Introduction
This report aims to evaluate Sainsbury’s policies in Egypt by implementing several frameworks such as SWOT, VRIO and PESTEL analysis, and FDI (Greenfield, Joint venture, Franchising). This report is using former evaluating tools in order to diagnose Sainsbury’s resources and capabilities also for the future movement in Egypt.
[1]Analysis of internal environment [SWOT AND VRIO]
1-1 SWOT
SWOT analysis is a useful method to investigate internal environment. By implementing SWOT as an analytic tool for Sainsbury, the company could gain a comprehensive list of factors they should concern in running a business properly.
Strength-The main strength of Sainsbury is that they are the oldest existing supermarket chain in the UK. Hence, the brand name of Sainsbury is widely recognized and building a loyal customer base in their region. Outstanding quality and competitive price for products are unique resources that other competitors could not imitate.
Weakness-Despite, their efforts of transferring 64 expatriates as to launch the supermarket business in Egypt, human resource management resulted in high cost with low productivity. While Sainsbury required local staff to be accustomed to the new techniques and standards of their policy, employees failed to meet the expectation they want.
Opportunity- If Sainsbury were been able to transfer their brand into Egypt market, it would be the biggest opportunity in conducting their business as Egypt is perceived as a market
The SWOT analysis is commonly known as a tool for business analysis. Its main use is for looking at strengths and weaknesses to do with the organisation, current or future opportunities and possible internal and external threats. These can then be dealt with to make them into a positive.
Sainsbury’s goal is to reflect they commitment to meeting customers’ needs; however, they want to shop food, clothing, general merchandise and services also they vision is to be trusted retailer where people love to work and shop. They strategy plan is to know they consumers better than anyone else, be there for them whenever they need them also offering great products and services at fair prices. They colleagues make the difference; they value makes them different.
The purpose of Sainsbury’s is that they are trying to make as much profit as possible, as they are competing with other supermarkets and be the number one UK’s supermarket, and this will allow them to expand on their business.
In the following report we will be going over our analysis and findings during the process of our study of Sainsbury’s internal and external environment.
Within this report, diligent focus will be shown to the financial year of 2010 and the final year of
Sainsbury’s is the third largest store chain inUKand 80th placed in FTSE 100 companies with market capitalisation of £ 5,457.35 million. The essay employs SWOT analysis to assess the strengths, opportunities, weaknesses and threats in relation to its strategy and operations in the UK and international markets with reference to its retail business. The strengths and opportunities of the company should be used to neutralise the weaknesses and to develop a competitive strategy against the threats that are identified as facing the organisation.
Customers- Customers want the company to improve and give them better value for every product they buy. They want the company to produce high quality products for them. Customers are one of the main stakeholders of private sectors such as Sainsbury’s because without them Sainsbury’s wouldn’t achieve their aim.
Initially Sainsbury’s was well received by the Egyptians as they were all talking about Sainsbury’s upon its arrival. However, Sainsbury’s failed to understand the retail industry in Egypt. Sainsbury’s did not examine its market and its partner (Edge) before competing in the Egyptian market. Also it would seem that Sainsbury’s expansion into Egypt wasn’t very thought out as they faced many challenges.
Sainsbury has developed different supply chain channels to manage the complexity faced due to different store formats such as country town, Sainsbury local. Sainsbury believes in continues improvement and aims to achieve it in many different ways. Sainsbury recognise the importance of its people who plays a major role in delivering excellent business. The logistic staffs of Sainsbury tend to work in flexible and well maintained environment. One of the collaboration of Sainsbury is to focus on the demands of the consumers and maintain a healthy relationship with the suppliers and other partners. Above all Sainsbury is committed in reducing the impact of its operation towards the environment (J. Sainsbury Plc-b, 2002).
SWOT Analysis is a simple but useful framework for analyzing your organization's strengths and weaknesses, and the opportunities and threats that the company face. It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you will giving you the opportunity to ward off possible threats from external sources.
This is what differentiate them from their competitors and this is what will convince you to shop with Sainsbury’s.
Therefore not being able to gain a profit, suppliers like Heinz and Kellogg’s that if they do not supply their products to Sainsbury’s it can lead to Sainsbury profit loss. The communication methods that Sainsbury’s use to communicate to their suppliers is through written, oral and online methods. The stakeholders of suppliers have affected the business of Sainsbury’s is that they are able to give them the products that will help them be able to meet their aim of serving high quality products to their customers so that therefore can increase their sales/profit to then be Able to become the number 1 largest supermarket in the
Woolworths Limited is a retail company made up of a range of businesses that provide customers with quality, range and value. This report focuses on two parts, Woolworths Ltd Strategic analysis and strategic review in order to provide advise to the Board and Senior Management of Woolworths to obtain a higher achievement in 2012. In the first part, the report demonstrates analyzing the business environment by SWOT analysis, key capabilities, major stakeholder interests and identification of generic business level strategy of supermarket unit. Then the second part provides analysis on two strategies from internal and external environment and the Corporate Balanced Scorecard analysis contributing better implement their
This report will show how Sainsburys have used performance management to increase their ability to provide a quality service and gain a competitive advantage, it will also show how systems have been implemented to achieve this and what Sainsburys have changed in recent years to achieve the competitive advantage it was looking for, The main area Sainsburys have changed is there Supply chain which had a cost gap of around £60 million. It will also look at how the operations functions carried out by Sainsburys can be linked in with other areas of the business like Finance, Human Resource Management and Marketing. The main contents of this report will
SWOT analysis is a useful tool for understanding and decision-making for all sorts of situations in business and organization. SWOT analysis can be classified into internal and external factors affecting a company. The Strengths and Weaknesses of the SWOT analysis represent the internal factors that influence the viability of the company. While the Opportunities and Threats, on the other hand, are the external factors that may affect the company's performances. A SWOT analysis provides more understanding of the organization in relation to its internal and external environment so that manager can formulate better strategy in pursuit of its mission.