which would be made easy to fulfil by the companies if they listen to the feedbacks
and vies of the society and its stakeholders and making it integrated in the organization

(Awaysheh and et.al., 2020). With the following of this policy the company can meet the need of
its stakeholders which will further assist in enhancing the profitability of the company. Thus, it is
an important potential CSR policy for Tesco and Sainsbury which would help it in the
accomplishment of its goal.
Thus, it would be right to said that with the concerned potential CSR policy the companies
can meet its success target along with the attainment of its goal. However, while making a
comparison among the concerned policy it can be noted that every policy is somewhat different
like the healthy and inclusive workplace practice is directly associated with the employees i.e.
internal stakeholder, designing goal policy is related with the aspect of goal in the context of
various measurable aspects including the society and other variable while in case of soliciting
feedback the major focus is lied over the internal as well as external stakeholders that will enable
further success. Thus, all the policy target the same aim but with different modes and
perspectives.
Discuss the role of sustainability offerings
Sustainable offering refers to those offering which would provide the social,
environmental, economic benefits along with the protection of public health and environment
over the whole lifecycle.
a) Long term profitability
With the enabling of sustainable product and offering by the companies the long term
profitability will be meet in terms of meeting the need of the customers and the other
stakeholders. As the sustainable product would meet every aspect in relation with the concerned
stakeholders of the society and the company that further lead to assist the company in meeting its
goal of availing long term profitability. As with the concept of sustainability product the
company can meet the need of its stakeholders including the society, customers, government and
various other which will lead to enable the company in enhancing the profitability in the further
extent.
b) Strategic partnering with government and society
As the sustainable offering as made enabled with the compliance of the various laws and
the regulations along with the meeting of need of the people and the environment laws and
regulations. This directly shows that the companies with the adoption of the enabling of

sustainable product would lead to enable them in strategic partnering with the government and
the society in terms of meeting the laws and the regulations along with meeting and compiling
the norms of the society.
In the same way as sustainability offering would meet the requirement and needs of the society,
environment and laws that will enable the assist the companies in assisting the strategic
partnering with respect to the government and the society.
CONCLUSION
From the above report it can be concluded that CSR policy play an important role in the
context of the organization in terms of meeting its goal and targets. In the same way with the
aspect of making a consideration towards the concerned CSR policy the organizations can make
the attainment of their goal in terms of meeting the need of its stakeholders. With the aspect of
CSR policy, the companies can grab high success along with meeting the needs of its
stakeholders. In the same way the external environment in terms of competitiveness is also
summarized in the report that how the external environment impacts the working and functioning
of the companies.

REFERENCES
Books and journals
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies. 65.
Agudelo, M.A.L., Jóhannsdóttir, L. and Davídsdóttir, B., 2019. A literature review of the history
and evolution of corporate social responsibility. International Journal of Corporate
Social Responsibility. 4(1). pp.1-23.
Awaysheh, and et.al., 2020. On the relation between corporate social responsibility and financial
performance. Strategic Management Journal. 41(6). pp.965-987.
Bhardwaj, and et.al., 2018. When and how is corporate social responsibility profitable?. Journal
of Business Research. 84. pp.206-219.
Bronskaia, T.A., 2018. Marketing environment analysis as the key component of the company’s
competitiveness evaluation.
Dcosta, A., 2018. Components of a PESTLE Analysis. Avail at: http://www. brighthubpm.
com/project-planning/51754-components-of-a-pestle-analysis.
Frue, K., 2020. PEST analysis ultimate guide: Definition, template, examples. PESTLE Analysis.
John, and et.al., 2019. Getting paid to be good: How and when employees respond to corporate
social responsibility?. Journal of cleaner production. 215. pp.784-795.
Lee, J.Y., 2021. Corporate Social Responsibility. In Encyclopedia of Sport Management (pp.
106-109). Edward Elgar Publishing.
Nave, A. and Ferreira, J., 2019. Corporate social responsibility strategies: Past research and
future challenges. Corporate Social Responsibility and Environmental
Management. 26(4). pp.885-901.
Shtal, and et.al., 2018. Methods of analysis of the external environment of business activities.
Online references
Charity Partnership, 2021. [Online]. Available through
<https://www.tescoplc.com/sustainability/taking-action/community/charity-
partnerships/>
Climate Change, 2021. [Online]. Available through
<https://www.tescoplc.com/sustainability/taking-action/environment/climate-change/>
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Jullian, P., 2021. What does Fairtrade mean for the farmer?. [Online]. Available through
<https://www.tescoplc.com/blog/what-does-fairtrade-mean-for-the-farmer/>
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