Strategic Management Plan for J Sainsbury's Plc

Strategic Management
Plan

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Appropriate framework to analyse the influence of macro environment....................................3
SWOT analysis of organization...................................................................................................6
Porter’s five forces model to evaluate competitive forces...........................................................8
PART B.........................................................................................................................................10
Strategic management plan with objectives, strategies and tactics...........................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic management refers to the process of developing objectives, evaluating the
competitive environment, analysing internal environment of the business, evaluating the
strategies and ensure that the management of the business rolls out the strategies across the
organization. The Report is based on J Sainsbury's Plc. It is a type of multinational groceries firm
that belongs to Retail industry. It was founded in year 1869 by John James Sainsbury.
Headquarter of the firm is located in London, United Kingdom. It offers a wide range of products
through chain of superstores, convenience stores, forecourt shops etc. It owns various
subsidiaries like Sainsbury's Bank, Argos, Habitat, Sainsbury's Supermarkets, Nectar etc.
The Report will outline the impact of macro environment on organization with the help of
PESTLE analysis, analysis of internal environment by using SWOT analysis. It will also
describe competitive forces through Porter's five forces model, use of models for developing
strategic planning for the organization.
PART A
Appropriate framework to analyse the influence of macro environment.
Macro environment means the general framework that influence the operations of all the
businesses. These factors cannot be fully controlled by the firm. To analyse the impact of macro
environment on the firm and its business strategies, Sainsbury will use PESTLE analysis
(SHTAL, and et.al, 2018).
Political-
It involves factors such as Brexit uncertainties, political stability in the country, rules and
regulations of the government etc. In year 2016, UK has leave European Union. This decision
has adverse impact on the working of supermarket chains like Sainsbury. Due to this company
have to face difficulties in importing goods from another countries. Due to this Sainsbury is
required to make efforts to ensure that customers will continue to spend money as much as
possible in order to increase the profits of firm.
Economical-
There are various economic factors that may affect the operations of business. It involves
cost of labour, rising fuel cost, purchasing power of consumers etc. The purchasing power of
people living in UK has increased by 0.7 % from year 2017 to year 2018. It means that more

people will buy the products of the company. This will help to improve current level of
profitability of the firm (Perera, 2017).
Social-
It includes factors such as attitude, behaviour, beliefs of consumers towards the company
and its products. Nowadays, junk food items is no longer in fashion and the consumers are
becoming very conscious towards healthy food items like salads, organic food items etc. It is
very important for Sainsbury to focus on these trends as it is imperative for increasing long term
growth and success of the company.
Technological-
It involves factors like change in the technology for producing and distributing products
to customers. Technological advancements like artificial intelligence, Big data etc. are allowing
firms to learn more regarding their operations. Sainsbury should use analytics to develop
accurate models that will explain how much a given product is expected to sell. The development
and implementation of these tools will improve profitability of the firm.
Legal-
It involves legal rules and regulations that company is required to comply. Example-
Government has levied sugar tax that aims to minimize content of sugar in drinks by 20 % till
2020. This will affect the products own by Sainsbury.
Environmental-
It includes the regulations that are formed by Government to reduce negative impact of
activities on environment. Sainsbury should focus on the ways to handle plastic waste such as
providing incentives to clients who purchase foodstuffs loose and bring own bags and containers.
Critical analysis of macro environment-
The factors existing in macro environment affects the business strategies in positive as
well as negative manner. Political factor like Britain leave European Union has created negative
impact on the business of companies operating in retail sector including high inflation etc. that
has resulted in reduction in consumer spending that has negatively influenced sales of
supermarkets. Economic factor such as rate of inflation has positively influenced the operations
of Sainsbury (Zhao and Dou, 2019). Example- The rate of inflation in July 2019 was 2 %
whereas, it has declined and come down to 1.7 % in August 2019. This has positively affected
cost of operations of Sainsbury. Further, technological factors has positively influence the