International Management: Analyzing Risks and Opportunities in Japan for Sainsbury's

International
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Analyse cultural, political, economic, ethical and legal risk in Japan........................................3
Identify and evaluate the business opportunities in Japan..........................................................5
Critically discuss appropriate entry strategies for Sainsbury's....................................................7
Recommendations and suggestions based on the above risk......................................................8
CONCLUSION..............................................................................................................................10
REFERENCES:.............................................................................................................................11
Books and Journals...................................................................................................................11
Online........................................................................................................................................11

INTRODUCTION
International management refers to the process of evaluation of international economics
and management of operations in business. It analyse the changes in the business environment
and formulate business strategies for smooth operations (yan Zhang and Van Den Bulcke, 2018).
It helps business manger to look forward for commerce, different culture and global economies.
This report is based on Sainsbury's. It is largest supermarket chain headquartered in London, UK.
It was founded in 1869 by John James Sainsbury and offer products and services like
convenience shops, hypermarkets, forecourt shop and supermarket. This report will include
cultural, political, economic, legal and ethical risk in japan. Evaluations of various business
opportunities in Japan is also mentioned in this report. Various entry strategies are also discussed
for Sainsbury along with the recommendations and suggestions to overcome the risk is also
mentioned in this report.
MAIN BODY
TASK 1
Analyse cultural, political, economic, ethical and legal risk in Japan.
Sainsbury is the second largest retail sector in United Kingdom which offer various
services to their customers. It is effectively operating and generates good revenues by acquiring
various brands like Asda (Zakaria and Yusof, 2020). They are planning to expand their business
in other countries for further growth. They have divided their operations in their home country
which are Argos, Sainsbury's supermarket store and Sainsbury's bank. They have captured large
market area by maintaining the quality of product and offer affordable prices. Sainsbury always
focus on the demands and wants of their customers which help them in profit generation. After
capturing the local market they are planning to set up their stores in Japan. Evaluation is
necessary to know the external factors of environment for business commencement in Japan.
Various factors like political, cultural, ethical, economical and legal risks are analysed of Japan
which are mentioned below:
 Political factors: Factors such as tariffs, bureaucracy, tax policy and trade restrictions are
included in political factors. Various government policies affect the business operations
which should be evaluated before the operations. Japan follows monarchy but political

environment is relatively favourable for business operations of Sainsbury's. Japan
maintains good relationship with other countries including US which is positive aspect
for Sainsbury. Political affairs of Japan do not affect the trade and operations as they
maintain stability in their political activities.
 Economic factors: There are various factors like exchange rates, inflation, economic
growth rate, interest rate and unemployment rate which are included in economic factors.
The GDP rate of Japan is good and they are involved in manufacturing of various
international brands like Toyota, Nissan and Yamaha. They are largest manufacturer of
electronic equipment, vehicles, ships, textiles and machines which contributes in their
GDP. Sainsbury's can generate profits in Japan because their tax policies are business
friendly.
 Social factors: Demographic and cultural trends and society refer as social factors. It
includes health consciousness, perception, cultural aspects, age distribution, career
attitudes and population growth rate (Yung and Root, 2019). Japan is very populated
country and face challenges in population growth rate. They are involving various
changes related to social factors which are helping them in maintaining the social growth
of country. Sainsbury can run their operations easily because of the harmony and peace in
the society.
 Technological factor: Factors which help businesses in growth and development with
the assistance of improved tools and techniques are termed as technology. Research and
development, change in technology, automation and technological incentives are
categorized under technological factors. Japan is known for their advanced and up graded
technology which is highly required by companies. Sainsbury's can create innovative
ideas with the help of technology. This will help them in acquiring the marketplace
according to the current market demands.
 Environmental factors: Ecological impact can affect the business operations in many
ways. Climatic changes, temperature, weather conditions, natural disaster and pollution
are included in environmental factors. Japan usually fulfil all the duties and
responsibilities which help them in maintaining clean and safe environment. Various
natural calamities affect the environment of Japan like flood, cyclones, volcanic eruption