Sainsbury's Business Consulting: Analyzing Challenges and Strategies

This report provides a business consulting analysis of Sainsbury's, a leading UK supermarket, focusing on the challenges it faces and potential solutions. It identifies issues arising from the COVID-19 pandemic, including changing consumer demands, supply chain disruptions, and increased competition. The analysis covers key areas such as competitor analysis, target customer market segmentation, and external environmental factors (political, economic, social, technological, legal, and environmental). The report highlights legal, social, and economic issues impacting Sainsbury's profitability and market position. It concludes by emphasizing the importance of business consultancy in improving operational efficiency, increasing profitability, and gaining a competitive advantage. Desklib provides students access to similar solved assignments and past papers.

BM561 Business Consulting

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Clarifying about client company and problem facing by them,...............................................3
2. Critically analysing and presenting areas of importance in Sainsbury,...................................4
3. Top issues faced by Sainsbury,................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business Consultancy is basically defined as the strategy used by different organization
in order to gain advices or directions for improving the working efficiency. It is an important
term used for optimization of resources fully with the aid of resolving the raised issues. The
report shows about 'Sainsbury' which falls under the category of the top supermarket brands
based in U.K. Analysis gives details about overview of client company and major issues being
faced by them. Apart from that report also shows about critically analysing problems and areas
of importance including competitors, target customer market and factors influencing the external
environment. Lastly analysis gives detail about top issues faced by the company.
1. Clarifying about client company and problem facing by them,
Sainsbury is second largest supermarket brand operating in United Kingdom with having
the mission of providing their consumers with high standard quality products at lower cost of
working together, faster and simpler. Having approximately about 15% market share and
operates over 600 supermarkets and 800 convenience store with delivering the most diversified
range of products from food to telecom equipment (Drake and et.al., 2020). Company aims at
becoming the most trusted retail supermarket under which individual loves to shop. With having
approximately 180,000 workers, firm also have made several changes and helped customers
through providing various services & gaining their trust. As business simplifying their operations
and focus on accelerating various cost saving programmes so that they may tend to invest more
into food and products quality, innovation, lower prices and many more for customers. Apart
from this enterprise also keeps focus on transforming cost base and ensuring about brands
portfolio supports and focus on food. As this will leads in improving financial performance and
delivering stronger returns from share holders.
The company keeps facing various several issues due to the pandemic, as during and after
the COVID the firm requires to change their policies convert themselves for overcoming such
major problems. As the impact of lock-down business have to face the ever-changing demand of
customers, follow new terms and regulation for surviving in the market and also know about the
competitors techniques with the current scenario. Not just that but organization also may tend to
face the challenge of shortages due to the pandemic which results in the profitability and
efficiency working of the firm.

2. Critically analysing and presenting areas of importance in Sainsbury,
As with the after effect of pandemic on the company leads towards in huge areas for
improving the working environment and operations for firm to survive and improving
profitability.
Competitors: With the huge after effect of COVID on the firm's business puts huge loss
regarding towards the working and selling of goods. At this point the company may tend to face
several challenges like the trust of consumers (Hughes and Anderson, 2020). So for resolving the
issues and gaining more customers preferences company may use various strategies for
improving the working ability and effectiveness of productions. The brand may tend to provide
customers with new techniques and technologies like providing 24hrs facilities towards
consumers. Along with the aid of this new technique consumer may change their preferences and
also helps in gaining more of their trust. Not just that but also helps in acquiring and increasing
profits as well as gaining competitive advantage over other companies. Business may also focus
on using various new and improved marketing mix strategies which also aims at improving the
working conditions.
With the utilization of new methods in promotion and marketing brand may also being
able to launch various ad campaigns under newspapers, radios and billboards to developed brand
name more significantly. New features also aids firm in gain more insights and attention of
customers leading in improving efficiency and gaining more customers than other competitive
firms (Tang and Karim, 2021). Along with that Sainsbury also may try to develop new products
and their food quality, as their innovation leading towards in acquiring new customers in
addition of improving experience of old consumers resulting having competitive advantage over
other firms.
Target Customer Market: After the impact of pandemic 'Sainsbury' may gets affected
in the terms of loosing their customers. With new and impacting issues raised under the firm
working leads in decreasing the efficiency and effectiveness of the company. So the brand
requires to, put keen sight under this area of important by segmenting target audience or
customers. With this feature allows firm to identify, observe and analyse about the basic nature
and various areas of interest under customers (Eggert and et.al., 2018). In-addition also provides
firm in particularly knowing the taste and preferences of the consumers and what kind of
products they choose or use. The brand use this technique for analysis, about the requirements of

consumers in regarding the products and services, as resulting for the company to improve the
production process for the target segmented audience and also allowing in gaining new
customers resulting in increasing the profitability.
Apart from that but 'Sainsbury' also may uses various vouchers and coupons as their
another marketing strategy for gaining the attentions and attraction of customers. This method
also may tend to improve the customer retention rate and resulting in increased profit earning for
the firm.
Factors influencing external environment: Another area of importance as these include the
various factors which may tend to influence or affect the external working condition of
'Sainsbury' (PESTLE analysis, 2021). These factors consist of:
Political factors: Various factors including the political stability of firm under operating
in nation's territory or country's political relations with other countries leads in impacting the
working of firm as this results in the dis-balance between the firm productions and operations in
the global business environment.
Social factors: The factors which tends to affect the sustainable business practices to
gain customer support. Apart from that high rise in the demand for certain type of food products
like easily prepared and organic also may tend to affect the working of firm.
Environmental factors: Different environmental elements or factors which may tend to
impact the working of company (Kim, Lee and Lee, 2021). As factors like strategic sustainable
plan of brand or reduction of carbon emissions is either being done by enterprise or not.
Economical factors: Factors including growth, inflation or exchange rates. A decrease or
steep decline in GDP after the pandemic impacts the earnings of firm.
Legal factors: These include legal or governmental regulations as regulatory approvals
in delay decision-making and business growth which may tend to affect or influence the working
of firm.
Technological factors: Usage of various data driven analytics for deriving retail
consumer rights influencing the working of 'Sainsbury'.
3. Top issues faced by Sainsbury,
Al-tough the firm may tend to face various issues due to the impact of COVID and lock-
down but these are some major issues under which enterprises required to focus more. As to

improve the working conditions of operations and productions along with gaining more
efficiency and increasing profitability for the 'Sainsbury'.
Legal Issues: In the business environment, laws and regulations imposing trade
restrictions may be a turn off to the potential investors and specially when regulations and
limitedness is high (Kaplan, 2020). As with the new rules and regulation being imposed by the
government after the attack of COVID hugely impact the working of firm. New legislation being
under concerned the firm requires to change their old ways and methods for improving and
following rules. The brand requires to follow the new protocols regarding providing services and
products to their customers.
Social Issues: As being one of the major issues faced by the firm under which after the
impact of covid company sees a huge change in the cultural norms and customers demand for all
goods and services. With the new rules and regulations being issues by government Sainsbury
require identifies and analyse about certain change in the demand for products. Now people
tends to change their preferences and choose only certain type of products, which requires
determining and improve.
Economical Issues: The economic issues arises with the change in the price range,
growth rates or inflation. As under this company faces various challenges after the pandemic
effect which brand requires focusing on for improving the efficiency. Post lock down the
company requires focusing on resolving the challenges as these issues may cause various impact
in the working of firm. After the introduction of new laws resulting in brand lower profitability
along with decrease in the sales and growth of 'Sainsbury'. So enterprise requires to resolve this
issue for their betterment and gaining competitive advantage.
CONCLUSION
From the above report it has been concluded that business consultancy is and important
concept in terms of focusing on the goal and improving effectiveness for firm. With the use of
these directions and suggestion company may able to deliver out more efficiently produced
goods and services towards customers. The analysis shows about the basic overview about the
Sainsbury along with the major challenge or problem being faced by them. Furthermore, also
give details regarding the critically analysing and areas of importance like competitors,
customers and external environmental factors. Lastly, it delivers information about the major
issues being faced by enterprise.

REFERENCES
Books and journals
Drake, T. M. and et.al., 2020. The effects of physical distancing on population mobility during
the COVID-19 pandemic in the UK. The Lancet Digital Health. 2(8). pp.e385-e387.
Eggert, A. and et.al., 2018. Conceptualizing and communicating value in business markets: From
value in exchange to value in use. Industrial Marketing Management. 69. pp.80-90.
Hughes, N. and Anderson, G., 2020. The experience of the COVID-19 pandemic in a UK
learning disability service: lost in a sea of ever changing variables–a perspective.
International Journal of Developmental Disabilities. pp.1-4.
Kaplan, B., 2020. Revisting health information technology ethical, legal, and social issues and
evaluation: telehealth/telemedicine and COVID-19. International journal of medical
informatics. p.104239.
Kim, J., Lee, J. and Lee, T. J., 2021. The Sustainable Success and Growth of Social Ventures:
Their Internal and External Factors. Sustainability. 13(9). p.5005.
Tang, J. J. and Karim, K., 2021. It is about beating the competitors-the usefulness of accounting
information in reflecting competitive advantages. International Journal of Applied
Decision Sciences. 14(2). pp.123-150.
Online
PESTLE analysis. 2021. [Online]. Available Through:
<https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-
analysis-factsheet#gref>