Research Project: Sainsbury's Strategies in Emerging Markets

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AI Summary
This research project examines the strategies that businesses, specifically Sainsbury's, can employ to expand into emerging markets within the context of globalization. The project investigates the factors driving globalization and its impact on business growth, including technological advancements and government policies. It explores various market entry strategies such as joint ventures, licensing, franchising, and internet selling, analyzing their respective strengths and weaknesses. The research aims to identify the most effective strategies for Sainsbury's to enter emerging markets, considering factors like customer preferences, technological challenges, and the competitive landscape. The project also includes a literature review, research methodology, and recommendations for Sainsbury's to achieve higher profitability, serve a wider customer base, and attain maximum customer satisfaction in the global market.
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RESEARCH PROJECT
(Different strategies to enter into the
emerging market)
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EXECUTIVE SUMMARY
Globalisation is a terms that describes the way different nations and people of the world integrate
and interact with each other. In other words, it is a process of integration which is driven by the
international commerce and investment with the help of information technology. The research
project is about the different strategies that can be applied by the business houses in expanding
their operations into the new emerging economies of the world. Present research is based on
Sainsbury company which is the third largest supermarket chain in United Kingdom. It was
founded in 1869 by John James and now it is located around the world. Globalisation provides
vast area to use different strategies to engage their business activities and earn profits. Due to
process of Globalisation, they can get raw material at cheaper rate and also varieties of product
can came across within the global market. Sainsbury company also enters into the emerging
market and uses various techniques to mating the goodwill and reputation in the market.
The objective of research project is of outline the factors of globalization in respective of
business growth. To identify the strategies to enter into the emerging market, to access the
strength and weakness of strategies to enter into the emerging market and to suggest the best
strategy that to be employed by Sainsbury to enter into the emerging market. The factors in
terms of technological development, due to using new advanced technologies they can easily
enter into international market and attract the customers towards their services and products
which they are offering. However, Due to continue changes in technologies distract the
customers interest and sometimes business also suffer loss due to hacker. There are different
strategies of entering into market such as joint ventures, licensing, franchising , internet selling
which will be discussed In this research project in which there strengths and weaknesses will be
highlighted. Lastly, it can be said that organisation needs to expand their businesses for
achieving the goals and objectives which are specifically higher profitability, serving masses and
attaining highest customer satisfaction This is necessary for the continuous and peaceful
survival in the global market.
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Table of Contents
PART 1: RESEARCH PROPOSAL................................................................................................3
INTRODUCTION.......................................................................................................................3
Literature Review:.......................................................................................................................4
RESEARCH METHODOLOGY ....................................................................................................7
Time Plan:...................................................................................................................................8
PART 2 : RESEARCH & REPORT ............................................................................................11
Questionnaire ...........................................................................................................................11
REFLECTION ..............................................................................................................................19
RECOMMENDATIONS AND CONCLUSION..........................................................................21
Recommendations.....................................................................................................................21
Conclusion.................................................................................................................................22
REFERENCES..............................................................................................................................24
APPENDICES...............................................................................................................................27
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PART 1: RESEARCH PROPOSAL
INTRODUCTION
Globalisation is a process by which the small scale business enter into the international
market for the growth of their business activities and maximize profits in the company. It is thus
an interaction, communication and intervention among people, business and company at large
scale globally. As globalization are now at the upcoming trend due to easily conveyance and
transportation facility of goods and services around the world. Nowadays the business are easily
transferring or dealing with other companies without any barriers. As Sainsbury company is also
one of among these who takes benefits in globalisation. Present research is based on Sainsbury
company which is the third largest supermarket chain in United Kingdom. It was founded in
1869 by John James and now it is located around the world. Researcher conducts deep research
on this company and there employees interest in the organization.
Title – Different strategies that can be employed by business to enter into the emerging market.
Background -
Globalisation is a process by which it provides business to increased their economy in the
country by expanding their activities in international market. They can expand their business
productivity through social media or by import and export of goods and services or by easy
payment option. Globalisation provides vast area to use different strategies to engage their
business activities and earn profits (Globalisation, 2019). Through theses strategies they can
grow their business internally and externally. Due to process of Globalisation, they can get raw
material at cheaper rate and also varieties of product can came across within the global market.
As Sainsbury is the third largest retailer chain of groceries and are succeed with the concept
which they bring in supermarket sectors. To enhance their business, 186,900 employees are
engaged with their business and carry their operational activity in international level. They
settled their supermarket in many locations and had opened 1415 shops around the world.
Sainsbury company also enters into the emerging market and uses various techniques to adapt
the goodwill and reputation in the market.
Aims and objectives
Aims – To examine different strategies to enter into the emerging market – A study of Sainsbury
company.
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Objective -
ï‚· To outline the factors of globalization in respective of business growth.
ï‚· To identify the strategies to enter into the emerging market
ï‚· To access the strength and weakness of strategies to enter into the emerging market.
ï‚· To suggest the best strategy that to be employed by Sainsbury to enter into the emerging
market.
Rationale:
Researchers select this topic as they find it interesting as many companies enter into the
emerging market and various changes are implemented in there working. Researcher had interest
in the study as many authors had already researched on their relevant topic and they gathered and
collected much information and data which helps researcher to research it deeply. As due to
globalisation many risks also occurs which the researcher finds it interesting to identify the
matters and helps companies to take effective decision. As Sainsbury is the famous company so
researcher find it interesting to know more about the company internal progresses and the
strategies they used to enter into the global market and face the competitors. As many authors
already research on this relevant topic, So researcher didn't have to collect data from starting,
they can gather the information from referencing the previous authors work and analyses new
suspect in the research.
Research questions:
1. What are the factors of globalization in respective of business growth?
2. What strategies Sainsbury company used to enter into the emerging market?
3. What are the strength and weakness of strategies to enter into the emerging market?
4. What are the factors suggested to Sainsbury for the strategy they implement to enter into
the emerging market.
Literature Review:
Theme 1: Factors of globalization in respective of business growth
According to Slaich and et.al., (2018) stated that Globalisation is a process which helps
the business to grow at larger scale and earn profits. Due to factors of globalisation the business
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can be easily expended and they can engage with other business and also increase their
productivity in the market. The factors of globalization which help business to grow and save
funds for their future perspective (Factors that have contributed to Globalisation, 2018). The
factors in terms of technological development, due to using new advanced technologies they can
easily enter into international market and attract the customers towards their services and
products which they are offering.
Flowerdew, (2016) criticised that Due to continue changes in technologies distract the
customers interest and sometimes business also suffer loss due to hacker. As hackers can easily
hack the company profile and infringement of data and important information which handle the
company reputation and goodwill. Amendment in technologies create lot of misunderstanding
and affects the customer's honesty by not securing their data with the company profile.
Baylis, Smith and Owens, (2017) suggested that government policies are the biggest
factors which can provide business to grow in the international market. As difference in taxes
and rules helps company to know their condition to enter into the market and these polices
restrict the fraud if any committed with the company. As if company works under the
government rules and provide equal rights and compensation to the labour and incentive and
appraisal are also given to employees to motivate them to work and increase the productivity.
Chubb and Watermeyer, (2017) argued that due to high restriction of government to enter
into global market it restricts the company to grow in different countries as country has not same
norms and different rules are implemented for different counties. Some government didn't allow
outsider to bring their products in the market or engage any business activities with their country.
They didn't need to increase their economy which comes up with many conditions and affect the
environment in many factors.
Theme 2: Strategies to enter into the emerging market.
Mowforth and Munt, (2015) examined that Sainsbury company uses various strategies to
enter into the market or to engage their business into large scale. They can use internet selling
strategy to enter into global world. As Internet is the powerful tool to attract the customers
interest and changes their taste with the products. As mostly people spend their most of the time
shuffling the social media sites in that case if company promoted their products and services and
also issue any offers can helps them to grow their business at large scale. Advertisement is the
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best way to promote the company and their working strategy and also attractive advertising
results to more positive views to the company. Internet selling is the best way as if company
provides home delivery products to the customers which is easy from teem to use their products
and services instead of visiting the stores to purchase that products.
Olins, (2017) Reviewed that Franchising and licensing is another important way to enter
into the emerging world. Franchising means allowing any other person to carry on their business
in some different location. In that case they are allowing them to use their trade mark and other
services and benefits which are raised with the Sainsbury company. Licensing means to give
license to sell the products in the global world. By giving franchising and licensing to some other
person this means giving them liability to use their logo, trade mark rights and other benefits
which the company raise profits. To engage in this strategy they can earn profits and also provide
chances to other person to be employed and continue their business to bring it into new scale.
Theme 3: Strength and weakness of strategies to enter into the emerging market
As per Lasserre, (2017) stated that Strength of internet selling is that they can attract the
customers from anywhere and customers can easily purchase the products and avail the services
through online marketing only. Online selling of products also increase the profits of the
company and they can also know the feedback and reviews of the products closely. They can
maintain the close relationship with the customer sand also attracts their customers towards their
products.
Hair Jr and et.al., (2015) examined that weakness of internet selling is that due to offering
discount in offers sometimes misguide the customers towards the products which reflects the bad
identity of the company. As the same products and its demand can be less if customers are
engaged with the same product every time. As the taste of customers are frequently and they
demand new product every time which affects the online market if they deliver the same product.
There are many chances of committing fraud in case of payment option. If any hacking in
company profile results to loss of customers interest to engaged with their products in near
future.
Piercy, (2016) suggested that strength of Franchising and licensing is that the franchisee
have the high rate of growth and success for choosing the Sainsbury company as this is already a
famous company and customers are already attracted with there products. Thus, franchisee have
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to struggle less to attract the customers interest. If the franchisee take loan from the bank they
can easily get if they take franchise of some renowned company.
According to Groshen and et.al., (2017) reviewed that to give the franchise to the person,
they have the full right to use the company name and logo and there are more chances to commit
some fraud in terms of that name. As Sainsbury is the most famous brand name and if they
provide franchise to any person they have the full rights to use that name and even for some
personal use. As the franchisor can't handle that person personally so various norms are set in
case of restriction for fraud commitment.
RESEARCH METHODOLOGY
Research methods which assist in conducting the research in the effective and efficient
manner. It consist of methods such as research philosophy, approach, design, data collection,
data analysis, sampling etc.
ï‚· Research philosophy : It is the belief about the way in which the data about the
phenomenon is gathered. There are two research philosophies which consist of
positivism and Interpretivism (Cuervo-Cazurra, 2016). Positivism philosophy is highly
structured and include the large samples. the measurement by using this philosophy is
based on the quantitative technique. Interpretivism philosophy include the small samples
on the basis of which the information is gathered and analysed in order to conduct the in-
depth research regarding the study. In this study, the researcher had been applied the
Interpretivism philosophy in order to gather and analysed the in- depth information.
ï‚· Research approach : It is the plan and procedure that include the steps for conducting
the research. there are two research approach which consist of Inductive and deductive.
The deductive research approach include developing the hypothesis which are based on
the theory in order to identify the information for the research. The Inductive approach
does not include developing hypothesis for the testing the observation as it is based on
the theory (Luo and Bu, 2018). In the present research, Inductive approach has been
considered in which the observation will be tested on the basis of theory in order to
gather the in- depth information regarding the study.
ï‚· Research design : It is the way through which the whole study is being structured. there
are two research design which consist of qualitative and quantitative. The qualitative
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research design include the views and opinions of the people regarding the subject
matter whereas in the quantitative research design it include the numerical data in order
to conduct the research. In the present research, Researcher has been used the Qualitative
research design through which the whole study will be conducted (Hosea and Marciano,
2016).
ï‚· Data collection methods : It is the way through which the information regarding the
research is being gathered from the different sources. There are two method of collecting
the information which consist of primary and secondary data collection method. primary
data collection means using the first-hand information through the help of survey and
interviews in order to identify the accurate and reliable information regarding the study.
secondary information is used from the different books, internet sources, journals, articles
etc. in order to have the information which is being collected by the other research. In the
present research, both primary and secondary information has been considered (van der
Meer-Kooistra and Kamminga, 2015).
ï‚· Data analysis : It is the method to analyse the information gathered through different
sources in order to identify the useful information. there are two method of data analysis
which consist of thematic and SPSS (Beamish and Lupton, 2016). In the present study,
thematic analysis has been used in order to analyse the information.
ï‚· Sampling : It is the way for gathering the sample from the large population in order to
gather the information. there are two methods of sampling which consist of probabilistic
and non- probabilistic (Buckley and Casson, 2016). In the present research, Simple
random sampling has been considered in which the information will be gathered through
using the samples of 20 employees of Sainsbury.
ï‚· Ethical consideration : It is the norms and ethical standards which are required to
consider while conducting the research. In the present research, the researcher has taken
the informed consent of the respondent in order to disclose the information provided by
them regarding the study. 575
Time Plan:
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k k k k k Wee
k
k Wee
k
k
Select the
research
topic which
is interesting
and unique to
research on.
Conduct a
literature
review on the
selected topic
Tools used
for
evaluating
the research
methodology
Relevant
factors are
analysed
After
analysing the
factors,
questionnaire
are prepared
on the factors
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which are
selected.
Facts and
figures of the
topic are
collected.
Facts and
data are
analysed by
the thematic
method
After
analysing all
such data
they are to be
rechecked
again.
Finally,
submit the
reports with
rectifying all
the errors.
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PART 2 : RESEARCH & REPORT
Questionnaire
(Enclosed in appendix)
Data analysis
Theme 1 : In- depth information regarding the term "globalisation"
Particular Respondents (20)
Yes 15
No 5
Interpretation : From the above analysis, it can be interpreted about the number of
respondents which have in- depth knowledge and information regarding the term "
globalisation". From the above table and graph depict the information that many of the people
have knowledge about the term globalisation. Around, 15 respondents out of 20 provided their
views that they have in- depth knowledge about the term" globalisation". The globalisation is
refers to the way geographical dispersion of the good and services provided by the organisation.
the terms globalisation is gaining popularity as many of individuals are getting the knowledge
Yes No
0
2
4
6
8
10
12
14
16 15
5
Respondents (20)
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1 out of 31
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