Business Strategy of Sainsbury Organisation

Business strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Part A...............................................................................................................................................1
P1 Analysing the capabilities of Sainsbury organisation by applying PEST/LE and SWOT
frameworks on the organization.............................................................................................1
P2. To analyse the internal environment and capabilities of Sainsbury.................................4
P3 Porter's five force models for organizations-....................................................................6
P4 Theories and models required to interpret and devise a
strategic plan for organization-..............................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term business strategy itself says the strategy or plan to reach high level of business
aims. Strategy is a success when its executed and it gives business profits,growth, etc. Strategy
must be changed if it does not give any profits to business. It is basically an organisation's work
for achieving certain goals of company for its vision,competition and performance (Dahlberg,
Hokkanen and Newman, 2016).It is a plan to see how a firm works to meet the goals of the
organisation. Here the organisation is Sainsbury which is a grocery store. This report states the
growth of company by analysing the capabilities of Sainsbury organisation by applying pestle
and swot analysis and Porter's five forces model . Also the analysis of internal environment and
capabilities of the firm with respect to other companies is shown. And lastly a strategic plan is
made applying theories, concepts and models of the organisation.
PART A
P1 Analysing the capabilities of Sainsbury organisation by applying PEST/LE and SWOT
frameworks on the organization
Sainsbury is the third largest food retailer in the United Kingdom. The retail sector is
going through a rapid change, as customer shopping habits continue to increase. This led in
increasing competition across grocery, general products and clothing, as customers see more
value, options and convenience. Sainsbury and Asda together will result in a more competitive
business that will be able to invest in price, quality, range and the technology to create easier
ways for customers to shop. It has the products and services available at one call and at fair
price. The employees in the firm make a great difference in the performance sector. They are
available 24*7 for the customers (Scholes, 2015). The morales of the organisation makes the
organisation different from other.The employees build strong relation with the colleagues to
build trust, reduce operating costs, and attract more people in a crowded marketplace.
SWOT Analysis of Sainsbury-
The swot analysis is conducted to increase the profits and gain objectives of the
company. This includes strength, Weakness, opportunity and threats.
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 Strength: It is one of the largest supermarket chains in the UK. It has the large number of
loyal customer base. It is famous for its fair price and quality of products. It has the large
number of trained employees who focus on customers and attend every customer with
dignity. It provides various famous and good brands products and promotes the products
as well in a very attractive way. The company focus on investing more in developing
infrastructure and additional features for the benefit of the firm to attract more customers.
Different facilities are provided in the firm for customer's usage ,satisfaction and east
access to store.
 Weakness: There is continuous competition in the market for retail stores so it affects
the firm a lot. There is more problem in getting trained and skilled employees .It is
restricted to UK only. It totally depends on the local market (Johnson, 2016).The
communication skills of the employees is limited and sometimes it becomes difficult for
customers to get desired products easily.
 Opportunities: As the market is expanding, so it brings more opportunities for the
organisation to expand the business at national or international level. It can also grow or
start its chain in other emerging countries. Some countries also offer low labour cost. The
company can increase some features and some new products for the business growth.
Opportunities to grow online is also there as customers love to shop online so it is the
best way to increase productivity.
 Threats: There are various competition in market in the same business and those are the
biggest threat to the organisation. Also, some natural disaster that occurs sudden are a
danger to the organisation. Company tries to achieve a targeted margin every year and
that is difficult to achieve so that becomes a problem for the company.
PESTLE analysis of sainsbury-
It contains political, economical, social, technological, legal and environmental factors
that are included in this analysis which done for the development of the organisation.
 Political factors: This factor relates to political issues that occur in organisation for the
business development and that need to be sorted. The trade agreements between the other
countries gives a new scope for market growth (Leonidou, Fotiadis, andet.al., 2015). The
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