Sainsburys and Globalisation - 3637 Words

University of Wales Institute Cardiff LSC London Change and Continuity in a Contemporary Business May 2011 For: Anand Walser By: BELAAROUSSI Omar Student ID: 0310MIMI1009 Table of Content: Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.1 History of the Company†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..1 Internal and external factors that are affecting the company†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..1 External factors: * Political and legal Factors†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦2 * Economic Factors†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.2 * Social and environmental factors†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.2 * Technological factors†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...3 Internal Factors Porter’s 5 forces analysis: * Competitive Rivalry†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3 * Barriers for entry†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3 *†¦show more content†¦The change will occur to the company whether they are internal or external driving forces. The trick is that the company should react and anticipate properly by showing its flexibility. Let us then make it practical with our Sainsbury’s case: External factors: According to Taylor (2008) one of the ways to examine the company’s External factors is to present a PEST analysis. * Political and legal Factors: Sainsbury’s is facing the huge growth and evolution of the globalisation which also represents an opportunity for the group. The organisation can also penetrate the emerging international market same as what Tesco and Carrefour (a French distributor) did, even if this plans are not in Sainsbury’s board. The investigation of price fixing between the four biggest brand names in the United Kingdom market can have some negative effect in the industry and for every competitor. It would be leading to lose the brand image that Sainsbury’s is having with their consumers. Moreover, the Government is about to decrease the tax rate from 30 to 28 % which will save a weighty amount of money. Sainsbury’s has to follow the packaging and labelling rules according to the food and drinks local laws. * Economic Factors: The significant increase of the food price is due to the global crisis all over the world, which will probably lead to a higherShow MoreRelatedGlobalisation1157 Words   |  5 Pagesincreasingly global nature of business mean that all organisations need to change their strategies significantly to achieve higher profits? Justify your answer with reference to Costa Coffee, Dyson and/or other organisations that you know. Globalisation is the process by which the world is becoming progressively interconnected as a result of significantly increased trade and cultural exchange. It has also increased the production of goods and services. The biggest companies (such as McDonald’sRead MoreBusiness Ethics Are Moral Principles1683 Words   |  7 Pagessupermarkets operate in a competitive oligopolistic market, a state of limited competition, in which a market is shared by a small number of producers. This is obvious in the UK supermarket industry as there are three main companies ( Asda, Tesco and Sainsbury’s). All these supermarkets carry similar products such as Bird’seye and Heinz. Another feature of an oligopoly is that many of these supermarkets generic foods such as Asda Smartprice range and Tesco Value are made at the same factory and labelledRead MoreSainsbury3140 Words   |  13 PagesSainsbury passion towards food at fair prices and its ethical approach have remained central for their success (J Sainsbury Plc, 2012). Figure 1: Business Strategy and Objectives [pic] (Source: J Sainsbury Plc-a, 2012) Accessing Sainsbury’s strategy using Bowman Strategic Clock The strategy clock which was coined by Cliff Bowman encouraged the mangers to consider competitive advantage with relation to cost advantage or differentiation (figure 1). It focuses on the price of theRead MoreTo what extent does demographic change in the UK represent more of an opportunity than a threat to UK businesses?1248 Words   |  5 PagesThe UK economy is constantly changing for various reasons such as improvement in medicine and increased globalisation leading to people living longer and the UK economy becoming more diverse culturally. Whether or not it provides an opportunity or a threat to a business will largely depend upon how the management of the business decides to attempt to change because of the change of the demographics. The largest change to the UK demographics would be the overall increase in the average age of theRead MoreAn Ethnographic Study of a Subway Resturant2668 Words   |  11 PagesIntroduction Globalisation is a force that became the buzzword of the 1990s. Various countries around the world have experienced a thrilling increase in trade, innovation transfer and cross-border investment flows in recent years. The effects of globalisation and the evolution of the most developed economies are difficult to separate and a few authors believe the effects of multinational enterprise to be a defining feature of globalisation (Strange, 1986). In this essay, I am going to deliver aRead More(a) Threat of New Entrants and Substitutes for Tesco1258 Words   |  6 Pagesbeing sold to private investors. (www.plunkettresearch.com ; www.ers.usda.gov/). |Question One: | Tesco, Sainsbury’s and Morrison are among the top UK food retailers. 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These include the rest of the ‘big four’ i.e., Asda, Sainsbury’s and Morrisons respectively. * The decline in income and the rise in unemployment have affected the discretionary buying behaviour of consumers which has adversely impacted the company’s sales, in particular the non-food items. PESTLE Analysis Political * Promotion of free trading blocs by governments to benefit from globalisation has been presented in the literature. 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