Strategic Management Plan for Sainsbury: Analysis of Macro and Internal Environment

This report analyzes the macro and internal environment of Sainsbury using PESTLE and E-top models, SWOT analysis, and VIRO framework. It also suggests appropriate strategies for improving the company's competitive edge and market position using Porter's Five Forces model and Ansoff matrix. The report concludes with a strategic management plan for Sainsbury, including its vision, objectives, and priorities.

UNIT 32 ASSESSMENT

Table of Contents.
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Analysing the macro environment to determine and inform strategic management decisions.. .3
Evaluating the internal environment that with considering internal capabilities, structure and
skill set.........................................................................................................................................5
Producing appropriate strategies to improve competitive edge and market position by using
Porter five forces model...............................................................................................................6
Using a range of theories, concepts and models for producing management plan with tangible
and tactical strategic priorities and objectives for sainsburry......................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Formulating strategies is being defined as the process in which the business used and
designs new strategies as for adopting new procedures used for producing and operating business
. Various strategies helps the company in growing and achieving sustainably as for operating
business operation. Sainsbury is recognized as the second largest supermarket store mainly
Selling food and non-food products to large number of consumers as for increasing sales and
profits earning capacity in the market. The main aim of the company is to serves large number of
consumers with great quality with the competitive prices. This report provides details analysing
about the macro environment for determining and informing strategic management decisions by
applying two frameworks. Further, evaluating the internal environment as with organization's
internal capabilities, structure and skill set with using two frameworks. Also, producing
appropriate strategies to improve competitive edge and market position by using Porter’s Five
Forces model . Lastly using range of different theories concepts and models produce a strategic
management plan with tactical strategic priorities and objectives for Salisbury.
MAIN BODY
Analyzing the macro environment to determine and inform strategic management decisions
The macro factors of company is affecting companies operations and food retail
business . By using the PESTLE factors helps in analyzing the impact of the external factors
affecting business.
PESTLE ANALYSIS
Political factors Various rule and regulation affecting companies operations. Quality
management rule, and hygienic rules affects companies internal
operations. Due to Brexit impacted companies importing from EU and
increases uncertainty for operating the business in economy.
Economical factors:
Economic factors mainly constitutes employment rate, income level,
economic stability affects companies image and growth . These factors
impacts price, profits earning capacity and profitability for the
company . Fluctuation into currency rate, unemployment rate affects
sainsbury internal operations.

Social factors:
Various social trends and factors mainly the consumers new preferences
with the new trends as of attracting to consumer towards selling more
hygienic and healthy products impacts retail supermarket sainsbury.
Technological
factors :
Advanced technology and latest cost of producing by using efficient
technology impact the company operation. For this the company mus
evaluate and changing digital trends for cope up with new technical
adaptations.
Environmental
factors:
Various factors of environment impacting companies internal operations
as offering various sustainable products and reducing wastages for
ensuing healthy lives of employees and consumers . For this company
must adopt the paper packaging and recycle packing for selling the
products .
Legal factor: Changes into legal laws, various policies related to marketing,
promoting and distributing of products to large number of consumers
affect the companies internal operations (PESTLE Analysis of
Sainsbury’s, 2022). Also, the introduction of sugar tax impacted
company selling various high sugar products.
The anther framework is E top model
By using this model helps in analysing the companies environmental threat and
opportunities. Various opportunities related to environment and threats is bing identified by
using e top model.
Various environmental sectors including economic which impacts the company by
slowing down its internal operations with the increase in the interest rates of selling products to
large number of consumers. Also, the market factors impact the company as the growth and
profits being reduced selling only in domestic market is low for the company. International
market factors is expanding the market by adopting merger and acquisition company is
earning high profit (Dunn and et.al., 2018). Further the regulatory framework as a factors
impacts the companies profits earning capacity and hinders export and importing of products for
the company. Thus, by adopting both the framework the company must analyse the external

environment and form the cost effective strategy as for increase profits and revenues of the firm
by selling quality and low cost products to large number of consumer .
Evaluating the internal environment that with considering internal capabilities, structure and skill
set
Internal business analysis helps identifying strengths, weakness, opportunities and threats
of business.
Strengths
 Uses excellent promotional strategy as
increasing sales of company.
 Effective social media strategy for
expanding stores into international
market.
 Listed in stock exchange.
Weakness
 Decreasing into companies profits by
increasing more manufacturing cost and
expenses.
 Rise in prices due to uncertainty of
covid.
 Niche competitors selling food reduces
market share.
Opportunities
 Expanding and investing into target
market is an opportunity .
 Expanding by collaborating with the
various online companies (SWOT
analysis of Sainsbury, 2022).
 Grasp opportunity as by investing into
growing economy.
Threats
 Increasing competition is threat
 Pandemic impacted company profits
 Brexit impacted import of various fresh
food products.
VIRO
Resources Valuable Rare Imitable Organised Competitive
advantage
Globally
recognise
✓ ✓ x ✓ ✓

Human
resource
✓ ✓ x ✓ ✓
Promotional
and marketing
tools
✓ ✓ x ✓ ✓
Brand
awareness
✓ ✓ x ✓ ✓
With the above table it is analysed that internal resources of the company creates
competitive advantage and by analysis all the internal operations helps in forming the strategy
for the business as for creating and achieving cost-effectiveness strategy for increasing profits
and revenues for the firm.
Producing appropriate strategies to improve competitive edge and market position by using
Porter five forces model
Porter five forces model helps in analyzing the companies competitive environment as of
available rivalry, competitors, threats and other factors which influence the companies'
profitability.
Competitive rivalry: High Level of competitors of selling and operating various retailer stores
into the UK, tesco , Morrison, affects the companies market share, for this with high level of
competition into the existing market (Engelbrecht and et.al., 2021). The company adapting
differentiating strategy as for introducing and selling differentiated products to large number of
consumer for attracting the target market and increasing the profit margins of the company
results in attaining by competitive advantage with low prices seeing quality and unique
products.
Bargaining power of the buyer: The bargaining power of buyers are high, it enables the
large number of consumers for shifting to the other brands as of tesco , ASDA, Morrison . By
establishing the cost effective strategy as by offering unique products at low prices with quality
efficient (Glavan and et.al., 2019). It helps in attaining and attracting large number of loyal
consumer for purchasing the products from the sainsbury supermarket store .

Bargaining power of supplier: With the low bargaining power of the supplier in the
market the company can shift to other supplier for purchasing the raw materials for producing
the products of the sainsbury supermarket (Marrucci, Marchi and Daddi, 2020). As by
establishing the cost effective strategy the company must shift to the supper who is supplying
raw materials at low prices in order to maintain the cost effective and competitive advantage by
selling the products at low prices to large number of consumers.
Threat of substitute: Threat off substitutes is large as of the other companies and
competitor provide products to consumer lower than sainsbury, then consumers shift to the other
brand supermarkets as for purchasing the products.
Threat of new entrants: The thereat of new entrants is low in the market as the
sainsbury is the recognized company which has high market share. For entering into the
competitive market the new entrant must have the high quality of products for thriving the
consumers at low prices (Santos and et.al., 2019). As for this threat of the competitors is low the
company will adopt the cost effective strategy as by maintaining and providing quality of
products at low prices for retaining the consumers and high market share of the company.
Using a range of theories, concepts and models for producing management plan with tangible
and tactical strategic priorities and objectives for sainsburry
Executive summary: as by using the bowmen model and Ansoff matrix for
incorporating various strategy in business as for achieving growth and increasing revenues of the
business s for achieving profits of the company . It helps in creating competitive advantage of the
company and achieving the ultimate activities as for increasing the revue by 10 % of the
company.
Overview: Sainsbury recognized as the second largest supermarket mainly selling
various food products and non-food products to large number of consumers. The company is
offering quality and non-food products at the competitive prices. The main priority of the
company is to serves the quality and tasty products.
Vision: Sainsbury vision is to establish the most trusted retailer as for selling food
products where various individuals love to eat, work and shop.
Objective : The main objective of this management plan is to increase the revenues by
10% which helps in making company more profitable.

Mission: The mission statements of the company is to be the priority choice for all the
consumers for purchasing food and delivering products with quality and producing great services
at competitive cost as by working faster and similar together as for achieving goals and
objectives.
Model : As by using the Ansoff matrix model helps in growing business and the position
of the company in better way. By using the market development strategy sainsburry aid in
searching new markets for existing its existing range of products. It generally helps in identifying
new consumers for increasing sales of existing products in new market. Also, when adopting the
diversification strategy the company will introduce new products into markets as for increasing
sales by implementing strategy as for achieving the desire objective. Further by using the market
penetration strategy aid in tapping not more market share by using the existing products into
existing market as by using various state as for increasing the profits and revenues of the
company. Lastly by using the products' development strategy sainsburry introduces new products
into executing market as for meeting the need and demand of the company and growing and
developing the market for achieving more profits and revenues in the company. Thus, the
company must use market penetration strategy as it has the lowest risk for increasing sales and
revenues for the firms.
Bowmen model : It is the strategic clock model which emphasizing on the eight
strategies it choices of low price with low value added(emphasizing on establishing the low
prices of good. It is about selling quantity does not emphasize on quality of products by setting
the lowest prices as much as possible), low price (the lowest cost products with low margins),
hybrid (it is low price with differentiation by ensuring competitive advantage for the company) ,
differentiation (it mainly focuses on differentiating the products from available competitors by
adding high value and establishing competitive advantage for the company it aims for gaining
more revenues by earning more profits for the firms), focused differentiation (providing high
value with high prices), risky high margins (emphasize on high establishing high prices risky
strategy to adapt), monopoly pricing (establishing monopoly prices for the products less fear of
competition in market, loss of market share (this strategy emphasize on establishing prices to
high for the consumers it is very risky strategy to adapt for growing in the market) (Rogus,
Athens, Cantor and Elbel, 2018.). Thus, Sainsbury will adopt differentiation strategy for the
company as by offering the best products with quality of pricing, by using this strategy

emphasizing on the company as by establishing some unique value for the consumers with
differentiating into products as by selling unique products/ this helps in gaining the competitive
advantage or the company as by establishing and introducing differentiated products than that of
competitors into the market. This helps in increasing profits which result in increasing revenues
of the company .
Monitoring and controlling: As by adopting all the strategy for achieving the
competitive advantage by establishing the mission, vision and objectives for increasing the
profits of the company and adopting the differentiated strategy and using the market penetration
strategy for increasing the market share and revenues by increasings sales of food and non-food
products of the company. As by adopting the tracking system and using the KPI helps in
monitoring and controlling the employees and tracking the strategic plan for the business and the
implemented strategies is giving fruitful results (Jelassi and Martínez-López, 2020). As by
adapting appropriate tracking system helps in monitoring results of strategy implementing as for
increasing profits and revenues in Sainsbury .
CONCLUSION
From the above report it can be concluded that forming various strategies and introducing
new strategies for Sainsbury as for achieving growth and substantiality in business. As with
using the pestle model and e dot model helps in analysing business all the external factors
affecting internal operations and hinder the business. Also, with evaluating the internal factors
with swot models and VIRO framework helps in analysing Sainsbury available resources and
strengths, weakness, various opportunities and threats. With adopting the porter model helps in
producing strategies for improving the competitive edge for the firm and retaining its position in
market. Also, using Ansoff matrix in business helps in determining and building management
plan for Sainsbury by defining vision, objectives and various strategies adopted with setting
priorities for retail supermarket.

REFERENCES
Dunn, J and et.al., 2018. Factors of the marketing macro system effecting children’s food
production. Economic Annals-ХХI. 170(3-4). pp.49-56.
Engelbrecht, N and et.al., 2021. The Virtual Online Supermarket: An Open-Source Research
Platform for Experimental Consumer Research. Sustainability. 13(8). p.4375.
Glavan, M and et.al., 2019. Demand-side improvement of short-term load forecasting using a
proactive load management–A supermarket use case. Energy and buildings. 186.
pp.186-194.
Jelassi, T. and Martínez-López, F. J., 2020. External Analysis: The Impact of the Internet on the
Macro-environment and on the Industry Structure of e-Business Companies.
In Strategies for e-Business (pp. 49-95). Springer, Cham.
Marrucci, L., Marchi, M. and Daddi, T., 2020. Improving the carbon footprint of food and
packaging waste management in a supermarket of the Italian retail sector. Waste
Management. 105. pp.594-603.
Rogus, S., Athens, J., Cantor, J. and Elbel, B., 2018. Measuring micro-level effects of a new
supermarket: do residents within 0.5 mile have improved dietary behaviors?. Journal of
the Academy of Nutrition and Dietetics. 118(6). pp.1037-1046.
Santos, J.G and et.al., 2019. Dietary interventions, intestinal microenvironment, and obesity: a
systematic review. Nutrition Reviews. 77(9). pp.601-613.
Online
PESTLE Analysis of Sainsbury’s. 2022. [Online] Available through:
<https://www.marketingtutor.net/pestle-analysis-of-sainsburys/>
SWOT analysis of Sainsbury. 2022. [Online] Available through:
<https://www.marketing91.com/swot-analysis-of-sainsbury/>