Strategic Planning for Sainsbury: Importance of External Factors, Stakeholder Needs, and Market Positioning

Unit 12 Strategic
Planning
Table of Contents
INTRODUCTION.................................................................................................................................4

TASK 1.................................................................................................................................................4
1.1 Explain the importance of External factors affecting an organisation..........................................4
1.2 Analyse the needs and expectations of stakeholders of an organisation.......................................5
1.3 Analyse the major changes taking place in the external environment that will affect strategy.....6
TASK 2....................................................................................................................................................6
Be able to review existing business plans and strategies of an organisation......................................6
2.1 use appropriate tools to analyse the effects of current business plans..........................................7
2.2 review the position of an organisation in its current market........................................................8
2.3 evaluate the competitive strengths and weaknesses of an organisation’s current business
strategies...........................................................................................................................................9
TASK 3...............................................................................................................................................10
Be able to develop for strategic planning for an organisation..........................................................10
3.1 use modelling tools to develop strategic options for an organization.........................................10
3.2 develop a comparative understanding of activity from organisations in the market...................11
3.3 create options to form the basis of future organisational strategy..............................................11
TASK 4...............................................................................................................................................12
4.1 Propose a suitable structure for a strategy plan that ensures appropriate participation from all
stakeholders of an organisation........................................................................................................12
4.2 Develop criteria for reviewing potential options for a strategy plan..........................................13
4.3 Construct an agreed strategy plan that includes resource implications......................................14
TASK 5...............................................................................................................................................15
Be able to examine factors affecting an organisational strategy plan...............................................15
5.1 compare core organizational values (ethical, cultural, environmental, social and business) with
the current business objectives of an organisation...........................................................................15
5.2 develop appropriate vision and mission statements for an organisation.....................................16
5.3 produce agreed future management objectives for an organisation............................................16
5.4 develop measures for evaluating a strategy plan........................................................................17
Task 6..................................................................................................................................................18
6.1 Develop schedule for implementing strategy plan in an organisation........................................18
6.2 Create appropriate dissemination processes to gain commitment from stakeholders in an
organisation.....................................................................................................................................19
6.3 Design monitoring and evaluation systems for the implementation of a strategy plan in an
organization.....................................................................................................................................19
CONCLUSION...................................................................................................................................22
REFERENCES....................................................................................................................................23

Books & Journal:.............................................................................................................................23

INTRODUCTION
Business and market are dynamic in nature and which require a deep level of analysis
to survive. With the increasing in competition it has become important to implement the
strategic plan for the business to achieve the goals and objectives. Sainsbury's, multinational
corporation largest supermarket headquartered in UK. Company deals in variety of products
such as apparels, cosmetics and many more. This report includes external factors affecting
the organisation, needs and expectation of stakeholders, changes taking place in external
environment, tools examine the effect of business plan, position of an entity in current
market, strength and weakness of enterprise, developing strategic options by using modelling
tools, comparative understanding of activity, forming the basis of future entity strategy,
criteria for strategy plan, strategic plan with resource implications, core organisational values,
vision mission statements, feature management objectives measures for evaluating strategic
plan, schedule for plan, dissemination process to gain commitment from stakeholders,
monitoring and evaluation system for implementation of maintenance strategy plan.
TASK 1
1.1 Explain the importance of External factors affecting an organisation
In organisation there are many external factors which affect the business and its
activities. These sectors are to be determined with the help of PESTEL analysis which is used
by many or nation to examine the elements.
PESTEL Analysis-It is a Framework which is used by enterprises to divide and
analysing external factors which affect the business environment as well as growth. To
conduct this framework reliable information and sources are required so that it is being
connected properly. It includes several elements and are discussed below-
Political factors- These elements include employment and Labour law governmental
aspects and legal aspects etc. In relevance with the Sainsbury's, they also get affected by such
factors for example impact of Brexit have a deeper effect on entities growth and overall
development as due to the change in in government decisions (Song, 2017).
Economic factors- This elements involved inflation and deflation rate national
regional and global economic performance, tariff and non-tariff, etc. In context to selected
entity they get directly affected by these elements as because taxes in UK are high and which
makes it difficult for corporation to run the business globally (Pan, 2019).
Social factors- This type of factors are considered as religion culture attitude income
etc. These are also important to be focused as because they help entity to target the potential
market as well as customers. In relation with Sainsbury's, also target their customers on the
basis of these elements.

Technological factors- Every organisation uses technology in their business to
explore opportunities and customer. This includes use of artificial intelligence, advanced
software and hardware etc. In context to selected corporation, they regularly updated their
management online system to remain in touch with their customers and clients.
Environmental factors- These are also needed to be focused by your organisation as
this involves waste management, weather, temperature, etc. which are considered important
by the chosen enterprise because it increases their goodwill within the market.
Legal factors-These elements include agreement contracts etc. which are governed
by the legislation and laws. In relevance with the selected entity, legal team are department
are always active during such situations (Vuorinen, 2019).
1.2 Analyse the needs and expectations of stakeholders of an organisation
Stakeholders are the integral part of organisation and these are defined as that party
which have interest within the company and are affected by the business at higher level.
There are many stakeholders within the organisation which are investors, employees,
customer’s vendors etc.
Business stakeholders- The term stakeholder is a wider and broader concept which
ranges from small group of people to the large organisations. It is important for businesses to
have stakeholders so that functions and operations are carried out properly.
Stakeholder analysis- Needs and expectations of stakeholders are important and
before considering them it is essential to identify those stakeholders according to their
importance within the business. Then further sorting is being done which stakeholder is more
important and examined their intensity of interest as well as influence over the business (He,
2019).
Stakeholder needs and expectations- After analysing the importance of stakeholder
to the business enterprise initiate with examining the needs and expectations of those
stakeholders. They all have different interest within the enterprise for example customers
have interest on expecting the quality of service as well as product, investors have interest on
maximum rate of interest etc.
Type of stakeholders-
Customers- These are the external stakeholders who have interest on quality and
price.
Owners- These are the stakeholders who have stake in maximizing the sales revenue
of organisation.
Investors- These are to be considered as those who have interest in earning maximum
rate of interest and return.

It is important to be about the needs as well as expectations of stakeholders so that
decisions are made with proper considerations and business run smoothly. It is done by
brainstorming in group discussions and with proper internal and market research it is
responsibility of the manager to make ensure that such needs are fulfilled within a period of
and in effective way.
1.3 Analyse the major changes taking place in the external environment that will affect
strategy
Business management includes external factors which are dynamic in nature and
effects strategy as a last tactics of businesses such factors include economical social
demographic and management etc. The effect of these factors can be both directly and
indirectly depending upon the situation. Also, they provide competitive advantages to some
of the organisation and which depicts that it is essential for or them to use these opportunities
in efficient manna by increasing the productivity.
External factors have a deep impact on organisation structure as well as stakeholders
interest. Economic factors are complex and dynamic which affects the internal as well as
external market through the different policies and procedures. It includes purchasing power,
wages, taxes, economic potential, etc. Such factors have an impact on entity by affecting their
demand income and sales revenue.
Also stakeholders also have an impact on strategy as their interest and demands are
dynamic which leads to conflicts and problems in implementing tactics (Irwin, 2019).
Demographic forces- These are those types of forces which are considered as
outcome of English in the credits of populations such as age gender sexual orientation social
class etc. From the past years new Chinese have implemented over the improvement for
example- ratio of women workforce has been increased and is rising add rapid scale. Such
type of forces affects the strategy of business and which take place during the external
environment (Drobyazko, 2019).
Social forces- These are considered to be those external environment changes which
occurred with change of social values norms, belief, affecting the industrial sector. In relation
with selected entity as it is a diversified company and provide groceries products across the
globe they need to be aware about such social forces for example- different people have
different tastes in different country.
TASK 2
Be able to review existing business plans and strategies of an organisation
It is necessary to assess or take review and feedback of business strategies as well as
plan for business organisation in relation to Sainsbury that is going to be mentioned below: