Report on Concept of International Strategy : Sainsbury company

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Added on 2020-06-05

Report on Concept of International Strategy : Sainsbury company

Added on 2020-06-05

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INTERNATIONALSTRATEGIES

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Table of ContentsINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11. Identification of suitable international market for Sainsbury's..........................................12. PESTLE analysis of the most appropriate international market for Sainsbury's...............13. (5- Forces analysis) of the chosen international market.....................................................34. Sainsbury's internal environment (VRIO analysis)............................................................65. Most suitable mode of entry for Sainsbury's......................................................................7CONCLUSION...............................................................................................................................9APPENDICES ..............................................................................................................................12Appendix 1...........................................................................................................................12.......................................................................................................................................................14

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INTRODUCTIONAs it can be clearly observed from the last decades that the structure of business ischanging rapidly. Earlier all the business strategies were meant to full fill limited objective of thecompany but with the passage of time, new trends and growth have been seen in business sector.This can be due to the introduction of fastest technologies that business operations now a dayshave reaching to its wider range (Svejnar, 2013). This entire scenario has lead to introduce theconcept of International business. For this purpose, international strategies have came intoexistence. Now most of the organisations are expanding their business in all over the world andhence there is need of understanding major internal strategies. Within the help of these strategies,company can expand its business throughout the world and attain tremendous level of growth interms of market shares and profit (Chytry, 2012). In context of this report, the concept ofinternational strategy will be evaluated with the help of Sainsbury's company. TASK1. Identification of suitable international market for Sainsbury's.Sainsbury's is one the most popular brand in the world for their supermarkets. They havesuccessfully capture so many customers and now they are trying to move towards internationalmarket. For this purpose, it is important for the company to be more specific about choosing theright market. In context of this report, there are three major countries among which the bestsuitable nation should be chosen in order to internationally expand the business of Sainsbury's. PESTLE analysis of these countries have been covered in appendix 1. 2. PESTLE analysis of the most appropriate international market for Sainsbury's.As per the above analysis of most suitable country for Sainsbury's in context ofinternational expansion, it has been noticed that there are several factors on the basis of whichexpansion decision can be made (True, 2012). Among three given countries (Czech Republic,Ireland and Lithuania), the most suitable country would be Czech Republic. There can be severalreason for this. As this nation is a developed and high income economy. That means there will bemaximum number of resources available in this country. Given below are the basic reason ofexpanding business of Sainsbury's in this nation: Growing economy- As this country comes under one of the most growing economy inthe world. It means there is a full chances of getting best output from any business in this1

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country. Growing economy can support business to operate in the most effective manner bygetting positive response from the market in form of high profit and market shares. Stable condition- It is important to know the stability of any county in order to set upany business. This is because high fluctuation rate in economic condition can disturb the entireoperation of a company (Kucera, Vana and Hradilek, 2012). As this country have a stablecondition which develops favourable platform to operate business. Qualified workforce- In this country, there is a marvellous opportunity to have most potentialand qualified employees. As having skilled employees is one of the major factor which candecides the success rate of any company. That is why, Sainsbury's can Low cost of conducting business- This country do not have so many rules andregulations in operating any business. The cost of commencing new venture is also very low.This attract so many investor in order to come and operate their business in this country. FDI- Foreign direct investment is one of the major factor which can directly helpdifferent companies to expand their business and earn maximum number of market shares andprofit. Excellent telecommunication and IT facilities- This is one of the major factor whichcan foster the growth of any organisation (Danihelka, Chrtek Jr and Kaplan, 2012). Thus havingavailability of best IT and telecommunication services can boost the growth of economy. Unbeatable locations- It is a fact that commencing a business in mentioned county wouldbe beneficial for Sainsbury's as it offers tremendous location for opening new venture in centreof EU. Given below is the PESTLE analysis of Czech Republic.Political- It has been noticed that from last decades, there were some major economicreform took place in Czech Republic. It includes sectors like banking, IT and telecommunication.It comes under stable economy hence most of the investor get attracted towards this country.There is tremendous fiscal suitability by introducing pension and healthcare reforms (Czinkotaand Ronkainen, 2013). There were some political issues but with passage of time, differentpolitical parties solved all tension and disputes among them hence, there is politicaldevelopments. As Sainsbury's is one of the leading brands in the name of supermarkets, thusCzech republic will offer great platform in context of all favourable political conditions for the2

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