Strategic Management in Sainsbury: Analysis and Evaluation

STRATEGIC MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Main Analysis..................................................................................................................................3
M. E. Porter value chain force.....................................................................................................3
Business philosophy....................................................................................................................5
Evaluation of business policies....................................................................................................8
CONCLUSION................................................................................................................................9
Recommendation.............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is a process that is used to manage several strategies that are made
by company to achieve its objectives and retained its market share in competitive environment. It
includes various components such as action of competitors, internal structure and current
strategies that is used to attract more customers and enhance sells of firm. Company by
managing its strategy can effective adapt to external changes and meet expectancy of customers
in best possible way. This report is about Sainsbury that is one of the second largest chains of
supermarket in United Kingdom with approximately 16.0% market share. It have been founded
in 1869,151 year ago that have shops in more than 1428 locations with overall employees 116,
400 in 2018. Sainsbury in 2017 have been registered as annual turnover of 29.1 billion pound
approximately. There are 15 private label products that it sold through its conveniences stores
that is around 770 so that customers can easily make purchased of products for their satisfaction.
This report has used various model and theories to understand strategies that are used by
Sainsbury to gained competitive advantages in retail sector.
Main Analysis
M. E. Porter value chain force
Michael has defined importance of value chain in strategic management and
achievements of company goals. Value chain is system or procedure used by company to earn
more profit margin and market share in industry by delivering services to customers in best
possible manner. Therefore, porter value chain model can be used to analysis and evaluates the
way Sainsbury have manage its policies, procedure and strategies in order to attained competitive
advantages (Pazouki, Jozi and Ziari, 2017). It is divided into two activities that is primary and
secondary activities such as:
Inbound logistic: It includes process that contributed in receiving or storing raw material within
organisation so that finished products can be manufactured to fulfil customer’s requirements.
There are various suppliers in retail sectors so company have opportunity to effectively bargain
for price of products and services in order to get raw material at lower prices for delivering
maximum value to customers. Top management have planned strategies to maintained good
relationship with various suppliers in order to get products at low prices within limited time
frame for better satisfaction of requirements of end users (Ansoff and et.al., 2019). Strong brand

image, reputation and timely payment have helped company in gaining credit purchase of
products for smooth operation of business.
Operation: There are various activities or process which needed to be followed by employees
in order to convert raw material into finished good so that end user can consumer it for
satisfaction of its requirement. Manager of Sainsbury have organise training and development
programs to enhance employee’s skills and capabilities so that they can produce products with
minimum wastage of resources and efforts for rendering maximum value to end users.
Outbound logistics: Sainsbury have maintained strong distribution channel and networks,
warehouse at different places which have contributed in delivering of services or products in
limited time frame. It has various stores in different location of countries which provides ease to
customers to purchase products by coming at stores. At the same time Argo is one of the digital
channel and distribution services have helped in creating value of company in minds of
customers (Stead and Stead, 2016). Company by providing home delivery services and mobile
payments is able to grow and expand its business and attained competitive strategic positioning
in retail sectors of UK.
Marketing and sales: There are various strategies that are used by Sainsbury to attract or
influenced target customers in order to enhance sales volume of firm. Such as advertisement in
newspaper, radio, TV or social media so that awareness can be generate among large number of
individuals. Marketing manager has also emphasis on public relationship, promotion offers and
personal sales to retained customers satisfaction and loyalty for long term growth of firm.
Services: Sainsbury provide 24 hours customers care services to people across world which has
contributed in adding value to reputation of firm. Customers can easily share their feedback,
grievance or problem through official sites so that it can be resolved within limited time frame
for better experienced and satisfaction (Voinea and Van Kranenburg, 2017). Company have
always made use of innovative and unique method to deliver services to customers so that they
are motivated to select Sainsbury as compared to other competitors in market. Therefore,
Sainsbury marketing manager by improving its various services is able to cater needs of
individual and expand profitability of firm.
Secondary activities or support
Infrastructure: It can be stated that good infrastructure, well equipped resources within stores
have contributed in effective completion of task and attainment of objectives. Employees are