Strategic Management and Leadership Report - Business Case Analysis

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This report provides a comprehensive strategic analysis of Sainsbury, a major player in the grocery retail industry. The report begins with an introduction to strategic management and its importance, followed by an analysis of Sainsbury's strategic position. Task 1 critically evaluates and applies key strategic management tools, including VRIO analysis, Porter's Five Forces, and Ansoff Matrix, to assess Sainsbury's competitive advantages and strategic choices. Task 2 focuses on strategic decision-making in the context of complex international competitive issues. Task 3 examines the mobilization of organizational elements to support strategic business priorities. Finally, Task 4 prioritizes innovative organizational and leadership initiatives that translate into shared value creation. The report concludes with a summary of findings and recommendations.
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Strategic Management
and Leadership
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Critically evaluate and apply key strategic management tools, techniques and concepts and
create innovative action plans that foster both organizational and personal creative leadership.
.....................................................................................................................................................3
TASK 2............................................................................................................................................7
Synthesize and critical apply knowledge to foster strategic decision-making around emerging
complex international competitive issues...................................................................................7
TASK 3............................................................................................................................................8
Critically examine and mobilize organizational elements to support complex strategic
business priorities........................................................................................................................8
TASK 4............................................................................................................................................9
Prioritize creative and innovative organizational and leadership initiatives that translate into
shared value creation, using literature, undertaking research, and advancing scholarship.........9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Strategic management is the process of structure the abilities that accepts the
management to make economic value for consumers, shareholders and society in respect for
operating in competitive markets. Strategic management is considered to have a significant
quality in design for the accomplishment of targets and achievements of the management that
creates and acts in the manner so that goals and objectives can be accomplished for concentrating
on both the internal and external factors of the business organisation. The report goals is to
provide an detailed and implicit statement of Sainsbury, outer and head first looking purpose that
are required to be theoretical in making decisions, visions and plan of action to ensure the
happening of success in further period (Trong Tuan, 2017). The management consider in this
report is Sainsbury. There are various manner of factors that are centred on strategies and plans
as by Sainsbury as it is present in as across the globe that is separated and prepared on the culture
and demands. There are various sort of strategies that helps the organisation Sainsbury in gaining
the requirements of consumers and innovating new products and facilities to target consumers.
TASK 1
Critically evaluate and apply key strategic management tools, techniques and concepts and create
innovative action plans that foster both organizational and personal creative leadership.
VRIO Analysis
In the competitive world it is an important term to determine the benefit in the company
that can get in competing with their competitors in the business. In respect to evaluate
competitive benefits to enjoyed by Sainsbury, VRIO framework will be used. The VRIO analysis
displays the competitive benefits that are enjoyed by Sainsbury, in respect to accommodate the
success as across the manner. The VRIO framework in detail are as follows:
Value: Sainsbury utilize an considerable orientation in the market for established a brand
goodwill of value by the quality of the product that they offer to their consumers. The
company of Sainsbury that offers high grade condition and facilities that attracts a lot of
consumers to motivate them to consume their time at that place (Kreutzer, Neugebauer,
and Pattloch, 2017). Its presence across the world and appreciation of customers from
different location that is an evidence of its value in the market place. The VRIO Analysis
in Sainsbury shows that the problem solving manner and development at Sainsbury that
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is not a valuable resource. It is because research and development are costing more than
the advantages as it provides in the form of invention. As there are few innovative
attributes and manner of insight products in the past few years. As the research and
development are a competitive disadvantage for Sainsbury.
Rarity: Sainsbury works on various level to form a plan of actions of consumers of the
central procedure that treat them on their priority. The purely series that involves their
employees to mannered them as per to their consumers in a very suitable manner. The
services that are offered by Sainsbury to their customers that is rare in terms of their
competitors (Alonso‐Almeida, Perramon, and Bagur‐Femenias, 2017). The uncommon
factor that are found of Sainsbury as apart from its consumer that facilities the financial
resources. Strong financial resources that are only controlled by only few of organisations
in an industry.
Value Rarity Inimitable Organized
Workers of the
management
Consumer
centric service
or facilities
Accessibility
across the
world
Business
resources
High attributes
of products at
low cost
Consumer
experience
The attribute of
the product at
terms that it
offered
Easy
accessibility of
the business
resources in the
business.
Quality of
resource
Business terms
of resources
Distribution of
network at
various
channels
Imitable: The attribute of food in the low rate of cost that provides by Sainsbury that is
as broad that can not be simulate by challengers that even of any product with the manner
of recreating then it can not be get replaced by Sainsbury as it has high product value and
high grade of product. Sainsbury follows the value of their individuals and value them.
The quality of employees Sainsbury has that cannot be copy by anybody. The financial
resources of Sainsbury are expensive to simulate and get identified by the Sainsbury at
VRIO Analysis. These resources have been get acquired by the organization as by
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prolonged earnings over the years. New trade good and challengers would necessitate of
similar profits for the long period of time to collect these amounts of financial rootage.
Organised: Sainsbury has a work force who are in good state of taste that coordinate in
their office that represents the organized structure in an organisation that effect in quality
of experience to consumers (Al Thani, and Obeidat, 2020). As with the organised human
resource, Sainsbury also have organised financial resources that is important for any
management for their development and growth as effectively.
Porter's five forces model
Porter's five forces model is the model in which organization measure the competitive
force that affects their managerial functions and operations. It has been analysed that there are
many components that becomes the reason for competitive forces. Hence, it is necessary for the
management that they examine the competition through Porters' five forces model. The growth
of grocery industry is highly increasingly for estimating the percentage for companies. It is very
important for Sainsbury to measure the competition in the market that assist them to make plan
of actions to achieve goals and objectives of the management (Łukowski, 2017). There are five
elements that cover in Porter's Five Forces Model that are as follows:
Competitive Rivalry: It is the most essential component in management that
concentrates on competitors by which they make aware about other managerial policies for
modifying the improved term to accomplish their desirable targets and goals. Sainsbury is one of
the leading company that run their organisation so well but it has been seen that those who are
large management as always face competition in the market as because of their success and
development. They are the essential challengers of Sainsbury that should be measures by the
company so that they might protect from the unanticipated risks and dangers. One of the biggest
competitor of Sainsbury is Tesco because they leading in the industry. So Sainsbury always
taking care of actions of Tesco so that they can give a tough challengers in the global market.
Bargaining Power Of Buyers: It is very essential for the organisation that they might
know about the power of buyers in their business field. Because if the bargaining power of
buyers is high then it become very hard for management that they face valuation issues in their
business or vice versa. Sainsbury has many challengers in the market that gives secondary
manner of switching to consumers. It means the bargaining power of buyers is broad and because
of that they can not raise their products costs.
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Bargaining Power Of Suppliers: It is also important for Sainsbury that they should
make their plan of action so that it affects their suppliers propositionally. It is the state of
condition in which the possibility manner of high and low power of providers also detect in the
management. It depends on the providers of the management (Gipson, and et.al., 2017).
In groceries and clothing sector of industry bargaining power of supplier is devalued as because
companies are enough strong and has many providers so that they can influence from their goods
from those suppliers. Powerful suppliers in customers Services sector in the context of Sainsbury
that are use to negotiate the power for selection higher prices from the company in Marketing
sector. The overall impact of higher supplier negotiation power is that it let down the total profit
of Wholesale earning.
Threat of New Entrants: As another important point that affect the aggressiveness of
Sainsbury that is upto their success and growth and development. Because of that other business
get influenced and offers new entrants in the marketplace that maximise the business relation in
market. New entrants in Retail brings invention, new ways for performing things and put
pressure on Sainsbury by lower pricing strategy, reduction of costs and providing new values for
propositions to the consumers.
Threat of substitutes: It is very essential for the management that they make their goods
so specific that will be not as imitable by any other organisation. As related products maximise
the subject to risk threat of secondary things so that it make hard for Sainsbury that how they can
make their products and services or facilities so well to grow their business.
Strategic plan
Sainsbury Mission:
The mission of Sainsbury is to create a organisation like no one else and puts consumers
as to their priority and to make best use of techniques to modify better relationship in terms of
wealth (Teoman, and Ulengin, 2018).
Sainsbury Vision
The vision of Sainsbury is to puts consumers at their priority and provide them all
facilities that can helps them in appreciating their demands and needs.
Ansoff Matrix
Market penetration: In this strategy, organisation sells more present products and
services or facilities into the active market. In this organisation can change its opening
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hours of their store that can reduce in respect of processing times. Sainsbury has adopted
this plan of action for the development in the business as when Tesco and Asda came in
competition. It started to adopt emulous pricing scheme and cut the value of costs on
many of the products.
Market development: In this plan of action of Sainabury target new market and new
areas of existing market that try to sell their products and services or facilities in that
market. Also, in this management or organisation the sales by various sort of sources like
digitally and by agents and mediators.
Product and development: In this strategy, management sells various products and
services in the current form of the market ( Raut, and et.al., 2019). In this organisation,
they move to produce various products that will be specific and made by them. Sainsbury
has adopt the product development plan of action with right form of market after the
Tesco that has introduces the section of Tesco Metro and also the Sainsbury introduced
Sainsbury Central to deal with their operations.
Diversification: In this strategy, the company introduces new goods into the new market.
This strategy that considers to be the most risky phase of the company as because in this
there is a new products and also this new products and service or facilities introduced into
the new market. Sainsbury are the grocery retailing store as initially it started with their
own clothing manner. The company also varied itself in the financial market for
providing insurance and credit card facilities for their consumers.
TASK 2
Synthesize and critical apply knowledge to foster strategic decision-making around emerging
complex international competitive issues.
Strategic decision making is required in different companies for managing
accomplishment of organisational goals. The main reason for organisation like Sainsbury to
make a strategic plan is to ensure that it’s SMART objectives or targets are achieved in specified
timeframe. Strategic decision making is known as process used for managing long as well as
short term goals of the company. Strategic decision making aligns for short term objectives and
completing the approach efficiently (Dayan, Heisig, and Matos, 2017). Long term goal of
Sainsbury is to maximise the organisational profit. This is attained by using effective strategy
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that can help in managing the organisational performance. It is needed that work can be done in
effective manner for enhancing Sainsbury’s management. The strategy used by Sainsbury is that
it is putting back the food items for customers. In the time of COVID-19 pandemic, this business
has worked in proper manner for attaining goals and objectives. Sainsbury is hovering the
motivations among employees for working hard. This company is also focusing upon the
changes within the business that have to be managed efficiently. It has come to the knowledge
that simplifying and acknowledging the cost saving program is beneficial for developing the
business operations. In context of business operations of Sainsbury, it is analysed that cost
savings programmes are used. The main objective of this is to invest more in food quality,
choice, innovation and consistently lower prices for our customers. This helps in reducing
complexity, transform our cost base and ensure that our portfolio of brands supports our focus on
food, thereby improving financial performance and delivering stronger shareholder returns. The
main objective of Sainsbury is to manage the effectiveness of all operations. This will help to
manage the way in which functions can be enhanced. Supermarkets of Sainsbury are one of the
major business organisations of UK. There are lot of products and services provided by this
supermarket to the customers. Supermarket chain of UK has some principles and values followed
for managing the customer satisfaction level (Strielkowski, and Chigisheva, 2018). It is
concluded that this is very important for companies to remain dynamic and manage success
within business environment. a lot of ways are present in which business is able to overcome
threats and conduct opportunistic functioning. A lot of changes within business activities are
present for managing the working abilities. The strategic approach for company is to manage the
efficiency in which current operations are conducted. There is high level of motivation needed
for employees to manage the working in effective manner. There is reliability upon enhancing
the different elements that manage working. Because of that there is a high need for adopting
strategic management approaches in national market for new developments and management of
current operations (Jansiti, and Lakhani, 2020). Within organisation’s strategies are at three
level`s i.e. Corporate, operational and business level. Strategic management has converted an
important topic of discussion among researchers as it helps organizations to achieve long-term
competitive improvement.
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TASK 3
Critically examine and mobilize organizational elements to support complex strategic business
priorities
Elements of Strategy: The key section of the plan of action that revolves around the
operation of statement and the targets. The company should first identity the manner that
needs to be get achieved. It is based on the manner of information, the plan of action that
can develop so that it can distinguish the business as also driving the scene. The plan of
policies that defines the key concepts to creates a multiform vision for the organisation. It
affects each and every individual and influences the vision to approach as towards
performance of job functions that will be identifying as a member of the team.
Goal and Mission Statements: As another approach to the similar product that might
involve the manner to finding the lowest cost manufacturing solutions that would enable
mass production at a lower cost of price and the point that the competition. In this case,
the brand is concentrated on the affordability and mass production. They have the similar
product and a immensely varied section of the mission statement (Wahab, and Tyasari,
2020). For any enterprise, the big image target that is profitability but process of
sustainable profit of the models with the working plan of action to accommodate that
sustainability is essential, and this determine the relationship between plan of action and
structure.
Formulating the Strategy: It involves the various segmentations in the business of
Strategy is a multifaceted element in business. Multiple strategies are frequently formed
as around the particular products and services and facilities with the thought of idea of
penetrating the market. There is rarely a single and simplified version of the strategy. By
forming the strategies to determine the internal section of job manner that is virtually
needed as per to the manner to accommodate the job role.
Creating a Road Map for Strategy: As it ensure the structure of the plan of the actions to
form the execution in the management. It helps to defines the workforce and the
operational function that should be performed to phrased the desired result (Martino,
D’Onza, G. and Melville, 2019). By forming the term of strategies and then analyse
them to correct the approach on paper work at definite quantity with intensifier group
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action, brand identification exercises and financial measure that are needed to ascertain
the required sales illustration as against to the different market penetration strategies.
Competition based Strategy: Strategy is generally formed as around to the position of the
social event and the market activity. After shaping the product or service regards facilities
that examines the challenger to maintain their positions in the market that is an important
step. Analyse their products and service by offerings and pricing plan of action and brand
attractiveness to make a competitive profile in the market. Sainsbury have their clear set
of priorities is to create on our strong brand goodwill of attributes and notoriety for
quality, range and invention and it offer more consistent value to their consumers for
making shopping more convenient. It is what the Sainsbury deals by putting the
intellectual nourishment back at the heart of Sainsbury.
Implementing Strategy and Structure: By forming a plan of action that defines the
structure and processes to allows for financial statement and plan. At few point the plan
will transform into a structural reality as per to an uncertain market that should evolves
over time. Implementing the plan of action for the with new business that is more
difficult as because many unknowns exist. An existing business has likely tested
strategies in the past and a new strategy that are based on existent information and
experience (Birasnav, Mittal, and Dalpati, 2019). The new organisation should have
benefits yet as the structural elements that are easier to build.
TASK 4
Prioritize creative and innovative organizational and leadership initiatives that translate into
shared value creation, using literature, undertaking research, and advancing scholarship.
Leadership initiatives in management
Be the role model for engagement from the top: The leaders set their roles in the business
to link them with the demonstrates to the engagement in team on the regular basis. The
individual in the business set their links with the policies and plan of actions to interact
with the individual employees and the clear indications of actions listening.
Link your business to a higher purpose than profits: The members of the team get ensures
with the orientation of the business that covers the team members to get persuasive sense
of social or environmental function feel an extraordinary engagement in business (Gates,
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and et.al., 2019). It set their higher purpose than feel an extraordinary engagement of
orientation in the manner of the business.
Empower employees with authority and tools to succeed: The employees in the
management deals with the section of autonomy to maintain the team role and team
engagement with the consumer satisfaction. It concentrates on the highly satisfied team
development ideas to become the best segmentation of the business and their consumers.
Link rewards and performance to engagement levels: As the high conflict to phrased the
term as the manner that will related to the high performance as more than high
satisfaction level. Satisfied employees is too frequently involves the under performers. It
measure engagement levels that results as per to the satisfaction levels in the team
members and consumers to evaluates for the performance.
Focus on a culture of motivation rather than punishment: The leaders performance for the
activities to manage the frequent phrase in the business. It deals with the various
incentives to set the leadership skills that brings the thought of ideas in management.
They share their thoughts and orientation in the business to deal with the enlargement in
business. Reinforcers includes salary maximises the bonuses, promotions, variable
incomes, negotiable work hours, and paid leaves to their consumers. As the common and
positive reinforcement method is the incentive system of the formal plan of action that is
used to advance or motivates the particular set of actions, behaviours that might be
resulted from workers for a defined period of time. Incentive programs might get
minimise as the turnover, boost morale and loyalty, improve wellness, addition retention,
and drive daily execution among individuals. Encouraging staff will help the business
result and maximise the efficiency in business.
Facilitate and use customer, peer engagement feedback: They share the manner in the
business that coordinate the orientation. In the business they know the perspective of
manner to recover the consumer deliberation as wisely (Baumgartner, and Rauter,
2017). The positive response in the business is deal with the task that are as engaged in
the manner to come from multiple sources that will also includes the social media
reviews, peer reviews and executive interviews in the business.
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CONCLUSION
From the above report it has been concluded that Sainsbury's vision and mission
statement and its tag line assets that supports in giving an efficiency and productivity to the
brand and helps in accommodating the managerial strategy that boosts the development. The
strategy of brand Sainsbury is very promoting hence, it will help in being productive and quality
efficient thus taking the name and manner of the management to reach heights. In this
accordance it has an overlooking impact on its closest rivals while working within business
motivation and needs.
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