BMP6002 Strategic Management Case Study Analysis: Sainsbury Report

This report offers a detailed analysis of strategic management principles through a case study focused on Sainsbury, a major UK retailer. It begins with an introduction to strategic management, outlining the processes organizations use to determine their strategies, including strategic positioning, objective prioritization, plan development, execution, and review. The report then evaluates key models and tools such as SWOT, PESTLE, and Porter's Five Forces, illustrating their application within organizations. The core of the report applies these tools to Tesco, analyzing its strengths, weaknesses, opportunities, and threats (SWOT), as well as the political, economic, social, technological, legal, and environmental factors (PESTLE) impacting the company. The report also examines Porter's Five Forces to assess the competitive landscape. Finally, it critically appraises the importance of change management, considering the complexity, costs, risks, and sustainability of the transformation process, referencing Lewin's change model. The report provides a comprehensive overview of strategic management concepts and their practical application in a real-world business context.

BSc (Hons) Business Management Top up
BMP6002
Strategic Management
Strategic management case-study analysis
Contents
Introduction p
A critical assessment of the process used by organisations to determine their strategy
p
An evaluation of the critical models and tools used by organisations to determine their
strategy p
An application of these tools to a real organisation p
Critically appraise the importance of change management based on the complexity of
the transformation process, its costs, risks and sustainability
p
Conclusion p
References p
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Introduction
The strategic management is a method to plan, monitor and analysis of the things that
are required to complete the task and achieve the organizational goal. This assist organization
to develop its policies as well as plan so that resources are being used effectively and
compete efficiently (Lin And et. al., 2021). Sainsbury is a Britain brand work in retail sector
of grocery and having second position in the UK market (Ali and Anwar, 2021). This report
will evaluate the process of Sainsbury to determine the strategy with the help of theories and
models. Further the determination of the application of the respective model, importance of
change in management as per the complexity of transformation process, cost, risk and
sustainability is evaluated.
A critical assessment of the process used by organisations to determine their strategy
The organizations in the current market are using the different stages process to
evaluate the strategy to be implemented within organization for better growth (Holotiuk and
Beimborn, 2017). Every business is run with a particular strategic plan, this planning process
of strategy is undertaken by any organization to reach till its long-term goals. With the help
of strategy the companies use to develop their vision, mission as well as targets. The process
of determination of strategy by organization is as under:
Determination of strategic position: Every organization much need to evaluate when they
have to reach in near future and the manner to achieve that target. For this the intrinsic and
extrinsic factors are being considered to determine strategic positioning. The organization
have to discuss the main issues with the available data related market (Bienhaus and Haddud,
2018). The organization able to make its vision and mission so that team members can work
accordingly. Further, in this stage the values of the organization are overlooked to remind
what the organization wanted to do in its future. There are different types of analysis to
determine the internal and external factors of the company.
Prioritize the objectives: when the organizations have finds out the position which they
have in the market then they can easily determine the objectives. The objectives will assist to
develop the goal and achieve them effectively. The objectives are created in a way that they
help to focussed on the vision and mission of the company. In these objectives are created
which are easy to measure and assist to reach till the long term strategic goals. This
objectives may include different short-term goals which are help to achieve the common goal
in the future.
Development of plan: After knowing the objectives of the organization they can make an
efficient plan which help to reach till the annual goal. In this plan making the organization
use to evaluate different aspects which help to attain the objectives and the superior used to
transfer all the information related to the objectives and plan which is being developed. In
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this the organization use to use different tool and techniques to visualize the plan which has
been made. To make an effective strategy the plan is vital and with effective planning
company can grab competitive advantages.
Execute the plan and manage it: when the organization plan is effectively build then they
can easily use that plan. The organization should inform all the necessary information about
the plan to all the people in documentary manner. This is done before the work in the
organization is going to start, this strategy is committee as plan by mapping as the process.
Reviewing and revising the developed plan: when the plan is being developed then strategy
planning ending level is to review and revise all the aspects of the plan to identify the
opportunities to prioritize the correct manner as per the experiences. As it is most important
to know the priorities the right things because it assists to track the success in the long-term
goal of the companies. In this measurement process the organization can use the balancing
scorecards to know a performance of the company with executive the strategies as well
(Ogden, Barr and Greenfield, 2017).
An evaluation of the critical models and tools used by organisations to determine their
strategy
There are different tools and models which can be used by the companies to evaluate
their respective strategies and plans of the company. As it become important to inspect the
internal and external environment who are effecting the performance of the organization.
Moreover, the competitive analysis is also required to develop a strategy which can help
company to gain competitive advantages in the market (Rengarajan, Moser and
Narayanamurthy, 2021). For internal analysis the organization can use SWOT analysis,
basically SWOT stands for strength, weaknesses, opportunities and threats that an individual
organization has internally. With the help of this framework organization will know its
opportunities and threats. For the external factor's analysis the organization can make use of
PESTLE analysis which is a depth analysis all the factors of macro-environment. It stands for
political, economical, social, technological, legal and environmental factors who have to
impact on the operations and function of the company. With the help of this analysis any
organization an able to know its external source who can influence the profitability and
functions of the company. The organization is being influenced by political environment
because they used to change regularly, the economy of any organization also face different
situation which directly impact the sale and revenue of the company. The society is also
influencing the organization as their taste and preference use to chance as per time.
Technology is the vital in impacting the organization moreover the legal and environment are
the external this all factors an organization keep in mind while developing an effective
strategy of the company.
For development of an efficient strategy planning every organization must have
knowledge about its competitors to develop that strategy which is helpful in competing in the
market place. So for this organization can make use of Porter's five forces which help to
identify all the aspect a competitor may influenced the organization. It also inspects the
customers and the suppliers of the organization to gain maximum profit in the market.
Having enough knowledge of competitors company can develop a strategy which is more
helpful in growth.
An application of these tools to a real organization
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Tesco is a multinational organization can use different analysis to develop its
strategies more effectively.
SWOT analysis
This is an internal analysis tool to identify the strength, weaknesses, opportunities and threats
that individual organization have in it (Pesce And et. al., 2018).
Strength: Tesco is leading brand in the supermarket as their financial position is being more
favourable in the last years. The organization is also having a remarkable market share all
over Britain and brand being unchallenging. They also provide online services and perform
more effectively in the pandemic situation. Company also innovating its style production
regularly.
Weaknesses: the product quality of the company is not efficient to attract more customers
from the market. The market distribution is not that much effective so this also lead to market
shortage. The food product which are offered by them are not safer and facing different issues
as well.
Opportunities: Tesco can lead more in the market by providing grocery products
internationally through online market. They can also create job opportunities in the market so
that people can earn their livelihood. The organization also move towards the protein
products of food because the people in upcoming generation are more health consequence
(Falcone And et. al., 2020).
Threats: The Brexit act as threat for the Tesco as now the rules and policies of marketing and
sale in the EU market are being increased. The economy is also facing recession so the
purchasing potential also tend low in UK.
PESTLE analysis
Political factor: The retailing organization are influenced by the polices and process
developed by different countries. The retailing organization usually operates global so the
different political parties uses to impact on the performance of Tesco. The
Economical factor: the retailing organization are being influenced by the economy issues
which use to causes in regular basis in every economy. As UK economy is currently facing
recession so the people are not having higher disposable income to invest to buy the grocery
products (Islam and Mamun, 2017). As the Tesco is operating internationally yet the majority
of its market share is in Britain so if the UK economy drops then it will influence the
business.
Social factor: the customers of retail sector are dynamic in nature they use to change as per
the time. When there is any new trend in the market then automatically shift their choice to
that product. Tesco have to change its product range as per choice of customers in the market.
Technological factor: whenever there is any technological development then retail
organization and its whole industry get influenced by this. To attract and sustain in the
international market it becomes more important to adopt the latest technologies.
Legal factor: the retail industry have to follow the respective laws and procedure develop by
government (Christodoulou and Cullinane, 2019). When there is any change and enrolment
of new law then organization get influenced and its performance also get impacted by this.
Environment factor: the environment in which the retail organization are performing their
activities are also impacting companies. As when climate condition change then business
need to adopt that process which is comfortable in that environment.
Porter's five forces
This analysis help to know about the external force of competitors on the Tesco. The forces
are as follows:
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Bargaining power of buyer (high): The UK market have lots of brands in the retail sector
offering same level of products of grocery (Song, Wang and Zhu, 2018). Tesco have its
competitors who are offering similar products so customer can easily shift to come other
brand if they not find Tesco products adequate as per the price.
Bargaining power of supplier (low): There are huge number of supplier in the Britain
market who are supplying raw materials to al the retail sector. When the supplier of Tesco try
to reduce the margin then they immediately stop purchasing raw material for that and shift to
some other supplier easily.
Threats of new entrants (Low): the new entrant threat is minimal in this industry because this
need a lot of investment and various kind of promotion is also required. Tesco not have to
worry about any new competitor as there are very less chance that any new brand is going to
compete it (Berisha Qehaja, Kutllovci and Shiroka Pula, 2017).
Rivalry among existing competitors (high): retailing industry is having number of different
competitor in the market. Tesco is also having different capable competitor in the market who
are trying to become the best in the market. For this they are launching different product
range which are offered at less price. All are competitor of Tesco are regularly practises
competition in their market place.
Threat of substitute (low): The threats of any substitute in the retail sector is comparatively
less and lower because the Tesco is only selling its substitute goods to cover all the customers
and their preferences.
Critically appraise the importance of change management based on the complexity of
the transformation process, its costs, risks and sustainability
The importance of change management in Tesco is being defined with the help of Kurt Lewin
changing model. This frame work has three stages that Tesco can use to implement any
change in the organization (Memon, Shah and Khoso, 2020). This process help to percept the
change when ever there is need. There are three process are unfreezing, changing and
refreezing.
Unfreezing: when the Tesco need to make a change or modify something in the organization
then primary stage the organization need to identify where there is need of change in the
organization. Like if the tesco want to change their structure to grow better in market then
they have to communicate that to the staff members of the company. In this phase the
communication is being very important because without communicating things can not
present to the employees. They also need to be motivated so that when the change is being
made then it becomes quicker to response to that.
Change: when the employees of Tesco is ready to change the structure then company
recognize the change and move its steps for that. In this the employees are making effort to
change the structure of the company and also finds the uncertainties with this. Change is
being done with the proper planning and execution of activities.
Refreezing: when the organization is made their respective change that is structural change
then it times to solidifying that change. As with the change various processes has been
change so it is important to manage all of them. It also been looked that all the employees are
working in new mange nor the previous style. The uncertainties related to not understanding
of new process is very common. As all the employees are not efficient at same level, so they
may not able to understand the modification therefore the inspection of the change is
necessary to effectively implementation of change.
Change management
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Complexity: the transformation process become complex when the change is large so it takes
a lot of time in the changing stage. Managers need time to change and modify the previous
process into the new process (Hussain And et. al., 2018). When the change is not just in
single department or procedure and multiple change are done together then it becomes more
complex to transformation.
Costs: when the change is involved development of some technologies or somethings costly
then the cost ultimately raise. The organization have to bear the cost to make the change
effectively.
Risks: the risk factor in the changing management is depends on the amount of change, If
Tesco will make an huge change that totally going to change the function and its entire
department then the risk is also comparatively higher. As when the employees are not able to
understand and settle according to the change then organisation will face loss.
Sustainability: the sustainability of change management is change as per the change type and
method to make the change. As the change assist to help the environment and the society then
the change is more sustainable.
Conclusion
This report concludes that business strategic are being complex task for any business
because it involves different processes. All the analysis are done to develop a strategy more
effectively. The internal and external environment knowledge and impact are being known to
company to develop its business strategies for growth and enhancement of success. Tesco
should also know its competitors to develop the strategies efficiently because when company
will offer better than its rivals then they will get competitive advantages.
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