Strategic Management ( Distinction Criteria )

This report on strategic management covers the comparison of prescriptive and emergent approaches to strategy, issues with SWOT analysis, and benefits, costs, and risks of using innovation for long term organisational development. It includes a case study of Sainsbury, a London-based company, and evaluates its strategies and approaches. The report is relevant for students studying strategic management and related courses.

Strategic management

Table of Contents
INTRODUCTION ............................................................................................................................3
Compare the application of prescriptive and emergent approaches to strategy with their role . . .3
Evaluate issues and limitations associated with the use of SWOT analysis.................................6
Evaluate benefit, cost and risk of using innovation for driving long term organisational
development..................................................................................................................................8
CONCLUSION ...............................................................................................................................10
REFERENCES.................................................................................................................................11

INTRODUCTION
Strategic management is management of the organisation resource to accomplish its
objectives and goals. This process include setting goals, analysing competitive environment,
examine internal origination, evaluation of different strategies and ensure management to roll out
strategies in the whole organisation. The strategic management make enable the company to
assess its environment to meet its long term objective (Chadee, Roxas and Kouznetsov, 2021). It
is a series of the decision taken by the management for determining strategies in order to
accomplish the organisational goals. It is an ongoing process that help to evaluate and control a
company and industries in which the firm is involved, assess their rivals and sets objectives and
strategies in order to meet all the existing and potential competitors, then reassesses every strategy
quarterly and annually to analyse that how it has been implemented or succeeded and need to
replacement by new strategies. Strategic management include a systematic analysis of the
external and internal environment, for evaluating company's policies, goals and strategy to build a
the new strategic plan and moves (Bonfante and et. al., 2021). Firm consider for this report is
Sainsbury that was incorporated in 1869 in London. It is popular for the high quality goods and
services at low price. This report will include the comparison of the application of emergent and
prescriptive approaches to the strategy with their role, application of SWOT analysis, issues and
limitation, comparison of two models approaches to assess environmental impact on competitive
position, benefits, cost and risk of using innovative to drive the long term organisation
development.
Compare the application of prescriptive and emergent approaches to strategy with their role
In strategic management, there are two approaches one is Prescriptive and other is
emergent approach. Both strategies are different from each other other as the emergent approach is
opposed to the prescriptive, is one whose ultimate objectives are unclear, planning is a short term,
this is more reactive to the events, strategies are adopted to the people's need and its component
are developed during the process of its development and implementation (Evans, 2019).
Prescriptive approach- Under this approach vision, mission, objectives and the core value are
defined before the implementation of startles. It implies that organisations will purposely
formulate the strategies on the basis of proprieties and aim of the top management. Hence, this

approach basically follow a top down hierarchical structure and the authoritative management
style. It is linear process from strategic analysis to the strategy development and strategies
implementation. Thus, the strategic planning is observed as deterministic, orderly, rational and
systematic process suitable for the stable business environment (Fontrodona, Ricart and Berrone,
2018).
Emergent approach- In this approach, the strategies come out as manager take strategic and
operational decisions continuously that resulting into certain pattern. It implies that
organisational realised strategy will not be out of an intentional planning from top but emerging
from action or decision taken, an interpretation of the events, complex interaction with lower
level, hence emerging bottom up. Thus, strategy making is incremental, interactive and unplanned
process that permit adaption and flexibility as changes in business environment. When, strategies
emerges from decision's pattern, it can be documented, for instance, in strategic plan and annual
report. Under an emergent approach, the planning is for short term and new knowledge and
experience learnt help to adopt strategy (Harnett and et. al., 2019).
Prescriptive approaches Emergent approaches
Its objective is outlined in the progress and
whose main component have been developed
before strategy commences.
Its final decision is undecided and main
component developed during course of its life,
as strategy proceeds.
In this approach, required resources can be
foreseen in order to implement the strategic
plans for company's development.
This approaches, make enable the organisation
to evaluate their own strategies.
This strategy help to allocate human and capital
resource for completing a given task or project.
It help the organisation in developing their
knowledge and learning regarding the business
environment or other elements.
With this approach, the company positioned
itself in to a competitive space.
This strategy has ability to adopt any uncertain
environment.
Role of prescriptive approach in organisation
From the contrary perspective, this model contain various assumptions which are unsustainable in
the changing business world. Logical approach implies that the strategy development is always

intentional and that strategy is realized as per the plan. This model influence the stratgic planning
of Sainsbury, which are mentioned below:
 Strategic thinking- Since all the objective and goals will be set to accomplish mission,
vision of the organisation and manger get encouraged to consider impact of their action,
decision and inaction on long term performance of the organisation. In context of
Sainsbury, this approach discourage the short termism since the performance target will be
monitored on the basis of long term objectives (Hridoy, 2020).
 Coordinating efforts- Strategy clearly stated in the strategy statement of mission, vision,
objective goals and values, the it become easy to coordinate strategic business units, efforts
of the manager and employees or workers if such type of statement were not accessible. It
make enable the organisation in making strategic business decision that enable them to
follow the direction of give strategies as it stated in corporate plan and it communicated
passim the company to accomplish consensus as much as possible.
 Suitable organisational structure- From the formal strategic planning, an organisation
ascertain the suitable strategic position to occupied. In relation to the Sainsbury, this
approach implies that the systemic analysis in prescriptive approach make enable the
organisation to become organised in a better way to fit in its new business environment.
Role of emergent approach in the organisation
Formulation of the approaches runs the paralexia in the organisation to implement and manager at
the multiple organisational levels have key input in actual stratgeis pursued by an organisation.
This approach impact the strategies of Sainsbury in different way which are discussed below:
 Less resistance to the changes- As the strategies emerge incrementally , the different
groups and individual can be prepared for the strategic changes in the organisational s
strategies are formed and enforced simultaneously. High level of resistance would be met
in case the radical changes were implemented (Koloushani, Nasri and Rezaei, 2019). This
approach help Sainsbury, in minimizing the case of resistance regarding to changes in the
organisation. The company motivate its employees to work with new changes and make
feel them bing contributed and valued for the organisational goals.
 Higher chance of the strategic success- The strategic alternatives are tested ad the
strategy success through experimental, error, trial and learning. It implies that learning

comes form the experience that can be sources of the competitive advantages and strategic
success for the business organisation. It is particularly possible since the strategy
development is simultaneous with the strategy implementation. Hence allowing
readjustment and flexibility are an environment changes.
 Ability to exploit opportunities- since the strategy can be readjusted an tactics shifted
rapidly, the business can respond in the changing environment easily thus exploiting the
opportunities as they surface (Mariani and Wamba, 2020). In relation to Sainsbury, it
make enable the company to grab all the available opportunity in that industry with a
positive attitude toward the changes in business environment.
Evaluate issues and limitations associated with the use of SWOT analysis.
This techniques often used in the strategic planning. It is a acronym for the strneg5th,
weakness, opportunities and threats. This structured planning method evaluate four elements of
the organisation, business venture and project.
 Provide visual overview- SWOT analysis normally presented as a square. All quadrants
stand for one element. This visual arrangement is very useful as it provide quick over
view about the position of a company (McFowland and et. al., 2020).
 Wide range of applications- This tool can be used for conducting strategic planning,
competitive analysis and other study. It is because, by using SWOT analysis, the
organisation become able to identify the environmental factor which play favourable and
unfavourable role on specific objective.
SWOT analysis of organisation
Strength- These are the qualities which make enable the organisation to accomplish their mission
and success. In context of Sainsbury, by providing training and development tot its employees, the
company has built highly skills workforce successfully. It is able to attain high level of the
customer satisfaction with its steadfast and committed customer relationship management
department. Te respective company is also listed under the constitution of London Stock
Exchange. Due to this, it is easy for the public to freely trade share and stock of firm on stock
exchange.

Weakness- These qualities prevent an organisation to get success in their mission and
accomplishment their full potential. In relation to the Sainsbury, as compared to other business
organisation, Sainsbury has higher attrition rate. This company investing a lot on the employee's
training and development. In term of the innovation the respective company is not able to compete
with other leading player in the same industry. It require to invest some more money in the
research and development department to overcome from this challenge.
Opportunities- These are presented by environment in which an organsiation operating its
business in context of the Sainsbury, it has the opportunity to open a new market by following
new trends in the customers. It help the company to develop new profit and the income streams by
diversify in the the new product variants. It has invested some capital into the digital platform and
introduced new sales channel successfully.
Threats- This factor compound vulnerability when relate to weakness. Threats can not be
controlled by the organisation in relation to the Sainsbury, it is operating globally due to which it
has to follow different rule and regulation of different countries due to which it is facing man y
challenges globally. The COVID 19 has also impact the company as during this time due to the
economic recession, there is a decline in the customer's purchasing power.
Limitation of SWOT analysis
 Lack of details- It does not offer way for ranking each component under these four
heading. It only identifies internal weakness and strength as well as assess external threats
and opportunities without including any further details.
 No obligation for variation- After this analysis, the information does not come with the
source and all that stuff. It should be trusted more and less blindly (Nazarova and et. al.,
2019).
 Unknown factors- There is risk of involvement of the unknown factors, due to which the
outcome can impacted quite easily with somethi9ng the organisation count not predict.
Issue with the SWOT analysis
 There is reliance on the information quality as quality of data used in the SWOT analysis
may have big impact on quality of analysis (Saïd Sevic and Phillips, 2019).
 It can oversimplify the kind and extent of weakness, strength, threat and opportunity. It
ignore strength and weakness of the other organisation that could impact the business.

 It is difficult to determine four factors of this analysis. For instance, opportunity and threat
many not be so easy to identify as strength of an organisation may actually be weakness.
Evaluate benefit, cost and risk of using innovation for driving long term organisational
development.
Concept of the innovation is refer to a process that an organisation undertake to the
conceptualize brand new products, ideas, process and new ideas in different ways. In corporate
world, there are several types of the innovation that an organisation might pursue. Innovation is
very beneficial for the organisation, but it has also some cost and risk. In context of the
Sainsbury, there are benefits, cost and risk of the innovation in the company's log term
development (Sangkakool and et. al., 2018).
In context of Sainsbury, due to the the COVID 19, the respective company has innovate a robot
with the purpose of health safety. In this, when the customer purchase the goods for company's
supermarket then these robot will assist them in all formalities such as billing, guiding and other
things. In this innovation the company had to invest a large amount of money in order to become
this innovation successful in the market. This innovation, the company is able to reduce its cost
and improve the quality of their services. This innovation is effective for the company in different
ways as discussed below:
It will reduce the organisational cost and waste.
This innovation will boost the market position of the company as it will help them to differentiate
from other competitors.
it will improve the sales and customer relationship by improving their service quality.
Benefit of the innovation
Better quality- Process of the innovation about to reduction of unit cost. It might be
accomplished by improving product capacity and flexibility of the company to enable it in order to
exploit the economic of scale. It help the company to grow their business for becoming more
profitable and successful. Sainsbury new innovation will provide the services to the customers
with better facility as per their comfort.

Differentiate the organisation- Innovation is about to do something different and unique from
other operating in same space. If the business is using an innovation on their product, for instance,
then the objective is to update or develop the product of the company until there is noting else on
market like it. This innovation of the Sainsbury, will differentiate them as it is very difficult for
the other rival to adopt this technology.
Innovation keep the organisation relevant- The environment is constantly changing and to
remain the business profitable or relevant, it is essential for them to adopt innovation to meet new
realities in the world. The technology proves to be key driving factor in need for change. These
changes led to the new innovation across the business model (Tariq, Badir and Chonglerttham,
2019).
Risk of using innovation
There are some risk also associated with the innovation in organisation which are mentioned
below:
Risk of failure- With out success, the innovation does not benefit a business. The organisation
should make sure that their innovation are in the line with their business mission and vision as
well as their business strategies. Innovation in the organisation may impact the company in
negative way, due to which the company has to face failure. If the Sainsbury will not able to meet
the customer's requirements with their innovation then, this practice of the company get fail due
to which they have suffer form heavy loss.
Competition- The innovation only discuss competitive advantage if rivals of the company are not
able to retroflex in their business. If the other competitor has copy the innovation, then it become
very competitive for the organisation to increase their revenue as it create a tough competition in
the industry (Torfing, 2019).
Uncertain commercial return- Some research are speculative and there is no guarantee of any
future profit and revenues. Longer development timescale greater the risk which research is
overtaken by the competitors too. There is possibility that due the innovation, an organisation has
to face loss.
Cost of using innovations

Like other organisational activities, research and department has to compete for the scarce cash.
The innovation need high amount to invest. It demand how rate of the return. It means that for the
business organisation by having limited cash resource, opportunity cost of the investing in the
research and development can be high. To innovate the new innovation the respective company
had to spend hug amount in the research and development department to innovate such type of
technology in the organisation (Weber, 2018).
CONCLUSION
From the above report it is concluded that, the strategic management has an important role
in the organisation. It assist the company to performed their planning planning, monitoring,
assessment and analysis of all the essential requirements of an enterprise to achieve the desirable
objective and goals. In the above report, it is summarised about application of emergents and
prescriptive approaches as they make enable the organisation in strategic thinking, and increase
the chance of their strategy's success. In strategic management, the SWOT analysis is a supportive
tool that aware the firm to know their strength and available opportunists which help them to
overcome from their weakness and other threat . In this, the concept of innovation very essential
as it its key driver for the success of any organisation. With innovation a company can promote its
brand and improve their productivity which help them to gain the customer attention. But their are
some issue in the innovation in business worlds, as it require a huge amount in the research and
development department. Furthermore this report has discussed the latest technology in the
organisation as an innovation. Which help hem in cost reduction and profit enhancement. Hence,
it become important for the firms to bring some innovation in their business to compete with in the
competitive market efficiently.

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