Sainsbury's Strategic Management: Analysis and Action Plan

This report provides a comprehensive analysis of Sainsbury's strategic management, including a critical assessment of the processes used to determine their strategies. It evaluates the impact of internal and external environmental variations on Sainsbury's business, considering strengths, weaknesses, opportunities, and threats through frameworks like PESTLE analysis. The report reviews Sainsbury's strategic plan, offering an action plan to adapt to changes in the internal or external environment, focusing on goal setting, analysis, strategy formulation, implementation, and evaluation. Desklib provides access to similar reports and study tools for students.

STRATEGIC MANAGEMENT
TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Strategic Management-................................................................................................................3
Critical assessment of the process used by Sainsbury to determine their strategy-....................4
Impact of the internal and external environment variation on the Sainsbury-............................5
Review of an organisation’s strategic plan (Business Plan), providing an action plan for the
organisation on the basis of a change in either the internal or external environment-................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is the process which involves setting of goals, procedures, and the
objectives so that eh company can be more competitive. This process usually focuses on the
effectively managing the staff and the resources of the organization to achieve the goals and
objectives of the company. It helps the organization to in providing the right direction for
successfully achieving the goals and objectives of the company. Sainsbury is the considered as
the second largest chain of the supermarkets in the UK. This company involves in providing the
quality food to the customers at the fair prices. This report will discuss the definition of the
strategic management as well as the critical assessment for the strategies. Along with this, it also
includes the evaluation of the impact of the internal as well as the external factors on the
organizational strategies. Further, it will also discuss the organizational strategic plan.
MAIN BODY
Strategic Management-
Strategic management is all about the detailed description of the strategies that the managers can
use to achieve the goals and objectives successfully as well as it provides the competitive
advantage to the company (Akyuz and Gursoy, 2020). It can also be defined as the set of
decisions which are taken by the managers which has the direct impact on the results of the
organization. The strategic management can be considered as the planning for the predictable
and also for the unpredictable situations. This is the continuous process which helps in
controlling and evaluates the business as well as the industry of the organization. The evaluation
is done of the competitors, which helps in setting the strategies which will lead to stay ahead in
the highly competitive market.
Strategic Management provides the wider perspective to the company's employees. BY
this they can better understand whether their job fits effectively in the plan of the organization. It
is the art or ability of managing which helps in maximizing the performance of the organization
for achieving its goals and objectives. It is very important for the organization as it provides
them the benefit of achieving the goals and objectives successfully by effectively managing the
resources of the company. Strategic management is generally used for the financial and non-
financial benefits of the organization. It helps the superior level management of the organization
to implement the innovative ideas which will help the organization in compete in the future as

well it sets the direction for the employees so that they focus on the goals and move towards the
right path. The organization having the effective and defined set if the strategies helps them to
helps them to take critical decisions which have positive impact on the organizational
performance.
Critical assessment of the process used by Sainsbury to determine their strategy-
The assessment of determining the strategy can be done by the using the stages of the strategic
management which will help in evaluating the Strategy of the Sainsbury. The stages are as
follows-
Setting the goals- The main purpose of setting the goals and strategies is very crucial part for
every organization and the main purpose of this is to have clarity of the business vision. This
stage involves identification within the three steps such as firstly defining the short as well as the
long term goals and objectives, second identification of how can these be achieved (Asobee,
2021). The final step is personalizing the process according to the staff by assigning the task to
each member of the team for successful achievement of the goals. The final step is to provide
these goals and objectives known to the staff of the company. Sainsbury uses this as the first step
to reach her goals and objectives to the staff members.
Analysis- This stage of the strategic management process is the key stage as this helps in
configuring the two steps. This stage involves gathering the data for achieving the vision. IN this
process the organization can evaluate the external as well as the internal problems which can
affect the achievement of the goals and objectives of the company. This stage is helpfulness inn
identification of the strengths, weaknesses as well as the opportunities and the threats. Sainsbury
uses this stage as these helps them to acknowledge the problem which may arise and affect the
working of the company.
Strategy Formulation- The first step while forming the strategies is to review and understand
the information gathered by the analysis. Identifying the resources which the business can use for
the successful achieving the goals and objectives of the company (EPSTEI and SHVETSOVA,
2018). The companies must find the solutions of the problems which they are facing so that they
can achieve the goals of the organization. Sainsbury uses this stage as this helps them in
identifying the problems as well as how these can be solved.
Strategy implementation- It is very important for the company to successfully implement the
strategy so that it provides effective and positive results to the company. Because if the strategy

does not work then the new business structure has be made in order to success of the business.
The staff or the employees as well as every member of the organization must be ensured about
their roles and responsibilities and how their work can contribute for the organization in
achieving the goals and objectives. The resources must be appropriately planned so that the
employees can also work effectively. Sainsbury Company as this stage implements the effective
strategies which helps them in staying ahead in the UK market by achieving the goals and
objectives of the company.
Evaluation and control- The strategies are very important to be measured as this will help the
organization to understand whether the strategy is proving effective for the company or not.
Evaluating the progress by the actual results will help the company to know the current progress
by the re strategies (Tonelli and Cristoni, 2018). Monitoring the internal as well as the external
environment is very important for the company as this helps the company top react to any
problem by taking certain measures. If it has been analysed that the strategy is not proving much
better and effective for the company then immediately the action must be taken. Sainsbury
Company effectively evaluates and controls the environment of the business which helps them to
understand the effectiveness of the strategies which is very important because by this only the
company may understand the challenge and problems they are facing and how effectively the
company is maintaining this.
Hence, the Sainsbury Company uses this strategic management process for determining the
strategies for the company.
Impact of the internal and external environment variation on the Sainsbury-
The internal and external factors of the environment has much impact on the working or the
performance of the organization (Lee, Kang and Kim, 2022). Internal factors are those which the
company can control and external factors are those which has no control over these factors.
Sainsbury is the food offering company so it can also be affected by these both the factors.
The internal environment factors which can affect the business can be evaluated by the strength
and weaknesses of Sainsbury.
Strength- These are the internal factors which affects the performance of the overall
organization. Sainsbury Company took right expansion moves from small grocery stores which
has limited products and then to the large stores has the positive impact on the business. The
supermarket chain of the company is the largest chain in the UK which is the biggest strength of

the company and helps them to stay ahead in the highly competitive market. The Sainsbury
company uses the low cost strategy for all its products by this the company attracts and retains
the customers. These all internal environment factors has the positive impact on the business
working.
Weaknesses- Sainsbury faces the large challenges because of the highly competitive market
because the customers of the company re very tough to retain as they the easiest switch to the
other brands. As this company offers the products at the low cost then the margins of the
company also because low and for retaining and attracting more customers. The company has to
lower the price of the product. These internal factors have the negative impact on the
performance of the company.
The external environment factors can be evaluated of the Sainsbury by the Pestle analysis.
Political factors- The political factors which affects the business working of the company is the
imminent Brexit. The policies of the UK is very stable which means the company has no effect
of the policies on the performance (Akpoviroro and Owotutu, 2018). The another factors is the
unstable relationship between the Qatar and England as the Sovereign Wealth Fund is the largest
shareholder of the Sainsbury company so any political decisions or feud may lead to the drop
market shares of the company which affects the working of the company.
Economic Factors- Sainsbury is the grocery proving company so it is highly depended on the
transportation the road for shipping the products in the UK (Naumkin, 2020). The personal
income of the UK is high that is the country regularly provides the budget for the groceries so by
this, the Sainsbury company can have benefit from this budget. The two other factors of the
economic are the higher wages that is it becomes difficult for the company to meet the
expectations of the staff.
Social Factors- The major factor of the social is the change in the culture which has the effect
the business as the culture changes the demand of the products also changes (Longhurst and
et.al., 2020). The another factor is the customer behaviour that is the fair trade movement in
which the company has to manage the high prices of the grains, vegetables, and other related
products.
Technological Factors- The technology is getting advance day by day which the Sainsbury has
to adapt to stay ahead in the highly competitive market (Pangestuti and Tindangen, 2020). The
Sainsbury must come up with the innovative ideas of using the technology for the better

experience of the customers. The company can use the modern data and the analytical systems
which will help the company to understand the demographical needs of the customers.
Legal Factors- These factors are very important for every business to follow for its effective
working and to stay in the country. The Sainsbury Company also must implement and follow the
rules and regulations of the country and these can have impact on the business as the government
makes many regulations on the food providing companies.
Environmental factors- These factors are related to the environment such as pollution, carbon
emissions and many more (Saenz, 2021). There are many challenges that the companies have to
meet to prevent the environment. Sainsbury has to face the challenges like minimizing the
pollution products, disposal as well as being clean. These factors are most important factor that
the company must take care off because of the planet is harming so much.
Review of an organisation’s strategic plan (Business Plan), providing an action plan for the
organisation on the basis of a change in either the internal or external environment-
The action plan of the company is considered as the heart of the strategic plan (Haleem, Jehangir
and Ullah, 2019). The business strategic plan including the action plan for the Sainsbury
Company.
Goal Objectives Action Plan Measurement
Increase Revenue The company wants
to increase the sales
of the company by
promoting the
products to the
customers by
attracting them. This
strategy directly
contribute to the
revenue of the
company.
The company may go
for expanding the
variety of the products
as this will also help
in increasing the
revenue of the
company as by this
the sales will increase.
The growth of the
revenue has increased
from the past years
but increasing the
sales will help in
boosting the revenue
of the company.
Improve the quality The company is
setting the goal for
Quality is the key
consideration for the
The quality
improvements will

proving the fresh and
safe food to the
customers as the
trends of the
customers is changing
towards the hygienic
and fresh food.
Improving the quality
of the products will
help the company to
improve the
perceptions of the
quality.
food offering
companies for
providing the new
products to the
company. The product
managers of the
company must
improve the
ingredients and
packaging of the
products for better
quality of the product.
lead to effective
performance of the
company. The sales
also increased when
the perceptions of the
quality changes in the
minds of the
customers.
Fairly prices The best way to
attract the customers
to set the fair or
reasonable prices for
the products of the
company by
generating the
demand for the
product (Moran,
2020).
This can be done by
the price promotion
with the help of the e-
commerce partners as
the product will reach
to the customers. This
will directly impact
the growth of the
company.
Using the effective
pricing strategies the
company will be able
to achieve the goals
and can maintain the
gross margins of the
company.
High quality jobs The main objective of
the company is to
provide many jobs to
the people so that it
will help in increasing
the standard of the
living of people.
There many jobs
The company can
provide
advertisements in the
newspapers and at the
digital platforms by
which there
candidates can be
attracted. This will
This can be measured
by the measuring the
effectiveness and
change in the overall
performance of the
company by hiring the
talented and skilled
employees in the

engaged in the food
sector companies as
this is highly
depended on the
customer services.
help the company in
future to increase the
productivity level of
the company and stay
ahead in the highly
competitive market.
company.
Healthy Food The food companies’
must ensure to
provide the healthy
food to the customers.
The objectives of the
Sainsbury company is
to provide the
customers with the
healthy food.
The healthy food will
help the company to
exist in the future as
by this the company
will be retained and
more customers will
be attracted towards
the company.
This can be measured
by the growth of the
company form the
generation of the sales
of the company
through the new
customers as well as
from the old
customers (Hunitie,
2018).
CONCLUSION
This report has discussed the concept of the strategic planning fir the company as well as its
importance for the company because it helps in better and effective way of implementing the
strategies for the company. The strategies have the direct impact on the performance of the
company. Along with this, this report has considered the critical assessment of the strategic
management which involves setting the goals, formulating the strategy, implementation of the
strategy’s and at last evaluating the effectiveness of the strategy for the company. Further, it has
also discussed the external factors which can impact the working of the business such as legal
factors, technological factors, environmental factors, political factors and many more. And at last
this report includes the reviewing the strategic plan with the action plan of the business or the
company.

REFERENCES
Books and journals
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strategic management process. Journal of Business and Management Sciences, 9(2),
pp.68-70.
EPSTEI, M.Z. and SHVETSOVA, O.A., 2018. Development of Innovative Strategies:
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Haleem, F., Jehangir, M. and Ullah, Z., 2019. Strategic planning and SMEs performance: A
developing country's perspective. Journal of Business & Economics, 11(2), pp.33-49.
Hunitie, M., 2018. Impact of strategic leadership on strategic competitive advantage through
strategic thinking and strategic planning: a bi-meditational research. Verslas: teorija ir
praktika, 19(1), pp.322-330.
Lee, I.B., Kang, M.J. and Kim, J.W., 2022. The Effects of Internal and External Factors of the
Founders' on Startup Success: Focusing on the Mediating Effect of Self-efficacy and
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adaptations to anatomical education in the United Kingdom and Republic of Ireland in
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Moran, B.B., 2020. Strategic planning in higher education. College & Research Libraries News,
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Naumkin, V.A., 2020. Financial resources of small businesses: internal and external factors
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