Strategic Management of Sainsbury's: Assessing Processes and Evaluating Environmental Impact

This report critically assesses the process used by organizations to determine their strategy and evaluates the impact of the external and internal environmental variation on the organizational strategy. It includes an action plan for Sainsbury's and is based on the subject of strategic management.

INDIVIDUAL REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critically assessing the process used by organizations to determine their strategy.....................3
Critically evaluating the impact of the external and internal environmental variation on the
organizational strategy.................................................................................................................4
Action Plan...................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................3
Business Plan...............................................................................................................................3

INTRODUCTION
Strategic management is defined as the process of preparing objectives, goals or
procedures to gain competitive advantage in the market by an organization. It helps a company to
manage its resources effectively in order to achieve sustainable growth. It also increases
managerial awareness among the workforce by enhancing the decision making ability of the
management. The report will be based on Sainsbury's, one of the most popular supermarket
chains which is famous for its high quality food products and fresh groceries in the industry. It
will include a critical assessment for the different processes to determine a perfect strategy,
impact of the internal and external environment variation on the organizational strategy, strategic
plan of the organization.
MAIN BODY
Critically assessing the process used by organizations to determine their strategy
Organizations may develop an effective strategy by assessing their business environment
and considering a particular process which may help them to and reach their goals and
objectives. It may also help them to gain competitive advantage in the industry by promoting
their products and services better than their rivals (Achinas and et.al., 2019). The strategy may
help the company to promote its products in several new markets and increase its market share in
different countries. The process may include:
Reading the mission statement:
A mission statement may be defined as a concise explanation of the reason for the
existence of the organization. It may describe the purpose and overall intention of the
organizations and supports the vision and serves the purpose and direction to the customers,
employees, vendors and stakeholders. The mission statement may consists of three components
such as purpose, values and goals of the company (Agwu, 2018). The proper analysis of this
statement may be done by the organization to be clear in terms of the objective of the company
and the main aim to go forward and do its operations.
Consider the functions of the organization:
The organization might focus on the operations of the company and identify the quality
of work done by the workforce. It may also tell about the areas that the management need to
consider in order to improve and make certain changes in the structure of the decision making to
prepare effective strategies (Misakov and et.al., 2018). Competency of the workforce may also

be assessed by the organization to regulate the efforts done by the employees towards the
organizational goals and the outcome that they may be getting from the hard work.
Read the Strategic Plan:
The organization may read the strategic plan developed by the organization to make an
effective strategy to promote the brand in the market. The strategic plan may be prepared by the
organizational leaders to determine the vision for the future as well as the objectives and goals of
the organization (Benzaghta and et.al., 2021). It may help the organization to work towards one
motive and identify the key resources which may be used to develop a better strategy for the
organization.
Ask the management:
Organizations may encourage discussion with its management to bring clarity in the
management about the problems that may arise and the resources which may be required in the
process. It may also be beneficial for the management to determine the perfect strategy for the
organization to market its products and services in the market to increase the profitability of the
company.
Critically evaluating the impact of the external and internal environmental variation on the
organizational strategy
SWOT Analysis
Internal environment of Sainsbury's may be assessed by the help of the SWOT analysis,
which is defined as a technique to identify the major micro aspects of the business. It may be
beneficial for the organization to understand the needs of the major stakeholders and how to
cater them effectively. These aspects are as follows:
Strengths:
Sainsbury's may have a wide network of many convenience stores and supermarkets
across the UK which may be a major strength of the business. It may have a competitive
advantage in the industry due to its high quality products and advance services (Bogers and et.al.,
2019). The company may have developed excellent marketing and promotion strategies by using
various popular platforms such as online, digital and social media etc. It may have developed a
strong brand value in the industry by maximizing its market capitalization. These strengths may
have a positive impact on the strategy of the organization. The management may be able to take

effective decisions in order to develop better plans and procedures for improving performance of
the company.
Weaknesses:
The organization may have fewer margins on the sale of the products due to a large
supply chain system and a risk of online retailers which may result in the loss of volumes for the
company. The pandemic may be responsible for the condition of inflation in the market which
may create difficulties for the organization (Pfarrer and et.al., 2019). It may also lead to shortage
of supplies in the market which may have a negative impact on the profitability of the
organization which may be the weaknesses of the organization. The weaknesses of the
organization may have a negative impact on the strategic management of the company. It may
create conflicts and issues among the managers in order to prepare better strategies for reducing
the affects of these weaknesses.
Opportunities:
Sainsbury's may have a better chance to expand in the developing countries of the world
due to its wide network and as the governments may also support foreign companies to enter the
potential markets (Cadena and et.al., 2020). It may create an opportunity for the business as the
organization may benefit by merging with other brands which may help the company to expand
its market and increase competitive advantage among its rivals. The organization may introduce
technologies such as self-checkouts and automated machines to digitalize its process. These
opportunities may be beneficial for the company in order to increase their market share. It may
have a positive impact on the business which may create better chances for the comapany in
order to grow and be productive in the market.
Threats:
The organization may face a tough competition due to huge demand in the niche market
as the rivals may attract more customers to increase their market share. The legal framework and
restrictions in many countries for the global expansion of the business may not favour the
organizational objectives (McKenzie and Sansone, 2019). The organization may have been
caught in several controversies such and VAT avoiding scheme and dairy price-fixing etc. which
may put a negative impact on the image of the business and may be a major threat for the
business. These threats may negatively influence the business strategy of the organization which
may be a major disadvantage for the company in order to grow.

PESTLE Analysis
Sainsbury's may examine their external environment by considering the PESTLE
analysis, which is defined as an effective tool to gain the macro picture of the industry
environment. It may determine the factors that may have an impact on the external environment
of the organization:
Political Factor:
This factor may have a negative impact on the business, as the exit of UK from the
European Union under the Brexit norms may be the reason of high import rates, decrease in
supply in the market etc. It may lead to decrease the sales of Sainsbury's and may reduce the
profits of the organization (Chofreh and et.al., 2021). The major rivals of the organization may
get an opportunity to gain competitive advantage over the business. This may have a negative
impact in the strategy of the organization due to the issues that may arise because of these
political factors.
Economic Factor:
This factor may have a negative influence over the business as the income growth rates
and inflation rates may increase resulting into a decreased demand for purchasing goods from
super markets. Customers may hesitate in spending more in the supermarkets and make buy
goods and services at the time of need. The price rise in the fossil fuel rates may decrease the
profitability of the business as the company is highly dependent on road based transport to ship
their products all over the country. It may also negatively impact the strategy making of the
business due to economic instability, employees may not be able to allocate the resources
appropriately.
Social Factor:
This factor may have a positive influence over Sainsbury's as the customers may be more
willing to buy products from supermarkets rather than retail stores due the availability of more
options of products at one place (Fedushko and et.al., 2021). Also, the discount schemes and
special offers may attract more customers towards the business which may be beneficial for the
organization. This may help in increasing the profitability of the business and generating more
customers for the organization. This factor may be beneficial for the strategy of the business as
the company may be able rto target the customers effectively.
Technological Factor:

It may have a positive impact on the organization as the online store developed by the
company may have been able to attract many new customers towards the brand. The
organization may use advanced technological tools such as AI, big data etc. to get a better
understanding of the demographical requirements of the customers. By using these methods the
organization may be able to increase its sales and prepare effective strategies. It may help the
business to prepare effective strategies by using these technological tools and making effective
changes in the current strategy.
Legal Factor:
This factor may have a negative influence on the business as the rules and regulations
may restrict the organization to promote its products in different markets (Souto and Rodríguez-
López, 2021). The company may face issues due to the legal framework of many countries
which may interfere in the decision making of the organization and require changes to be done in
the policies and procedures. This factor may put negative impact on the organizational strategy
and may reduce the efficiency of the organization to perform the tasks.
Environmental Factor:
It may have a negative impact on the business as the various governments in different
nations may be highly interested in decreasing the pollution in the form of plastic waste, harmful
gases etc. generated while the production process which may be a major matter of concern for
the organization (Zahari and Romli, 2019). It may put pressure on the business to develop
changes in order to meet the environmental needs of the society by reducing the release of
pollutants in the environment. These factors may negatively impact the company as the various
changes may force the management to develop new strategies which may require investment of
time and money.
Review of the strategic plan and action plan
Reviewing the strategic plan-
The strategic plan of the organization may be appropriate according to the requirements
of the organization. It may highlight all the required information which may be crucial in
improving efficiency of the company. There may be certain gaps in the business plan which may
put negative impact on the organization. The company may review their current strategy in
o0rder to gain competitive advantage in the business. This strategy may be effective fort the

business in order to enhance their overall operations and gain competitive advantage in the
industry. It may be useful for the organization for improving their overall impact on the
customers by targeting them effectively.
Action Plan-
Overview:
Sainsbury's has a wide range of products related to foods and groceries in its
supermarkets and has been delivering quality products to the customers from past many years.
The organization may face decrease in its sales due to unavailability of new and innovate
products to the customers (Keding, 2021). It may drive the attention towards developing an
action plan in term, of offering plant based meat by considering the changes in the needs of the
consumers as an external factor.
Issue:
The consumers may have started shifting towards vegan products due to the increase in
chronic diseases which may be a result of the increased consumption of non vegetarian products.
It has come up with a new product such as plant based meat due to the changing tastes and
preferences of customers towards healthy products.
Collecting and Analysing Data:
The organization will conduct surveys and personal interviews with the customers to
understand their needs and developing the products according to their choices. It will be
beneficial for the company to gain knowledge of the preferences of the consumers and will help
in providing customer satisfaction. The action plan may help the organization to understand
consumer behaviour and deliver the best quality products to the customers.
Clarifying and prioritizing the problem:
The product is designed in a way to reflect the taste and texture of actual meat and will be
much heather in compare to the non vegetarian goods (Longhurst and et.al., 2020). It will be
launched in different flavours and variants according to the customer needs which will allow the
customers to prepare and enjoy their favourite dishes without thinking about their health.
Aim:
The company aims at providing the best quality food products to the customers at
economical prices and develop heather vegan options to improve the unhealthy food habits of
people and increasing the market share of the organization by catering a new market.

Solutions:
Sainsbury's will develop plant based meat as the product which will be a solution for the
health issues arising in the world and which may also help in increasing the market share of the
organization due to its high demand in the market.
Monitoring and Controlling:
The organization will track and regulate the progress and performance of the products in
the market by properly monitoring the process and designing an effective plan for regularly
checking the impact created by the brand on the consumers. The effectiveness of the employees
might be checked by their supervisors and providing them with the desired feedbacks to improve
at the weak areas (Makadok, Burton and Barney, 2018). The organization will control the
process by using KPI tool such as revenue growth by checking the increase and decrease in the
sales generated over a time period. By this process the organization may be able to increase its
productivity and increase its profitability.
Marketing Mix:
Product:
Plant based meat is the product developed by the organization to offer to the customers
with an aim to improve the unhealthy eating habits of the population. The product is developed
to provide healthy vegan food with amazing taste and identical texture of the actual meat.
Price:
The organization will provide high quality products at the best competitive prices to the
customers than its rivals to increase its market share and profitability of the organization . The
price is kept low in order to increase the sales of the newly launched product and accessible to
the people of all types of sections.
Place:
The product will be available at the stores of Sainsbury's starting from the UK region and
after will be offered by the organization in other places as well. The UK population may be a
perfect target market for the organization due to an increase in the illnesses such as obesity, heart
conditions etc. in the region.
Promotion:

The organization may adopt new advertising strategies and will promote its products on
various online platforms such as Facebook, Twitter and Instagram to generate popularity of the
product among the youth and the older population.
Competitors Analysis:
Basis Sainsbury's Tesco
Product The organization will offer
plant based meat as its new
product in the market catering
the healthy food needs of the
consumers.
It may offer the conventional
grocery products in its super
markets and has been
consistently delivering good
quality to its customers
(McCready and Molls, 2018).
Employees The company has a highly
qualified and trained
workforce with an experience
of many years in the industry.
The organization may have a
less experienced workforce
and it may require training and
consideration.
Market Expansion It has expanded into various
countries and different markets
which has been the major
reason for the popularity of the
brand.
Tesco has also made its
expansion into several regions
in different countries offering
a variety of products to the
customers.
Strategy Sainsbury's may sell high
quality products at reduced
prices to the customers and
provide them with the best
possible services.
The organization may focus on
promoting the brand as much
as possible which may result in
the increase in the cost of the
products offered by the
company.
Budget
Resources Amount()

Raw Material 2000
Research and Development 4000
Advertisement 5000
Salary 3000
Production Cost 4000
Electricity 1000
CONCLUSION
On the basis of the above report it has been concluded that the organization may get
benefit by determining effective strategies and evaluating the business environment which has
helped the company to get competitive advantage in the market and increase its productivity. The
new product launched by the business has provided it to increase its market share and expand the
variety of products in the supermarkets of the organization. It had a positive impact on the sales
of the business by providing the consumers with a new variety to explore and improve their
health condition by reducing the consumption of non vegetarian products. It also had a major
influence the sales of the business as the launch of new products may attract more customers
towards the brand and may increase its market share.

REFERENCES
Books and journals
Achinas, S. and et.al., 2019. A PESTLE analysis of biofuels energy industry in Europe.
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Benzaghta, M. A. and et.al., 2021. SWOT analysis applications: An integrative literature review.
Journal of Global Business Insights. 6(1). pp.55-73.
Bogers, M. and et.al., 2019. Strategic management of open innovation: A dynamic capabilities
perspective. California Management Review. 62(1). pp.77-94.
Cadena, M. A. T. and et.al., 2020. Neutrosophic AHP in the analysis of Business Plan for the
company Rioandes bus tours. Neutrosophic Sets and Systems. 34. p.16.
Chofreh, A. G., and et.al., 2021. Covid-19 shock: Development of strategic management
framework for global energy. Renewable and Sustainable Energy Reviews. 139,
p.110643.
Fedushko, S. and et.al., 2021. Development of methods for the strategic management of web
projects. Sustainability. 13(2). p.742.
Keding, C., 2021. Understanding the interplay of artificial intelligence and strategic
management: four decades of research in review. Management Review Quarterly. 71(1),
pp.91-134.
Longhurst, G. J. and et.al., 2020. Strength, weakness, opportunity, threat (SWOT) analysis of the
adaptations to anatomical education in the United Kingdom and Republic of Ireland in
response to the Covid‐19 pandemic. Anatomical sciences education. 13(3). pp.301-311.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal. 39(6). pp.1530-1545.
McCready, K. and Molls, E., 2018. Developing a business plan for a library publishing program.
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McKenzie, D. and Sansone, D., 2019. Predicting entrepreneurial success is hard: Evidence from
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Misakov, V. S. and et.al., 2018. Strategic management of innovative agro-industrial projects.
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Pfarrer, M.D. and et.al., 2019. Sociocognitive perspectives in strategic management. Academy of
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Zahari, A. R. and Romli, F. I., 2019. Analysis of suborbital flight operation using PESTLE.
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APPENDIX
Business Plan
Aim:
The business aims at providing the best quality products to the customers at economical
prices in order to increase its market share and domination in the competitive market.
Objectives:
 To increase customer satisfaction.
 To develop innovative products in order to increase the market share.
 To expand into new markets.
SWOT Analysis:
Strength:
A wide network of the business and an effective brand image.
Weaknesses:
Fewer margins and availability of competitors.
Opportunities:
Expansion into new markets of various countries.
Threats:
Rules and regulations against the company's policies.
Monitoring and Controlling:
The organization will monitor its progress by focusing upon the processes and the desired
outcome required by the management and will control the process by using different KPI tools.