Business Strategy Report: Macro and Internal Environment Analysis

This report provides a comprehensive analysis of Sainsbury's business strategy, examining the impact of the macro environment using PESTLE analysis, and the internal environment through strategic capabilities and VRIO analysis. The report further evaluates competitive forces within the market sector using Porter's Five Forces model, and devises strategic planning by applying various theories, concepts, and models. The analysis includes strategic management plans with tangible priorities and objectives, along with a critique of environmental and competitive data to formulate strategic directions and tactical actions. The report covers Sainsbury's operations, market position, and strategic decision-making processes, providing insights into its strengths, weaknesses, and competitive advantages.

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Analysing appropriate framework analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................3
M1: Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................5
TASK 2............................................................................................................................................6
P2: Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks..............................................................................................................6
M2: Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation's internal capabilities, structure and skill set..........................................................8
TASK 3............................................................................................................................................9
P3: Applying porters five forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................9
M3: Devise appropriate strategies to improve competitive edge and market sector for an
organisation...............................................................................................................................10
TASK 4..........................................................................................................................................10
P4: Applying a range of theories, concept and models, interpret and devise strategic planning
for a given organisation.............................................................................................................10
M4: Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................12
D1: Critique and interpret information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions.............12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The business of management deals with several issues and conflicts in the business and to
overcome these problems in the management, executives create various sort of business
strategies. The management develops several orientated targets and goals to perform managerial
functions and operations as effectively and efficiently. The business strategies are the plan of
action for their further executed goals. As the business involves various manner of factor such as
market, competitors and the managerial condition and also the managerial structures that have
strength ad weaknesses. It will termed as the roadmap that offers an adequate direction and route
to the individuals in respect to present it as according to the appointed terms and sections that
developed by the business of management (Apriyanti, 2021). The management consider in this
report is Sainsbury. It is a largest chain of supermarkets in the UK, as it was established in 1869.
The following report involves the impact and influences of macro environment on business and
their plan of actions to trade with several factors. As it also involves the Porter five forces model
and Bowman's strategies that are deliberated in the report in respect to evaluate the strategic
decisions and plans for the advancement of the business of management.
TASK 1
P1: Analysing appropriate framework analyse the impact and influence of the macro
environment on a given organisation and its strategies.
The macro environment factors involves the several sections like Political, Economical,
Social, Technological, Legal and environmental that have an impact and influences on the
managerial functions as in the positive and as well as negative way. It also have the basic
orientated manner that involves the organisational to create an efficient decisions and strategies
in respect to perform their manner with effective course of period. It also helps the business for
surviving at the market place for longer period of time with offering several orientation for
effective run in business (Bengo, Borrello, and Chiodo, 2021). Sainsbury is the largest
supermarket chain in UK that deals with several activities in offering various facilities in terms
of nation that are high impacted by these sections. Hence, it is an essential term for organisation
to evaluate these sections by presenting PESTLE analysis in respect to identify their effects on
management in future that will also aid them in creating the efficient decisions and strategies.
PESTLE analysis:

The factors that need to be presented in respect to determine and evaluate the sectins that
might have an impact and influences on managerial operations that need the organisation of
Sainsbury to create an efficient strategies and decisions to deal with various factors in an
efficient manner in business of management. Sainsbury has been created their own managerial
terms as across the world and concentrates on enlarging and expanding their managerial
functions. PESTLE analysis are as follows - Political factors – The basic term will have an impact on the UK and their sections that
conduct their functions and operations in United Kingdom. AS it will affected society and
key manner of the business in relation to the economic slowdown in other counties also
as effectively (Bhatia, and Jakhar, 2021). UK has termed to not to be the part of
European sector that the major set of particular consequences on the functions of the
Sainsbury. As on the other side their inflation rates are getting high as after UK way out
and it will directly hits the another nations with the accuracy of period of time that might
further caused the declination in consumer revenue as effectively and efficiently. Hence,
on the other side, the decrement of the supermarket sales in UK will also affects them as
effectively. Economic factors – It involves the inflation rates that are termed to be increase and the
revenue development rate will term to be constant or low as previously comparison to it.
It also involves the major sector of demand for the buying products from super market
stores that might be low. Sainsbury are investing their terms and sections in the business
of management with the motive to gain higher term of profit and higher term of
reputation as effectively. It involves the manner of suitable global economic
development. Social factors - It is termed with standard, nature, involvement and many more that
involves the respective that will have an impact on the managerial structure and
occurrence of Sainsbury. As the manner of orientation and purchasing behaviour of
consumer variations as rarely by the manner through which the business of management
that need to create various variations in their determination and strategies as per to deal
with the following manner of modification (Bosch, Ulf. "2021). The Sainsbury have to
accomplish high manner of consumer base in United Kingdom that are require to create
regular variations in their power that are linked with cost, and many more.

 Technological factors – By the high number of challenges in supermarket sector,
Sainsbury will need to precede present tendencies that are present in scientific and
technical field of structures by adapting the progressive application in the business of
management with orientated goods and characteristic of tendency that supports them in
forwarding ahead towards their goals and targets as effectively. Legal factors – Sainsbury are managing their functions and operations in various nations
by the manner of sections that require to precede legitimated laws and legislation that are
created by the government (Dangelico, Nonino, and Pompei, 2021). Sainsbury involves
various sort of problems by the non- cooperation with legal sections by the manner with
the business of management that have several sector of disadvantage and drawbacks. It
have the negative impact on their brand good will of the business that might have the
business to mislay strong base of consumers. As it is also determined with the present set
of time that Sainsbury have various manner of issues that have not compensable properly
with other form of individuals as compared with other challengers that have high sum of
individuals present in business. It maximise the opportunities of outflow of data and
thoughts of business that might bring drawbacks to business of management as
effectively and efficiently. Hence, it is an important term for business to deal with various
sort of structures with legal form of laws and rules to enlarge the management of business
with various nations.
 Environmental factors – At the present time, the consumers have the high manner of
ethics by the manner of globalisation as they desired to have the several manner of the
facilities from the business of management who offers supreme share for the advantages
for the society (Di Muro, Lecoeuvre, and Turner, 2021). As it will supports the
management in maximising strong brand good will at the market place by which they
have an impact and influence on high number of consumers as across to the world. It is
important for business of management to develop a flourishing environment at
workplace. Hence, as to aid their candidates in providing their high term of efforts in
attaining their orientated targets and aims as effectively and efficiently.

M1: Critically analyse the macro environment to determine and inform strategic management
decisions.
Sainsbury is termed as the largest and famous supermarket management that has achieved
strong base of loyal consumers and high term of brand goodwill at the marketplace. Hence, it
might need to evaluate all suitable components in respect to deal with them in an adequate course
(Fauzi, and etal., 2021). Sainsbury also deals with several term of environment that have the key
role of manner in relation to the external factors and basic orientated manner to describe their
key role of impact in business as effectively and efficiently.
TASK 2
P2: Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.
As per to the Sainsbury, it has been analysed that the functions and operations that the
company performs with their manner of the sections by facing hard or difficult challenges from
higher term of competition as federal and also an international sections as effectively and
efficiently. It is an important term to develop the efficient plan of actions and decisions in the
manner to complete the challenges in the business of management.
Strategic capability – It is important term for the business of management to determine their
strengths and weaknesses and as per to arrange their strategies and decisions in respect to
enhance their mistakes to accomplish the competitive benefits at the market place. The strategic
section that might need to execute the plan of actions in respect to implement the managerial
functions with the support of using the manner of resources in an minimum utilisation way. As
per to the Sainsbury, it might be capable to balance their local term in the position at the
marketplace (Grijalvo Martín, and et.al., 2021). Strategic abilities of the business will termed as
per to the managerial abilities and skills by which the business of management might easily
perform their actions and activities to achieve their high key term in current form of market with
their challengers. As there are several sections like stakeholder, consumers and many more that
offers high term of help in the development and realisation of business as per to the execution of
program and decisions for their advancement with the anticipation of getting further positive
outcome. As per to the role of manner, execution of various broad term of techniques that need
the manner of section for investing through which the business are need to get help from their

financiers and several business organisation who deals with various terms that offers loan at
specific rate of interest as effectively and efficiently.
In relation with it, de legacy of functions and social control as per to the basis their abilities and
sense of knowledge that carries higher term of encouragement in between them as according to
their presentation level that will also get maximised. The authorial structure and economical
organisation will plays an important section in getting attainment in shortened period of interval.
VRIO Analysis -
It is evaluated that the manner of analytical tool that will supports the business of
management in determining and examining their abilities and root age of the business that have
the current form of structure by which they follow suitable course of activities that might be
interpreted by the organisation of Sainsbury (Gugissa, and et.al., 2021). By utilisation of the
techniques that have the organisational sections that are capable to evaluate the term in various
manner of using the approachable term of resources in a maximum term of way. Hence, as to
attain the suitable course of manner with improved accomplished result. It involves several
features that are as discussed below - Valuable - The highly valued term of the business that have accomplished their manner
of resources that will require to get use it in an effective way. As to low the value of the
expenditure of facilities that are offered by them in suitable form. The resources are fixed
that need to be use at a maximisation way. Hence, it is their major key set of obligation of
organisation to create an efficient plan of actions as per to the allotment of resources to
carry out the high resulted section in return. Hence, it might need for Sainsbury to
provide directions and guidance to their staff faculty in terms of the value of resources as
per to their duty in orientation of the business of management by which they carry out the
encouraged in between the manner to use several root age in an efficient course. Rare - It is termed that the business of management that have a suitable term of resources
that might maximise the manner of opportunities of getting competitive benefits to the
business of management for further (Gunawan, and Rustiadi, 2021). As Sainsbury is
termed as the largest multinational company which deals in offering supermarket
facilities in various sort of manner in several nation. Hence, they are highly skilled to
attain various resources by the term of having a lot of monetary fund. The business of
management that have engaged with various qualified and practices individuals who are

having various skills as related to the implementation of managerial actions in an
efficient way with the support of using resources in an maximum term of the way as
effectively and efficiently. Costly to imitate - It is an essential term for the business of management to secure their
thought of perspective and techniques that they utilised in the implementation of
managerial actions (Kopot, and Cude, 2021). Hence, as to accomplish competitive
benefit at the marketplace. As it need an enormous sum of money of finances to adapt an
efficient sections related to the methods like organisational data of the structure as due to
which their competitors might determine tough sections to simulate their way and tools
for their own welfare. As the development of Sainsbury has been maximised as faster by
the adaption of progressive techniques that require to secure them from their competitors.
Hence, it assures them that no one have similar sections for their own benefits.
 Organised to capture value - It is an important term for the business of management to
determine the resource that they have to demonstrate it as per to create an efficient
strategies as per to the percentage of resources in economic field of area (Kun, Yuenan,
and Yingxue, 2021). The staff faculty are need to have a suitable term of abilities on
performing it with progressive and modified application that supports in decreasing the
loss of resources from the business of management.
M2: Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation's internal capabilities, structure and skill set.
Strengths and weaknesses of Sainsbury
Strengths -
 Sainsbury is second largest chain of supermarket in United Kingdom that has
accomplished various candidates who are offering high efforts in accomplishing
orientated targets and aims of business of effectively and efficiently.
 The business of management deals with providing several goods and facilities that have
the basic set of manners to involves the grocery, clothing, flowers facilities and many
more.
 It has already accomplished durable manner of the brand individuality in supermarket
field by which they might easily influence higher set of consumers as effectively.

 Sainsbury has created high term of income that has transcribed higher number of
consumes through out the globe that carry forward it by which they convey it forward in
relation to their challengers as effectively and efficiently in business of management.
 In context to the Sainsbury, the brand recollect the key term and the assets of the business
of management that are also maximising it.
Weaknesses -
 In last past few years, Sainsbury has mislaid their strong and loyal base of consumers by
which they are maximising the cost of their facilities and an unsuitable system (Lord,
and et.al., 2021). It need to direct and will create an efficient plan of actions and
approaches in respect to continue loyal consumers for longer period of time.
 By the manner of the high business relation that have termed the brand goodwill that will
also phrased downward as per to their present orientation at the marketplace that might
also have an impact as effectively.
 The global manner of the performance of Sainsbury that might also have an impact as
during the condition of Brexit and another term of the efficient situations in United
Kingdom. By such manner of sections, their income might have an impact on business of
management.
 It generally concentrates on influencing individuals from various field of areas but they
neglect rural field by which their income will also modest as per to the particular fields.
TASK 3
P3: Applying porters five forces model evaluate the competitive forces of a given market sector
for an organisation.
With the help of porter's five forces, the respected company are able to make effective
growth and adaptability to make bushiness world and make the task as per the achievement and
growth to the company (Ma, and Kuo, 2021). With the help of porter's five forces the company
can make the attractive advantages which help the company to grow and analyse the market
trend to make effective market sector advantages.
 Threats of new entrants: In the retail industry, there are different forms and market
opportunities which make an effective and appropriate changes to analyse the market
trend. They will bring innovation, Effective pricing strategies, reducing cost and make

new value proposition in the market (Kun and et.al., 2021). Sainsbury has higher threat of
new entrants as the retail industry are working on major new and innovative models.
 Bargaining power of Suppliers: Most of the companies are able to make effective raw
material to analyse the power and make growth in the dominant position of the company.
With the help of major changes and growth to analyse the outcome and make higher
supplier to extract the price. Sainsbury has lower bargaining power of their supplier due
to fix supplier in the market.
 Bargaining power of the customer: Buyers are the demanding and they want the best
and effective offering need to work with minimum price. It will be helpful for the growth
of company to work and make suitable changes which are related to higher bargaining
power of the customer. This may be related to effective and appropriate growth to
analyse the outcome and make effective increase in discounts and offers for the growth of
company.
 Threat of substitute: Introducing new product which make the position of different
products in market is related to the threat of substitute in the market (Apriyanti, 2021.).
All of these are related to effective value of proposition and make the changes to analyse
the outcome to industry. Again this threat are working as the high substitute of the
market.
 Rivalry among the Existing Competitors: This factor can be related to major
approaches and growing demand to make rivalry in the existing competitors. It will be
related to fall of price, increase overall productive and make approachability.
M3: Devise appropriate strategies to improve competitive edge and market sector for an
organisation.
After analysing the position and make suitable changes for the growth and prospective
need to analyse the opportunities and make sure for addressing effective compensative market
and make the impact on profitability for the growth of organisation. Within the retail industry,
there are different ways and need to provide and reliability to analyse the outcome and make
approaches to game changing growth and use effective strategies to work on the competitive
edge and make effective market sector for the growth of company (Lord and et.al., 2021).
Sainsbury is the best and one of the competitive firm in retail industry. All of these make a
strategic approach for the growth of company.

TASK 4
P4: Applying a range of theories, concept and models, interpret and devise strategic planning for
a given organisation.
Bowman's Strategic Clock -
It will termed as an efficient manner of the model that will supports the business of
management to determine several role of choices for strategic orientation in the business. As
with the support of the model, the business of management might capable to balance the
orientation of goods and facilities that will aid them in attainment of the competitive advantages
at the marketplace (Mehrotra, and Salunkhe, 2021). As there are various sort of the model that
provide several choices of positioning goods that will rely on the two conception like cost and
perceived amount as effectively and efficiently.
Sainsbury is an international business of management that provide supermarket facilities
in amount of nations as across to the world. It involves eight diverse sections that are as follows - Low price and low value added (Position 1) - It involves various facilities like they are
low in amount and cost. Hence it might also tough for business of management to
influence various consumers like facilities that might unsuccessful to maximise the
contentment section as effectively. Low price (Position 2) - In this plan of actions, the cost of facilities are decreased with
the perception of goal of influencing variety of consumers as across to the world. By this,
the business might deal as easily and will attain high term of consumer capability and
higher manner of revenues as effectively and efficiently. Hybrid (Position 3) - It involves two sort of plan of actions that are connected with less
cost and goods distinction (Moreno-Menéndez, and Casillas, 2021). As per to this, the
basic term of target of Sainsbury is to have an impact and positive term of influence on
the purchasing action of consumers as per to their goods and facilities (Porter’s Five
Forces of Competitive Position Analysis, 2021). Differentiation (Position 4) - In this plan of actions, the business of management will
provide high choice of facilities to their consumers with the role of maximising their
gratification sections. Hence, Sainsbury require to provide superior term of facilities in
respect to influence high number of consumers as effectively.

 Focused differentiation (Position 5) - In this business strategy, the business of
management demands for the advanced term of cost of their goods and facilities due to
providing high manner of facilities and goods. To maximise the sales structure, the
management will need to execute their promotional techniques and arrangement as
effectively. Risky high margins (Position 6) - In this plan of actions, the business will raise their
term of the cost of their facilities with an outlook of maximising of their income (Peter,
and Dalla Vecchia,2021). As it create negative effects on the purchasing nature of
consumers and it will bring negative result to the business of management as effectively. Monopoly pricing (Position 7) - This term of the business strategy is created by the seller
that are exclusively sale the goods at the marketplace. Hence, they faced no rivalry in the
field of the market. As an individual marketer at the marketplace, they might have several
variations that cost as whatsoever cost they need in respect to maximise their income.
 Loss of market share (Position 8) – These manner of the plan of action will supports the
business of management to arrange the stabilized orientation at the marketplace by
phrasing an efficient prices for the facilities that they provides at the marketplace.
M4: Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.
From the above discussed manner of the plan of actions that are not bring forward as
advantageous event to Sainsbury (Ruiz, Romero, and Fernandez‐Feijoo, 2021). As the term of
the several term of plans that are providing highly essential manner on maximising the cost of
the value than the basic orientated term for the perceived by the consumers as effectively and
efficiently in the business of management.
D1: Critique and interpret information and data applying environmental and competitive analysis
to produce a set of valid strategic directions, objectives and tactical actions.
The manner of the business plan of actions that have the basic orientated term of several
ways that are to be performed as an important prospect of starting and operating the business of
management. As with no clear manner of strategies that have clear plan of actions that are tough
to get fixed the substantive targets and aims. In identifying the suitable manner of information
and data that applies on an environmental and competitive analysis to create the basic term of
strategic directions, objectives and various sort of business actions and activities in the manner of

the business plan of actions with the logical synthesis of the situations (Saruchera, and Asante‐
Darko, 2021). By which the company will perform their operations and functions to have an
effective result.
CONCLUSION
From the above mentioned report it has been concluded that, business strategies is an
important term of the tools and techniques that are essentially obligatory to be get created by the
business of management in a specific field of area as effectively and efficiently. Hence, as it will
supports them in accomplishing the basic orientated manner of the competitive benefits and
sustain at the marketplace for longer period of time with following various set of strategies and
sections as effectively. The business of management will need to present the PESTLE and
SWOT analysis in respect to determine the basic orientation of manner with the purpose of
influencing factors. Hence, as to create the sections with an efficient manner of the plan of
actions in respect to trade with other sections as per to the effective and efficient term of ways. It
also involves the basic set of the market values with the valuation of revenue and as well as
income in business.

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