Business Strategy Report: Sainsbury's Strategic Analysis and Plan

This report provides a comprehensive analysis of Sainsbury's business strategy. It begins with an introduction to business strategy and an overview of Sainsbury's, a leading UK food retailer. The main body includes a PESTLE analysis, examining political, economic, sociocultural, technological, legal, and environmental factors affecting the company. A stakeholder analysis identifies key stakeholders and their interests. The report then applies VRIO analysis to assess Sainsbury's resources and capabilities, followed by a SWOT analysis to evaluate its strengths, weaknesses, opportunities, and threats. Porter's Five Forces are used to analyze the competitive landscape, and a strategic plan is proposed. The report concludes with a summary of findings and a list of references.

Business strategy

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Task 1...............................................................................................................................................4
Company overview......................................................................................................................4
PESTLE Analysis........................................................................................................................5
Stakeholder analysis....................................................................................................................7
Task 2...............................................................................................................................................7
VRIO............................................................................................................................................7
SWOT analysis............................................................................................................................9
Task 3.............................................................................................................................................10
Porters five forces......................................................................................................................10
Task................................................................................................................................................11
Strategic plan.............................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is the respective course of action for the companies to have the achievement of
specific business objectives in perfect manner. In addition, business strategy considered the
competitive moves to have specific customer interaction in strengthening the performance and
organizational goal achievement (Nandonde, 2019). Sainsbury is the leading food retailers in UK
by owing more than 800 stores in term of supermarkets and convenience store. The company is
in the retrieving positions for expansion in global market share. In this report there will be clear
discussion of their external ad internal analysis by the understanding the business activities and
different business strategies. In addition to that’s the report will deal with competitor’s analysis
by concluding the different activities and strategies which is order to be more competitive in
market.
MAIN BODY
Task 1
Company overview
Sainsbury is the leading food retailers in the UK by the owning more than 800 stores which have
the clear inclusion of the supermarkets and convenience store by having the 16.3% of the share
in market. The largest level of shareholders with using the facilities, transportations. The firm
have the clear level of aims of the reducing the carbon emission despite the growing in the super
market space. On the other hand, the firm have been criticised for the links in between with
government and related promotion of genetic engineering, excessive transportation of products,
promoting intensive farming, paying producers low prices, and undermining small businesses.
Vision
The firm have vision to be art of most retailers where the people have love to work and shop.
This is about harnessing the talents with creativity and diversity in order to ensure the
customer for receiving the greater services every time.
Mission
The firm have the mission to be the consumer first choice for the food in way of delivering the
products with outstanding quality and greater services at the competitive post through
working faster, simple and together.
Value and Culture
4

Sainsbury have the culture to be heart of everything which have inclusion of team working
together, bring new ideas with the best experience for customer and colleagues which the
inclusive environments that values community.
PESTLE Analysis
The firm is the largest level of supermarket chains which is being established 150 years who
have sought their tough level of competitions with other brands which is leading Tesco a close
level of comparison in perfect manner (Hayes, 2018). The firm have the needs to pay close level
of competition for immediate the business environments which might the affecting the internal
operations. In order to have the identify the potential impact by reviewing the Political,
Economic, Sociocultural, Technological, Legal, and Environmental factors affecting a business.
Political factors
The biggest level of political factor which is affecting the Sainsbury with imminent Brexit
which evitable have increase the product pricing of the respective brands. Hence there is the
large numbers in order to loss of competitors by providing the cheaper wholesale alternatives.
This have the Particular effects in Brexit which cannot to be gauged with expected the lead to
adverse condition in brand. As due to the significant change in the policies due to the COVID 19
, the companies have the to maintain the proper measure as per the government measure in order
to run the company which is creating the negative impact. Another level of relationship between
Qatar and England in the near future. The largest level of shareholders of the company is
Sovereign Wealth Fund of Qatar with any political feud for two nations to lead the drop market
shares Sainsbury.
Economic factors
The firm have the highly dependent which is road-based transport in order to ship its products
all across the UK. The issues are mean to the loss of lower incomes to have brand giving the look
the version level of alternatives the to primary the economic factors which is affecting the firm.
There is the high wage movement which is gaining more level of momentum to expected the
demand of workers in order to retain the shareholders (Bentham, 2018). Brands such as Asda and
Tesco have been old rivals of the company and newer ones such as Lidl and Aldi are proving to
be a source of added competition in the current market. On the other hand at economic levels the
cost have been increased due to the social distancing and safety measure to have the protection
of employees. There is the weaker sale of the sales of fuel, general merchandise and clothing,
5

and lower financial services profitability despite surging grocery trade as the coronavirus
pandemic takes hold.
Sociocultural factors
The people of the UK have the major shift towards the health-conscious level of diet to stay
relevant current level of socio culture climates. So, the brand has the need to have change in the
fast food menu by indulging the healthier options such as the salads and organic shakes.
The next is changing behaviour as company is catering the fair level of trade movement as the
products such as the chocolate and coffee which is affected the fair-trade movements in more
ways t meeting the customer demands in behaviour. On the other have the firm have the case
modelling assumes to for the lock down restriction until the end of June that there business to
have the working in continuations to be disrupted until mid-September
Technological factors
Sainsbury’s eCommerce store is considered to be highly catering the current level of tech
friendly level of generations so the brand can have improvement to provide customer better level
of experience. This modern data analytical systems such as big data and AI understand the
demographical needs of the consumers to cater them. These is more analytical methods which
helps to have the increasing the sales and run better level of marketing campaign.
Legal factors
These have the different layer in the decision making in order to have ensuring the systematic
changes by delayed business structure. This have the changing needs customer base to meet the
specific demands. Due to he COVID impact Sainsbury's has opted not to take up use the
government's furlough scheme or delay making VAT payments As per the continues change is
demand of customers in regulatory to get regulatory approvals loss in market share to have the
proving the better experience to customer (Nahar and et.al., 2018). There are the legal
ramifications which is ready to face by running the outlets by outside the economic and political
sphere in Britain.
Environmental factors
The firm have the production in high level of carbon footprint which is adverse current
environmental condition. There is the current climate change for movement to gaining
momentum to take active level of steps to curb the environment impact. So, the firm have the
clear level of aims of the reducing the carbon emission despite the growing in the super market
6

space. This also added the pressures to make quick changes climate oriented needs to meet
customer demands by catering the environment impact.
7

Stakeholder analysis
An organization have the stakeholders as the group have involvements where the different
which have the informing of all the level of operational activities as the covering the log term
strategy which have the proper level of conveying the quality, worth and services which have
lead to the good level of earning and sale of the per year development (Chen and et.al., 2019).
So, the stakeholder sure such as
Suppliers- as the firm have the supplier from Britain and international levels which have
believing the sourcing with integrity by forming effective partnership and raising the
environmental and social standards. The firm tends to provide the ethical training initiative with
commitment to customers by adding more value.
Managers- it is the ones who have managing the vision and goals of owners as the current level
of growth rate which related to ability of company to the different level of harness for human and
material as the needed to growth the team in perfect manner. They sit over the affairs on
Sainsbury and make sure the shareholders have dividends annually
Staff- There is financial level of dependence for the Sainsbury for more level of sustaining the
growth of living. This is best to continues to meet the organization strategic goals to create
more job training and training to its staff. On the other hand the company have the increase level
of the cost in term of the maintaining the socials distancing and proper sanitation of the product
and campus
Customer- There is very important for the end users to have the online purchases for customer
the for cutting the across the border in order to get good quality at fair level of price.
Community – The economic situations is challenging with major economic impact to succeed
the conditions. The firm have the local charity scheme to have supporting the local community to
have completive advantage (Vargas-Hernández and Garcia, 2019). The firm have the providing
the greater service quality, quality products to support the local charities.
Task 2
8

VRIO
The firm VRIO analysis which have the showing of the research and development in is not
considered to valuable as the research and development if considered to be more costing the
benefits by providing the sense of innovation.
Sainsbury is the firm which tends to highly operating in the retail market which holds in the
disproportionate amount of the power.
The firm tends to have the sharing of second level of market share as gracing tough level of
competition from the Tesco. The firm have the merges’ ASDA as holding company by providing
the accurate level of service to the customer at arcuate level.
The firm have the proper level of allocation of ware houses by deploying major level of
activities through different resources to have the completion of the customer respective orders
(Yudhistira,., 2016). these resources have been considered to have the high level of stimulation
of the queen with version level of action in perfect manner.
Valuable- the firm is seeking about to have the differentiations in the strategies to gains more
level of competitive advantage which have the allowing them to have the production in
democratise designing. There is production of effecting quality of foods with perfect branding
which will be sustainable available at lower prices.
Rare- in the competitive market, the firm is trying to have the innovation of the products in order
to generate more level of product definition to take the customer enjoy the customer services on
the other hand , it tends to have the finding out the variable level of combination of the Sainsbury
products.
Imitability there is more level of experience the right level of combination in terms of business
skills tones of application in way of providing the training and development of the staff members
in more towards the applicability if corporate culture. This have eventually led to make the
immediate the way in longer term.
Organization
The firm have been recognized in the respective market for the longer period f times by making
strong level of presences to make the firm more level of successful in different countries. In
addition to that’s the firm have been established as leading food retailers in the UK by the
owning more than 800 stores which have the clear inclusion of the supermarkets and
convenience store by having the 16.3% of the share in market (Lewis, 2017). The largest level of
9

shareholders with using the facilities, transportations. The firm have the clear level of aims of the
reducing the carbon emission despite the growing in the super market space.
SWOT analysis
Strength
 The firm have the right expansion moves to have brad expanded convenience stores with
dealing the merchandise the categorise delay to days need of customers with super
market brands.
 The firm have the business philosophy for following a staining the low-cost strategy for
product categories by attracting and retaining customers for income segment as brand
loyal.
 There is the opportunity to have catering all types of customers with catering the
economy segment. There are expensive products as well as speciality products with
higher segments in income.
 The wholesale and retail banking to be the unrelated level of sector which is being
followed the competitors to helped out the diversifying the risk across diverse sector.
 Innovation promotion strategies as brand are highly innovative which is against the
competitors as the brand options to competing brands which indicated to be cheapest.
Weakness
 Brand switching have also facing the lot of risk form loyalty programmes and
promotions. The firm have the still level of finding the challenging in more retaining the
customers.
 The low margins with growing the completion for the retail spaces for added risk in
online retailers have the lost level of volume (Lüttgens, and Diener, 2016).
 The firm have been trying the cut down the level of cost well as to keep the recipes
lowers which are low level of sustainability.
 Growing cost with procurement cost by having eh shopping experience with key level of
differentiate for high income segment.
 There is technologies have support the self-services which is basic level of pre requite as
well as spacious aisles, multilevel parking, educated and well-informed salespeople etc.
each of which is an added expense.
10

Threat
 The firm is facing the fierce level of coemption form the big player in the market such as
Tesco, ASDA, Morrison’s, Lidl, Aldi etc.
 In addition to that’s Aldi and Lidl are changing the rules of the game as the both the
discounters are providing the customers with as assurance quality of products at the
lower prices.
Opportunities
 Growth in villages are gonging the days where the rural areas which is using the branded
products. Today the branded products which have the all daily categories which is even
villages which have rustle n the growth of supermarkets culture have remoting it into
villages for the respective opportunity for the retailers.
 In addition to that’s farm have the opportunity to expand in their emerging market such
as China, India, Russia, Turkey, Brazil and others is also worth exploring.
Task 3
Porters five forces
Porters five forces have the strategic management tools in order to have analysing the industry
to have the understanding the level of profitability to makes the five competitive forces which
have influence profitability on order to have development of the strategy for enhancing the
competitive advantage for long term of profitability in retail industry.
 Threat of New Entrants
As the new entrants in more way of retailing the innovations which bring the innovations
by the new ways of doing the things by pouting the pressure on Sainsbury through the
development of the lower pricing strategy, reducing threats and providing the new level
of value propositions to the respective customer (Bıçakcıoğlu, Theoharakis, and Tanyeri,
2019). There is collocal level of knowledge with extreme crucial food retail sector with
difficult foreign firm to replicate.
 Bargaining Power of Suppliers
This is more complicated as the it is difficulty to categorise which is mutually the
dependent level of relationship as suppliers for itself huge companies. On the other hand,
11

there is huge brand appeal to do not sell the products will shift level of loyalties making
the suppliers more powerful.
The relationship have the changing the depending on different situations as big brand
level of suppliers to be successful through the campaigning as the sale level of volumes
for the dependence of the different level of supermarket.
 Bargaining Power of Buyers
The power of buyer is higher which the industry to simplify for the presence of the
competitors by selling the same level of products (Chen, Eshleman. and Soileau, 2017). It
is more level to be differentiated in terms of process and the level of customer loyalty by
increasing the green level of credentials. Hence, the switching cost is low for the
consumers as the economy have been the further level of recessions as the consumer
needs to be likely given more weight increasing the power considerably.
 Threat of Substitute Products or Services
The threat is low as the consumer view re necessity with developing world by increasing
the emerging the markets which is trying to the converge with innovation to make the
shopping experience more extremely pleasurable. This make people to have difficult to
substitute as the internal industry which can one laps up the business and other respective
supermarket.
 Rivalry Among Existing Firms
The retail market is considered to very crowded as trying to more level of getting int
there non-food sectors which is further level of intensifying the competitions. Sainsbury’s
has a market share of 14.9%, steadily increasing since its restructuring programme. This
have been recognized the level of positive trends as well it as lags the runaway the market
leaders b covering the considerable level of distance.
Tesco, Asda, and Morrison’s are the other three big supermarket chains in the UK retail
sector. This is proving the level of companion in order to reach the convenience stores in
order reach the large level of customer base.
12