Strategic Management & Leadership: Sainsbury's Market Expansion Plan

This report provides a comprehensive analysis of Sainsbury's strategic management and leadership approach, focusing on its expansion and diversification strategy in a new market, specifically Africa. It employs the SOSTAC model, outlining the situational analysis, objectives (SMART goals), strategy (diversification), tactics (4Ps), actions (budget allocation), and control mechanisms (KPIs). The report highlights Sainsbury's mission and vision, SWOT analysis, and segmentation, targeting, and positioning (STP) strategies. Ultimately, the report suggests that Sainsbury's diversification strategy will enable it to establish a competitive edge in the new market by offering organic food items at competitive prices. It concludes by emphasizing the importance of adapting to the changing market environment and leveraging opportunities for expansion while protecting its intellectual properties. Desklib offers a wealth of resources, including similar solved assignments and past papers, to support students in their academic endeavors.

Strategic
Management &
Leadership

Table of Content
• Introduction
• Situiational Analysis
• Objectives
• Strategy
• Tactics
• Action
• Control
• Conclusion
• References

Introduction
Strategic Management & Leadership are two
unique concepts which are way different from
one another but support each other and comes
together while helping the company in
achieving organisational ultimate objectives
and attaining the practices as mentioned in the
mission statement. a Power point presentation
is made in regards with elaborating the
stakeholders expectations that is covered in the
first part of the assignment.

Implementation Plan

Executive Summary:
The plan is made by implementing the SOSTAC model with six different stages that are all
focused on the effective execution of the ideas and strategies of the organisation. The plan
is made on Sainsbury's and for implementing its strategy to expand and diversify in new
market.
Mission:
“To be the first choice of consumer's for food, delivering goods and services in outstanding
quality in competitive cost through working 'faster, simpler and together.”
Vision:
Sainsbury's wish to be the most trusted retailer in market where people have a safe
environment and they love to work and shop. This reflects the aim of the organisation to
harness the talent, creativity and diversity workforce to ensure that customers receives the
best of service every time they shop with us and stay satisfied.
SITUATIONAL ANALYSIS

Continue…
SWOT Analysis:
Strengths Weaknesses
 Leading domestic retailer of
United kingdom and Ireland. Unique and strong
expansion policy.
 Growing costs of serving
and maintaining the best
laity. Lowering margins in profits
due to Brexit.
Opportunities Threats
 Expansing into new market. Innovating and diversifying. Increasing competition.

SMART Objectives:
 To add 5% more in Earning After
Taxes and Interest (EATAI) by
the end of 18 months since
expansion.
 To increase overall revenues by
7% in next one year of
expansion.
 To increasing customer base by
15% in the next 12 months of
expansion.
OBJECTIVES

STRATEGY
Diversification:
Sainsbury's is adopting diversification strategy to move to new location a new market Africa
where the company will be establishing their store offering organic food products and
services in unexpectedly low cost and in the best quality possible.
Segmentation, Targeting and Positioning (STP):
Segmentation is a process of divining the market and the population into smaller groups.
Sainsbury's will be segmenting the market by using demographic segmentation
technique.
Targeting is a supported stage of segmentation in which Sainsbury's will be setting their
target amongst the population in Africa. The target audience will be those who which to
lead a healthy life for themselves their future generations.

TACTICS
4P's Analysis:
 Product
 Price
 Place
 Promotion

ACTIONS
PARTICULARS (£) AMOUNT
Marketing 10000
Promotional activity 20000
Plant and machinery 120000
Print media 7000
TOTAL 148000

CONTROL
Key Performance Indicators (KPI's):
The element of KPI's refers to those certain factors on which are
used by organisations to gauge their overall long term performances.
The Key Performance Indicators (KPI's) of Sainsbury's are critical to
understand and known the financial health of the firm. Hence, these
are the potential resource to get control over money and making
appropriate use of accomplishing objectives and keeping stakeholder
expectations up and awarded.

Conclusion
From above its can be easily concluded that the brand Sainsbury's needed to
make changes and upgrade their operations according to the changing
environment and majorly for responding to the change taking place in the
market. Thus, the company is suggested to take up Diversification strategy
according to which it planned to move to Africa offering new product chain
of organic food items in lower cost possible and best quality. The company
could have also used market development strategy to move further and
make the best use of opportunities of expansion but in regards to it has to
face a huge competitiveness. While adopting diversification and moving to
Africa it is actually making progress as well as attaining a competitive edge
of having a monopolistic market to itself and protect it through intellectual
properties.

References
Schoemaker, P. J., Heaton, S. and Teece, D., 2018. Innovation, dynamic capabilities, and
leadership. California Management Review, 61(1), pp.15-42.
Teece, D. J., 2019. A capability theory of the firm: an economics and (strategic)
management perspective. New Zealand Economic Papers, 53(1), pp.1-43.

Thank You