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Evaluating Sainsbury 's Resources And Capabilities Also For The Future Movement

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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

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