Business Management Report: Sainsbury's Strategic Analysis

This report provides a comprehensive analysis of business management functions, focusing on the case of J Sainsbury plc, a major supermarket chain in the United Kingdom. The report explores key business management concepts, including the application of the Ansoff growth matrix to formulate effective strategies for market penetration, product development, market development, and diversification. The analysis highlights the importance of market development strategy for Sainsbury's international expansion, examining various entry modes such as licensing, franchising, and strategic alliances. The report also includes a personal reflection using Gibbs' reflective cycle, discussing the development of key skills gained throughout the project. The report concludes with references to the sources used.

Foundations of Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Understanding of business management functions.....................................................................3
Personal reflection how you have developed your key skills.....................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business management is basically refers to the set of disciplines that are devoted toward
the organisation, evaluation and planning of several type of business operations. It plays a crucial
role in proper executions of operations within an organisation by ensuring all the policies and
practices are formulated toward the accomplishment of organisational goals and objectives
(Holsapple, Lee-Post and Pakath, 2014). The current report is based on J Sainsbury plc which is
a second largest supermarket chain within United Kingdom. It deals in variety of products like
grocery items, bank services, wine shops, food items and many more. This report contains an
information regarding business management function and its importance within the business with
the help of several tools and models.
MAIN BODY
Understanding of business management functions
Sainsbury is a largest supermarket retailer which offer number of products or other daily
essential throughout the United Kingdom. It is successful running its business throughout the
nation due to the managerial efficient it maintain which ensures that each task get perform in
effective and efficient manner (Goetsch and Davis, 2014). It work over the main concept of
maintaining speed and flexibility in its operations to remain compatible with the environment. It
maintain over the strategy of selling multiple good through multiple channels so that customer
can shop with the company anytime anywhere as per their choice for getting a better shopping
experience. But as the competition is raising in the current market, it become crucial for
Sainsbury to take appropriate actions toward this in order to maintain sustainability in market
place or finding another alternative to achieve success.
Hence, in order to formulate effective strategy that leads to competitive advantage for
Sainsbury, it must use Ansoff growth matrix that help in formulating an effective strategy which
support it in providing direction to set of actions that can be taken in order to expand business
and achieve competitive advantage at marketplace (Cooke and Alcadipani, 2015). For this,
Sainsbury must make use of Ansoff growth matrix, which is a framework that consist of four
basic strategies which support in determine what option to be consider in order to enter into an
international market. The Ansoff matrix is explained below:

 Market penetration:- This strategy suggests that an organisation must focuses toward
adopting the penetration strategy for achieving growth or expanding the current market
share while offering current product in existing market. In order to implement this
strategy, Sainsbury is either required to decrease the price of its product in order to attract
larger number of customers or increase its promotional practices for remains highlighted
within the mind as well as preference of customers.
 Product development:- Under this strategy a firm focuses toward developing a new
product in order to cater the need of existing market. This strategy is fruitful for the
company when it is having a complete understanding about the current market and able to
innovate solution to meet with existing market (Jeston, 2014). In order to implement this
strategy Sainsbury can invest within the R&D in order to study about the current market,
evaluating about the changing need of customers and then brining up[ new product or
services for catering their need.
 Market Development:- This strategy is about expansion of an organisation into totally a
new market while continuing with the existing product. This expansion in the market may
be consist of customer segments, new geographies, regions, new country etc. In order to
implement this strategy Sainsbury is required to expand its business within internatio0nal
market as it covers majority of area within the UK retail market. But to enter into new
market it must focuses toward understanding the need and demand of potential customer
to establish its business in effective manner.
 Diversification:- This strategy suggest that in order to achieve the competitive
advantage, an organisation must enter into the market by brining diversification in term
of its product or services (Sun and Yearwood, 2014). Diversification is a strategy where a
business get enter into totally a new market with new product. In order to implement this
strategy, Sainsbury must focuses toward brining a totally new product which is not yet
been offered by company for getting positioned in totally a new market. The risk within
the diversification strategy is relatively higher as compare to others as company enter
with little or no experience within that particular market.
From the above presented information regarding the Ansoff growth matrix it has been
determine that most appropriate strategy for Sainsbury is market development strategy. This is
because the UK market is now become more saturated for the company and the competition is

relatively higher (Alusa and Kariuki, 2015). Therefore, it must focuses toward expanding its
business globally. This will support not only in approaching new market for offering product or
services but it also support Sainsbury in opening up several growth opportunity to get expanded
in different marketplace while approaching larger customer base. In addition to this, there are
number of benefits that Sainsbury will get with its expansion at international market which
includes, access to advancement, increasing in quality of performance, enhancement in
knowledge, larger number of customers, increasing market to offer product or services etc.
International market consist of several opportunity that support a business to get a
tremendous growth and development within its operations by getting access to number of
benefits. The benefits that Sainsbury will get after expanding its business at global market are,
 Expanding sales:- After expanding its business operations in another country, Sainsbury
become able to access a new market with larger number of customers. This in turn
contribute toward increasing the sale of company as with the expansion of business the
customer base to which company target get expanded (Cavusgil and et. al., 2014). Hence
it contribute toward increasing the sales as well as profitability of business at
marketplace.
 Acquiring resources:- By expanding business in the international market it become
possible for the Sainsbury to utilize the resources that are present in new market. This in
turn support in enhancing the business performance as well as business practices of the
company within the marketplace by getting the required resources available. This may be
in term of human resources, raw material, merchandise, technological resources etc.
 Minimizing risk:- The market expansion support in reducing the risk of the company
this is because it divert the issue which company is facing in existing market (Villar,
Alegre and Pla-Barber, 2014). By expanding business at global level Sainsbury be able
to eliminate the risk of reducing the sales by approaching new customers and new
market with existing product or services to regain the profitability level of company.
After determining the strategy to be adopted, next Sainsbury is required to decide the
mode of entry to be selected in order to expand the business operations at global level. This
support in determining the appropriate medium to be adopted in order to enter and position the
business in totally a new market. The basic mode of entries are explained below:

 Licensing:- It is a kind of business arrangement where one company gives a permission
to another company for dealing over its product or services over specified payments. It
allows to use the trademarks, patents, design, copyrights in order to set up the existence
in the market (Morden, 2017). The Sainsbury can improve its profit share by creating an
agreement with the local retail of some another country on behalf of Sainsbury so that
market share can be captured that ensure the growth of company.
 Franchising:- It is a form of business in which the owner of commodity provide the local
person within a business an opportunity to use the management practices, system of
operations etc. in order to sales the product or services on behalf of company. In order to
adopt franchising the Sainsbury is required to provide the authority to another party in
new market to make use of its product, brand, business system and process in return for
adequate consideration.
 Strategic alliances:- This is a kind of agreement between two or more parties for
working over a common objectives while remaining independent business. It is a kind of
legal agreement between the two parties which after accomplishment of goals started
operating individually (Buckley, 2016). For implementing this strategy, Sainsbury is
required to form up a partnership with that of a company which is operating at a similar
level so that it become easier for the company top get enter into new market.
From the above mentioned mode of entry, strategic alliance is consider to be more
effective strategy for the Sainsbury as it provide an option to get partnership which is limited to
particular time period or the objective which company want to achieve and after which it can
operates individually. Hence, strategic alliance will support Sainsbury in making use of
resources, knowledge and talent of another company to get enter, established and positioned
within new market with the help of its alliance partner. After achieving the desired objective of
getting established in new market it can operates individually as the strategic partner after which
doesn't have any liability or authority to keep the organisation bind for performing operations or
sharing profit. Therefore, with the help of developing a new market by entering through the
strategic alliance it become easier to gain back its profitability level within the domestic market
and also become able to expand its business globally.

Personal reflection how you have developed your key skills
The experience throughout this project was great, as I came to learn about several new
things and be able to enhance my skills along with understanding in term of business
management. This knowledge and skills will support me not at personal level but at the
professional level too while performing job operations. I am presenting my reflection throughout
the experience with the help of Gibbs model which is consist of six basic stages that support in
presenting the information in effective manner. These stages are mentioned below,
 Step 1: Description:- We are assigned with a project over foundation of business
management where we are provided with a number of topic in class room and assigned
with a team. For performing the project we have selected international business among
them. This is because it has a wider scope, as with the advancement of technology more
and more organisations are becoming more concern toward expanding their businesses at
global level. Therefore we have selected this topic to gain an understanding about it in
term of gaining future career knowledge. For performing this work, firstly I decided to
divide the whole project into tasks and assigned each task to team mates so that it become
easier to perform while keeping a regular check over the operations to be performed. In
order to perform the project in more appropriate manner, we started paying attention to
the classroom discussion and the matter which teachers explains to me so that we get a
gist about the basic concepts to be covered within my project. After that I also made
notes about my topic from the internet to gathered adequate amount of information in
support of my project. Then I decided to add it into a power point presentation as it
support me in visually presenting my ideas and also make it easier for me to deliver the
information in more effective manner which making use of picture, graphs and other
visual factors. This step supported me in enhancing my understanding regarding the
information and communication technology which I can further use to perform my other
projects in effective manner. These effort will support me in performing my work in
efficient manner to get the positive outcome from the work and I would be able to get
good grades.
 Step 2: Feeling:- The experience throughout this project was really good and I feel
happy that I got a change to perform operation over such cooperative and understanding
team mates who supported me in performing task effectively and getting good grades but

also support me in preparing my mindset for future business practices. At the starting of
the project I was quite nervous as I was not much clear with the actual information
regarding the topic and but after discussion with my team mates I feel relax that they are
having better understanding about this. After that we started project by taking guidance
from teacher and performing internet browsing I started feeling the topic quite interesting
and started enjoying the work as I become able to develop my understanding and skills in
term of critical thinking as well as technical skills. As while taking participation in the
class lecturers where teachers make use of Information and Communication Technology
in the form of Power point presentations, projectors, lecture through online medium etc.
it become easier to develop understanding reagrding this (Lu and et. al., 2014). After
learning about this I feel motivated and influence toward making use of these ICT tools
in order to enhance the quality of my work and making it more attractive in front of the
teacher while delivering a presentation. This assignment get completed in many stages as
I went through number of feelings such as good, pleasant, sometime nervous, feel anxiety
about the completion of project at deadline but at the end I become able to complete my
work prior to the provided deadline. After completing the project I feel so relaxing and
when I looked back over the situation I came to know I become able to perform my work
as per the plan I have decided and be able to perform each and every task in effective
manner. This provide me a feeling of accomplished and happiness that I become able to
perform my operations in effective manner.
 Step 3: Evaluation:- Though the overall work performed by me was operated in smooth
and effective manner in order to accomplish the project in effective manner. But apart
from this there are certain stages throughout execution of project which not well
(Mainela, Puhakka and Servais, 2014). The biggest error that I have found throughout my
whole project was that the time which was scheduled by me get mismatched as some of
the activities take more time to get accomplished which also affected my further
activities. Among them the time which I assigned for browsing the data from internet and
making the notes about that take more time then I have actually planned as it was
assigned to one of my team mate but he take more time to gather data and make it
available to us which further delayed other activities. But in order to deal with this I
decided that instead of performing auditing over the data and we decided to work all

together despite of dividing the task for this we first highlighted the main lines and
information in order to started writing about it in my word document and then arranging
the information accordingly. After this I presented the main information in the
presentations in which the basic information was presented over the slides and detailed
information I pasted over the notes which support me in explaining about the concept
while delivering presentation within the class. This supported me and my team mates in
saving time and performing the operations in effective manner. After completion this
project my team mates and I feel happy as we become able to learn about the manner in
which time must be managed and it also supported us in enhancing the abilities to
perform task on deadlines and also learn new ways of performing operations while
maintaining team members.
 Step 4: Analysis:- During the exection of the project the best part that has been
determined was the internet browsing (Zucchella and Magnani, 2016). As at that time I
go through several kind of information regarding my topic as well as other areas which
are related with international business. This help in enhancing my theoretical
understanding regarding the business as while searching over internet we all discuss our
findings to determine best source which provide accurate information. Despite of this, it
also supported me in enhancing my researcher skills as I become able to learn about
several new ways of performing the investigation over a particular topic and manner in
which the accurate as well as reliable information is to be gathered, arranged and
presented. This will support me in performing my future project in effective manner. On
the other side the worst part for this project was time management as everything goes
over the scheduled plan but one of my team member delayed the work by increasing the
time of web browsing.
 Step 5: Conclusion:- The journey throughout the project remains interesting as I become
able to learn several new things due to getting a team which have understanding of
different concepts regarding the international business and foundation of business
management. Along with this I also become able to develop my critical thinking,
researcher skills and ICT related understanding which support me in getting good marks
and performing future operations in effective manner.

 Step 6:- Action plan: The process use throughout the project was good and team mates
are also very much cooperative as they all work together in order to perform the task in
timely manner (Smith, 2016). But from this project I came to know that time
management skills was not much appropriate which I required to improve as it is very
essential for future course of action. For this I have prepared a action plan according to
which I have decided to start creating the schedule for each of the task which I want to
perform by assigning them particular time period for getting accomplished and arrange
them as per their priority. This support me in determining what action to be performed
first and one after other which support me in performing my work in systematic manner
and accomplishing it in timely manner.
CONCLUSION
From the above mentioned report it can be summarised that the business management is
consider to be most essential function within an organisation as it consists of arranging the set of
activities in such a manner that operations can performed toward the accomplishment of
organisational goals and objectives. The proper management of business allows a company to
maintain a smooth flow of operations by ensuring the work get performed in more systematic
manner so that chances of error can be eliminated. In addition to this while expanding business at
global level, business management proves to be more crucial as it support in guiding and
directing over the actions to be taken for performing operations effectively.

REFERENCES
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