Strategic Direction of Sainsbury: Analysis and Evaluation

STRATEGIC
DIRECTION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Critical analysis of strategic aims and objectives of Sainsbury...................................................3
Critical evaluation of the components of current organizational strategy in context of
Sainsbury......................................................................................................................................4
The factors affecting the strategic aims of organisational strategy over the short and medium
term..............................................................................................................................................5
TASK 2............................................................................................................................................6
Analytical tools to audit and assess progress towards existing strategic aims and objectives....6
Critical assessment of stakeholders expectations and their influence upon future organizational
strategy.........................................................................................................................................8
Evaluation of existing organizational strategic position and progress towards achieving the
existing strategy...........................................................................................................................9
TASK 3..........................................................................................................................................10
Development of alternative strategic options to meet organizational strategic aims, direction,
and objectives in the short and medium term............................................................................10
Justification of existing strategic option that can meet the revised strategic position...............12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management is a process of planning, analysing, monitoring and evaluation of
all necessary elements within an organization which helps to meet goals and objectives of the
organization. Changes in business environment requires constant assessment of strategies in the
organization for success. For making effective strategies', leadership also plays a vital role in
order to implement prescribed strategies. Leadership is basically a practical skill which
encourages the ability of an individual, team and organization to influence or guide other team
members or entire organization (Velikorossov, 2020).
Sainsbury is the second largest supermarket chain in the United Kingdom. Sainsbury
operates supermarkets and convenience stores, online grocery, general merchandize as well as
Sainsbury bank (Hitt, Duane, 2017).
This report will highlight the overall strategic management of Sainsbury along with the
strategic aims, directions and objectives created by the organization to achieve sustainability in
the market space.
MAIN BODY
TASK 1
Critical analysis of strategic aims and objectives of Sainsbury
The aims and objectives following by Sainsbury are very straight forward for each and
every employee to understand and to adapt to give output accordingly. The best side of
company's strategic aims and objectives is to survive and sustain the first position in front of
their competitors (Dvorský, Petráková, 2020). Company constantly tries to maximize their
business and profit margins so that more money can be reinvested into the company which will
allow the organization to become better supermarket for their consumers. Another aim and
objective of the company is to provide good and sustainable financial returns to their
shareholders. This means Sainsbury wants to guarantee that their shareholders receive
satisfactory returns for each share they own. To achieve aim and objective of providing
outstanding quality and choices, the company provide their full support and contribution to their
customers with the help of providing quality and choices in food and non-food items.
While on a contrary note, the strategic aims and objectives of the company lack behind in
terms of introduction of better technological advancements. With the effective usage of

technology such as social media marketing, the company will able to attain more profits and
easily able to attract more and more consumers towards their business.
The strategic aims and objectives of Sainsbury require updation with the changing
scenario as the existing aims and objectives have prepared at very initial stage when the business
starts. So, with the changing time the aims and objectives needs to be updated.
Critical evaluation of the components of current organizational strategy in context of Sainsbury
Strategy is a general concept or plan to achieve various long term goals and objectives
under conditions of uncertainty (Dzwigol, 2020). The key components of powerful strategic
planning of Sainsbury includes: Mission, vision and aspiration: The primary vision of Sainsbury is to be the most trusted
retailer in the market space where peoples like to work and shop. And their mission is to
be the consumers first choice for food and non-food delivering products of superb quality
or products and services at a competitive price through working quicker, uncomplicated
and together. The mission and vision statements of the organization are straight forward
which can be easily understandable.
 Core values: The core values are those on which an organization build foundation and
platform to perform their work or tasks. It is the basic element of how company go about
their work. The core values adopts by Sainsbury are that the company provides better
lives, beginning with honesty, respect for our environment, creating a positive
environment within society and community, a great place to work for their employees,
staff discounts which encourages employees, delivering great customer services, great
communication, good quality products, etc.
However, these values put pressure on the leaders of the company in order top perform better.
Also, sometimes the organization have to lose technically skilled employs if the candidate are
not willing to behave in values led ways.
 Strengths, weaknesses, opportunities and threats: Sainsbury strengths includes their
decision of expansion of business from small grocery store to big supermarket at the right
time, their business philosophy to cater all types of customers, wholesale and retail
banking, innovative promotional strategies and providing discount coupons to their
consumers in order to increase their customer base. However, along with strengths,