Business Strategy and Stakeholder Analysis: Sainsbury's Report

This report provides a comprehensive analysis of Sainsbury's business strategy, examining key aspects such as business strategy definition, variations in stakeholder aims (internal and external), and the impact of these stakeholders on business operations. It delves into business techniques that influence decision-making, including customer management systems, competition, customer loyalty programs, and global platforms. Furthermore, the report explores strategic methods employed by Sainsbury's and Tesco to achieve their objectives, focusing on promotional and cost strategies, customer service, and communication strategies for employee retention. The analysis highlights how these strategies are implemented and their effectiveness in achieving desired outcomes, offering valuable insights into the complexities of business operations and strategic planning within the retail sector.

Principles of Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Business Strategy.....................................................................................................................3
2. Variation in aims of internal and external stakeholders...........................................................4
3. Impact of different stakeholder aims at business operations...................................................5
4. Business techniques to influence business decision-making...................................................6
5. Strategic methods in businesses to achieve strategic objectives..............................................7
6. Approaches to strategic decision-making................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is defined as the strategies which are formulated for the perspective of
the business work procedures (Rodríguez-Lago, 2019). These strategies help the company to
evaluate their performance and form different strategies for the achievement of goals and
objectives effectively and efficiently. Sainsbury company is the second largest chains of
supermarkets in UK and is the largest retailer of UK. The company deals in its supermarkets,
banks and Argos. The report will be prepared on the business strategy of the company which will
include the concept of business strategy, variation in aims of internal and external stakeholders,
impact of different stakeholders on business operations, techniques to influence business
decision-making, strategic methods and different approaches to business operations which will
help in the analysis for the company.
MAIN BODY
1. Business Strategy
Business strategy is defined as the set of activities for which decisions are taken in order
to achieve business goals and objectives in an organization. Strategies are formed to regulate the
rules and regulations which are to be followed in the course of action plan (Yuliansyah, Gurd,
and Mohamed, 2017). Business strategies helps the business to give detail information about the
plan which is being framed for the achievement of goal. Business strategy is are assigned for the
purpose of achieving effectiveness, utilizing opportunities, facing challenges and threats.
Strategies when framed help business to grow and evolve by providing effectiveness and change
for the company.

2. Variation in aims of internal and external stakeholders
Stakeholder is a party that has an interest in a company and can either affect or be
affected by the business. There is variation in aims of internal and external stakeholders of
Sainsbury company are described as below -
Internal stakeholders - Internal stakeholders are individuals or parties that are directly involved
in the management of business (Cardwell, Williams and Pyle, 2017). In any type of business
stakeholders play a very important and major role as they gain interest in the business and hence
can be directly affected, or they can affect a business by the success and failure which the
business faces. Internal stakeholders are also known as primary stakeholders. In short,
stakeholders of the company are affected by any measure which constitutes either about its
growth or failure. These stakeholders are aware of the internal issues of the company. All the
internal functioning of the company is made familiar to stakeholders which are being operated in
the business.
The aim of the internal stakeholders is that they are concerned about the company's
internal structure which includes all the workings, operations governed within an organization.
They render services to organization and are influenced by the decisions, outcomes and overall
performance of the company. Main aim of the stakeholders is to ensure that they have been
known the details of the operations in an organization. And are aware of any new information
concerning the company. Thus, internal stakeholders are an important part of the company.
External stakeholders – External stakeholders are all those individuals, groups, firms and
organizations that are not directly influenced by the performance of business. External
stakeholders are not aware of the internal issues of the company rather they deal with other
issues from outside (Damanpour, Sanchez‐Henriquez and Chiu, 2018). They are also not
involved in everyday operations of the organization. External stakeholders are concerned about
the financial information regarding financial statement, the cash flow, profits and losses that the
company faces.
The aim of the external stakeholders is to deal with the organization from the outside. It
concerns the external affairs which are related or are about the organization involving factor like
its market structure. The government rules and regulations prioritize the external affairs that are
been undertaken by the company for its benefit to effectively and efficiently achieve the goals

and objectives. Thus, external stakeholders helps in reviewing the external environment of the
company.
3. Impact of different stakeholder aims at business operations
Stakeholders affect the business operations both directly and indirectly as the company
runs along with the different categories of people substituted at different levels. Impact of
different stakeholders aims at business operations who are as follows -
Employees – Employees have a direct stake in the company. They are the main part of the
organization as without them the company would not be able to work. They affect the
organization on large basis (Goodman, Korsunova and Halme, 2017). Employees expect benefits
like job satisfaction, incentives and career growth. As the employees of the company wish to
have safety and security in their job their objectives might conflict with the owners which
directly impacts the organization on large basis.
Customers – Customers are the secondary stakeholders as they account for providing the review
on the products and services which are made available to them. On the basis of the quality of the
products they provide the feedback to the company on how to improve it. The impact of
customers on the business defines the company's services and products whether they are able to
satisfy their customers. Customers also influence others by recommending or giving reviews
about the business to other people by either warning them against using the business. Customer
are directly impacted by the product quality company gives.
Suppliers – Suppliers have the significant impact on business operations of the company.
Because if there are any changes in the quality of goods or services which company produces
the reliability and supply factor affects the organization (Bundy, Vogel, and Zachary, 2018).
Suppliers are concerned with safety as their products directly impact the business operations of
the company. The supply chain of the business operations affects the product to be delivered
either late or early. The revenue of company depends on the suppliers. Suppliers basically
influence the operations regarding the delivery of the products reaching to large scale customers.
Government – Government also impact the business operations of Sainsbury. It passes new
laws, change tax levels and other business laws which changes the procedures of running a
business. For e.g. by providing increased grants or funding. Different laws and acts are imposed
for running the company. Government collects taxes from the company, its employees and other

spending the company does. The impact of government on business operations is considered
largely on the basis of its formal rules. Being the biggest stakeholder, government also looks
after the business whether it has been following what has been regulated by them and works
fairly.
4. Business techniques to influence business decision-making
Business techniques which influence business decision-making are as follows -
Customer Management System – Providing customers the product according to their needs and
wants is primer purpose in the customer management system. Customer management system
influences business decision-making process as it accounts for the manually tracking of the
products and services which Sainsbury provides (Khanna, 2020). Decision — making is affected
by customer management system because providence of products to the customers can only be
facilitated when there is proper flow of decisions taken while making available the product.
Thus, this factor affects business decision-making process.
Competition – Competition influences the business decision-making process as it holds the
value of the company and the reputation it holds in the external environment. Research in the
market helps in evaluating what decisions are to be taken for the growth and development of the
company. Higher value of competition affects the decisions of the company as to improve its
performance and lead in the prior position within the business environment. Thus, competition
affects the business decision-making process effectively and efficiently to be attained by
company.
Customer loyalty program – Customer loyalty programs influence business decision-making as
it concerns about the sales of the company. Therefore, decision-making is done which impacts
the business. By taking decision of building an attractive loyalty program and making it
accessible to the customers accounts for developing new decisions helping in the growth of
company. Decisions are based on current customer program functioning which Sainsbury allows
it to move accordingly (De Silva, Al-Tabbaa, and Khan, 2019). Thus, the customer loyalty
program affects business and its decision-making processes resulting in evaluation of overall
performance.
Global Platforms – Financing on global platforms affects decision-making process of the
company. The expansion of Sainsbury company's business leads to the growth and development

of the organization. This factor influences company on a lot as the decision-making for the
business affects the company exponentially on large basis. The overall business to develop and
reach to the global platforms depends only on one major decision. This being the prime factor for
the company affects the whole organizational structure on large. Thus, affecting and efficiency
of company.
Business strategies – Business strategies affect the business decision-making process. Different
strategies report for different decisions which are taken on different levels in the company. The
decisions are based on the strategies which are being formulated for the completion of any task
or project. Sainsbury follows different strategies to grow its business and for that it ends up in
having different decisions which is according to implementation of plan. Thus, decision-making
affects the strategies which are being framed and formulated for purpose of attainment of goals.
5. Strategic methods in businesses to achieve strategic objectives
For Sainsbury -
Strategic objective is as follows - To launch a new product – Strategic objective of Sainsbury is to launch a new product.
Launching of brand-new product attracts more customers and to promote the new product
in the market. Main motto of the company is to analyse the target market so that product
involves more customer engagement.
Strategic method used is -
Promotional strategy – The strategy used is promotional strategy which helps the new
product to survive in market (Evans, 2019). In this strategy, promotion of product can be done
through social media, company websites, posters, newspapers, magazines and digital marketing
tools. This strategy helps in acknowledging the new product and the services.
Strategic Objective is as follows - To increase profitability – Another strategic objective formulated by the company is to
increase the profitability to enhance growth and development of the company. Increase in
the profits leads to chances of new innovations and techniques which helps in raising
company standards. Thus, product is formed in such a way that it helps in increasing the
sales.
Strategic method used is -

Cost strategy – The strategy which is used to increase the profitability of the company is
based on financial structure it maintains. The cost analysis of company helps in ensuring right
way to increase the profits of the company. Diversification in products along with new strategies
framed acknowledge the cost of product.
For Tesco -
Strategic objective is as follows - To modify customer service – Strategic objective for Tesco company is to improve or
enhance customer service to increase customer engagement for benefit of company.
Improvement in customer service will lead to attract more customers leading to and
effectiveness for the company.
Strategic method used is - Customer service strategy – The strategic method used is customer service strategy
which helps in identifying the customers needs and requirements for the product (Arce
Solano, Godoy Sandoval, Gutiérrez Durán, and et.al., 2019). This strategy ensures that
the customers are satisfied with the product been utilized by them or not.
Strategic objective is as follows - To improve employee retention – This strategic objective is formulated to improve the
employee retention in the company. This being very important aspect for company's
growth and development therefore this factor is evaluated on the basis of employee
performance and their ability to execute work better.
Strategic method used is -
 Communication strategy – This strategy will improve the employee retention as proper
and effective communication will lead to lessening of retention rate. Thus, the
communication strategy will help in making conversations with the employees who are
facing problems related to their work.
6. Approaches to strategic decision-making
There are different approaches to strategic decision-making which affects the business
ability to achieve its strategic objectives. These are described as below -

Rational – Analytical Approach – This approach defines that the decision – maker is a unique
actor who behaves intelligently and rationally (Calabretta, Gemser, and Wijnberg, 2017). The
decision – maker is fully aware of the alternatives, consequences which affects the company.
Sainsbury can apply this approach to its organization as this will help in realizing the course of
action to be done and decisions to be taken along with the possible alternatives in the work
procedure. Logical reasoning will help the company to evaluate the key areas where necessary.
Intuitive – Emotional Approach – This approach assess the intuition towards doing a work
which managers feel is right. The approach is all related to the emotional facet as it is based on
reflective thinking by using mental processes. Sainsbury should apply this approach as it
demonstrates “Thinking before acting” perspective. This approach will help company to take
decisions both emotionally and intuitively whether to perform a particular work or to take
initiative towards changing it. This will lead to better thinking capability and analysing the whole
situation for long – term basis. Thus, it is important to also be intuitively inclined towards work
in the organization.
Political – Behavioural Approach – This approach suggests that real decision makers must
consider a variety of pressures from other people who are affected by their decisions. This
approach is concerned with the different types of stakeholders like union labours, customers,
owners, suppliers, government (Trigeorgis and Reuer, 2017). The company can withstand this
approach as it will help the company analyse its position through internal and external
stakeholders. Stakeholders of the company will help in evaluating the overall performance the
company presents in the market environment. Thus, this approach when activated in the
Sainsbury company will lead to achieve greater results through the information acquired by
different stakeholders of the business.
Administrative approach - The administrative model holds that managers have incomplete and
imperfect information and are bounded by rationality. This approach is considered as of in
negative aspect so the company should not adopt this approach as it leads to incomplete
information and the procedures are not well fulfilled. Yet this approach may be significant to the
other aspects but on large scale it has not been of great importance. Managers may be simply
ignoring their own motives and therefore they may not search for the other alternatives which are
to be fulfilled for the need. Thus, this approach is of less use to the company.

CONCLUSION
Thus, it is concluded from the above report that the business strategies are important to
implement for the objectives to be achieved. Variation in aims of internal and external
stakeholders is analysed in reference to the business environment. Impact of different
stakeholders like employees, customers, suppliers, government aims at business operations is
evaluated which helps in acknowledging the role of these stakeholders. Different business
techniques like Customer Management System, competition, customer loyalty program, global
platform, business strategies were framed which influenced decision-making process. Strategic
methods were adopted like promotional strategy, cost strategy, customer service strategy,
communication strategy. Approaches to strategic decision-making was assessed which involved
its different types such as Rational – Analytical approach, Intuitive – Emotional approach,
Political – Behavioural approach and Administrative approach.

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