This report evaluates the acquisition of Argos by Sainsbury, focusing on external analysis, internal analysis, and strategic evaluation. It discusses the impact of political, economic, social, technological, legal, and environmental factors on the acquisition. It also analyzes the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and competitive rivalry. Additionally, it examines Sainsbury's unique resources and capabilities, as well as the advantages of the acquisition. The report concludes with a strategic evaluation using the Ansoff matrix.