Business Strategy for Sainsbury: Analysis of Macro and Internal Environment, Competitive Forces, and Strategic Planning

This report analyses the impact of macro environment on Sainsbury's strategies, evaluates its internal environment and capabilities, applies Porter's five forces model to evaluate competitive forces, and devises strategic planning using a range of theories and models.

Business strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1: Analysing appropriate framework analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................3
TASK 2............................................................................................................................................7
P2: Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks..............................................................................................................7
TASK 3............................................................................................................................................9
P3: Applying porters five forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................9
TASK 4..........................................................................................................................................11
P4: Applying a range of theories, concept and models, interpret and devise strategic planning
for a given organisation.............................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The organisation deals with various issues and task in the management and try to
overcome such sort of trouble from the management by developing business strategies. The
management creates various orientated aims and targets to present organisational operations as
effectively. The business strategies involve the policies and approaches for their future
implemented targets. Business strategy utilise to set the aims and the objectives by which they
can execute the long-term targets and planning (Nguyen, and et.al., 2021). It will refer as the
work-plan that provides relevant guidance and path to individuals in order to present strategies in
the management. The organisation consider in this report is Sainsbury. It is largest series of
supermarket in the United Kingdom that was founded in the year of 1869. This following report
will involves all the external and the internal analysis with effective plan of action in the
management by applying bowman strategic clock and porters generic.
TASK 1
P1: Analysing appropriate framework analyse the impact and influence of the macro
environment on a given organisation and its strategies.
 Mission - To offers all the consumer their favourable products that will help them to
produce a major effective way of function and the operations that can be framed.
 Objectives - To set up such manageable that will create low products and will
concentrates on enhancement of there facilities and development.
The macro environment factor includes the various parts such as political, economical,
social, technological, legal and environmental that will directly have impact on the organisational
operations in an effective manner (Ch’ng, Cheah, and Amran, 2021). It also has the
fundamental output that include the managerial division to develop an effective decision and
policies in order to present their dealings. As on the other side, it is essential term for the
management to evaluate such sections by applying PESTLE analysis in order to determine their
impacts on organisation for further dealings that will also help the management in developing the
effective strategies that are as follows -
PESTLE Analysis
The factors that require to be introduced in order to ascertain and measure the dealings
that would have an impact on organisational functions that require the management of Sainsbury

to develop effective strategies. It will also help in dealings with several factors in the
management. PESTLE analysis are as follows - Political factors - The political factor will have an impact on marketplace in their suitable
way of the management in context to the political retardation in other nations as
effectively. It offers all the rules and the framework of regulation that presents the major
rules in terms of the government system (Amorelli, and García‐Sánchez, 2021). As the
maximisation in the value of foreign goods might probable to be passed onto the final
customer and it will directly change. It means that the management of Sainsbury will
have to put more efforts and spend more in respect to increase the profit. Economic factors - High fuel cost will make it costly to transport products as across to
the nation. Supermarket like Sainsbury, will have to deal with maximised price value. It
might form the manner of low profit rate or high profit rate for the customer that are
basically tends to be decline its global profitability. It is all economical variations and the
profitable variations and inflation rates and the interest, exchanges rates that are being
evaluated in respect to manage the profitable betterment and the development of the
company. Social factors - This is the demographic variations and the consumer needs that are being
satisfied by the management in respect to maintain the development of Sainsbury. As it
includes varied manner of orientated and buying behaviour of consumer changes that are
often reliable way through which the management need to develop several changes in
their purpose as according to dealing with social changes. Technological factors – By having several challenges in supermarket sector, Sainsbury
will require to follow the current trends that are exist in technological and specialized
structures by adopting an advanced application in the management (White III, Rajwani,
and Lawton, 2021). This offers all the digitalization and the invention that are being
utilised by the management to make it sustainable and controllable. It has fundamental
aspects and characteristic that will helps them in following their task to maintain their
aims and objectives as effectively. Legal factors - Sainsbury are maintaining their dealings and responsibilities in several
countries with the suitable manner that need to follow legitimated rules that are
developed by the administration by increasing the opportunities to maintain the

difficulties in the management. As it is an essential form of management to deal with
several structures with legal rules and regulations to extend the organisation with several
countries. But at the time of Brexit the variations in the laws that will have impact on the
management and their performance by which they are executed to being affected as they
have to concentrates on the rules of UK.
 Environmental factors - At the current time, the consumers have the high manner of
ethics with the manner of globalisation (Goni, and et.al., 2021). This is the sustainability
and the variations that the management of Sainsbury will use in respect to manage the
working of the business and also to execute the promotional strategies that need for
environment activity. As on the other side, it will also help their staff faculty in offering
their effective set of efforts in accomplishing their oriented objectives and goals.
SWOT analysis Strength - Sainsbury will involve several set of strength that are valuable. The
management is maintaining suitable functional structure. It will also support them in
creating quality of goods and facilities that will have an impact on consumer towards the
management. It will also help them in heighten more consumer and become a strength for
them. Weaknesses – The management is having varied sort of weaknesses that are high price of
products. Such will not get visited to middle class individuals in a frequent way. As there
are several manners that are related with limited manner of promotional campaigns. Opportunities - As there are number of possibility through which the management will
develop their structure in relation to the consumer development. As on the other side,
they have well-qualified individuals who have professionalism in utilising of smart
strategies and creating current set of goods in the field of area.
 Threats – As there are several term of the threats in an organisation due to COVID-19
pandemic situation that has created threat for the organisation as because there are low
customer during this time (Awodumi, 2021). By maximising competition is termed as
other threat like Asda, Tesco and many more.
Ansoff Matrix Market penetration- It will termed to the generic plan of actions that will support to
create the management in order to enlarged it with the support of applying varied term of

new strategy in the field of market and their performance by applying all the new
operations in their present set of facilities. Market development- Sainsbury will apply all the approaches by which their supermarket
services might be get accessible to new market area (Nonaka, and Takeuchi, 2021). It
will allow new consumers by getting influence from their services regarding the
development that will be created by gaining new consumers who are include in the
business. Product development- The strategies that are created by the management in respect to
bring and to present new goods in the field of market by which the attention of consumer
might be gained and it will support them to create the turnover of the management. Diversification- It is the speculative field in which new goods will have to be present in
all the new field of the marketplace. It develops a high risk section in the management.
Stakeholder analysis
Shareholders will involve several field of the sections. As these are evaluated in the
mentioned diagram. It will also support in knowing of several stakeholders that are as follows - High power- High Interest: It is the basic section of all such authorises that have high
power in the management as in relation to the Sainsbury they utilise to develop a basic
role in the business. High power- Low interest: This section is utilise to include all the shareholders of the
management that utilise to major finance as in terms to manage the development. Low power-High interest: They basically involves low power in the management but
they have effective interest as in relation to them by using it to offers the support in the
task and the performance but with low interest attribute (Lu, and et.al., 2021).
 Low power- Low interest: They have no power in the organisation of the company and
there is no optimised quality that are being accepted to them.

Illustration 1: Stakeholders’ matrix, 2021
§
TASK 2
P2: Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.
Strategic capability – As per to the Sainsbury, it has been evaluated that the roles and dealings
in the management will execute their operations in varied divisions by facing tough or
challenging task from their competition. Strategic capabilities of the management will refer to
the organisational capabilities and knowledge through which the management of Sainsbury
easily present their approaches and actions to accomplish success (Calabrò, and et.al., 2021). As
there are several roles like stakeholders, customers and many other who provide effective
dealings in helping the growth and advancement of management as per to the execution of
strategies and decisions for betterment with the perspective of getting further positive result.

Resource Based View
It is the method by which the management will create diverse sort of plan of action as by
which they will manage the development and the sustainable progression and the competitors
section in the analysation of organisational practice.
VRIO Analysis
This techniques will generates four essential components through which the description and the
operations of the management is branched (Bagnoli, and et.al., 2021). As in relation to
Sainsbury, that are as follows - Valuable- The sections or the resources that are being valued by an organisation so as to
create it more utilised and advanced for all the running management that are considered
in it. Sainsbury will utilise to the worth of the financial resources that are being utilised
by them. Rareness- This includes all the specific and the essential goods that are being choose by
them as the rare so that material will supports for the company. Imitable- It will include all the affordability that are created by the business of
manageable so as to copy all the resources (Demianiuk, 2021). Sainsbury will utilise it to
offers consumer community as that is essential and affordable resources that might utilise
to frame and imitate all the perceptiveness that are utilised by the management for the
growth.
 Organisation- It will utilise to create all the points that are being framed and properly
maintained by the business as to create all the facilities and the efficiency to be created in
meagrely organised operational that will offers the general working in more easy way.

Illustration 2: VRIO of Sainsbury, 2021
TASK 3
P3: Applying porters five forces model evaluate the competitive forces of a given market sector
for an organisation.
The management of Sainsbury will follow the strategies that are based on external factors
that will have an impact on the managerial environment. Such sort of forces will decrease and
limited the turnover and market share of the management. It involves some of the components
that are as follows -
Porters five forces model Competitive rivalry or competition – The business of management such as Asda and
Tesco are competing with Sainsbury. They have low differentiation of goods that are
applied as a strong force and low manner of price (Gebauer, and et.al., 2021). As per to
high competition and quick innovation, it will consider that an effective force in the
situation of business will relate to the qualitative of goods and facilities that are being
provided by challengers. As on the other side, it is flexible for consumer to shift over

other company. As there is a low shifting value that are based on price, availability and
other sections. Bargaining power of buyers - As per to buying power of consumer that will have an
impact of management on Sainsbury. Such aspect of concept is termed to identify that
how the buyers is creating decisions that are related to purchasing power and taste (Liao,
and Liu, 2021). As it will based on varied external factors like switching price that is
strong in it. It include the power of the consumer towards the management and their
operations as by bargaining and as per to their wants and desires. Bargaining power of suppliers – It offers that the supplier power in the business to rise
up their costs and maintaining the dominating position of the supplier in the business. By
the support of basic section of changes and growth to measure the outcomes and create
high supplier to excerpt the price. Threat of substitutes or substitution – It is the substitute goods that are being utilised by
the consumers in respect to manage the work easy and also to change their faithfulness
and change to another brand. All of such sort of sections that will relates to efficient
value of statement that will develop the relations and changes to evaluate the result of an
organisation.
 Threat of new entrants or new entry – It is an intermediate force that will have an impact
on managerial procedures. This is termed to be easy that has been seen in the field of the
structure to adopt all the same managerial sections that are being accomplished by some
other individuals as effectively.
Balance scorecard
In the present evaluation, it will concentrates on organisational performance techniques.
In this for orientation it has been mentioned that by measuring of the business mission and plan
of actions (Massaro, and et.al., 2021). As per to this mission and approaches, Sainsbury
management policy, consumer, intrinsic procedure and financial section that are adequately
mentioned. With the help of this section, several actions of meeting targets and aims that are
demonstrates.

Illustration 3: Illustration 3: Balanced Scorecard, 2020
TASK 4
P4: Applying a range of theories, concept and models, interpret and devise strategic planning for
a given organisation.
Porter's generic strategy
Cost leadership - Cost leaderships strategy is termed as the strategies in which the management
will concentrates on decreasing cost by meeting consumer to be global cost supplier as per to the
demands (Ristyawan, 2021). It is an effective strategical way that is being made by the
management to gain competitive benefits and sustainable development in the field of market. It
involves the stability that is being utilized in a continuance of the present approaches.
Differentiation – Differentiation strategy is termed as a strategy that will utilised by
management for distinguishing themselves from the challengers. Such sort of strategy is applied

by the Sainsbury management to create their goods and facilities that are different from another
management. By this strategy, the brand is distinguishing themselves from their aspects and
creating their goods different from their challengers. This strategy have suitable target in
Sainsbury that are becoming apart from their competitors not by the cost but it will based on
goods creation to influence higher number of consumers (Lima, McMahon, and Costa, 2021).
As from this, management is reaching from several sections of the market.
Bowman's Strategic Clock -
It provides the competitive orientation of the goods in the field of the market. As for
Sainsbury some essential strategies are as follows - Low price and low value added (Position 1) - It promotes the evaluation to be low so as
to create the advantages and will also to execute all the behaviour and the performance
framework to be easily maintained. Low price (Position 2) - It is basically an approach in which the management will adopt a
low pricing method that will supports to create all the variations and the formation by
which the profit margin will be applied and it will also offers the basic values and
significant for the performance. Hybrid (Position 3) - It involves an advanced brand goods that are created to be efficient
with all the plan of action and the accumulation that are opted. Sainsbury executed varied
schemes to develop new invention and by applying higher term of facilities in low price. Focused differentiation (Position 4) - It is basically the needs or creating all the facilities
and the goods that are to be allotted in a well manner to maximise the utilisation and to
serve varied new facilities in expensive price. Risky high margins (Position 5) - It involves the dynamic high costs for the facilities that
are being offered earlier (Sawe, and et.al., 2021). As the management of Sainsbury can
try to utilise all new approaches by which Sainsbury can modify their schemes and
develop it advanced priced. Monopoly pricing (Position 6) – The management choose a marketplace leader schemes
as by which they will create the goods and the facilities to be diverse and certain from
one anothers.
 Loss of market share (Position 7) - To ignore the failure in the management it will share
the manner to create all such contribution and the facilities to be executed that will not

worth any sort of involvement of facilities (Lozano, Bautista‐Puig, and Barreiro‐Gen,
2021). As the customer will try to maintain the low evaluation facilitates by which they
will make new contribution at average valuation.
CONCLUSION
From the above mentioned report, it has been concluded that, business strategy is an
essential term of varied formulation and approaches that are significantly required to be get
developed by the management of Sainsbury in a particulars field of structure. As on the other
side, it will help them in achieving the basic section of the competitive advantages and surviving
at the field of marketplace for longer period of time. As Sainsbury is a low pricing management
that should manage the price strategy to develop themselves better from all the competency in
the field of the market and also by measuring diverse market shares in the business of
management.

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