Strategic Planning Report: Analysis of Sainsbury's Unit 12

This report provides a comprehensive analysis of strategic planning, focusing on Sainsbury's as a case study. It begins with an introduction to the dynamic nature of business and the importance of strategic planning for achieving organizational goals. The report explores the significance of external factors, analyzed using PESTEL, and their impact on Sainsbury's, including political, economic, social, technological, environmental, and legal aspects. It examines stakeholder needs and expectations, identifying various stakeholder types and their interests. The report then delves into the review of existing business plans, utilizing tools like SWOT analysis to assess strengths, weaknesses, opportunities, and threats. Furthermore, it covers developing strategic options, comparing activities in the market, and creating options for future strategy. The report also proposes a suitable structure for a strategy plan, develops criteria for reviewing options, and constructs an agreed strategy plan with resource implications. Additionally, it examines factors affecting the organizational strategy plan, including core values, vision and mission statements, and future management objectives. Finally, the report addresses the implementation of the strategy plan, including schedules, dissemination processes, and monitoring and evaluation systems.

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:

2.1 use appropriate tools to analyse the effects of current business plans
The PEST analysis is considered as the effective tool for knowing the growth as well
as decline of market share and it also describes the position as well as direction for the
business organisation. This analysis is considered as a tool that is used for measurement. It is
considered as a political, economic and technological as well as social factor that is adopted
to analyse the market for organisation. And there are the various models that help in
analysing the effect of present business plan (Elliott, 2019). Here in it has been stated that
Sainsbury adopted SWOT analysis for assessing the internal as well as external environment
and also analyse the opportunity, weakness, strength as well as threat which will be beneficial
for the organisation in future period of time that is going to be mentioned below:
STRENGTH WEAKNESSES
 Sainsbury is the well-known company
and provide innovation promotion
strategy in order to attract the
customer for a longer period of time.
 The main strength of the Sainsbury is
to provide innovative product with
customer according to their needs that
is considered as a main strength for
the company.
 Various risks which is confronted by
the Sainsbury so that it is necessary to
promote the programs in order to
attract customer otherwise there is a
lot of challenge to retain customers.
 For attracting large number of users
and Sainsbury focuses on lower down
the price but put the cost less than the
cost of rivalries then it is no longer
sustainable and it is the weakness for
organisation.
OPPORTUNITIES THREATS
 The main opportunity or advantage
for Sainsbury is to provide their
product in rural areas. It helped them
in expanding their business across the
world.
 Furthermore they adopt the
innovative technology for provide
unique product to its customer for
increasing profit margin (Siciliano,
2016).
 Due to the increasing in level of
competition from TESCO and ALDI
it is not possible for firm to cope up
with the market trends.
 The major threat for the Sainsbury is
to due to implementation of advanced
technology increases extra cost to the
company that is considered as a threat
for company.

With the help of this SWOT analysis, which has been shown in the above table an
analysis can be prepare through which business plans and strategies of an it could be
reviewed in appropriate manner. It require accurate information as well as data to analyse
their overall internal analysis
2.2 review the position of an organisation in its current market
It is necessary to take review or feedback of the Market Positioning of the business
organisation according to their market trend. It is necessary for organisation for making
effective position in mind of the customer for boosting their brand image as well as
reputation in mind of customer. After selecting the product it is necessary to differentiate that
product in order to attract number of customer at Marketplace. There are several parameters
which are used by Sainsbury in order to provide products and services to its customer and
also build a specific or particular position in the mind of customer at Marketplace in context
of Sainsbury that is given below:
Service it is necessary to provide effective services or facility to its customer for
satisfying them. In context of Sainsbury they provide quality product as well as services to its
customer for increasing profit margin and boosting the brand image or Goodwill in the mind
of customer at Marketplace (Grošelj, Hodges and Stirn, 2016)..
Innovation it is important for Sainsbury to provide the innovative product and
services to its customer for increasing satisfaction or motivational level of them and also
increases the profit margin.
Quality Herein the manager of Sainsbury focuses on providing quality product to its
customer for boosting the productivity as well as performance level of organisation during
the particular phase of time period.
Product characteristics the organisation focuses on providing the different features
as well as characteristic related to the product for benefit or advantages of customer. It helps
them in retaining the customer for a longer period of time.

Pricing in addition to the product quality it is necessary to assess the price of the
product therefore the Sainsbury focus is on the manager who provide the quality product at
low price for increasing competitive edge of a rivalries (Feng, Govindan and Li, 2017).
Therefore, after going through the specified matter it shows that it is necessary to
analyse the position within the current market so that strategy and tactics are implemented
accordingly and decision are made.
2.3 evaluate the competitive strengths and weaknesses of an organisation’s current
business strategies
Every organisation focuses on understanding the plan or business and also analysis
the competitive strategy in achieving competitive edge. The main or primal aim of analysing
the competition that helps in assessing the strength as well as weaknesses of their competitive
and their own organisation. Therefore it is necessary to assess the competitive strategy for
entrance in the market and also assess the weaknesses of TESCO as per the present business
strategy that is given below:
Strength: The main strength of the TESCO is there are various rewards for retail
excellence as well as providing services to its customer and entire experience related to
shopping. And it is considered as a largest organisation and it has good brand image in front
of customer that is the main strength for the organisation. Therefore they always focuses on
providing the superior quality product to its customer for increasing brand image in front of
customer at market and also it help them in increasing their experience level during the
period of time (Yogi, Rizal and Suharyo, 2017).
Weakness: The competitive pressure decreases the profit or sales are considered as a
main weakness for Tesco. Due to the low income of the individual persons the individual
person does not spend their money on purchasing the qualitative product so that it eroded the
profit margin of the company. Due to increasing level of competition it is not possible for a
firm to cope up with the changes that is made frequently within business organisation.

TASK 3
Be able to develop for strategic planning for an organisation
It is necessary to develop or improve strategic planning for business organisation.
Therefore they adopt VRIO Analysis and make business strategy which is beneficial for
Sainsbury.
3.1 use modelling tools to develop strategic options for an organization
It helps in managing the strategy for performing within business organisation. It is
necessary for manager to make effective strategy in relation to assessing the internal as well
as external environment due to frequently change in the business environment it is necessary
for the leader as well as various functions they required a method to increase the experience
for the future period of time It is necessary to assess the assumption for organisation for
future period of time. This strategy helps in define regarding the essential services for
decreasing the risk as well as any kind of tension within business organisation. Sainsbury
adopt VRIO Analysis is given below:
The valuable resource is those which provide value for the organisation such as
Global presence, brand equity, competent work force, as well as their innovation. These are
considered as a valuable resource for organisation the Sainsbury operated business at global
level and also provide the innovative product to customer for satisfying them. They also offer
effective training to its customer for boosting the brand image in mind-set of its user all is
determined as a valuable resource for organisation (Xue-ling, 2016).
Rare: There are those resources which are rare such as innovation, brand equity and
competent workforce. The provide effective training to its customers for providing innovative
as well as branded product to its customers they are determined as a unique or specific
resources for organisation.
Inimitable: The inimitable are those resources which is not copied or duplicated by
other rivalries firm. They focus on providing innovative products or branded product with
customer that is considered as an inimitable resources for organisation. The rare as well as
unique resources are considered as the innovative product as well as brand equity that is not
copied by any other firm (Charest, Bouffard and Zajmovic, 2016).

Organised: Organised resources are those resources which provide innovative
product to its customer for increasing the profit margin and sales. The organised resource that
assists in provides innovative goods to its user for boosting their sales (Lin and Tsai, 2016).
3.2 develop a comparative understanding of activity from organisations in the market
In present international market the manager of Sainsbury focuses on improving the
effectiveness and efficiency of organisation by assessing organised matrix which is connected
to the performance of organisation. Market orientation is considered as one of the matrix that
helps in assessing the performance of organisation that is making a contribution towards
success. It helps in implementing the concept of market and also helps in managing the
market and makes a factor which strategy for achieving the goal. It is necessary to measure
the performance level of organisation for increasing the profit margin in future period of
time.
3.3 create options to form the basis of future organisational strategy
The top management or manager focuses on achieving the objective of Organisation in timely
manner. There are effective steps to generate an appropriate business strategy in relation to
Sainsbury that is going to be mentioned below:
Gather the fact it is necessary for the organisation to collect the fact or necessary
information in order to assess their past level of performance and present situation in order to
carry out their work in better manner and it also helped in grab the opportunity in order to
minimise the threat.
Develop vision statement after collecting the necessary information it is necessary to
develop or improve decision in order to achieve a leading position at workplace. It helps them
in increasing the profit margin of sales at Marketplace.
Developer mission statement in order to make appropriate strategy it is vital for
organisation to develop or improve mission statement so that they offer the product to its
customer at marketplace.
Identify strategic objective after developing mission and vision statement it is
necessary for organisation to identify process the strategic objective by considering SWOT
and PESTEL Analysis of organisation and they focuses on using the smart objective for
achieving goal in timely manner (Na and Lee, 2019).

Tactical planning after assessing the objective of organisation it is necessary to make
plan and allocate the resources as well as the requirement to budget in order to promote the
product in front of customer at Marketplace.
Performance management After making an appropriate plan it is necessary to
manage the performance of organisation and compare the desired as well as actual
performance for taking corrective decisions during the particular phase of time period.
TASK 4
4.1 Propose a suitable structure for a strategy plan that ensures appropriate participation from
all stakeholders of an organisation
They are various types of organisation structure which are functional, product,
geography, matrix, network, multi-dimensional structure etc. It is important to produce
suitable structure which are beneficial and suitable for organisation and eating and their
strategic plan.
It is responsibility of the management and superior authorities to implement effective
structure for which analysis of all the activities could be done in most appropriate way
without facing any complex problem or situations. With the help of this, strategy plan will be
implemented in effective manner through which participation from all the stakeholders will
be examined at deeper level. In relevance with Sainsbury, wife going through the below
displayed structure for a strategic plan company will be able to understand the need and
expectations of stakeholders with correct measures and decisions (Al-Turki, 2019).