Business Strategy: Analysis and Competitive Position of Sainsbury

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
INTRODUCTION...........................................................................................................................4
Macro-environmental analysis....................................................................................................4
Internal environment and capabilities.........................................................................................7
Competitive analysis...................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is basically the set of actions as well as decisions which helps the
organization to achieve the specific goals as well as objectives. The main aim of this report is to
study the business environment and strategy of Sainsbury and analyzing its competitive position.
In short, business strategy is mainly the summary of how the organization will achieve its goals
and objective sand how it will improve its overall position in the market.
Sainsbury is primarily the renowned retail organization and chain of supermarket being
established in 1869 by John James Sainsbury and headquartered in London, United Kingdom.
This organization mainly deals in wide range of subsidiaries like banks, fuels, groceries, energy,
cafe etc.
This report gives a brief overview of PESTEl analysis, stakeholder analysis, SWOT
analysis, VRIO analysis, Mckinsey 7S model, porter five force model and strategic planning.
Macro-environmental analysis
Business environment is made up of both internal and external environment which
involve several factors. Both internal and external factors affect company's performance in a
critic manner. For being in the competition and becoming the market leader it is important for
company to analyse all factors (Chaouk, Pagliari and Moxon, 2020). By analysing all micro and
macro environmental factors it can make changes in its strategies and provide services to
customers accordingly. Macro environment is known as external environment which include
mainly 6 factors such as political, social, technological, economic, environment and legal. For
analysing effectively all these factors, Sainsbury's need to choose the best tool. PESTLE analysis
tool is known as the best model by which Sainsbury's can make itself beneficial and analyse
impacts of all factors.
PESTLE analysis: Detailed analysis of all macro-environmental factors of Sainsbury's is
discussed below:
Political: In the context of political factor, it can be said that Brexit is one of the main factor
which is affecting Sainsbury's to the great extent. As per the Brexit, England will remain no
longer a part of European Union which is affecting import rates as it is increasing this rate. So, it
can be said that it has affected to this company in a negative manner. On the other hand, it is
stated that UK has political stability in retail sector which can give several advantages to
company.