Business Strategy: Internal and External Factors, PESTLE Analysis, SWOT Analysis, Strategic Plan

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...............................................................................................................3
PART A- Internal and external factors ..............................................................................3
1) PESTLE.....................................................................................................................3
PORTERS FIVE FORCE: .............................................................................................4
2) Sainsbury capability (VRIO model)...........................................................................4
3) SWOT .......................................................................................................................5
PART B - Strategic Plan ...................................................................................................6
1) Strategies:.................................................................................................................6
2) Producing a strategic business plan.........................................................................7
CONCLUSION...................................................................................................................8
REFERENCES..................................................................................................................9

INTRODUCTION
Business strategy refers to the business tactics or actions that is used by the
company in respect of attracting customer towards the business. Strategy is mainly
undertaken in relation to strengthening the performances of the company or also setting
the goal which is to be achieved within the stipulated time period (Bentham, 2018).
Present report is based upon the Sainsbury which carries the renowned brand image in
the market and such concept is brought by John James Sainsbury in 1869. It is
examined that they are carried to be the third largest supermarket chain in UK. This
report will include the matter relating to internal and external factors that provide the
information regarding planning for business strategy. It also carries the aspects relating
to undertaking the theories and business tactics for initiating the accurate strategic
management plan.
PART A- Internal and external factors
1) PESTLE
In relation to undertaking the external analysis PESTLE is conducted which helps
company to examine the factors which affects the strategy of business externally
(PESTLE AND SWOT ANALYSIS OF SAINSBURY’S 2017, 2020). It carries the
following such as: Political: Sainsbury causes the major impact during the time of Brexit as most of
the people decided to move from EU. This results in facing issue regarding
importing the goods from abroad. Thus, the impact arises due to facing strict
government norms regarding promoting the business into different countries
(Edwards and et.al., 2019). Economic: The impact which the Sainsbury faces externally is adapted in case of
rise in fossil fuels which results in causing heavy expenses of transportation cost.
It also causes impact regarding fluctuation in interest rate, thus impact arises due
to raising in expectation of getting higher salaries to employees. Social: This is one of the major external factors which results in causing deep
impact to Sainsbury in form of changes in market trends (Mkansi and Nsakanda,

2019). Thus, in such aspects they are preferring healthy and eco friendly
products and also conscious about knowing the dealing of raw material. Technological: Technology play the important role in sustaining business in
market for longer way. The impact arises due to lack of data security or also
home delivery of products within the set stipulated time period. Thus, digital
services are demanded in market by the consumer to order the products online. Legal: In this factor, the impact arises due to changes in government norms such
as in case of sugar tax, it results in reducing the amount or percentages in sugar
drinks. Thus, impact arises regarding delay in taking the right decisions.
 Environmental: The impact arises due to changes in climatic conditions which
arises due to reduce of carbon gases during the time of producing the products.
Thus, the impact arises regarding not delivering the products within the stipulated
time or also getting damaged products due to changes in weather conditions
(Nazareth, 2019).
PORTERS FIVE FORCE:
It is undertaken to analyse the five forces which resulting in examining
opportunity and threat to Sainsbury. It indicates the following such as :
 Power of buyers: Sainsbury carries the high bargaining power as buyer had
wider option to choose the products from particular supermarkets.
 Powers of suppliers: They carry the low bargaining power as Sainsbury deal with
larger number of supplier regarding purchasing the raw material.
 Competitive rivalry: They face competition from the three major supermarkets
such as Asda, Tesco and Morrison. Thus, it arises to be major threats for
Sainsbury regarding promoting the products in market (Shalhoub, Marshall and
Ippolito, 2017).
 Threats of substitutes: It is examined regarding dealing in same products in
market which is similar to other company products. Thus, this is the opportunity
for Sainsbury regarding attracting the customer towards offering the innovative
and useful products in market.