Business Strategy: Internal and External Analysis for Strategic Decision Making

Business strategy

Contents
INTRODUCTION...........................................................................................................................3
Part A:..............................................................................................................................................3
An internal and external analysis that provides a platform for strategic decision making..............3
PESTLE and SWOT of the organisation and an evaluation of the organisation’s resources and
capabilities...................................................................................................................................4
Competitive environment analysis using Porter’s Five Forces model........................................7
Identification and justification of the organisation’s existing and/or potential competitive
advantage.....................................................................................................................................8
Valid strategies and tactical objectives to achieve overall strategic objectives...........................9
Part B:............................................................................................................................................10
On the basis of this analysis critically evaluate and justify strategic options for the organisation10
Critical evaluation of the different types of strategic directions available to the organisation. 10
Justification and recommendation of the most appropriate growth platform and strategies.....11
Evaluate ways and means by which the chosen strategies can be monitored in order to ensure
success.......................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is defined as the combination of various decisions that are taken by the
organisation and performed to attain all organisational goals and objectives in order to gain
competitive advantages than other competitors in business environment. Strategies are the
backbone of organisation that guide and lead to accomplished all desired goals. Basically, it is
the master plan of management which is implemented by the organisation to secure effective
competitive positioning, performing all organisational operations and help in gaining high
customer base to attain desirable outcome (Arranz, 2020). It is set of various competitive moves
as well as actions which is used by the organisation to attract customers, enhance performance,
complete competitors effectively and attain all organisational objectives. It prepares the outline
that guide business to reach desirable outcomes. In this report the chosen organisation is
Sainsbury which is the second largest supermarket in United Kingdom established in 1869 by the
John James Sainsbury. It is largest groceries multinational retailing organisation, headquarter
situated in London, England, UK. Various internal as well as external factors play important role
strategic decision-making process. In this report PESTEL, SWOT and Porter’s five forces model
is discussed. Apart from that various strategic directions and recommendation are covered in this
project report.
Part A:
An internal and external analysis that provides a platform for strategic
decision making
There are various internal and external factors that plays important role in decision-
making process of organisation. Sainsbury conduct various internal as well as external market
analysis in order to identify and evaluate all business strengths, weakness, opportunities and
threat as well as external factors that help in business strategy formulation (Dau, Moore and
Kostova, 2020). For success and efficient working of organisation it is necessary that all factors
are analysed properly and implement them in organisation working to attain various competitive
advantages than other competitors and enhance performance as well as profitability level of
Sainsbury.

PESTLE and SWOT of the organisation and an evaluation of the organisation’s resources and
capabilities
PESTLE analysis:
PESTLE analysis is defined as the framework which helps the organisation to analyse
various external environment factors such as political, economic, social, technological, legal and
environment that are exist outside the organisation but influence the business operations and
functions in effective manner. All these external factors are described below:
Political factors: There are various political factors that affect business performance and
profitability level as well. there are various factors such as government interventions, political
stability or instability, foreign trade policies and trade restriction. As globalisation is enhancing
at very high rate that present the challenges as well as opportunities for Sainsbury. These
challenges are raised because the organisation have to compete with various unknown forces and
factors that have various quality products and financial sources (Dawson, Ginesti and Sciascia,
2020). The respective organisation enters in emerging markets that through joint venture and
partnership to expand business in new markets. As the prices of products are fixed among four
retailing organisation that impacts negatively on Sainsbury. Government of UK decrease the
corporation rate tax which facilitate the respective organisation to save money for expansion
purpose. Brexit uncertainties impacts negatively on organisation performance as it creates