Strategic Analysis and Implementation Report: Sainsbury's Case Study

This report provides a comprehensive strategic analysis of Sainsbury's, a major UK retailer. It begins with an introduction to strategic analysis and its importance, followed by an examination of Sainsbury's strategic direction over five years. The report defines and applies strategic frameworks, including SWOT and PESTLE analyses, to assess the company's strengths, weaknesses, opportunities, and threats, as well as external factors. It analyzes industry scenarios, including economic uncertainty, digital transformation, and Argos alignment. The report evaluates Sainsbury's mission and vision statements, assesses its strategic capabilities, and discusses potential strategic options. It concludes by analyzing the resource implications of the recommendations, providing a well-rounded view of Sainsbury's strategic position and future prospects. The report is designed to provide insights into Sainsbury's strategic decisions and their implications.

STRATEGIC ANALYSIS
AND
IMPLEMENTATION

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Description on strategic direction of the company and ways in which strategic thinking has
developed in 5 years. ..................................................................................................................1
TASK 2............................................................................................................................................2
1. Define the choice and use of appropriate frameworks for strategic analysis. ........................2
The probable industry scenarios facing the company within its existing market domains.........4
TASK 2............................................................................................................................................5
The probable industry scenarios facing the company within its existing market domains.........5
TASK 3............................................................................................................................................6
Whether their mission and vision statements are aligned to the demands of the marketplace.. .6
The company's strategic capabilities...........................................................................................7
TASK 4 ...........................................................................................................................................8
Discussion on possibilities strategies of Sainbury's. ..................................................................8
TASK 5............................................................................................................................................9
Analyze and evaluate the resource implications of your recommendations ..............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term strategy is derived as plan of action under which the firm is operating the
activities of business enterprise the term strategic analysis is need to be done with the top level
manager of the firm. This means that the translation of chosen strategy in organizational action
so that strategic goals and objectives of the firm can be achieved. With the help of these activities
of the firm can be developed, managed and utilized in well proper manner. The strategic analysis
is one of tool which is used for the basic and useful tool for strategic business planning. It is the
effective formulation and implementation of the major goals which is framed by the top level
authority. The present report is focusing over the activities of sainsbury's. It is the second largest
retail sector in the UK. The present report will cover the activities like strategic function, mission
and vision of strategies, strategic compatibility etc. This firm is taking various initiatives in order
to provide satisfactory to customer by implementing the activities so that firm can achieve the
desire success.
1. Description on strategic direction of the company and ways in which strategic thinking has
developed in 5 years.
 The strategic planning is the process which is helpful in relation to achieve the desire
success in market. It is the kin of systematic process which works as to have
identification of the current status of the business enterprise.
 Strategic planning is the milestone for every organization. Each and every firm is having
direction so that they can perform they activities of business in the effective mode. With
the help of strategic ambition they can achieve what they wish for.
 The strategic direction is one of the effective method which help the firm to move
forward and it is very helpful for having ultimate growth in business enterprise. In order
to determine the strategic direction for the Sainsbury, it is essential to have effective
analysis of the mission statement of the firm.
 Mission of sainsbury's- The main aim is to be customer first choice under the retail
sector for food, in this way they are taking initiatives so that they can provide oustanding
quality commodities and services at affordable cost.
 This is one of the impressiove method to deal with competition in market. The of the core
purpose of saisbury's is to provide quality product to its customers, this is helpful in
relation to satisfy the wants of the customer in order to maximization of profit.
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 Under the mission this firm is having both implicit as well explicit value.
1. Explicit value- outstanding and supervised services, effective operating best quality of food
and providing this all are in the competitive rate of pricing.
2. Implicit value- The satisfaction of the customer and loyalty, by making effective
communication channel, collaboration and take those step with the help of this all factor the
satisfaction of customer can be achieved.
Hence, it can be true to said that fir is very clear about its direction, to achieve this they need to
have resources such are as financial as well human resource so that operation function of the firm
can be carried in effective manner. In order to achieve the desire goals the sainsbury's is
developing the following strategy such are as-
 The qualified good at fair and reasonable prices rates.
 To take initiative in accelerating the growth of complementary no-food range and
services.
 By growing space in supermarket facilities.
 Having adequate amount of financial as well human resource in the firm.
TASK 2
1. Define the choice and use of appropriate frameworks for strategic analysis.
With the help of implementation of incremental strategy the firm is able to tackle with the
changes effectively. This is also helpful in order to sustain profits. The strategic analysis of the
firm like Sainsbury's can be done with the help of SWOT and Porter's five forces. This is defined
in the following manner as are-
Strength-
 Sainsbury's is having the positive consumer brand in the market.
 This business enterprise is having the excellent branding as well advertising.
 This is having the extremely experienced leadership team who can operate the function
effectively.
 This enterprise is having the 550 store markets and 350 convenience stores across UK.
 The employees are highly trained and customer focused.
Weakness-
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 In the present scenario there is stiff competition within the very segment of the retail
sector.
 The increment in food prices all over the wold impacted heavily on sainsbury's selling its
products on the higher prices.
 Problem in relation to finding the skilled employees to carry business activities.
Opportunities-
 The rapidly growing firm in all over the market.
 They can take entry into the emerging companies with through partnership and joint
ventures to explore these new market.
 The self check out machine is very helpful in managing the operation of sainsbury's to
open store for 24 hours, It is helpful in boosting the sales of firm.
 They can use 'Nectar' database in order to have identification of the potential customer in
the market.
 To have expansion of firm in growing economies like Asia, Africa etc.
Threats-
 This industry is highly competitive.
 Increment in the globalization is the kind of effective opportunity as well challenge to
Sainsbury's.
PESTLE analysis of Sainsbury-
Due to increment in the globalization there is both challenge and opportunity to
sainsbury's. This is effective analysis framework with the help of which the external factor of the
firm can be known in the effective mode. This is defined in the following manner as are-
 Political factor- The increased in the globalization is both challenge as well opportunity
to the firm. The consumer as well as government debts are very high. This is highly
affecting the customer attitude and business condition in the high mode. The political
factor of this firm is not favorable. IN order to cope up with the Sainsbury need to
provide good product quality at the competitive price rates.
 Economic factor- This kind of factor also plays the vital role behind the success of the
firm. There are various factors such are as demand, cost, price and profitability are
affecting the operation of business in large mode. The things like economic slowdown,
growing unemployment and inflation in the prices of food are affecting the overall
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functioning of the firm in high mode. Due to unemployment and high rates of food
products works as to decreasing the production of the food.
 Social factor- In the present market the consumer prefer to shop from the place which
gives them one stop shopping. All product of the Sainsbury's are available under the one
roof, this is one of the major advantage. By introducing the non- food products are
largely benefited from this kind of strategy.
 Technological factor- The technology plays the essential role in relation to have positive
impact on the operation of business. With the help of online marketing activities the
business enterprise can expand its activities in the large manner. This is helpful in order
to provide fastest and easiest services to their client. This will be helpful in order to earn
the large amount of profitability as well productivity. The continuous improvement in the
service of Sainsbuy's are helpful in relation to increment in the sales of firm.
 Environmental factors- these firm is taking various initiative in order to meet with the
safety measure of the environment. They are working as bringing reduction in the
wastage and effectively manage the packaging and recycling process in the business
enterprise. They also need to take effective towards the reducing the operation carbon
footprints.
 Legislative factor- the rules and regulation of the firm are need to be complied in order to
carry the function of the business in expertise manner. The legislation and government
policies are having direct impact over the performance of business enterprise in the large
manner. In order to get the success in the market it is very essential to get complied with
the all kind of legislative requirements.
The probable industry scenarios facing the company within its existing market domains.
 Sainsbury's faces certain environment which in other terms called as issues and
challenges. These are faced by organisation of Sainsbury's in terms of economic
uncertainty, digital transformation and Argos alignment which have resulted in fall of
profits.
 Economic uncertainty: Comparing to the previous, from past eight months organisation
of sainsbury's have confronted most pressing problems. More increment in the issues and
challenges after becoming president of Donald Trump who brought out Brexit and
today's revelation which increased fuelling of more uncertainty in the market. Including
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this price cut and inflation are faced by impacting on profit for the second half. It is
confronted by President Donald Trump about the world by concentrating on issues and
questioning about the performances over next six months. As the times is going to get
very difficult and life is undergoing in unpredictable times. By continuing to this,
prediction is made on currency fluctuations that will not be ignored.
 Digital transformation: By knowing all the issues and challenges, By merging with
Argos, completed in quarter, with the help of online 15% of sales are boosted. Businesses
are driven by as explained by Coupe, Sainsbury's being the first retailer who drove the
business with mobile. Apart from this Sainsbury's expanding its businesses in the
presence of online is top of the agenda. For this already that have hired retailers from
News UK by which implementation and performances of digital led businesses are
explored. This growth can be scrutinised on social platforms, like Facebook and Twitter,
by which Sainsbury's get engaged with the consumers at large through these social sites.
By this way the strategies of marketing is executed, with the help of social sites,
advertising and media.
 Argos alignment: In the Sainsbury's organisation Coupe is concentrating more on
establishing 30 more outlets of digital Argos store within three years. Huge focus is
made on bringing the brands closer and together by which execution beyond their
proximity, within store which can be considered. Huge discussion and concentration is
made on bringing out the decisions regarding the exploration of outlets in Sainsbury's
organisation in coming years which may result at large with nuances opted till then.
TASK 2
The probable industry scenarios facing the company within its existing market domains.
Sainsbury's faces certain environment which in other terms called as issues and
challenges. These are faced by organisation of Sainsbury's in terms of economic uncertainty,
digital transformation and Argos alignment which have resulted in fall of profits.
 Economic uncertainty: Comparing to the previous, from past eight months organisation
of sainsbury's have confronted most pressing problems. More increment in the issues and
challenges after becoming president of Donald Trump who brought out Brexit and
today's revelation which increased fuelling of more uncertainty in the market. Including
this price cut and inflation are faced by impacting on profit for the second half. It is
5

confronted by President Donald Trump about the world by concentrating on issues and
questioning about the performances over next six months. As the times is going to get
very difficult and life is undergoing in unpredictable times. By continuing to this,
prediction is made on currency fluctuations that will not be ignored.
 Digital transformation: By knowing all the issues and challenges, By merging with
Argos, completed in quarter, with the help of online 15% of sales are boosted. Businesses
are driven by as explained by Coupe, Sainsbury's being the first retailer who drove the
business with mobile. Apart from this Sainsbury's expanding its businesses in the
presence of online is top of the agenda. For this already that have hired retailers from
News UK by which implementation and performances of digital led businesses are
explored. This growth can be scrutinised on social platforms, like Facebook and Twitter,
by which Sainsbury's get engaged with the consumers at large through these social sites.
By this way the strategies of marketing is executed, with the help of social sites,
advertising and media.
 Argos alignment: In the Sainsbury's organisation Coupe is concentrating more on
establishing 30 more outlets of digital Argos store within three years. Huge focus is
made on bringing the brands closer and together by which execution beyond their
proximity, within store which can be considered. Huge discussion and concentration is
made on bringing out the decisions regarding the exploration of outlets in Sainsbury's
organisation in coming years which may result at large with nuances opted till then.
TASK 3
Whether their mission and vision statements are aligned to the demands of the marketplace.
Being aligned with the place of market, vision and mission statements of Sainsbury's are
fulfilled. The vision, mission and core values of Sainsbury's include ensuring Sainsbury's regains
its greatness. They focused on implementing the following goals and mission are.,
 Delivering quality based services by providing improved goods and products. By which
consumer can get products at reasonable price.
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 To provide the goods and services by exceeding the expectation limit of consumers in
terms of meeting, taste, freshness, safe and ea;thy food to make available of easier life
day to day.
Core values of Sainsbury's includes the following
 By rendering the terms of services concentration is made on improving every day
activities by enhancing their efforts and level of hard work.
 Team work is motivated among the employees so that, sales can be drove with increment
by meeting and performing the roles and responsibilities.
 By maintaining simplicity and clarity in services, efficiency are made to delivery them
offering by company.
 Respect to the employees who are involves in each and every department of Sainsbury's
is focused.
 By distributing the monetary in terms of salary, incentives, Sainsbury's established
thought of treating company money is meant for everybody who present their. As this can
help in boosting the performances and level of enhancement can be gained.
 Interest of the shareholders are promoted by concentrating on them effectively, and
increasing their interest by elaborating about the strategies and targets that they have
overcome successfully and future concentration is made upon specific requirements. This
can encourage the shareholders to get involved in the affairs of the business.
 With the help of Ansoff growth matrix, to determined the growth of the market and
product, marketing plan is eventuated. It is approved that with the help of this matrix, on
the development of new products and services the profit is boosted essentially.
 Ansoff matrix includes, market penetration, development of market, product
development, diversification are focused at large and execution is made by considering
the factors in order to get achieved the mission, vision that impact the market conditions
and place.
The company's strategic capabilities.
Concentrating on the first signs of new strategic irections, Sainsbury's new Elms are
considered effectively by making the digital capabilities which can be leveraged for the future.
In order to boost the sale performances are made by thanking the existing consumers at
large as they by being loyal consumers enabled Sainsbury's to meet the expected sales.
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By rendering complement to each other, consumer are notices in South London, where a 60000
square foot store in Nine Elms opened in end of the summers. By providing density intelligence,
fast track delivery of products and services are executed on non food and traditional version of
next generations by meeting them effectively. The following are the strategic capabilities that are
concentrated by Sainsbury's company.
Joining the dots: By focusing on the continuation of all the three brands inn the current opened
store, by which analysis can be made effectively by knowing about how they fit together by
combining. By categorising, Home, Cook and Dine by getting traded in all these three, by
following specific and different structures and formation of pricing.
It is need not to get understand how they will work by getting merge, concentration is made
highly on combining the brands of there to being out the stable and capable results at large.
Management of data are made by structuring the team, buying processes and trends of sales that
are prevailing in the market.
Utilising space: In order to reduce the duplications, consumer are allowed to navigate sensibly
by utilising the space successfully by which merge of all the brands can be made sensible to meet
the desires of the consumers.
TASK 4
Discussion on possibilities strategies of Sainbury's.
The strategy means deciding the plan of action with the help of which the firm will operate its
business function. It is comprehensive process but it is useful to achieve the aim and objective of
the business enterprise in the large manner. There are number of strategies are given which is
useful to the firm and in this the major consideration is to be given over corporate, functional and
business.
Generic strategies- These as are-
 Corporate strategies- This is helpful in defining the overall direction of the firm with the
help of this the firm can move towards to achieve the growth by using various product
lines.
 Cost leadership- This is one of the most effective strategy this is helpful in relation to
reduction in the cost, it is essential to all aspects of the business. It works as to produce
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high volume of products qualified products, which is helpful to increment in the scales
and experiencing the curve effects. By having reduction in the prices of the units with
reasonable quality will be helpful to attract the customers.
 Differentiation- The variety of good and services will be helpful to satisfy the wants of
the customer through the sustainable competitive advantage. This is one of the effective
strategy which is helpful to sustain the firm in the market for longer period.
 Focus strategy- This kind of the strategy is used by the smaller firms in market. With the
help of this the firm is able to have competitive advantage in the market for the longer
period.
2. Functional strategy- This is the approach which is taken by the functional area in order to meet
with the objective of corporate and business units. This is helpful in having maximisation in the
resource productivity. The expansion of the firm can be possible by focusing over this kind of
strategy.
The evaluation of strategy- this is the process which is need to be done in relation to find
that strategy process is going effectively or not. With the help of successful implementation the
entity can operate its business function in expertise mode. This define the gap between the actual
and planned strategic approach so that firm can move its activities in the well defined manner.
This is process to adopt the one suitable strategy for the firm which is able to process the
function of the business in expertise mode.
TASK 5
Analyze and evaluate the resource implications of your recommendations
Under this the recommendation on the basis of core strategies of business defined as are-
 The Sainsbuy's is second largest retailer brand in UK, they should produce the product
which is helpful to gather the attraction of the customer.
 By focusing over the key strategies they can manage the operation of the firm.
 By reduction in the wastage of resources the firm can able to earn the large amount of
profitability in the market.
 The strategic business planning is one of the effective tool which is helpful yo operate
business function smoothly.
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CONCLUSION
Based on above report it has been concluded that strategy is derived as plan of action
under which the firm is operating the activities of business enterprise the term strategic analysis
is need to be done with the top level manager of the firm. This means that the translation of
chosen strategy in organizational action so that strategic goals and objectives of the firm can be
achieved. The present report has covered the various aspects such as are strategic function,
mission and vision of strategies, strategic compatibility etc. This firm is taking various initiatives
in order to provide satisfactory to customer by implementing the activities so that firm can
achieve the desire success.
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