Strategic Management Plan for Sainsbury's PLC

Unit Number and Title Unit 32 – Business Strategy
Title Strategic Management Plan
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Table of Content
Introduction................................................................................................................................3
Part A: An internal and external analysis that provides a platform for strategic decision
making:.......................................................................................................................................4
1. PESTLE and SWOT of the organisation and an evaluation of the organisation’s
resources and capabilities.......................................................................................................4
PESTLE Analysis...................................................................................................................4
2. Competitive environment analysis using Porter’s Five Forces model...............................8
4. Valid strategies and tactical objectives to achieve overall strategic objectives...............11
Part B: On the basis of this analysis critically evaluate and justify strategic options for the
organisation:.............................................................................................................................13
1. Critical evaluation of the different types of strategic directions available to the
organisation..........................................................................................................................13
2. Justification and recommendation of the most appropriate growth platform/s and
strategies...............................................................................................................................13
3. Evaluate ways and means by which the chosen strategy/ies can be monitored in order to
ensure success......................................................................................................................14
5.0 Conclusions........................................................................................................................15
References................................................................................................................................16
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Introduction
Strategic Management refers to the action plan which has been formulated by the
organization strategically to provide them direction regarding their betterment (Abutabenjeh,
2021). Strategic management helps the organization to prepare a business strategy which
helps them to take several competitive news for the purpose of getting attention of their
customers and have a competitive advantage in the market by improving their performance
and achieving the goals and objectives of an organization. Strategic management is very
essential for any organization to be focused as it types and organization in various ways as it
helps them in identifying the macro as well as internal environment factors that has different
kind of impact on the business of an organization. Sainsbury’s PLC is UK based organization
which was founded in the year 1869 in London England. Sensor is the second largest chain of
supermarket in United Kingdom and has a great market share in this sector. This report
contains several frameworks which has their impact and influence on the external
environment of a business as well as internal environment of the business and the strategies
which helps the organization to overcome the situations of macro environmental factors stop
this report contains several Fame box models and concepts which helps to understand the
business strategy in effective manner and provide several ways to prepare an effective
strategy for Sainsbury’s.
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Part A: An internal and external analysis that provides a
platform for strategic decision making:
Overview of the organization:
Sainsbury is a large organization and attain a position of second largest supermarket all over
UK. The company was established in in 1869 and in the year 1922 the company as a team a
position of largest retailer of United Kingdom’s. In the year 2020 the company has recorded
2899. 3 crores GBP. Sainsbury’s was established in UK and continuous their operation to
generate more and more revenues from the country. It was not easy for Sainsbury’s to attend
this position as there are several competitors of the company in the market. Even it is not easy
for the company to maintain their situation in the market as competition is a continuous
process and Sainsbury’s has to face it on daily basis (Ahmedova, 2020). In order to retain the
position in the market sense requires a proper strategic management planning. The mission,
vision and objective of Sainsbury is given below:
Mission: The vision of Sainsbury’s to become a most trusted retailer of the market in which
people love to work and shop.
Vision: The mission of the organisation is to provide quality products and make available all
types of products under one roof.
Objectives: The Company has an objective to expand their business in international markets
also.
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities
Strategic management is a process in which management of the organisation is involved in a
continuous planning monitoring assessment and evaluation process for attaining the goals and
objectives of the organisation. Strategic management plays an important role in an
organisation in achieving their goals and objectives which requires a proper analysis of the
organisation for stock in order to analyse the environment of the organisation both internal as
well as external environment is to be analysed which includes pestle analysis for the purpose
of external analysis. The pestle analysis in order to achieve the mission and vision and
objectives of the organisation is provided below:
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PESTLE Analysis
 Political: Political environment is connected with the political issues related to the
government of the country in which the organization is operating. The decision which
has been taken by the government are not under the control of organizations and they
need to formulate their strategies in accordance to those decisions. These decisions
has create a political environment for business in the market. United Kingdom is a
country which has a good political stability but the uncertainty which are recently
facing by the environment of United Kingdom affects the business of Sainsbury’s.
Brexit has come with several uncertainty in the market and have serious consequences
on the business of the organization. Sainsbury's dependent on the European trade for
their supplies of goods and services which has affected by the decision of Brexit by
the government of United Kingdom (Bekhradinasab, 2020). It has result in increase in
prices of the products and services offered by the company which affects the profit
margin of the company as its cost of production has increased. Impact of brexit on the
organisation sainsbury they will not be able to provide low prices goods to their
customers which will affect their vision to provide all types of products under one
roof and mission of the company to make themselves a most trusted retailers.
 Economic: Economic factors of external environment also have a high impact on the
business and cost of operations of Sainsbury’s as the company is highly dependent on
these economic factors. Sainsbury's uses road based trips deliver their products from
one place to another all over UK and the rising cost of fuels in the country has
increase the cost of operations of the organization. This increasing cost will results in
increasing cost of the product which as a fact the competition in the market as the
products of Sainsbury can be more costly for their customers as compared to their
competitors. If the company decide to sale in the competitive rate then will have low
profit margin which is not good for the growth of the organization. Apart from this
there are various other economic factors such as rising of salaries increasing
competition and many more which affects the business of Sainsbury’s in United
Kingdom in various manners. This rising of salaries and increasing competition in the
market of United Kingdom will affect the cost of the products in the organisation and
will have its impact on the organisation mission vision and objectives. Is this
economic factor will put its impact on the cost of production and the organisation will
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