Sainsbury's and Globalisation

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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…………………………………………………………………….1 History of the Company………………………………………………………..1 Internal and external factors that are affecting the company…………………..1 External factors:
* Political and legal Factors………………………………………………2 * Economic Factors……………………………………………………….2 * Social and environmental factors……………………………………….2 * Technological factors…………………………………………………...3

Internal Factors
Porter’s 5 forces analysis:
* Competitive Rivalry…………………………………………………….3 * Barriers for entry……………………………………………………….3 * Threat of substitutes……………………………………………………3 * Buyer power……………………………………………………………4 * Power of supplier……………………………………………………….4

SWOT analysis
* Strengths………………………………………………………………..4 * Weaknesses………………………………………………………..........4 * Opportunities…………………………………………………………...4 * Threats…………………………………………………………………..5
How Sainsbury’s are dealing with the globalisation……………………………………5
Sainsbury’s management strategy as responses…………………………………………5 * The environment………………………………………………………..5-6 * Sainsbury’s reaction to effective change in its board…………………..6 * Try something new today………………………………………………6 * Supply chain…………………………………………………………….7

Recommandations……………………………………………………………………….7
References……………………………………………………………………………….8

Introduction:
Change is taking place in our everyday life as much as the time passes. Technology is growing faster every day with a frustrating rapidity, the environment knows the climate change which our planet is subject, and which also represent its biggest long term challenge. Our companies are trying to follow the change of the world to do not be unstable and their products obsolete. Change is inevitable for every individual and group of individual in the society. Change in behaviour, in the way of thinking, in the way of reacting to issues and so on. Change is the word that guarantees the continuity and sustainability and a long-term survivability. According to Doyle (2002) many factors are affecting the way a business operates. It could be a in a good or a bad way. These happenings are called “driving forces”. Our assessment consists today on making a business report analysing a particular company “Sainsbury’s Plc.” In this business report we will surely talk about the kind of driving forces that pushed Sainsbury’s Plc. to change as a first part, we will then have a specific regard on the Globalisation and also analyse how the chosen company is reacting to that change, whether it was an improvement or not in some areas where the company is operating. History of the Company:

According to the Official J Sainsbury Website, the company was founded in 1869 in London where it is based and today counts a total of 890 stores including supermarkets and local stores, in The United Kingdom and employs more than 150000 people. Is it the third largest supermarket and hypermarket chain in the country after Tesco and ASDA. The organisation has also a banking and property system of assets. Sainsbury’s knew many transformations on its business strategy as changing their logo in 1999 and slogans in the same year and 2005. The objective is to ensure durable financial returns by proving to its weekly 19 million customers a better customer service every day. Internal and external factors that are affecting the company: Internal factors are the driving force which are under the control of the company and happens into it. It could be anything like changing the organisation machinery and equipment, which is a part of technology, organisational culture, system and way of management, location of the organisation, etc. According to Politi (2007) The external driving forces are for example, the industry where the company is operating and...
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