Strategic Management of Sainsbury : Assignment
Added on -2020-07-23
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STRATEGICMANAGEMENT
Table of ContentsINTRODUCTION ..........................................................................................................................12.0 CONCEPTUAL FRAME WORK ............................................................................................13.0 Analysis of External Environment ............................................................................................14.0 Internal Analysis .......................................................................................................................55.0 Proposed strategy ....................................................................................................................106.0 Strategy evaluation ..................................................................................................................11CONCLUSION .............................................................................................................................12REFRENCES.................................................................................................................................13
INTRODUCTION The management department of an organisation is responsible for all activities that arehelpful in achieving desired goals and objectives (David, 2011). Organisation chosen for thisparticular assignment is Sainsbury is the most popular firm which deals in clothing and highquality food products, technological equipments, house décor items etc. It is located in UK. Thisreport contents the study about different elements of strategic management. Fundamental issuesand problems are also be discussed. Various theories are compared on the basis of differentcriteria related with strategic management. 1.1 Objective of the report: The objectives and aims are predetermined, given report is based on the four important outcomesrelated with strategic management. Measuring internal and external environment of Sainsbury. To analyse the effectiveness of internal environment. Evaluation of SWOT analysis. A brief discussion on current strategy of Sainsbury.Suggestion and recommendations on different strategies which is used by firm. 2.0 CONCEPTUAL FRAME WORK2.1 Key issues:The key problems highlighted in rendering low fare, and less services to its customersand clients. Organisation use various strategies for getting high range of profit and success. Theselection of right strategy is important for implementing various strategies into action. A beststrategy helps in providing support to low cost business model. Sainsbury have been facedvarious issues related with low quality services rather than other retailers (Hitt, Ireland andHoskisson, 2012). 3.0 Analysis of External EnvironmentThis report will apply PEST analysis for analysing the external factor of Sainsbury, and forindustrial evaluation porter's five force mode will be used in an effective manner. 3.1 PEST AnalysisIt is one of the best way to analysing all external factors related with political,economical, social and technological factors. It is the most essential frame work for analysing the1
macro environmental factors. It is the major part of advance strategic management. Theseelements may effect the sustainability and market position of Sainsbury and its business modeland low price strategy. 3.1.1 Political and legal issues:political issues are mainly related with the government in which establishing variouslabour policies and roles, setting up tax rate, regulation of environment, norms related withindustrial investment. This factor is also concern about the aspect of safety and security. Varioushealth and safety norms are adopted by the government of UK. Sainsbury have consideringvarious initiatives and advantages of fair and regular trade through removing unhygienic thingsform the food products. This factor mainly affects the sustainability of competitive advantage(Hill, Jones and Schilling, 2014). 3.1.2 Economical Factors:This factor consist as the growth and success of firm and their future economic out looks.This is very uncertain in nature and mostly affects the sales because mostly people are not havinghuge amount in cash for invest on luxury goods and services. For the reason of low salesSainsbury have been closed their number of outlets and stores this may cause the unemployment.3.1.3 Sociological factors:Two major external factors that highly impacted on the generation shift and changingvalues in populations. In this cultural aspects are included such as different demographic ofpopulation and pattern of buying and many other elements. In this factor the differential need ofcustomers according to their fashion trend, health and safety aspects play an essential role. Tasteand preference of people are regularly changed with the arisen of new trend and Mark ansSpencer has to regularly respond to the new need of buyers for providing satisfaction to them. 3.1.4 Technological factors:This includes the new and innovative form of new and advance technology, automations,development ans research. There are two major aspects and derives of technological change areavailable : (1) E-commerce and M-commerce (2) Sustainability. It play a vital role in the retailmarket for providing high range of products to their customers. For maintaining brand image ofcompany they focuses on quality aspects (Wheelen and Hunger, 2011). 3.1.5 Legal factors: 2
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