Comprehensive Business Strategy Report: Sainsbury's Analysis

This report provides a detailed analysis of Sainsbury's business strategy, examining both the macro and internal environments. It begins with an introduction to business strategy and its application to Sainsbury's, a major UK supermarket chain. The report then delves into the evaluation of the macro-environment using the PESTEL framework, followed by an assessment of Sainsbury's internal environment and capabilities, employing tools like the Resource-based View, McKinsey's 7S model, VRIO framework, benchmarking, and value chain analysis. The report also briefly describes Porter's Five Forces model and the Balanced Scorecard. Finally, it examines various strategic planning theories and models, including Ansoff's growth vector matrix and SWOT analysis. The conclusion summarizes the key findings, and a list of references is provided. The report highlights how Sainsbury's utilizes various strategies, frameworks, and models to achieve its business goals, enhance profitability, and maintain a competitive advantage in the market.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................4
P1) Evaluates the macro-environment in order to successfully operates business activity. ....4
TASK 2 ........................................................................................................................................6
P2) Evaluate internal environment and capabilities of organisation..........................................6
TASK 3..........................................................................................................................................12
P3) Describe briefly porter' five forces model and balance scorecard.....................................12
TASK 4..........................................................................................................................................16
P4) Examine the various theories and strategic planning with the help of different models....16
CONCLUSION.............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business strategy is wider and broader scope in border to most of organisation using
effectively in order to easily achieving organisation goal and objectives of company. It includes
various tools and framework which organisation adapting because gaining competitive
advantages at marketplace. Top level of management has taken ample numbers of decisions with
the help of strategy they take appropriate decision which leads to increasing profitability of
company. These report is about Sainsbury's which is one of the famous supermarket chain in
United Kingdom (Kuo, 2017). It dealing in clothing segment, food and grocery items and
provides wide range of products and services so it attract more customer base. The paper
consists various tools and framework which helps to analysed the business environment such as
PESTEL model because it helps to evaluates the macro environment factors, analysed of internal
and external capabilities of company as well as also evaluates the porter's five forces model and
porter's generic which leads to organisation used various strategies to enhancing their
profitability and sales revenue. They utilised ample numbers of promotional tools which
effectively attract more customers and increasing customer base it leads to achieving
organisation goal and objective of company.
TASK1
P1) Evaluates the macro-environment in order to successfully operates business activity.
Strategy refers to it includes various tacit which organisation effectively adapting to
improve performance of organisation so it is necessary to achieving organisation goal and
objective of company. There are ample numbers of strategies which is formulated by
organisation in order to gaining competitive advantages.
Mission- “It is main aim to providing high qualities of goods and services to customers”.
Vision-: Main vision of Sainsbury's they provide the product at reliable and cheaper
product. It serves to society good quality products which brings standard of living.
Objectives-: The main objectives of organisation is to increasing their revenue and
profitability of company in order to developing brand image at marketplace (Saenz, 2019).
PESTEL framework
These tools organisation utilized in effective way because these models easily analysed
the external environment in order to successfully established the business and gaining

competitive advantages. It includes various factor such as political, social, technological,
economical, environmental and legal. These factors are described below.
Political factors-: These factors refers to rules, regulations and guideline which essential
to followed by organisation in order to successfully operates business activities. The political
condition of UK is strong and stable due to these organisation mandatory to followed rules and
regulations. In context of Sainsbury's, it effectively followed the rules and regulation in order to
easily growing the business (Ordóñez de Pablos, 2016).
Economical factors-: These factors plays important role in order to includes such factors
inflation rate, exchange rate, tax rates and deflation and unemployment. The economic condition
of UK is strong so they effectively impact in business condition. In relevance of Sainsbury, it
easily expand business operations in order to favourable trade policy and government also
support their business model.
Social factors-: These factors refers to values, religions, belief, custom and tradition
which essential to followed by organisation because they operates business activities in many
countries. In relevance of Sainbury, they provides high quality of goods and services to
customers in order to they are not affect the business revenues and on that basis they know about
the customer taste and preferences.
Technological factors-: Technological factors refers to includes various innovation and
technology in order to organisation effectively adapting to grape market opportunities due to
changing external environment. Sainbury's mangers used adavanced technology in order to
effective billing system so customer easily payment of products and there is no need to wait for
long queue (Bendell, 2017).
Legal factors-: There are important factors which considered as various laws such
employee contract law, Wages act and many more. There are ample numbers of laws which
organisation adhered to follow them. In relevance of Sainsbury's, it includes various laws and
rules which affecting business operations.
Environmental factors-: These factors majorly depends on business sustainability in
order to includes factors such as climate change, natural disasters, temperature and many more.
In context of Sainsbury's, they used recycle and biodegradable products which doesn't harm to
the environment.

Ansoff's growth vector matrix
These is model or framework which organisation utilized effectively in order to
successfully achieved the company goal and objectives. These strategies are adapted by an
organisation because they helps to gaining competitive advantages. There are ample numbers of
strategies which are mentioned below.
Market penetration-: It is strategy which organisation utilized effectively in order to
Sainsbury's investing cost and efforts to easily capture market share at the market place which
organisation they are already dealing. There are ample numbers of ways to promote the products
and services and utilized effective communication strategy in order to target potential customers.
Product development-: These is important strategy which organisation adapting
effectively in order to developing new products and services for customers. In relevance of
Sainsbury's, successfully conducting market research on that basis developing new products in
order to increasing profitability of company (Genç, 2017).
Market development-: It is third strategy which organisation utilized in order to
expansion of business operations. Sainsbury's set the business in various other country in order
to increasing sales revenue. It includes market research which essential to analysed the market
environment and enhancing customer base.
Diversification-: It is the last part of these strategy in order to Sainsbury's launched new
products and services for new markets. In context of organisation, it provides wide range of
products and services such as food, clothing, grocery items and many more.
SWOT analysis
Strength Weaknesses
 They utilised advanced technology in
products and services so it attract more
customers.
 They utilized ample numbers of
promotional activities it includes social
medium which enhancing customer
base (Tsai, 2017).
 They adapting efficient pricing policy
so it is one of the biggest strength in
 Due to COVID-19 organisation faced
so many difficulties in order to impact
on the business profitability and
revenue.
 There are ample numbers of external
factors which organisation has not
controlled and self driven so they affect
the business policy and strategies.

order to easily targeting to potential
customers.
Opportunities Threats
 There are various innovative methods
are available due to promotes the
products and services as well as grape
market opportunities.
 Digital marketing is one of the method
which mostly utilized organisation in
order to developing new strategies
along with it helps tp expand the
business operations.
 There are ample numbers threats
because various competitors are
available at marketplace.
 They are so many organisation which
used advanced technology so it is one
of the biggest threat in order to gaining
competitive advantages.
TASK 2
P2) Evaluate internal environment and capabilities of organisation.
Strategic Capabilities
For successfully compete in business environment an organisation uses the competencies
and resources. In business environment there are two major components which are competences
and resources. An organisation utilizes certain assets for activities and processes. These assets
are known to be resources which can be created within an organisation. Whereas, competencies
are used for the competition from the other organisation which posses some characteristics.
There is no use of competencies in an organisation when they stands alone (Williamson 2016).
They gives the competitive advantage when they combine in proper manner. Technological
advancement and funds are available to Sainsbury which implies to competencies and resources
for business.

Resource-based View Strategy
It is a managerial framework with is used to help the organisation in determining
different strategic resources to attain the competitive advantage. In resource-based theory the
tangibility of a firm's resources comes under important consideration. Tangible resources refers
to the resources whch can be readily seen or touched (Tarafdar and et. al., 2017). Some tangible
resources like plant, equipments, cash, physical property etc. Intangible resources refers to the
resources which can't be touched or seen physically like skills and knowledge of the employees,
firm's reputation etc.

McKINSEY'S 7S MODEL
This is the model which applies for making sure about successfully using the new
strategies in firm to identify different areas of change in upcoming time. There are 7 S in this
model. They are divided into soft S and hard S. The Soft S are Style, Staff, Skills and Shared
Values and Hard S are Strategy, Structure and Systems. Soft S are harder to describe and are
influenced by the firm's culture. In other hand, Hard S is the easy to identify and can influenced
directly by the management. Style is the way through which top level managers manages the
company, their interacting way. Staff implies the number of employee the company needs. Skills
are the ability of the employees which perform well. It is also necessary for the company to
reinforce new strategy. Shared Values are norms & standard which guides the behaviour of an
employee, thus said to be the foundation of every organisation. Strategy refers to plan which is
developed by firm to get some competitive advantage. Structure refers to the most visible
element and can easily changed (Niyomsilp and et. al., 2020). System are the element which
determines the business way and for the managers it should be main focused. These factors help
the HR to make the potential use which can be applied by the higher level of management in
Sainsbury.

VRIO FRAMEWORK
It is a type of analysis which looks on the organisational various resources for sustainable
competitive advantages. VRIO stands for Valuable, Rare, Imitable and Organisation. Sainsbury
having some major resources like innovation, customer loyalty, service quality also with
financial position of business. Here, due to innovation, it gives temporary advantage to the
business (Kohtamäki and et. al., 2019).

BENCHMARKING
It is a measuring process which is used to measure the quality and performance of any
company's products, services and processes. They need to be compared with any standard
otherwise they measurement will not be valuable. It also help the business to grow and adapt in
changing environment.
 Internal benchmarking – It helps Sainsbury to understand the requirement which should
in its programs, departments or units. They are able to successfully help the organisation
to standardise the performance so can do better in the upcoming competition.
 External benchmarking – In this comparison is there with their similar competitive
industry which can help them to achieve benefits. Sainsbury gets maximum benefits by
external benchmarking.
 Practice benchmarking – This is used to fill the gap in performance in the Sainsbury,
which can be referred as a practice. In the organisation there are number of changes in
the technological aspects in Sainsbury which creates practice benchmark.
 Performance benchmarking – It involves the KPI's of Sainsbury. There are many factor
which are said to be technological factors which are enabling Sainsbury to run
successfully.
VALUE CHAIN ANALYSIS
Equipment, hardware and technologies are included in the primary activities in
Sainsbury. There is simple operation in Sainsbury for requesting the ride, to ride and to pay for
it. Marketing and sales department of the company are the most important department which

helps in the competition with their competitors. Due to digital media used by the Sainsbury in
recent, they makes more business (Gürkaynak and et. al., 2017). Which leads to the success of
the business. Many factors like digital payment which includes many digital payment method
like UPI payment, card payment, wallet payment etc help the business in payment process. Such
factor help the business to spread the positive word of mouth for the business. Sainsbury
provides the high level of services to their customer for conveniently completing their purchase.
There are also some supporting activities which can be said the customer support and the
application or software set up.
COST BENEFIT ANALYSIS
It is represented in the monetary terms which is a way to comparing the costs and
benefits which are involved in it. This requirement is for confirming the successful conducting of
analysis in Sainsbury. Sainsbury needs to first brainstorming the costs and the benefits so to
assign the monetary value to their cost (Hinteregger 2017). Then should be compared both of
them for the analysis.

TASK 3
P3) Describe briefly porter' five forces model and balance scorecard.
Balance scorecard