Strategic Management Analysis of Sainsbury: PESTEL, SWOT, VRIO, McKinsey's 7S and Porter's Five Forces

Business strategy

Contents
INTRODUCTION.............................................................................................................................3
P1 Apply the appropriate framework analysis the influence and impact of the macro
environment in an organization and strategies...............................................................................3
M1 Analyse the macro environment to identify and inform the strategic management decisions.
........................................................................................................................................................7
P2 critically analyse the internal environment and capabilities of an organisation by using
appropriate framework...................................................................................................................7
M2 Evaluate the internal environment to assess the strength and weakness of organizational
internal capability...........................................................................................................................9
P3 Apply the Porter's five forces to evaluate the competitive forces in given market sector for
the chosen organisation..................................................................................................................9
M3 Examine appropriate strategies for improving the competitive edge and market position on
the basis of outcomes...................................................................................................................10
P4 Applying a range of models, concept and theories, interpret and devise strategic planning for
chosen organization.....................................................................................................................10
M4 Produce strategic management plan with tangible and tactical strategic priorities and
objectives.....................................................................................................................................12
CONCLUSION................................................................................................................................13
REFERENCES................................................................................................................................14

INTRODUCTION
In strategic management, different aspects are used to produce organizational plans. All the aspect
make enable the company to produce different strategies prioritize and objectives that assure
betterment of the business organization. It helps the companies to formulate effective strategic
plan that make enable them to gain competitive advantages (Augustyn, Seakhoa-King and Mason,
2022). The firm considered in this report is Sainsbury which is second biggest chain of the
supermarket in UK. It was incorporated in 1869. This report will be based on the impact of
external environmental factors, organizational external and internal capabilities, evaluation of
Porter's five forces and different range of the models, concept and theories that interpret and
devise the strategic planning of an organization.
P1 Apply the appropriate framework analysis the influence and impact of the macro environment
in an organization and strategies
PESTEL Analysis
This framework provides great details about the operating challenges organisational faces
in the prevalent external environmental other than the competitive forces. These factors have
direct impact on the business in term of political, technological, economic and many more. In
context of the Sainsbury, its PESTEL analysis is mentioned below:
 Political- This factor play an important role in identifying those element that impact
company's long term profitability in market. It include the different polices made by
government. In UK, rate of the debt on customers and government is extremely high that
may have a direct impact on consumer's attitude and business conditions that experience a
great pressure. In this situation, Sainsbury is not just operating but also has to keep their
business running continuously
 Economic factors- Macro environmental factors such as saving rate, foreign rate, interest
rate, inflation rate and economic cycle identifying the aggregate investment and demand
within an economy (Bai and Liesch, 2022). These factors impact the organisational
competitive advantages. Economic concern of Sainsbury is rise in the salary expectation.
As other supermarket, Sainsbury's employs many workers to work simple task including