Impact of Macro Environment on Sainsbury's Strategies

BUSINESS

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Impact and influence of macro environment in the company and on its strategies..............3
LO 2.................................................................................................................................................5
P 2 Internal environment and the capabilities of the company....................................................5
LO 3.................................................................................................................................................9
P 3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organization............................................................................................................9
LO 4...............................................................................................................................................10
P 4 Range of theories, concepts and models, interpret and devise strategic planning for a given
organization...............................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy can be defined as a set of strategic statements. It is a summary of how
the company will achieve its goals, meet the expectations of its customers and sustain a
competitive advantage in the marketplace. Sainsbury's is the second largest chain of
supermarkets in the United Kingdom, with a 16.0% share of the supermarket sector. Founded in
1869, by John James Sainsbury with a shop in Drury Lane, London, the company became the
largest retailer of groceries in 1922. This report contains issues such as Impact and influence of
macro environment in the company and on its strategies. Internal environment and the
capabilities of the company. Applying Porter’s Five Forces model evaluate the competitive
forces of a given market sector for an organization. Range of theories, concepts and models,
interpret and devise strategic planning for a given organization (Peng, 2016).
LO 1
P 1 Impact and influence of macro environment in the company and on its strategies
Mission
Mission of the company is to be position themselves in the minds of consumers to be the
first choice for the consumable items. It is because they provide quality goods at a reasonable
and less price by working in a less complex way and together.
Vision
Vision of Sainsbury is to make sure that the needs of the consumers get fulfilled easily
such as food, home wares and recent updated technology.
Objectives-
Environmental Management System- They has a system for managing the environment as
company has control on its factors (Massa, Tucci and Afuah, 2017).
Products and Suppliers-
Focusing on cutting the deal with the suppliers of the company so that they can
contribute in preserving the environment.

Energy- Reducing the level of carbon dioxide.
Transport- Improve the aspect so that product can be increased and deliveries can be made in
time by taking routes that are short so that level of CO2 can be reduced.
PESTLE Analysis
Political Factors-
The decisions taken for Brexit have put the sector of supermarket in difficult position.
Company has announced that they will be separating from EU and this has brought changes in
the import of export of goods because of changes in rate of tariff. This will increase the rate of
their products.
Economic Factors-
These factors are concerned with the rate of inflation, standard of living of people, level
of unemployment in the country etc. these factors helps to assess the rate of growth of the
business through which strategies are formed. Sainsbury is facing issues because of the pandemic
of Covid-19, as many of the business were closed because of the lockdown which has increased
the gap in the economy. This has also affected the chain of supply and demand of products due
to which sales have been affected. It has led to loss of many jobs in the company (Holloway and
Humphreys, 2019).
Social Factors-
This factor undertakes the issues of difference in belief, opinion, values of culture etc. It
is important that Sainsbury meets with the culture of people in every market they operate in so
that they will be able to satisfy their needs and wants. Most of the consumers are concerned for
their health and in order to increase their sales it is necessary that company offers them these
products. They have started a movement which is for the benefit and good deed of farmers in
which consumers need to pay a little bit extra so that farmers can get their proper cut.
Technological Factors-