Strategic Management: Analysis of Sainsbury's using PESTLE and Porter's Five Force Model

Strategic Management
Assessment Question

EXECUTIVE SUMMARY
Strategic management comprises policies and procedures which act as a guidance and
direction for organisation with an intent of accomplishing pre defined goal of purpose in an
trenchant and expeditious mode. However, this report is wholly based on Sainsbury, which is
one of the reputed and famous supermarket chain in UK retailing industry. It serve its product
across the globe in a best and impressive quality of product or service which made them to attain
sustainable profit margin to this day.
The main aim behind conducting this report is to analysing the issue which Sainsbury is
facing for obtaining maximisation of profit. To attain the same, PESTLE analysis and Porter's
Five force model has been applied that help establishment to examine its macro factors. Along
with this, it also lead firm to evaluate the capacity of rival company for enlarging the profit ratio
in an impressive or amended ratio. Additionally, it also comprises relevant recommendation to
improve its overall productivity and profitability ratio within prescribed time limit.

Table of Contents
EXECUTIVE SUMMARY ...........................................................................................................2
INTRODUCTION...........................................................................................................................2
MAIN BODY ..................................................................................................................................2
PESTLE Analysis .......................................................................................................................2
Porter's Five Force Model .....................................................................................................5
CONCLUSION ..............................................................................................................................7
RECOMMENDATION ..................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The term strategic management is defined as the process and procedure of managerial
decision or action that evaluates the long- run performance of an organisation with an aim of
achieving pre determined goal in an prescribed time duration. The role of strategic management
is regraded as an integral component within organisation as it lead them to allocate appropriate
resources. Along with this, it also strengthen and support firm core competencies in order to gain
competitive advantage among competitors. In addition to this, the aspect of strategic
management enable establishment to improve its overall efficiency level by adopting innovative
technology into existing business premises (Aguinis, Edwards and Bradley, 2017). For this
report, Sainsbury has been considered which is known for a third largest chain of supermarket in
UK industry and it is founded In the year of 1869. It delivers wide range of products like
hypermarket, supermarket, convenience shop and many more across the globe. In this study, the
idea of theory to theory has been regarded in which it encompass comparison between PESTLE
and Porter's Five force model in order to understand the external factors and competitive force of
Sainsbury. Finally, providing relevant suggestions for the enrichment of company's overall
productivity ratio.
MAIN BODY
Analysis between theory to theory in context of Sainsbury
Each theory has its own potentiality and challenges which lead organisation to achieve its
pre determined goal or objective in an efficacious or prompt manner. Some of the implication of
different theories are discussed below:
PESTLE Analysis
In an organisation, there is an existence of external and internal business environment
which directly influence organisation's decision making procedure. In this regard, the implication
of PESTLE analysis plays a vital role as it help establishment to investigate or identify the macro
factors as well as drive them to take corrective course of action for gaining competitive position
(Aven, 2016). PESTLE analysis is a strategic management tool which enable company to
analyse the external market factors like competitors, customers, suppliers, government and many
more for attaining sustainable growth and development. In relation to present report, PESTLE
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