Business Strategy Report: Sainsbury's Strategic Planning and Analysis

This report provides a comprehensive analysis of Sainsbury's business strategy. It begins with an introduction to strategic concepts and terminology, then delves into the issues involved in strategic planning. The report includes an organizational audit using SWOT analysis and an external environmental audit using PESTEL analysis. Stakeholder analysis and the Mendelow matrix are also discussed. Furthermore, the report explores alternative strategies relating to substantive growth, including mergers, acquisitions, and retrenchment. Finally, it outlines future strategies for Sainsbury's, emphasizing the importance of human resources, competitive advantage, interactive strategies, and market development. The report aims to provide a detailed understanding of Sainsbury's strategic planning and its approach to achieving its business objectives.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Describe strategic concepts and terminology .......................................................................3
1.2 What are the issues involved strategic planning .................................................................4
1.3 Different planning techniques ..............................................................................................4
TASK 2 ...........................................................................................................................................5
2.1 Carry out the organisational audit ........................................................................................5
2.2 External and environmental audit of business organisation .................................................5
2.3 Significance of stakeholder analysis.....................................................................................6
TASK 3 ...........................................................................................................................................6
3.1 Alternative strategies relating to substantive growth............................................................6
3.2 Future strategy for the organization.....................................................................................6
TASK 4 ...........................................................................................................................................7
4.1 Roles and responsibilities for strategy implementation.......................................................7
4.2 Resource requirements to implement a new strategy ..........................................................7
4.3 Targets and timescales for achievement of goals in strategic implementation.....................8
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business strategic planning is essential for every business organisation because it helps in
providing directions to managers. It is also responsible for future growth and development of
strategic management is a tool that is useful in day to day operations and business functions.
Managers can analyse the internal and external environment with the helps of organisational
audit (Acquaah, 2011). Sainsburry is the chosen organisation in this present report; which is one
of the largest seller of retail products and services. Organisational audit is the evaluation of
working activities and performance of employees in order to accomplishing goals and objectives
of company. Whereas strategic implementation and formulations helps in order to establishes
strategic plan.
TASK 1
1.1 Describe strategic concepts and terminology
Strategic planning is helpful for every business organisation, it refers as planning tool that
motivates employees to increase their performance level. In Sainsbury, it provides strength to the
managers so as they can long term business decisions and measure the level of productivity.
There are some concepts and terminology of strategic planning that are as follow: - Vision – A vision is the statement that concerns about future growth and success. For an
business organisation, vision seeks with where it wants to operate, what it it wants to
achieve and what it wants to be in future. It is a framework and an outline for every
business organisation. The main vision of Sainsburry is to expand market area by
providing quality products and services to customers. Mission – It concern with basic aim of every business organisation. Mission describes
where it is and where it wants to go, in consists of business organisation (Auzair, 2011).
It helps in to understand the managers about the existing position of employees in capital
market. For example- the prime vision of Sainsburry is to be a world largest retailer of
grocery products and services. Objectives and goals- Goals and objectives both are different from each other. For
example- in Sainsburry, objectives are helpful in order to measure the performance of
the company. It is an initial step to attain growth and success. Whereas goals are the

needs ans wants of business owners, it is a particular target or an end. It is conceptual
planning and destination for business organisations.
 Core competencies – There are given 5 core competencies of Sainsburry, such are as
follow: - sourcing with integrity, a great place to work, respect to environment, making a
positive difference towards community, the best for food and health.
1.2 What are the issues involved strategic planning
There are so many issues and challenges faced by business organisation in strategic
planning. Because there are some factors that affect the internal as well as external enthronement
of Sainsbury. There are mentioned below those issues and challenges that are involved ion
strategic planning, such are as follow: - Lack of Leadership – leadership plays an very important in growth and success of every
business organisation. But in business organisation managers and leaders are not aware
about there roles and responsibilities so as they are not able to give proper training to
their employees (Hoejmose, Brammer and Millington, 2013). So as organisation is not
capable to achieve its goals and responsibilities.
 Problem solving and risk management – It is a major challenge for every business
organisation to find out the actual problems, identifying and assessing factors and
mitigating risk. It is very difficult for managers to forecast risk and uncertainties because
they are natural. For that managers of Sainsbury, have to develop their strategic tool in
order to compete with these issues and problems.
1.3 Different planning techniques
Strategic planning tools and techniques are helpful in order to implement and formulation
of strategic management. It helps in taking long term decisions and organisational future growth
so as it can easily achieve goals and objectives. Along with this, BCG matrix is the one of the
efficient tool of planning, it helps in providing growth and heights of success to Sainsbury.
BCG matrix refers as Boston Consulting groups. In Sainsburry, the matrix is helpful in
resource allocation and it is an analytical tool that helps in strategic management, portfolio
analysis, brand marketing and product management. It can be used by the managers of
Sainsburry, as long term strategic planning in order to consider growth opportunities. BCG
matrix, the portfolio of the products is helpful form manager where they invest there money and

which products will be discontinued or which are developed. BCG matrix has four elements, that
are also known as its legs, such are as follow -
 Dogs - Low growth and low market share of products.
 Cash cows – low market growth and high market share of products.
 Stars- High market share with high growth markets of products.
 Question marks – Low market share and high growth of products.
TASK 2
2.1 Carry out the organisational audit
Organisational audit refers with the evaluation of all internal factors in company. If
managers of Sainsbury are used organisational audit so as they are enable to achieve all internal
factors that affects organisational performance and efficiency of employees. SWOT analysis is
helpful in organisation audit because it helps in to identify all issues and challenges of bsuienss
environment. SWOT analysis is helpful in order to find out strength, weakness, opportunities and
threats of company so as managers can develop their upcoming policies accordingly. It also
helps in identifies all strategics and plan that are helpful in creating a firm specific model.
Managers can easily evaluate the strategic position of the business in capital market and decide
their future goals and objectives according to that.
SWOT analysis of Sainsburry
STRENGTH
 Image differentiation with respect to
brand name.
 The customer to employee ration is low
 Loyal customer base
 Established networks of outlets Staff is highly trained and customers
oriented.
WEAKNESSES
 Presenting the customers with
interesting offers on continuous basis.
 Business is limited to UK only.
 Lack of experience in the new industry.

OPPORTUNITIES
 Rapidly growing market all over the
world. Growing number of people with
THREATS
 Highly competitive industry
 Lingering effects of the slump in
economy.

increasing need and desire for holidays
2.2 External and environmental audit of business organisation
Environmental audit consist with external factors of economical market that impact or
organisational growth and its success as well. External environmental audit is helpful to evaluate
all those external components that affect on performance of employees, it also affect brand
image of Sainsbury. Environmental audit can be done through with the help of PESTAL
analysis, there are some factors that involve in PESTAL analysis are as follow: - Political factors – it is all about the relationship of organisation with government, is it
fulfils are rules and regulations. It involves- government polices, foreign trade policy,
labour law etc. For example- if the government of UK is favouring development is
supermarket industry which is beneficial for Sainsburry. Economic factors – It involves – economic growth, inflation, disposal of income of
customers and exchange & interest rates. As the result of unemployment and high prices
of food products, the demand of products and services of Sainsburry is going to be
decreased. Social factors – These kind of factors are include – age, gender, health consciousness,
career attitudes, population growth and so on. Sainsburry has to provide its products as
per the culture, values and beliefs of customers; this will help for company to gain higher
level of customer satisfaction. Technological factors – it prefers the uses of new and advance tools and techniques to
accomplish target market. Sainsburry online food delivery services is continuously
increasing which helps in expanding market area of the company. Environmental factors -It is helpful in increasing scarcity of raw material, ethical
activities and pollution targets etc. Sainsburry has been taken an initiative actions towards
environment since many years, by championing in their recycle, reuse and reduce
approach. It helps in managing wastages, recycling and packing.
 Legal factors – It includes- equal opportunities, consumer rights, product labelling and
advertising standards etc. The rules and legislations which are related with tax on
advertising highly processed and fatty foods; it is adopted by the Sainsburry in order to
fulfil all legislative requirements.

2.3 Significance of stakeholder analysis
Stakeholder analysis relates with the assessment of customers and public demand so as
organisation is enable to fulfil their needs and wants. It is the consideration and review of the
affect of stakeholders have on business organisation. For Sainsbury, stakeholder analysis helps in
increasing marketing strategics, motivating employees forming partnerships and corporate
citizenship. If managers develop their marketing strategics so as they can easily understand that
what their customers are expecting from them (Hsieh and Chen, 2011). Along with this,
stakeholder analysis also motivates the employees and workers in order to improving their
performance and productivity. It also useful to aware the employees and managers about their
roles and responsibilities in company. With that, product development and promotions can be
increases very effectively.
Mendelow matrix – In Sainsbuury, the matrix is useful in analyse the potential
influences of stakeholder teams in business organisation. In involves two dimensions, such as-
the level of interest of groups and team and the level of power they have over in company.
TASK 3
3.1 Alternative strategies relating to substantive growth
The substantive growth strategics involve stow dimensions, such as merger and
acquisition Merger is a aggregation of two existing detached organizations, typically as more or
less equal partners. Along with this, with the view of substantive growth strategy, merger helps in
providing market growth to the company and increases its market share as well. Whereas
acquisition means when a company buys another company and take its all rights (Rothaermel,
2015). In that, usually the competitive advantage is narrow and it is not better for limited growth
strategy. Along with this, for Sainsbury retrenchment is always a remedial action that can be
take at the stage of inefficiency, strong competition and economic recession.
3.2 Future strategy for the organization
For Sainsbury, human resource is one of the captious resource, it is helpful in order to
achieve target market for customers. For further developing, it is essential that managers fulfils
the needs of employment and increase manpower in order to achieve target market. Along with
this, organisation is able to finally achieve the competitive advantage thorough available
resources (Reich and Benbasat, 2013). It is the aim of every business organisation that it make

superior from others in terms of profit and performance, it can only be possible when
organisation is able to identifies the gaps in strategic areas and find appropriate solution.
Interactive strategics for Sainsbury, recommends the consideration of strategic situation
and these interactive plans are helpful in order to achieve future directions and goals of business
organisation. The main reason of interactive strategics is to gain the competitive advantage of the
market by providing better services to customers. Cooperative strategies are also helpful in
collaboration for the business organisation and game theory also includes with competitor
activities and their operations, so as they can easily achieve competitive advantage for Sainsbury.
Sainsburry has to adopt market development strategy which helps it in to enhancing the
market area and attracts more customers. The strategy also helpful in developing new products or
improving in existing ones. Market development strategy helps managers as they can compete
with competitiors of external market and achieve pre-determined goals and objectives.
Activities Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
Find Out factors
Analysis of internal and external
environment
Provide training and development
to employees
Make effective strategic plan
Implementation of plan
TASK 4
4.1 Roles and responsibilities for strategy implementation
There are so many roles and responsibilities of strategic implementation. These roles are
concern with future strategics, aligning the business in order to provide strategy and embodying
changes. The explanation of these roles, is as follow: -

 Envisioning future strategy- the role of strategic implementation refers about clear
communication in internal and external parties of the organisation. If these parties are
enable to to communication openly and effectively so as both they easily understand the
goals and objective of each others (Scholes, 2015). For Sainsbury, internal party involve
organisation whereas external parties refers with stakeholder and employees. Deliver the strategy- It is the another role of strategic implementation by aligning the
organisation. In that role it is anticipated from all people in the organisation that they are
fully committed for the strategy. Along with this, peoples can easily motivated in order to
follow the strategy and they should have to empowered for deliver the strategy.
 Embodying change- The strategic implementation is extremely involved with the
structure of the organisational change. So as the strategic leader has a leading role of
pursuing strategic change process.
The main role of market development strategy is to make higher sales and profits for a
business organisation. It helps managers to set the prices of products, they can decide where and
when the products is launched in market. With the of development strategy, mangers can also
understand strength and power of competitors and take decisions accordingly.
4.2 Resource requirements to implement a new strategy
Resources are necessary in implementing a new strategy, an effective and efficient
strategy. Managers of Sainsbury are also providing available resources to their managers in order
to achieve goals and objectives. There are three main types of resources, such as- human,
financial and raw material resources. Resource allocation plays an very vital role in at the time
of strategic allocation (Slater, Olson and Finnegan, 2011). Physical resources are considers with
production resources, finance resources and marketing resources that requires for interactive
implementation of strategy in Sainsbury, because these resources are able to focus on quality
improvements and more learning for the managers. In strategic planning, human resources are
considered with employees and staff members who are working in Sainsburry for a particular
goal and objective. It is essential for the company to provide training and development to such
person in order to achieve maximum level of productivity. Financial resources are – funds,
investments, creditors, cash in hand etc. Such resources also plays a vital role in strategic
implementation in Sainsburry.

4.3 Targets and timescales for achievement of goals in strategic implementation
Targets and time management is very essential for implementation of any strategics. It
involves three important criteria that is helps to monitor or evaluate any strategy, such as-
feasibility, accessibility and suitability. In Sainbury, suitability is helpful in order to measure the
proposed strategics and techniques that are addressed by key issues. Acceptability refers those
expectations that are helpful in order to meet organisational goals and objectives. And feasibility
seeks with evaluation of business practices and operations (Woodcock, Green and Starkey, 2011).
Due to all these future strategics, mangers can easily develops their strategic
implementation. Interactive strategics are the key factor of success for every business
organization in order to achieve their goals and objectives. Sainsburry has to follow SMART
objectives in order to achieve their aims and targets. These objectives should be specific,
measurable, realistic, attainable and time bound. SMART helps cited organization to set goals
which it wants to achieve.
CONCLUSION
From the above mentioned file it has been concluded that business strategics are helpful
in order to achieve organisational growth and success. These strategics are also seeks with
mission, vision, objectives and goals of business organisation. PESTAL and SWOT analysis is
helpful in organisational audit and environmental analysis in order to identifies the internal and
external factors of the organisation that affects its performance and efficiency. Stakeholder
analysis is also helps in to identifies the needs and demands of customers so as managers can
produce accordingly. Interactive strategics are also helps in developing future growth of the
company.

REFERENCES
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strategy implementation and realisation. 2017. [Online]. Available through:
<http://www.businessballs.com/businessstrategyimplementation.htm>. [Accessed on
24th May 2017].