Strategic Management & Leadership

Strategic Management
& Leadership

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Executive Summary....................................................................................................................3
Focusing on the relationships between strategy, stakeholder expectations and organizational
performance. Explain the relationships and expectations between the three elements by using
the theory of strategic management............................................................................................4
Identify and evaluate the impact of external factors on strategic management in international
context, particularly economic, political, and cultural factors....................................................6
Based on the analysis of the environments formulate a new strategy to face the challenges and
meet organizational objectives. Critically evaluate the strategy and justify why this is the best
way forward for Sainsbury’s......................................................................................................8
Explain how your business strategy encourages and supports innovation and change, and
evaluate your strategy against competing strategies based on its contribution to the success of
your organization......................................................................................................................10
Develop an implementation plan for the strategy you have developed and document how your
plan will fulfil major stakeholder expectations.........................................................................11
Recommendations and Conclusion...........................................................................................14
TASK 2..........................................................................................................................................15
Analyse the current organizational structure and evaluate its effectiveness in meeting
organizational objectives...........................................................................................................15
Describe the reasons why a restructure is required to enable the new strategy implementation.
Describe the proposed structural changes and its benefits in detail..........................................18
Critically evaluate the restructure plan addressing possible issues and negative consequences
and ways to overcome them......................................................................................................20
Conclusion.................................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Strategic Management & Leadership are two unique concepts which are way different
from one another but support each other and comes together while helping the company in
achieving organisational ultimate objectives and attaining the practices as mentioned in the
mission statement. Strategic management act as a building block for the entity making all
resources needed available (Jabbar and Hussein, 2017). On the other hand leadership plays the
role of supportive role in strategic management as leaders are responsible for bringing the whole
group within the company together. The concept of strategic management and leadership is
encouraged on the basis of changes taking place in the organisational surroundings for the matter
of constant development. The present report is based on Sainsbury's a leading domestic
supermarket chain of United Kingdom. The company was founded in 1869 and now it is known
as the second largest of its type in UK. Sainsbury's is public company which is headquartered in
England and runs around 1,428 shops serving only in UK and Republic of Ireland. The
assignment will be coved in three parts a report is made in the first section where strategic
management and leadership concepts are discussed with the focus on developing new strategy
for attaining organisational objectives. The second section is also a written report in which
discussion is conducted on organisational structure and its effectiveness as well as on making
changes in it for developing and more benefits. Lastly, a Power point presentation is made in
regards with elaborating the stakeholders expectations that is covered in the first part of the
assignment.
TASK 1
Executive Summary
Strategic management is an ongoing process that involves of all the management
functions that are planning, directing, organising, controlling and monitoring. This procedures
takes place in order to identify and keep the organisation going by determining and fulfilling its
daily and regular necessities (Bryce, 2017). The work conducted in this section of the report is
reflecting on the relationships between the organisational strategy, stakeholders and performance
of Sainsbury's. Moving along the impact of external factors on management of Sainsbury's are
reflected. Once the analysis is conducted then a new competitive strategy is suggested to the
company which is encouraging innovation and environment for management and leaders stay

creative and encourage employee performances. Moreover, a implementation plan is made in the
end for the identified strategy in case to address the expectations and needs of customers and
other key stakeholders along with some recommendations for improvement and improvisation
are provided.
Focusing on the relationships between strategy, stakeholder expectations and organizational
performance. Explain the relationships and expectations between the three elements by
using the theory of strategic management.
Organisational Strategy is a the summary or the ultimate actions a company wish to and
needs to take in achieving long term goals and objectives of the entity. The Organisational
Strategy is constructed in a manner addressing the actions and highlights the phenomenon's each
department and every stage within the organisational structure needs to be conducted and then
the intended actions are sum up together for making the company's strategic plans for at least a
year with the involvement of all the organisational levels and functional units (Ginter, Duncan
and Swayne, 2018).
Stakeholder Expectations is defined as a process and the initial stage within the
stakeholder engine which establishes the foundation or the basis for organisations to make their
plans, develop goods and services and design them in accordance to the requirements and needs
of the individuals. There are number of stakeholder of a company who are addressed as internal
and external stakeholders like customer, employees, suppliers, government and shareholders.
The stakeholders of a company do have huge influencing power over the decisions and ultimate
operations of the entity. Hence, stakeholders do play a key role in completing and developing the
strategies of the organisation and in organisational success (Rubens and et. al., 2018).
Organisational Performances is a factor which comprises of the units in regards to the
actual or ultimate output which is earned by the entity and which is compared against the initial
agendas and determined units by the entity. The management and leadership of all the respective
fields are concerned with company's performances like strategic planner, finance managers, legal
management and rest others.
RELATIONSHIP OF ORGANISATIONAL STRATEGY, STAKEHOLDER
EXPECTATIONS AND ORGANISATIONAL PERFORMANCE OF SAINSBURY'S:
There are number of Strategic Management Theories present and are used by the
organisations and management in regards with their organisation and their respective world.

Hence some of them are profit maximizing, competition‐based theory, resource based theory,
survival based theory, human resource based theory, agency theory and contingency theory.
These theories are used and applied by organisations to deal with their operations and make
actions in accordance their requirements. Hence, according to the strategical plans, vision and
mission of Sainsbury's to offer them as a brand in front of buyer as the most trusted and valuable
retailer in the market where people love to vista again and again. For the same the company
make use of strategic management approach which is Contingency Theory (Wheelen and et. al.,
201).
The Contingency Theory of management is was identified and proposed by the Austrian
psychologist Fred Edward Fielder. According to the theory, it is determined or stated by the
author that there is no one best approach to manage and balance out a organisation. Different
organisations needs different manners and ways to effectively manage and run their entity
smoothly. Hence, The contingency theory emphasizes on the importance of both the leader's
personality and the situation which is the leader is dealing. The Contingency style or theory
highlights the two styles which are Task-Motivated and Relationship-Motivated.
The style of strategic management showcases the relationship of the organisational
strategy, Stakeholder expectations and organisational performance. According to the theory it is
stated that the leader of Sainsbury's hold the responsibility to make arrangements and build
consistency between the people and the situations to which they are dealing. The relationship of
the three elements exist here which is elaborated with an example below (Reynolds and
Mckimm, 2020).
For instance, the company innovates and a new offering is being planned for introducing
in market with the agenda of addressing stakeholders needs. The expectations of buyers are
identified and now it is important for company to address it. In this situation it is the job of
leaders to keep people motivated and highly enthusiastic for accepting change and working in the
best way possible. Here the three factors are aligned together within a relationship because the
strategy of new product development and keeping customers happy will only be fulfilled, when
change is introduced within the organisation that is needed to be accepted by the employees.
Here the strategy and employees performances are related as the strategy will be successful if the
employees are ready to accept the changing situation and perform in respective manner. Moving
along the employees performances and stakeholder expectation that are customers in the present

situational context, interrelates as the people need to perform in certain way for accomplishing
the goal and offer them the best on behalf of company and meet their expectations.
Identify and evaluate the impact of external factors on strategic management in international
context, particularly economic, political, and cultural factors.
The external environment of an entity refers to and talks about its surroundings in which
it is working and surviving. There are numerous factor exist within and around a company
according to which several decisions and phenomenon's of the organisation is affected. In
regards to the same there are some framework which are used for making analysis of the external
and macro factors that is PEST and also for seeking the value of internal factors over the
organisation (Lasserre, 2017).
In case of evaluating and identifying the influence of the Macro factors which impose the
variation on the whole industry PEST framework is used. The PEST is a tool which comprise of
four element which are Political, Economic, Social and Technological. The PEST for Sainsbury's
is presented below in regards for making analysis and dissect the impacts placed by these aspects
on the organisation.
 Political- In present situation the biggest political factor that affects Sainsbury's is the
executed Brexit deal. According to which England is no longer a part of European Union
(EU) and which directly impacts on the working environment and trade laws such as
increase in Import and Exports duties. This is a huge concern as Sainsbury's will be
experiencing huge rise in their cost due to increased taxes which will ultimately affect
their strategy of costing and take away the chance alternative from the brand to become
the cheaper retailer option for customers (Turner and et. al., 2017). As per now the
particular effects of Brexit cannot be gauged due to uncertainties, but it is expected bring
up adverse conditions for the brand. Another political hindrance which can affect
Sainsbury's is the relationship between Qatar and England in future. The Sovereign
Wealth Fund of Qatar is one of the largest shareholders of Sainsbury's hence any political
struggle or strain between the two nations will be leading reduced market shares of
Sainsbury's. This is also a condition which is also affected by Brexit and its political
outcome.
 Economic- Sainsbury’s is a brand which is highly dependent on by road transportations
for shipping and providing it offering all over the United kingdom. However, changing