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Business Strategy of Sainsbury

   

Added on  2021-02-20

11 Pages2664 Words76 Views
Business strategy

Table of ContentsINTRODUCTION...........................................................................................................................1Main body .......................................................................................................................................11. Macro-environment factors :...................................................................................................12.industry position:......................................................................................................................23. Internal resources and capabilities..........................................................................................44. stakeholder perspective...........................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONBusiness strategy is defined as a long term plan which is designed to achieve set goalsand objective of an organisation. Sainsbury is chosen as the base company in this present report.It is the third largest chain of supermarket in United Kingdom founded by John James Sainsburyin 1869. This report includes micro-environment factors and industry position. At last, internalresources and capabilities and perspectives of stakeholder will be examined (Baker, 2012).Main body 1. Macro-environment factors :Macro environment factors are defined as external and uncontrollable factors whichaffect the organisation decision making, strategy and performance. These macro-environmentfactors include political, economic, social, technological, legal and environment factors. Thesefactors are explained below:Political factor: The political factors are defined as the government policies whichaffect the organization’s performance. Political factors include tax policies, fiscal policies, tradetariffs etc. Political factor has great impact on the performance of Sainsbury. Brexit sparked off acascade effect on the performance of Sainsbury in many different ways. In this context, Brexithas negative impact on performance of Sainsbury which include high inflation, sluggisheconomy which resulted in declines in consumer spending. This policy of Brexit increasedimport taxes and rise in prices. However, the firm has effective political presence within othercountries as well and with effective political integration, there are several opportunities forexpansion available for the firm overseas (Buller, 2012).Economic factors: This economic factors include growth, inflation rate, interest rate,exchange rate and employment rate that have direct and indirect impact on organisationCurrently, due to the market conditions of the UK and reduction in value of pound, the firm issuffering from quite a loss. However, with various skilled individual out of work due ot closingof MNC's the firm has opportunity to allow them to work with the company.Social factors: This factors includes population, growth rate, age, attitude , health andcultural barrier of the environment. Nowadays customers prefer convenience in their shoppingand a wide variety of products at one place. Sainsbury has quite a variety of products which hasbeen an opportunity for the company socially. However, due to heavy competitiom, there is a1

high possibility for rival companies to anticipate demands of customers, thus, reducing itscustomer base.Technological factors: This factors include automation, research and development,awareness of technology which work effectively for organisation. Technology advancementgives positive impact on the business operations. In this context, online operations are effectivein growing the demand. However, it is very difficult and costly for the firm to adopt newtechnologies and maintain them effectively (Burke, 2017). Thus, it could cause ineffeciveness inproduction..Legal factors: This factors include both side that is internal and external. In this factorsthere are certain laws that influence business environment in certain country. This legal factorsinclude consumer laws, safety standard, labour laws etc. There are several laws introduced by thegovernment such as import regulations which burdens the company. However, there are otherlaws such as Equality Act, 2010, which safeguards its employees from any sort of misconduct.Environment factors: This environmental factors includes weather, climate,environmental policies. In this context, there has been high pressure on organisation to act inresponsible manner to keep environment safe. Organisation affect the environment in both theaspect that is direct and indirect ways. Sainsbury has taken initiative in term reduce, reuse,recycle approach that work effectively in term of managing waste packaging and recycling.Sainsbury also working in reducing the operations carbon footprints. Furthermore, such highinclination of people towards environmental sustainability could be an opportunity for thecompany to develop desirable offerings.2.industry position:Ranking product, company, brand in term of its sales relativity with to sales with thecompetitor in the, market is known as the industry position (Cummings and Worley, 2014).Porters five force model:This is defined the tool for analysing the competition in business. This shows power of acompany's competitive rivals, potential new market entrant, suppliers and customers. Porter fiveforce model of Sainsbury is explained below.Competitive rivalry:This looks at the number of competition and strength of company. In competitiveindustry organisation compete aggressively for market share which gives results in low profit.2

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