Strategic Analysis of Sainsburry's Internal Organization Report

This report provides a comprehensive analysis of Sainsbury's internal organization, focusing on its resources, capabilities, and competencies. It examines the company's financial resources, human resources, and supply chain, utilizing VRIO analysis to assess their value, rarity, imitability, and organizational aspects. The report also includes a SWOT analysis to identify Sainsbury's strengths, weaknesses, opportunities, and threats. Furthermore, it explores the company's financial performance, highlighting relevant trends and its use of a cost leadership strategy. The report concludes with an assessment of Sainsbury's value proposition, emphasizing how the company differentiates itself from competitors by offering high-quality products at lower prices. This analysis aims to provide insights into Sainsbury's strategic management and its competitive advantages within the UK supermarket industry.

Strategic management

Table of Contents
Introduction .....................................................................................................................................3
Internal organisation .......................................................................................................................3
a.i. Resources, capabilities and competencies.............................................................................3
a.i. 1 competitive advantage ........................................................................................................4
a.ii Financial Performance ..............................................................................................................5
a.ii. 1 relevant trend ....................................................................................................................5
a. iii. Appealing value proposition...............................................................................................5
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................5

Introduction
Internal organisation encompasses the internal resources of the company such as human,
financial resources and employees who manages the day to day activities of business. This report
speaks about the internal resources of Sainsburry. Sainsburry has one of the largest supermarket
in UK. This report states about the VRIO and SWOT analysis for the company apart from this
competitive advantage and competitive analysis of the company has been discussed in this
report.
Internal organisation
Internal organisation of any business refers the way in which the company carry out its
different activities. The internal organisation of Sainsburry includes all the element such as
employees, management, culture etc.
a.i. Resources, capabilities and competencies
Sainsburry is a rich company in resources they have, financial resources, HR, suppliers
etc. and employees are very rare and hard to copy.
VRIO analysis
Sainsburry is the second largest supermarket chain in UK, so the VRIO analysis of
Sainsburry states about the each and every internal resources of the company so that the
company remain competitive in the market.
Resources &
capabilities
Valuable Rare Expensive to
imitate
Capabilities
of exploiting
Performance
implications
Financial and
human
resources
Yes Yes Yes Yes Sustainable
Supply chain
& distribution
network
Yes Yes Yes Yes Sustainable
Brand image Yes Yes Yes Yes Sustainable
Employees Yes No Yes Yes Normal
Patent Yes Yes Yes Yes Normal

Valuable
The valuable feature shows the value of all the resources of the company which makes
the company competitive in the market (Yudiono ant et.al 2020). VRIO analyses states that the
financial and human resources of Sainsburry is highly valuable and hard to imitate. The products
of Sainsburry are valuable as the company focuses on bringing innovative product in the market
along with the product the supply chain of the company is also valuable resource.
Rare
The financial resources and the employees of Sainsburry are very rare because the
employees are skilled and talented, which is hard to get specially for the competitors of the
Sainsburry. The company offered handsome salary package and perks to its employees so that
they don't think to switch the company. On the other hand the products of Sainsburry is not Rare,
their competitors are also selling the similar products.
Imitable
The human and financial resources of Sainsburry are very expensive to imitate, because
company has acquired all these resources from its profit and revenues, so the new companies
need such profit to duplicates these resources (Alshehhi and et.al, 2018). Besides this, supply
chain and distribution network of Sainsburry is very large, and competitors need significant
amount to imitate the distribution network.
Organisation
The supply chain and distribution network of the company is well managed, and the
network is capable to deliver the goods and product of Sainsburry in the hand of the customer
within the given time period. But the patent of the company is not managed properly, company is
not using their patent right properly.
a.i. 1 competitive advantage
From the VRIO analysis it is found that supply chain & delivery network of the company
is hard to copy and competitors need ample of money to set up this network (Tresna and et.al,
2018). So this is one of the competitive advantage for the company, apart from this the financial
resources of the company is also very expensive to imitate.

Swot analysis
Strength
 Innovative products
 Marketing strategies
 Iconic brand
Weakness
 Low margin
Opportunities
 Growth in developing
countries
 Mergers & joint venture
Threat
 Competition
a.ii Financial Performance
Sainsburry has strong financial position, even in the proliferation of pandemic, the
company attain the sales target and the sale reached at the 32.4 billion ponds in 2019/2020. So
the company is financially strong (Coppola, 2020).
a.ii. 1 relevant trend
Sainsburry always try to follow the trend and provide innovative products to its
customers. To gain the profitability company has used cost leadership strategy (Imrie, 2020). For
example- Sainsburry has offered sale on its stores. By offering discount to customer, company
gain high profit and also the market share. To increase the productivity & efficiency, company is
providing innovative products to its customer, so that they don't switch to other companies.
a. iii. Appealing value proposition
Value proposition states a promise from Sainsburry to its customer that it will deliver
value product from their business, and that is the key reason which makes Sainsburry different
from its competitors (Sainsbury’s Value Propositions., 2020). Sainsburry offers high quality
products at lower prices to grab the interest of customers.

Conclusion
It is concluded that this report speaks about the internal organisation of the company. To
gain the competitive advantage, VRIO analysis has been mentioned in this report, which will
help the company to kYudiono ant et.al 2020now tits valuable and rare resources. Besides this
financial performance and relevant trend of the company has been explained in this report.
REFERENCES
Books and journals
Alshehhi and et.al, 2018. The impact of sustainability practices on corporate financial
performance: Literature trends and future research potential. Sustainability. 10(2). p.494.
Tresna and et.al, 2018. Analysis of the sustainable competitive advantages of the creative
industry in Bandung City. Review of Integrative Business and Economics Research. 7l.
pp.225-231.
Yudiono ant et.al 2020 .VRIO Analysis to Measure E-Business Readiness in the Automotive
Industry in East Java (Study on Otobus Company Kalisari and Otobus Company
Menggala). Wacana Journal of Social and Humanity Studies. 22(4).
Online
Coppola, D, 2020., Annual underlying sales revenue of J Sainsbury plc in the United Kingdom
(UK) from 2011/2012 to 2018/2020. [Online]. Available through:
<https://www.statista.com/statistics/491410/sainsbury-underlying-sales-revenue-united-
kingdom-uk/>
Imrie, J, 2020 Sainsbury’s in ‘strong financial position’ after more than doubling online sales.
[Online]. Available through: <https://bdaily.co.uk/articles/2020/07/01/sainsburys-in-
strong-financial-position-after-more-than-doubling-online-sales>
Sainsbury’s Value Propositions., 2020. [Online]. Available through:
<https://valuepropositions.wordpress.com/2018/03/21/sainsburys-value-propositions/>