Strategic Management Plan for Sainsbury's: Analysis of Macro and Micro Environment

Unit 32 Assessment

TABLE OF CONTENTS
TABLE OF CONTENTS.................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Analysing macro environment of Sainsbury’s through Pestle and Stakeholder’s Analysis.......3
Evaluation of Sainbury’s internal environment through SWOT and VRIO Analysis................6
Porter’s Five Forces Model for Sainsbury’s.............................................................................11
Strategic Management Plan.......................................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
TASK 1
Analysing macro environment of Sainsbury’s through Pestle and Stakeholder’s Analysis
Pestle Analysis
Political Economic Social
 Brexit Uncertainties
Vote in the favour of leaving
European Union by United
Kingdom will prove to be very
 Increasing fuel costs
The fuel prices have been
constantly rising slowly over
the last years. This increases
 Health consciousness
Adopting healthy lifestyle by
eating healthy is the recent
trend of today’s world. This

difficult for the company to
import products outside the
country at affordable rates.
the cost of production for the
company (PESTLE
ANALYSIS, 2022). The fall in
availability of fossil fuels and
rise in tax will further increase
the production cost affecting
the profits.
 Rise in salaries
Increase in expectations of
high salaries also implies
negative impact on the
organization. Large number of
employees are hired by
Sainsbury increasing the
salaries will results in high
production cost leading to low
profits or increase in selling
price. High selling price may
results in fall in sales volume.
 Vehement competition
The firm faces a lot of
competition as there are
various other businesses in the
industry giving tough
competition to the firm urging
it to innovate regularly while
remaining at low profits.
creates demand for healthy
products among consumers
adapting to this trend will be
beneficial for the organization.
 The fair-trade movement
The fair trade means offering
fair prices to the farmers for
their produce. This will be
advantageous for the firm in
the long term.
Technological Legal Environmental
 Upgraded technology
Using latest technology at the
supermarkets to save
 Laws
Complying to all the consumer
protection laws, labour laws,
 Carbon Footprint
Companies super market
chains have large impact on