Business Strategy: Evaluating Macro-Environment and Internal Capabilities

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................4
P1) Evaluates the macro-environment in order to successfully operates business activity. ....4
TASK 2 ........................................................................................................................................6
P2) Evaluate internal environment and capabilities of organisation..........................................6
TASK 3..........................................................................................................................................12
P3) Describe briefly porter' five forces model and balance scorecard.....................................12
TASK 4..........................................................................................................................................16
P4) Examine the various theories and strategic planning with the help of different models....16
CONCLUSION.............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business strategy is wider and broader scope in border to most of organisation using
effectively in order to easily achieving organisation goal and objectives of company. It includes
various tools and framework which organisation adapting because gaining competitive
advantages at marketplace. Top level of management has taken ample numbers of decisions with
the help of strategy they take appropriate decision which leads to increasing profitability of
company. These report is about Sainsbury's which is one of the famous supermarket chain in
United Kingdom (Kuo, 2017). It dealing in clothing segment, food and grocery items and
provides wide range of products and services so it attract more customer base. The paper
consists various tools and framework which helps to analysed the business environment such as
PESTEL model because it helps to evaluates the macro environment factors, analysed of internal
and external capabilities of company as well as also evaluates the porter's five forces model and
porter's generic which leads to organisation used various strategies to enhancing their
profitability and sales revenue. They utilised ample numbers of promotional tools which
effectively attract more customers and increasing customer base it leads to achieving
organisation goal and objective of company.
TASK1
P1) Evaluates the macro-environment in order to successfully operates business activity.
Strategy refers to it includes various tacit which organisation effectively adapting to
improve performance of organisation so it is necessary to achieving organisation goal and
objective of company. There are ample numbers of strategies which is formulated by
organisation in order to gaining competitive advantages.
Mission- “It is main aim to providing high qualities of goods and services to customers”.
Vision-: Main vision of Sainsbury's they provide the product at reliable and cheaper
product. It serves to society good quality products which brings standard of living.
Objectives-: The main objectives of organisation is to increasing their revenue and
profitability of company in order to developing brand image at marketplace (Saenz, 2019).
PESTEL framework
These tools organisation utilized in effective way because these models easily analysed
the external environment in order to successfully established the business and gaining

competitive advantages. It includes various factor such as political, social, technological,
economical, environmental and legal. These factors are described below.
Political factors-: These factors refers to rules, regulations and guideline which essential
to followed by organisation in order to successfully operates business activities. The political
condition of UK is strong and stable due to these organisation mandatory to followed rules and
regulations. In context of Sainsbury's, it effectively followed the rules and regulation in order to
easily growing the business (Ordóñez de Pablos, 2016).
Economical factors-: These factors plays important role in order to includes such factors
inflation rate, exchange rate, tax rates and deflation and unemployment. The economic condition
of UK is strong so they effectively impact in business condition. In relevance of Sainsbury, it
easily expand business operations in order to favourable trade policy and government also
support their business model.
Social factors-: These factors refers to values, religions, belief, custom and tradition
which essential to followed by organisation because they operates business activities in many
countries. In relevance of Sainbury, they provides high quality of goods and services to
customers in order to they are not affect the business revenues and on that basis they know about
the customer taste and preferences.
Technological factors-: Technological factors refers to includes various innovation and
technology in order to organisation effectively adapting to grape market opportunities due to
changing external environment. Sainbury's mangers used adavanced technology in order to
effective billing system so customer easily payment of products and there is no need to wait for
long queue (Bendell, 2017).
Legal factors-: There are important factors which considered as various laws such
employee contract law, Wages act and many more. There are ample numbers of laws which
organisation adhered to follow them. In relevance of Sainsbury's, it includes various laws and
rules which affecting business operations.
Environmental factors-: These factors majorly depends on business sustainability in
order to includes factors such as climate change, natural disasters, temperature and many more.
In context of Sainsbury's, they used recycle and biodegradable products which doesn't harm to
the environment.