Internal and External Factors for Implementing Global Strategies: A Case Study of Sainsbury

Global Strategic
Management

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK ..............................................................................................................................................3
Explain Internal and External Factor to implement current strategies........................................3
Internal analysis of Sainsbury.....................................................................................................5
SWOT Analysis...............................................................................................................................5
External analysis of Sainsbury....................................................................................................6
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global marketing strategies is tool that a company can use to expand into a international
market. In simple words, a strategy that contributes in the success of an organisation. It is a
detailed plan that are formed to set short term and long term objectives to sustain organisational
goal. It is believed that business environment is uncertain and dynamic so in order to deal with
adverse situation, it is important for an organisation to make better plans and policies to ease the
mode of doing business. Global marketing strategy is a key to success of an organisation.
International trade and investment is growing rapidly due to which competition is increased in
the competitive market. These strategies contributes in coordinating the activities of an
organisation (Bell and et.al., 2018). It helps to utilise the available resources and avoid wastage
in order to minimise cost of production. The advancement of technology and innovative ideas
increase the efficiency of organisation and helps them to survive in the competitive market. The
organisation chosen for this report is Sainsbury, situated in United Kingdom. It is well reputed
supermarket chain that offers fresh food product and quality services to their consumers.
This report will analyse the existing strategy that contributes in success of an
organisation. Further, it will examine the internal and external factor that will improve the
current market position of an organisation . It will discuss about the contemporary strategic
issues and growth theories that contributes in success of an organisation.
TASK
Explain Internal and External Factor to implement current strategies.
There are various internal and external factors that play significant role to manage all
the crucial activities of an organisation. It analyse the performance and market situation that may
affect the growth of business. In relation to Sainsbury, they have adopted the current global
strategies that enable the company to diversify their business and attain sustainable growth.
External Strategy of Sainsbury
Here, current strategies has been discussed in detail are mentioned below:
Product Differentiation Strategy: It is a marketing strategy that are used to distinguish the
company's product and service from other companies. This strategy bring uniqueness and
novelty in the product in order to establish brand loyalty and value in the market. It is used to

target the large base of consumers. In context to Sainsbury, they are providing quality product
and services to gain competitive advantage and build brand awareness in the market (De
Roche2021.
Effective Operating cost: It is a cost incurs for running day to day operation of business. It
refers to essential business cost such as electricity cost, petty expenses, repairing cost etc. It is
important for an organisation to reduce their operating cost in order to increase short term profits.
In context to Sainsbury, they are using cost effective method to minimise the extra cost that may
affect the functioning of an organisation.
Flow of Income: It is very important strategy that are focused on inflow and outflow of cash of
organisation. In order to ensure proper flow of cash, the company is followed the effective
business plan to manage their funds. In context to Sainsbury, they strategies their profit by
accumulating their funds into small investments in order to avoid future uncertainties in the
business environment. It is an effective tool to deal with dynamic business culture. It increase the
asset of an organisation (Dogu and Albayrak 2018).
Maximise the profit: It is very important to use such strategies which will generate higher
revenue and profit of an organisation. The effective plan and polices contributes in achievement
of higher profit and growth in the global market. In context to Sainsbury, it is the largest
supermarket chain in UK and successfully running their business. The allocation of resources
and funds helps the company to sustain in the competitive market. The innovative approach as
used by the Sainsbury, helps to maximise their profit to survive in the market for a long run.
Technology: it is one of the crucial tool which increase the efficiency of an organisation. It
reduces the efforts of employees and increase the production level. Updated technology and
innovative technique helps the company to survive in the global market. If company fails to
adopt advanced technology , then it becomes very difficult for them to survive in the competitive
market. In context to Sainsbury, they are processed their food products by using innovative
technology to bring novelty and creativity in product (Fang and Fu2020).
Core Values: An organisation is running successfully due to its employees and management. It
is very important for the organisation to direct and guide the valuable employees who are
committed and dedicated for an organisational work. Human resource are the important asset for
an organisation as their contribution is the main reason for the growth of business. In context to
Sainsbury, the employees are highly valuable for diversification of their business. They have