Sample Essay
Weakness:
The issue of the takeover bid by Qataris firm last year may have some impacts on the customer loyalty as they wouldn’t like to go to а company which is governed by foreign firms rather than British authorities. (Arnold and Politi 2008)
Sainsbury’s is only operating its business within UK, whereas, its biggest rival Wal-Mart is expanding its business all over the world, In that case Sainsbury should expand its business policies at а more globalised level and plan spreading its business as а backup.
Opportunities:
The strategy of making profit of £40 million through its Banks and investing huge amounts in properties (Killgren 2008b) may influence the parent company to expand its alternative businesses to obtain maximum growth. Promoting online sales can result profitable for Sainsbury‘s as it has huge margin at а lower cost.
Threats:
Long term investments should be made on environmental issues. For example, Sainsbury should hold up Bio-fuel as it reduces global emission quite efficiently and has direct impacts on the supply chain of Sainsbury’s. However, the pricing of it has implications on the overall cost which the customers may have to bear as well. Some issues such as , planning for future , competition in the market , employment , pensions , tax , law and their implications , green factors may require of more Legal responsibility from the company , if the company feels to draw deep concerns about these sensitive issues may face difficulties in near future.
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