Strategic Management for Sainsbury: A Critical Assessment of the Process and Impact of Internal and External Environmental Variation on Organisational Strategy

This study provides a critical assessment of the strategic management process and impact of internal and external environmental variation on organisational strategy for Sainsbury. It includes a review of the organisation's strategic plan and provides an action plan for the organisation on the basis of a change in either the internal OR external environment.

BSc (Hons) Business Management Top up
BMP6002 Strategic Management
Strategic Planning
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Contents
1

Introduction p
Definition of strategic management p
A critical assessment of the process used by organisations to
determine their strategy p
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy p
A review of an organisation’s strategic plan (Business Plan),
providing an action plan for the organisation on the basis of a
change in either the internal OR external environment. (The
Business Plan is included as an Appendix) p
Conclusion p
References p
Appendix p
2

Introduction
Strategic planning term is very essential for new opportunity development as
well implementation of new idea expansion with proper manner. Its require
knowledge and analysis of external and internal forces which impacts on
performance of business (Rudnichenko and et.al., 2021). Sainsbury is all above
retail industry in UK they mainly provide services in food product, their owner
develop supermarket, store in market, and they consider providing food product at
good and affordable prices. This study will give information about how organization
analyse external and internal analysis for business effectiveness development and
implementation of strategic panning for organization growth and survives in the
competitive market. This study also provides idea about how company can develop
business model for proper expansion of multiple aspects.
Definition of strategic management
Strategic management is all above refers to planning, controlling, implementing and
engagement of essential need for completion of organization goal and aim with
effective manner. It essential aspect that company consider strategic management
because it implements and new ideas with perfect process and implementation of
proper plan directly influence effectiveness towards with the goal achievement. And
goal can be easily accomplished by strategic management (Shaulska and et.al.,
2021).
It mainly prepares by company owner, manager, director, CEO and like top
management or organization but its important aspect when organization manager
before implement they discuss with their employee and provides them clear
information about each segment.
A critical assessment of the process used by
organisations to determine their strategy
Expansion and development of effective strategic management planing
require effective process. And application of perfect process and identification of
multiple sources beneficial for business goal achievement. Its important aspect that
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Sainsbury company which wants to develop strategic management plan for
innovation development for improvement in business services are as follows,
Identify goals:
Expansion of effective strategy firstly requires identification and analysis of
goals and set specific aim for company growth or for new opportunity development
(Ortikovich, 2021). Sainsbury's organization identify that implementation of
technological advancement is important for survives in the competitive market and
expansion of online services.
Collect and analyse information:
Next activity is collection and analysis of information when strategic
management member decide and so their goals next is collection and analysis of
information which means completion of this particular goal which information
collection requires for effective expansion of business.
Construct a strategy
This step includes for development of successful strategy is discussed and
select employee which have knowledge about new changes and discussion with
employee is essential because they are resource who doing task and achieve goals
according to their work behaviour as well as according to their knowledge with
creativity. Company discuss with market experts and sales experts which have idea
about utilization of technology for provide services in market.
Implementation of strategy:
Completion of planning and setting of objective and discussion with employee
next is implementation of strategy which means company has to consider and
implement strategy in organization. Distribution of work to individual according to
their capability its very important task.
Evaluate and control
Distribution of work to employee next is evaluation of implementing strategy
that employee performs their task with new resources effectively of not and if the not
performing well in their task leader, manager has power to control their activity and
provides them right guidance that this particular goal achievement require this
method.
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This method is beneficial for identification of gaols ca be properly achieved by
organization member. Thus, application of innovation in business achieve attraction
of people towards with their business services or not and employee perform their
given task with proper manner for completion of goal or not. Application of this
strategy process is useful for overall business effectiveness improvement.
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy
Analysis of internal factors impacts on business strategy:
Strength weakness
 String brand because they provide
services in long term.
 Engagement of technological tools
reach new customer attraction and it
influences engagement of people.
 Effective pricing strategy, and they
provide their product ans services on
lower prices.
 Product availability on good prices
with some discount on festival is the
biggest strength or organization.
 Employee performance highly
influence this company performance
because of lack of interest.
 Effectiveness development in
employee performance mainly
require motivation and analyses that
which employee has capability to
perform this particular task with
good manner.
 Its not an easier task to analyses
different behavior management in
organization because individual has
different opinion to do their task
(Hasiholan, and Amboningtyas,
2021).
Opportunity Threat
 Application of technlogy
advancement reach people
attraction.
 On the basis of recent market trend
every individual consider food
product order from phone
application.
 Company decide to implement
technological tools for effective
expansion of multiple tools in
business for long term growth and
expansion of new opportunities in
business. ON the basis of recent
market trend almost every company
has to consider and implement
digital marketing tools for
 Other organization which also
provides online services in market
and same products.
 Survives in the competitive market
product pricing decision is very
difficult aspect, Salisbury organization
provides services in food product and
grocery items, they also sale home
and daily essential products as well.
But, multiple organization provides
same product and services in market
that's the reason this is challenging
aspect for this business.
 Engagement of different strategy like
different product pricing, size, color
and many more things can influence
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improvement market activity as well
as increases properly attraction and
it generates profit.
people attraction towards with the
business.
PESTEL analysis on organization strategy
This approach helps in to making study and monitor macro environment for
enhancing organization. In this there are different factors that are political,
economical, social, technological, environmental and legal elements. This is
determined below;
Political- It plays an essential role on attaining businesses' performance. In respond
to political condition of united kingdom. Retailers are required to follow all rules for
improving quality of their products (Thakur, 2021). There is consistency in policy
making and implementation because government adheres all rules under world trade
organization norms that may be beneficial for Sainsbury.
Economical- In order to this plays key role in function of management by economic
stability conducts to boost organization productivity. Due to rises in oil and other
prices, consumers do not invest in clothing, flowers and other grocery products that
Sainsbury offers. So, it can lower profit margin of this supermarket.
Social- It is also determined as socio cultural elements that consist of believes and
behaviour of population. Due to increase of social awareness plays key role for
maintains social responsibility that plays key role in function of management. (Fakari
and et.al, 2021). On the other hand, it is found that people are becoming health and
environmental conscious and for satisfying customers' needs, companies need to
focus on improving sustainability and quality of products. New brand positioning can
also help Sainsbury in attracting customers and retaining them.
Technological- In regard to this by increasing technology and emphasize growth
maintains and helps in raising business by adapting technology that increase
production and operation of organization in desired manner. (Rizun, Revina and
Meister, 2021). Implementation of advanced technologies within organizations is
increasing competition for retailers, and they are striving hard for being in the
competition. For minimizing and dealing with this factor, Sainsbury has started using
artificial intelligence to stock its stores and drive sales. It can help this retailer in
managing big data and business more effective as well as responsive to customers
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(Fakari and et.al, 2021). It has skilled employees who mainly focuses on research and
development and it helps this retailer in collecting information related to customers.
Environmental- It is essential to make and observe that eco-friendly products is to
be delivered by which reduces scarcity of resources, raw material etc. As this helps
in making environment sustainable and attain in reserving resources in an effective
manner. It is stated that people are becoming environmental conscious as they
prefer buying products from companies that promotes sustainability. For all
companies it is important to make use of natural resources to some extent (Zhang
and et.al., 2021). It is found that Sainsbury is striving hard for decreasing carbon
emission in order to make people feel valued and decreasing negative environmental
impacts. It offers plastic free fruits options and it has banned plastic bags and
customers need to carry their bags for buying products, or they will be provided with
cloths bags.
Legal- In accordance to this there are company laws and legislation that is to be
followed foe smooth functioning of organization function and maintains sustainability
growth of organization in respective manner. (Alshaikh, Maynard and Ahmad, 2021).
A review of an organisation’s strategic plan (Business
Plan), providing an action plan for the organisation on the
basis of a change in either the internal OR external
environment. (The Business Plan is included as an
Appendix)
Executive summary: the Sainsbury in retail sector provides grocery and fresh food,
three years a go, the company opened retail store in particular location with
traditional format adopted by various stores. In its intial stage the company had only
one sales channel that generated overall revenue of the Sainsbury. They have vision
to become the biggest grocery and fresh food provider in the country. The mission of
Sainsbury to provide wide range of products.
Business summary: Sainsbury is one of the largest grocery chain that provide
variety of products to their customer. They operate more than 600 supermarket
chains with 800 stores. Sainsbury provides various products such as grocery,
clothing and non-food item. They have strong market image and their wide range of
products provide company competitive edge. Sainsbury have strong online presence
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with their own E commerce platform. E commerce platform of company have wide
range of products that always available on the website and customer can purchase
their product from home which is delivered by their distribution centre (Li and te.al.,
2021).
Market analysis: Sainsbury tends to segmented their customer into various groups
which make them easy to target one segment at one time. This segmentation is
done on the basis of age, gender, education and income level and demographic of
the customer. Sainsbury penetrate their market to identifying need and wants of the
customers, this penetration helps company to set their marketing strategies
according segmentation of the customer (Walter, 2021). For example, marketing
campaign of Sainsbury of grocery product tend to target household females with age
group go between 35 and 45. Other marketing campaign of the company of clothing
target all age groups but with segmented income group of the customer.
Organization's strategic plan: organization strategic plan help leader to identify
their vision and this help them to determine goals and objectives of the business.
Strategic plans are usually made to bring change within the organization. Sainsbury
uses different change management models to support their change implementation
process.
Kotters change management model:
Kotter after observing organization operational strategy developed change
management model to break down strategies. Change management model of Kotter
help business to bring change in their environment. These changes can be
implemented at all level of the organization (Cosenz, and Bivona, 2021). There are
various elements of change management model such as:
Create a sense of urgency: creating sense of urgency help business to bring their
employee out of comfort zone. Sainsbury Create pressure on employee or even
management team will bring effective results on their performance. This pressure
help them to implement organization's strategic plan.
Create guiding coalition: creating guiding coalition is second element of the
change management model which help organization to create healthy relationship
between the leader and their employees in change management process. Sainsbury
creates effective coalition between an individual and team which help them to
completely understand the need of the change.
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Development of strategic vision: development of strategic vision element of
change management model help organization to developed sensible vision.
Sainsbury develop clear and achievable vision that help employee to understand
why the company is asking for the change.
Convey the vision: after the vision defined clearly, the next element is to convey the
vision to every level of the organization. Leaders of Sainsbury repeat their vision
statement when they get chance. Effective communication of vision help company to
acceptable and supportive change initiative.
Removing obstacles: obstacles are barriers that slow down the process of the
business, removing obstacles element of change management model help
organization to remove obstacle that occur when implementing the change in the
organization. Sainsbury remove their obstacles by creating coalition between leader
and individual.
Short terms wins: generating short wins help organization to motive their
employees, this motivation is very important because it boosts the morale and
improve the performance of the employees. Sainsbury tends to create short wins by
planing short operational strategies which is easy to understand and employees can
easily achieve them with less affords (Gartzia, 2021).
Sustain acceleration: change is slow process, it requires patience. Organization
sometimes become overwhelmed with short wins which results in failure of other
organization's operational strategies. Sainsbury pushes the pedal harder after every
win which keep them fast in change process. They know it is important to sustain
change after the implementation.
Cultural change: when bringing change in the organization, the company first start
the process with changing people of the organization. Change leader and coalition
team of Sainsbury have responsibility to bring transformation in culture, they tend to
behave supportive to overcome any kind of conflict between employees.
Product and service: product and service of business means which goods are
being produce and what service is being offered to the customer. For business their
most important thing is product provided by them, products are manufactured with
proper operational strategies which include the details of components used in
production such as raw material, suppliers detail, budget and marketing of the
product. Sainsbury provides wide range of products such as grocery, fresh food
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products, clothing, home décor and other daily life products. Wide range of products
gives company competitive advantage in the market.
Financial plan: financial plan is most important elements of business plan. A
business must be prepared to bear huge losses before earning good revenue.
Financial plan of operational management strategies help business to calculate the
cost of the product, calculating cost include the production, raw material, supply and
marketing. Sainsbury financial plan help them to cover every cost and generate good
revenue, they tend to use their own funding rather than borrowing from the market.
They manage their expenditure by making appropriates financial plan. Financial
statement can be measured by break even analysis of the company.
Break even analysis:
Particular Amount
Fixed cost 50000
Variable cost 50
Selling per unit 100
Contribution per unit 50
Break even analysis:
Break even = fixed cost/ variable cost
Break even = 50000/50
Break even = 1000
Conclusion
It has been summarized form the above reflective study that implementation
and development of new idea and resource application require proper strategic
planning and strategic management has multiple responsibility and major
responsibility to behaviour they have to analyse and resource about external and
internal forces because it highly influences development of new things in
organization. In any situation business not consider strategic planning it's not
properly work and not provides success as well. This report has been developed
clear idea and information that implementation of business plan resolve multiple
issues and reduce risk because it distributes each and every aspect of business.
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References
Rudnichenko, Y., and et.al., 2021. qualitative justification of strategic management
decisions in choosing agile management methodologies. International Journal
for Quality Research. 15(1).
Shaulska, L., and et.al., 2021. Strategic enterprise competitiveness management
under global challenges. Academy of Strategic Management Journal. 20(4).
pp.1-7.
Ortikovich, G. K., 2021. Theoretical Foundations Of The Strategic Management
System. The American Journal of Management and Economics
Innovations. 3(05). pp.53-60.
Hasiholan, L. B. and Amboningtyas, D., 2021. Role of SWOT Analysis in Improving
Competitiveness in Sambal Special Stall (SS). Jurnal Mantik. 4(4). pp.2436-
2443.
Thakur, V., 2021. Framework for PESTEL dimensions of sustainable healthcare
waste management: Learnings from COVID-19 outbreak. Journal of cleaner
production. 287. p.125562.
Fakari, B. and et.al, 2021. Limitations and Production Capacities of Field and
Horticultural Crops in Iran. Journal of Agricultural Science and Technology. 23.
Rizun, N., Revina, A. and Meister, V.G., 2021. Analyzing content of tasks in
Business Process Management. Blending task execution and organization
perspectives. Computers in Industry. 130. p.103463.
Zhang, W., and et.al., 2021. Factors influencing the use of artificial intelligence in
government: Evidence from China. Technology in Society. 66. p.101675.
Cosenz, F. and Bivona, E., 2021. Fostering growth patterns of SMEs through
business model innovation. A tailored dynamic business modelling
approach. Journal of Business Research. 130. pp.658-669.
Walter, A. T., 2021. Organizational agility: ill-defined and somewhat confusing? A
systematic literature review and conceptualization. Management Review
Quarterly. 71(2). pp.343-391.
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Gartzia, L., 2021. Gender Equality in Business Action: A Multi-Agent Change
Management Approach. Sustainability. 13(11). p.6209.
Li, J., and te.al., 2021. STRATEGIC DIRECTIONS FOR AI: THE ROLE OF CIOS
AND BOARDS OF DIRECTORS. MIS Quarterly. 45(3).
Alshaikh, M., Maynard, S. B. and Ahmad, A., 2021. Applying social marketing to
evaluate current security education training and awareness programs in
organisations. Computers & Security. 100. p.102090.
Saura, J.R., Ribeiro-Soriano, D. and Palacios-Marqués, D., 2021. Setting B2B digital marketing in
artificial intelligence-based CRMs: A review and directions for future research. Industrial
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Saura, J.R., Palacios-Marqués, D. and Ribeiro-Soriano, D., 2021. Digital marketing in SMEs via data-
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Appendix: The Business Plan
Business Model Canvas
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
 Seller and
product
supplier
 Transport
providers
 Digital
analytical
providers
 Inventory
control activities
distribution
management
 Customers
service
 Diverse
product
range
 High
quality
 Cost
effectivene
ss
 Customer
service
 Demo
offering
 Variati
depend
price o
basis
market
require
Cost
sensitiv
people
househ
etc
Key Resources Channels
 Brand
 financial
resources
 Management of
funds
 Retail stores
 Social media
 Digital
marketing
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tools
Cost Structure
Supply chain
Human resource
Revenue Streams
Retail sales
Product and services
13