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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 *
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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 higher
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