Global Strategy Development and Implementation for Sainsbury: Environmental Analysis and Entry Modes for Expansion in India

Global strategy
development and
implementation

Table of Contents
Contents
Contents
INTRODUCTION ..........................................................................................................................3
TASK .............................................................................................................................................3
Performance of the firm to justify the reason for internationalisation ........................................3
Explain the different types of strategies which help the company in internationalise-...............5
Evaluate the environmental analysis of the country in which the chosen company is going to
expand and determine why the country is attractive- .................................................................7
Modes of entry- ...........................................................................................................................9
The potential organisational and managerial problems for the subsidiary operating in the new
international environment............................................................................................................9
Strategic advice for the subsidiary to overcome the problems discussed above.......................10
Conclusion.....................................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Global strategy is defined as the strategy which has been developed by a business
organization for the purpose of expanding its operation into the global market. Its major
objective is to improve the sales of organization across the world. The term global strategy
includes several strategies such as international, multinational and standardization strategies. It is
necessary for a business organization to develop effective global strategies while starting
business in international market or any other country (Kretinin, Anokhin and Wincent 2020).
The chosen organization for this report is Sainsbury which is a largest chain of supermarkets in
United Kingdom having headquarter in London, England, UK. This report includes the reasons
of expansion of Sainsbury Company, available choices of strategy to the parent company along
with the reasons of selecting the particular location for expansion. In addition to this, it also deals
with the managerial problems faced by the organization during expansion along with its
strategies to overcome from these problems.
TASK
Performance of the firm to justify the reason for internationalisation
Sainsbury’s is being considered as third largest or biggest supermarket retailer in United
Kingdom. In all across the UK the respective company have more than 290 convenience stores
and 502 supermarkets. According to the data and statistic which is provided by Data moniton
(2010), it has been analyse that around 18 million peoples visit the stores of Sainsbury’s every
week. The financial performance of the respective company is very good for the past few years,
as reported the profit of the organisation has been increased by 57.3 % from £466 million in the
year 2009 to 733 million in year 2010. Food and grocery is being considered as the main
product of the company, despite of showcasing high quality products of their suppliers in their
stores, the own brands of the company showed a promising growth as 40 % of the sales are of
their own made products. The success of the respective company is driven by its ability to offer
the good quality of products to their customers and at a reasonable price. That is the reason that
company can achieve a successful position in the international market. The competitor analysis
of the Sainsbury’s with the help of Porters Diamond model has been discussed below: -

Definition of Porters Diamon Model- porters diamond model is also known as porter diamond
theory of national advantage (Wonglimpiyarat, 2018). This is a framework which is designed to
understand the amount of competitive advantage enjoy or possess by the nation or groups due to
certain available factor available to them. In context to the Sainsbury’s this model has been
discussed below-
 Factor conditions-these are basically those elements and aspects which offer a
competitive advantage to the organisation. Factors conditions are usually developed by
country at a very large level instead of natural resources. In context to the Sainsbury’s j
plc factor conditions comprises of natural resources, capital resources, human resources,
scientific knowledge, technological innovation and infrastructure. All these factors
condition assist the company to grow and expand its business not only locally but also
internationally.
 Related and supporting industries- the presence of supporting and related organisation
within the industry provides an assistance to the players towards the excelling and
expanding the business with the help of innovation and internationalization. In context to
the Sainsbury’s, the presence of related industries with in the nation assist them by
providing support material when needed in order to successfully operate the functions.
The presence of supporting industry is act as a facilitator for the respective company in
order to grow and expand their business by attracting customers and creating awareness.
 Strategy, Infrastructure and Rivalry- this element is related to the strategy of the
company, its organisational structure and competition available in the market. In relation
to the Sainsbury’s, the strategy of the company is to always focus on their customers by
offering them high quality of product them on continuous basis (Sukardi, Rusdiawan and
Wardana, 2019). Flatter organisational structure has been followed by the company