Comprehensive Strategic Management Plan for Sainsbury's Analysis

This report presents a strategic management plan for Sainsbury's, a British multinational supermarket chain. It begins with a PESTLE analysis to assess the macro-environmental factors impacting the company, including political, economic, social, and technological influences. A SWOT analysis evaluates Sainsbury's internal environment, identifying strengths, weaknesses, opportunities, and threats. Porter's Five Forces model is applied to evaluate the competitive landscape. The report also discusses Porter's generic growth strategies and proposes tangible strategic priorities and objectives for Sainsbury's to improve its competitive edge and market position. The analysis aims to provide a comprehensive understanding of Sainsbury's strategic environment and offer actionable recommendations for sustainable growth. Desklib provides students access to solved assignments and study resources.

Strategic management
plan
Table of Contents

INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................2
P1. PESTLE Analysis to analyse impact and influence of macro environment on Tesla and its
strategies......................................................................................................................................2
M1. Critical analysis of macro environment for determination and inform strategic
management decisions.................................................................................................................3
TASK 2............................................................................................................................................4
P2. Swot Analysis to analysis internal environment of Sainsbury's............................................4
VRIO Analysis.............................................................................................................................5
M2. Critical evaluation of internal environment for assessment of strengths and weaknesses of
an organisation’s internal capabilities..........................................................................................5
TASK 3............................................................................................................................................7
P3. Porter's five forces model to evaluate competitive forces of Sainsbury's .............................7
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes................................................................................................................................8
TASK 4............................................................................................................................................9
P4. Theories, concepts and different models along with their interpretation for Sainsbury's.....9
Porter's growth generic strategy.................................................................................................10
M4. Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management plan play a crucial role in development of company as it decides
precise planning in order to survive in marketplace. Most of the successful international and
national companies formulate and develop precise strategic management for long term growth of
business (Randrup, 2020). In the business organisation there is a fair need of strategic
management in order to develop organisational goals and objectives. In this report macro
environment analysis and its impact on operations and functions of a business is mentioned in a
precise manner. This project includes strategic management and its dynamic approach towards
welfare of business and achievement of organisational goals. This project also includes
importance of various models and management theories for survival of company in tough times.
In this report example of Sainsbury's company is taken into consideration for better
understanding strategic management. The company is a British multinational supermarket
chain which was founded in 1869 and headquarters are in London,UK.
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TASK 1
P1. PESTLE Analysis to analyse impact and influence of macro environment on Tesla and its
strategies
PEST Analysis is a tool that helps in determining the influence of macro environmental
factors that affects functioning of an industry. Sainsburys is a supermarket operated in UK in
retail industry which serves food, groceries, clothing, electrical appliances and many more
products and services. The company is using this analysis because it helps in identifying the
extrinsic factors which impacts functioning of business (Aithal, 2019). This tools also helps
managers of the company in making better business decisions as well as evaluates whether new
market segments of industry will gain profitability to enterprise or not. The PEST Analysis of
Sainsburys is as follows:
 Political factors: Those factors which are associated with political stability of a country
in which the company is operating are termed as political factors. In context to current
situation, the factor of COVID 19 within UK politics plays a crucial role in impacting the
functioning of a company. Government of country has made regulations regarding
sanitizing, social distancing that impacts the performance of business (Gallo, 2019). As
company has to adhere lockdown policy of UK union due to which turnover of company
got reduced and influences the operations of company in unfavourable way.
 Economic factors: Economic factors include inflation, employment rate, growth rate,
etc. Sainsburys is operated in UK where economy of the country is stable and market-
oriented. This organisation has its brand image in country and has large number of
market-share. But due to Covid-19 in 2020, economic lockdown impacts functioning of
company in an adverse way. During that time sales of business got declined and hinders
profitability level of business in negative way.
 Social factors: These factors involve health consciousness, population growth rates, etc.
Nowadays consumers are more concerned about their health. By considering their health
consciousness Sainsburys provides less unhealthy “junk” food to satisfy its customers
and expand its customer-base. Through this way, expansion of customer loyalty increases
sales of company and facilitate in building its brand value.
 Technological factors: In modern era, the use of technology is increasing at a rapid rate
and positively influenced operations of Sainsburys. The company uses highly technically
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updated machines that helps it in making food of superior quality within less time period.
This helps in capturing more of its customers and provides assistance to company in
expanding their profitability level which brings positive impact on the organisation.
M1. Critical analysis of macro environment for determination and inform strategic
management decisions.
As macro environment is an essential part of company's strategic management so it is
important to analyse macro environment of an industry as it helps in growth expansion
of a company (Keding, C., 2021). Analysis of macro environment on the basis of
strategic management decisions id given below:
 Political factors: It includes trade restrictions, tariffs policy. Changes in trade restrictions
policy impacts the functioning of Sainsburys as company needs time to adopt those
changed regulations which might declines its sales volume and hampers business strategy
of company
 Economic factors: Inflation, employment rate, wages are involved in these types of
factors. During pandemic situation of Covid 19, economic lockdown influences business
strategy of company. Closure of markets at that time leads to reduction in operations of
company and business strategy.
 Social factors: These type of factors include taste and preferences, educational level,
population density. Taste and preferences of consumers are changing frequently so the
business strategy of company is impacted. As the goods which are produced earlier are
now not in requirement of consumers.
 Technological factors: It includes internet connectivity, automation process.
Sainsburys uses highly technically developed machines for its products. It
positively impacts the business strategy of company as it helps in company's
growth (Trofimova, 2020).
TASK 2
P2. Swot Analysis to analysis internal environment of Sainsbury's
It is essential to perform SWOT analysis in order to excel the internal environment of
company. It is also essential for a company to perform SWOT analysis in order to grow at
marketplace. Swot analysis means to analysis the strength, weakness, opportunity, and threats of
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an individual or an organisation. For Sainsbury's it is important to increase and maintain their
strength, decrease and improve their weakness, provide more opportunity, and overcomes from
their threats for their long survival in the market. Strengths and weaknesses are the internal
factors of an organisation whereas opportunity and threats of any organisation are external
factors. Swot analysis is the primary factors of an organisation that help in decision-making
(Pareek, 2020). Swot analysis provide full awareness of all those factors that help an
organisation to take decisions and achieve their goals. Normally swot analysis is a list that
prepare by an organisation taking all the factors of their strength, weaknesses, opportunity, and
threats. The brief SWOT analysis of Sainsbury's is mentioned below:-
Strength
Strength is related to the internal factors of an organisation that affects business in long
and short run. These factors makes an organisation differ from their competitors and help them
to maintain their position in the market. Skilled and knowledgable staff , brand , patent ,
management, relationship with customers , etc. are the factors that make good strength of
Sainsbury's. Strength is a list which shows all those factors that make an organisation unique and
different from their competitors and help them to maintain there position in the market. For long
survival in the market an organisation has to be maintain and increase their strength.
Weakness
For Sainsbury's it is important to overcome and decrease their weaknesses for
maintaining position in the market. If an organisation does not overcome from its weaknesses so
it will lose position in the market (Mahadevan, 2020). For an example if the price of their
product is higher than their number of customer can decrease and may cause to lose their
position in the market.
Opportunity
It is important for an organisation to be aware about all the opportunities that is
available in the market . This will help an Sainsbury's to improve their market position in the
market. For long survival, an organisation should formulate changes in its technology, lifestyle,
social pattern etc. regularly. An organisation was always be ready for taking good opportunity
available in the market.
Threats
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It is also an external factor that should be control by Sainsbury's for their long term
success. Threats are basically those factors which can cause an organisation to lose their position
in the market , decrease their number of customer , etc.
VRIO Analysis
 Valuable- The valuable resources are considered as most important resources which are
important for the company in the long and short run. It is the moral duty of production
management of Sainsbury's to develop a strategy which utilises the valuable resources in
a systematic and precise manner.
 Rare- In this approach a business must calculate that how rare the resources are for a
business. The rare resources are important in the development of a business entity, as
they are rare in nature for Sainsbury's.
 Imitable – The resources which are available to the business entity should be protected
with copyright issues. The imitable resources should be the topmost strength of the
company in order to gain competitive advantage.
 Organisation- In this approach, a company analyse own capabilities related to
production and operations management. The organisation should also keep into
consideration the fact that it should deal with all consequences in an effective manner.
M2. Critical evaluation of internal environment for assessment of strengths and
weaknesses of an organisation’s internal capabilities
In order to maintain healthy and effective internal environment in a business the
strengths and weaknesses play a vital role. Many companies in market develop internal
environment by performing and conducting SWOT analysis. The major strength of
Sainsbury's is, company is majorly human resource and strategic management.
Companies like Sainsbury's should identify major weaknesses also to survive in
marketplace. It is essential to maintain precise internal environment in the business to
grow at marketplace (Chumburidze, 2019). In order to develop internal environment,
management of a company should analyse all weaknesses and strengths of a company.
The following points cover assessment of internal environment of Sainsbury's:
 Operations management- In a business operations management is concerned
with key functions developed by management to manage business functions. In
the long running and success of a company the operations management play a
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vital role. In Sainsbury's major strength of business is presence of professional
employees in operations management who are able to manage large tasks.
 Production management- In the functioning of a business with maximum
efficiency it is essential role of a business to focus on production management.
The production management is also linked with human resource and financial
management to perform operations in a smooth way. In a business production
management is held liable for providing goods and services in a distinct manner.
 Culture- In a company culture is main factor which determine the internal
environment. The culture of a company is related to traditions and practices
performed by various business organisations in order to develop a precise
strategy. Major weakness of Sainsbury's is maintaining culture in all parts of the
company as well as training employees related to effective culture. In many
different cases related to culture, a company performs major operations with the
help of various techniques. The culture of a company is essential to be
maintained in a well defined manner for long term success of business.
 Employment practices- It is important for a company to follow all the
employment practices and legislation. Many companies in domestic and
international market develop and follow employment practices in a pre defined
manner for sustainable growth of business. In long run Sainsbury's has to
perform duties and roles which are effective in development of employment
practices.
TASK 3
P3. Porter's five forces model to evaluate competitive forces of Sainsbury's
In the functioning of a business firm at the marketplace it is compulsory for a company to
perform Porter's five forces model's analysis. The Porter's five forces model is major model
which is used to perform a brief evaluation of factors related to market forces. The Porter's five
forces analysis is major type of analysis which helps a company to grow at marketplace. Porter's
five forces analysis of Sainsbury's is mentioned below:
 Bargaining power of suppliers- The bargaining power of suppliers is most important
factor which impacts on operations of a business. It is need of every company to take care
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of bargaining power of suppliers to grow at a faster pace in market. Company like
Sainsbury's has to keep in mind that after Brexit, the bargaining power of suppliers for
the company is high (Stoyanova, 2019). The business firm has to do a good expenditure
in order to compete with other forces in case of production management. Bargaining
power of suppliers play a key role in enhancement of various business opportunities.
 Bargaining power of buyers- In supermarket chain, there are various buyers which play
a key role in providing revenue and turnover of the company. A business entity has to
follow precise policy related to bargaining power of buyers for enhancement of business
opportunities. The bargaining power of buyers is low which is a major advantage for the
company. Company can sell goods at a fixed price in the market for effectively dealing
with various consequences related to market forces.
 Threat of substitutes- In this case the threat of substitutes that is low and Sainsbury's is
a famous supermarket chain. The company will easily survive in market if it focus on
development of long term durable goods. In the recent times in supermarket chain various
companies play an important market role by providing quality production that is helpful
in business growth.
 Competitive rivalry- In the case of Sainsbury's the competitive rivalry present in market
are very less. This can be a plus point for Sainsbury's to operate in market with full swing
but company should consider competitive forces as rivalry in order to develop at
marketplace (Brzozowska, 2017). It is major responsibility of a company to set a
strategy to face competitors in an effective manner for long term growth.
 Threat of new entrants- The threat of new entrants is always a major factor which
should be considered by a business in an effective manner. Companies in competitive
market should develop an effective business strategy for facing new entrants. Altough
Sainsbury's face low level of competition and has less threat from new company entries.
M3 Devise appropriate strategies to improve competitive edge and market position
based on the outcomes
In a business there is a need of various strategies to gain competitive advantage.
In a business competitive edge is developed by following business strategies:
 Focus strategy- The focus strategy is related to putting an effective focus on all
functions and activities of a business. Focus strategy is implemented by major
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companies in business market for overall development of business. It is essential
for Sainsbiry's to focus on goals and objectives in a specific manner to develop
focus in a positive sense.
 Growth strategy- In the competition, growth strategy is essential part of a
business which helps a company to develop in market. Growth strategy focus on
management plan which is achievable in nature (Mwakisaghu, 2019). The growth
strategy in a company is based on principles of development and planning is
done according to situation.
 Cost leadership- It is the major function or target of a company to develop cost
leadership in various operations to govern market. The quality production and
good output is target of every business in order to survive in business market.
Cost leadership is basically related to development and minimisation of cost for a
business. It is major goal of every business to achieve effective and efficiency in
operations for long term success of business. The companies in external macro
environment should effectively focus on bringing cost leadership in company for
gaining desired goals.
 Goal based strategy- In many companies, goal based strategy is related to
planning and business growth while achievement of organisational goals. The
major companies in business market adopts this approach for determination of
goals and objectives (Agwu, 2018). Goal based strategy is also important for
systematic growth of a business in a short period of time.
TASK 4
P4. Theories, concepts and different models along with their interpretation for Sainsbury's
The theories and models and their application in a business are most important for a
company. These theories and models are relevant for a company in order to healthy relationship
between employees. In the recent times theories and models are adopted by many companies in
order to grow in marketplace. Majority of business organisations like Sainsbury's in recent times
apply various theories in an effective manner to gain competitive advantage.
SCIENTIFIC MANAGEMENT THEORY-
It is defined principles in scientific method for the management practice. The main
objective of the organisation to increase production by increasing productivity of its employees.
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This scientific management theory is one of the best way to perform task and achieve goal. This
scientific management theory is given by Frederick Winslow Taylor. He research each and every
factors of an organisation in scientific manner (Aazami, 2021). The purpose of this theory to
simplify and optimize work and increase and improve the productivity of the organisation. This
theory is briefly practice and result the good coordination and cooperation between their
managers and workers of an organisations.
HUMAN RELATION THEORY-
Human Relation Theory specifically focuses on individual wants for their complete
contribution into the organisation for completing task. This theory motivate the individual for
giving their complete contribution to the business environment. This theory normally state that if
the individuals needs is fulfil this will encourage them for giving high quality work. For
achieving organisational goals workers satisfaction is most important.
DIVISION OF WORK
The division of work is related to dividing work according to the capabilities of various
employees. It is essential for a company to allot work according to inner strength of various
employees. Division of work also helps a business firm to accomplish various targets and goals
within a set period of time (Ateba, 2019). In the corporate world this technique is widely used
to facilitate work and development in specific period of time.
SYSTEMATIC MODEL
This model take assistance of growth and strategy in a systematic manner for keeping and
developing company's systems. The systematic model of growth is practised by many companies
in market in order to gain systematic objectives. The systematic model also includes a
framework which is basically related to development of all operations. In order to grow at faster
pace systematic model play a major role by defining company growth.
GROWTH MODEL
The growth model is universally adopted model in the field of management to grow
majorly in business market. It contains specific set of actions that are taken by a business to lead
the marketplace. Growth model is applicable in almost every organisation and it sets common
individual and mutual goals of a business. Companies which are operating in international
market should focus on development of whole business entity by implementing growth model.
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The growth model is majorly related to goal and strategy of a company and it contains various
objectives of company which are essential to be achieved in a time frame.
Porter's growth generic strategy
This strategy deals in developing a business in a systematic manner, it is major role of a
company to develop and define effective porter's generic growth strategy. The application of
Porter's growth generic strategy at Sainsbury's is mentioned below with three elements:
 Focus- The focus of company should be on the effective and operations and on the
strategic plan in order to gain competency edge. Many companies in the international and
national market focus on developing an effective approach which will be beneficial in
overall development of the company. It is the major duty of a company to develop
desired focus on many internal and external business forces.
 Differentiation- Sainsbury's business should be differentiated its products in order to
develop target customers for the business. The company should take help of marketing
management to develop differentiation of essential products. In the recent times, the
moral duty of a company to develop differentiation accordingly.
 Cost leadership- It is most important for the business to develop functions related to cost
leadership in order to maximise profit. The company should focus on cutting cost along
with the profit increasing to survive at marketplace.
M4. Produce a strategic management plan that has tangible and tactical strategic
priorities and objectives.
In order to gain success in market, it is compulsory for a company to develop a
strategic plan. Most of the companies in international market understand the value of
strategic management plan to grow at marketplace. The strategic management plan for
achievement of objectives are mentioned below:
 Set priorities- It is the first stage in which a company set different priorities for
customers and management plan. The organisation prepares a strategic
management plan in order to survive in market with better stability. It is major
responsibility of a business to set priorities according to business needs and
achieve them with help of strategic plan.
 Focus energy- The management of Sainsbury's should divert its full energy in
handling various employees and operations (Palacio, 2017). It is major task of a
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company to focus whole energy on different dimensions of the business. It is
very significant for company to develop a strategy with full enthusiasm in order
to survive in market by better pace.
 Configure resource- Management should prepare all resources in advance to
deal with various consequences of management plan. The strategic management
of a company should configure various resources in order to deal with various
measures.
 Strengthen operations- Companies like Sainsbury's has to strengthen operations
in order to develop in market. The business organisations should focus on
developing effective strategy which is helpful in performing business functions
with responsibility.
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CONCLUSION
From the above stated report it can be concluded that in the expansion of a business,
strategic management plan play a key role. In major international organisations the strategic
management plan stand as an effective which adds market growth for a business. This project
also concludes that it is very much crucial for the company to apply various universally
acceptable theories and models to maintain business in a desired sense. This project also
concludes that SWOT and PEST analysis play a major role in determination of internal as well as
external environment. This project also concludes that it is the need in a company to follow
advice of top level management of the company in order to grow more in business market. The
above discussion also concludes importance and significance of strategic management plan to
achieve business goals.
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