Established in 1869 by John James and his wife Mary Ann in a partnership retailer store, presently it is the third largest retail supermarket chain in UK market with a total market share of 16.3%. Sainsbury is the UK’s oldest and major food retailer. In the early of 1990 Sainsbury was the market leader, however due to some reason it lost its position to Tesco and come in third position in terms of leading retailer in UK (J Sainsbury plc. 2015). The downfall involves several reasons, such as lack of innovative marketing strategy, unhealthy acquisition in Egypt, changing management and misleading in sustainability aspect, which obstruct in communicating right message to the ...view middle of the document...
Vision and mission statement of Sainsbury
The corporate vision of the company is to be the most trusted brand in the retail market where people love to work and shop (London Evening Standard. 2015).
Belonging from retail chain, the mission statement of Sainsbury is to be consumer first choice for food, delivering high quality product to the customers and provide great service at competitive price by working in a simpler and innovative manner.
WHY EGYPT IS GOOD FOR BUSINESS:
PESTLE ANALYSIS OF EGYPT:
1) Import process
According to Abdi and El Masry (2000), “In 1999, Egyptian imports of U.S. consumer ready products totalled to $83 million compared to $56 million in 1998. Base on the statistic, Egypt has showed tremendous rise in foreign products and services due to the increase of multi-national firms that had started to invest in Egypt at that point of time. Big part of the reason is due to the policy set by General Organization for Export Imports & Control or also known as GOEIC. GOEIC has taken a more encouraging manner towards foreign investors by streamlining the process of import inspection by offering a new Presidential Decree No. 106 of 2000 (UNESCO, 2005). Reducing trade barriers: most non-tariff measures have been removed and tariff protection has been sharply reduced (World Trade Organization, 1999). It is important to note that government has the autonomy to limit or preclude entries to any industries by controls such as licensing (Pearce and Robinson, 2000). Unlike before, there were five government entities who were involved in the import clearance process, this new decree enactment ameliorate Sainsbury’s opportunities to import foreign goods without any issues.
One key progress is the reduction of trade barriers in the country. Much progress has been made in reducing trade barriers: most non-tariff measures have been removed and tariff protection has been sharply reduced (World Trade Organization, 1999). Despite the amelioration, import tariffs set by the government are relatively high. According to El Masry (1999), tariffs rate for consumer oriented product changes in between 30 to 50 percent.
The economic stabilization programme initiated in the early 1990s in Egypt has improved economic growth, and reduced inflation and, to some extent, unemployment. According to El Masry (1999), there is an estimation of 10 million out of 63 million Egyptians have the capability to purchase imported food products. According to the statistic from World Bank (2003), the poverty rate in Egypt during 1999/2000 was at 16.7 percent, which is a gradual improvement in comparison with 19.41 in the year of 1995/1996. By year 2000, most Egyptian has already shifted from the rural areas to cities such as Cairo and Alexandria (CountryReview, 2000). Thus, they are becoming more demanding in terms of the quality of service, product and cleanliness (El Masry, 1999).