The 2008 outlook also reports that downside risk to the outlook seems more threatening that at the time of the September 2007 outlook. This is because oil price declines since the last august and generally benign global financial conditions have helped to limit spillovers from the corrections in the US housing market and to contain inflation pressures. (IMF World Economic Outlook, 2008). Thus, multinational companies must rethink their global strategies, in the phase of the foreign exchange rate and the falling price of oil. The present circumstances make them victims of foreign exchange risk and exposures.Against this background, the purpose of this paper is threefold. The study, first of all, is aimed at carrying out an analysis of the impact of foreign exchange exposure on a United Kingdom UK based retail company-Sainsbury Supermarket. In the second part of the paper, the paper analysis the impact of capital investment appraisal tools on the activities of Sainsbury group. In the third part of the paper assess the impact of share valuation on Sainsbury group. The last section of the paper presents the conclusion and a brief recommendation to the company’s management on how to go about getting the best from foreign currency exposures.Like macroeconomic analysis, the analysis of the industry is important because it enables the analysts to make abnormal profits arising from information asymmetry between the proper analyst and competitors who fail to carry out a proper analysis. Just as it is difficult for a firm to do well in a poor macroeconomic environment, so too is it difficult for a firm to perform well in a troubled industry. (Bodie et al, 2002). Similarly, as performance can vary across countries, so too does it vary across industries. (Bodie et al, 2002).