Strategic Management: Theory, Practice, and Case Study Approach

Strategic
Management

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Comparison of theory and practice.........................................................................................................3
Case Study Approach...............................................................................................................................4
Recovery plan..........................................................................................................................................6
Risk Management....................................................................................................................................7
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
Strategic Management is a field which involves setting of objectives, analysis of
competitive environment, analysis of internal organization, evaluation of strategies and ensuring
that the management is able to roll out strategies for the organization (Aguinis, Edwards and
Bradley, 2017). It is very helpful for the managers in making sure that they are able to adopt the
right approach for ensuring their organization’s success in the market in the future time period.
For this the managers are required to adopt a clear approach towards the strategies which they
are going to adopt. For this report, Sainsbury’s has been chosen. It is a British Supermarket
Chain dealing in groceries and other consumer products. In this assignment, a detailed analysis
will be made on comparison of theory and practice, use of a case study approach, a recovery
plan. Additionally, a recovery plan and a risk management strategy will be discussed as a part of
this project.
MAIN BODY
Comparison of theory and practice
Porter’s 5 forces is an analytical model that helps marketers and business managers look
at the ‘balance of power’ in a market between different organizations on a global level, and to
analyze the attractiveness and potential profitability of an industry sector (How to use Porter’s 5
forces model, 2020).
Sainsbury’s made use of this model to identify the competitive position in the market.
Scenario- Sainsbury’s management wanted to use Porter’s 5 forces model because of the
increasing competition in the supermarket sector in U.K. Thus it applied this model on the
company to identify how it stands out among the competitors.
The analysis of this model in the context of Sainsbury’s is as follows-
Competitive rivalry- This means the level of competitors which are present in a
particular market (Akhtar and et.al., 2016). In the context of Sainsbury’s this force has a very
high power because of the higher number of competitors which are present in the market. Thus
the company needs to evaluate its strategy against them and must find out ways through which it
can gain a competitive edge over them. Due to higher number of competitors, the management of
the company has to focus on keeping its costs lower so that the company may keep a lower price
to gain strategic edge in the market.
Threat of substitute products- This refers to the threat which the substitute products
pose to the company. In the context of Sainsbury’s this force has a relatively lower power. This
is so because the customers who make their purchases from the firm like quality products and