Strategic Management: Strategy Evaluation, Models, and Application

This report provides a comprehensive analysis of Sainsbury's strategic management, focusing on strategy evaluation using various models and tools. It begins with an assessment of the processes organizations use to determine their strategies, specifically highlighting Sainsbury's mission, vision, and past strategic challenges. The report then evaluates critical models such as PESTLE, SWOT, VRIO framework, and Porter's Five Forces, explaining their importance in strategic planning and how Sainsbury's utilizes them to identify factors impacting their operations. A practical application of the VRIO framework and Porter's Five Forces model to Sainsbury's is presented, detailing how these tools help assess competitive advantages and industry dynamics. Finally, the report critically appraises the significance of change management, considering the complexity of transformation processes, costs, risks, and sustainability within the context of Sainsbury's strategic objectives. Desklib offers a wide range of similar solved assignments and study resources for students.

Strategic Management -
Strategy evaluation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
A critical assessment of the process used by organisations to determine their strategies...........3
TASK 2............................................................................................................................................4
An evaluation of the critical models and tools used by organisations to determine their
strategies......................................................................................................................................4
TASK 3............................................................................................................................................5
An application of these tools to a real organisation....................................................................5
TASK 4..........................................................................................................................................10
Critically appraise the importance of change management that are based on the complexity of
the transformation process, its costs, risks and sustainability...................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management will include the implementation and preparation of the required
targets and aims that will consider by top business of management. It is an essential section that
are based on the suitable field of resources and will evaluated the micro and macro environment
by which the management will functions its diverse set of operations. It will involve an adequate
procedure of planning, measuring, supervising of all applicable components that are essential for
the business to meet their targets and aims (Aborass, 2021). The management consider in this
report is Sainsbury. It is the second largest chain of supermarket in the United Kingdom. It was
established in the year of 1869. The following report will involves the process that are used by
the management to identify their strategies, critical models and tools that are utilised by the
management to identify their strategies, application of such tools to a real organisation, and at
last importance of change management that are based on the transformation process, its costs,
risks and sustainability.
TASK 1
A critical assessment of the process used by organisations to determine their strategies
Sainsbury's Mission -
The mission of Sainsbury is to develop the management like no one else and puts their
customer as their first priority. They offers effective techniques to their customer to enhance
better dealings in terms of wealthiness.
Sainsbury's Vision -
The vision of Sainsbury is to puts customer at their priority and offer them services that
will helps them in acknowledging their needs and requirements. They have basic vision that
every individual will have an important understanding with the firm (Bryson, and et.al., 2021).
Strategies and approaches also allow each individuals to measure the field that are require in
contributing to the accomplishment of the vision and aims.
Strategies of Sainsbury -
In the previous years, the management are facing decrease level of sales, issues with
franchisees and it will have an impact on the public view. As there are various strategies that are
as follows -

Competitive benefits = In the previous years, the management paid low attention on
manner of increasing competitive benefits by which sales of Sainsbury fall down and due to it
management has faced high term of failure. As in previous years, managerial sections are created
and at present time the company are concentration on customers satisfaction (Won, and et.al.,
2021). It will be implemented by motivating staff faculty, to be friendly with their consumer and
head or executives by offering facilities and warm smile. They show their manner by providing
high term of values to their customer and always tries to be leader by their dominating nature in
the field of marketplace.
Consumer Satisfaction = In the previous year, management are concentrating on
characteristics of consumer satisfaction. Because of it, management were faced unfavourable
judgements from their consumer that resulted in decreasing the sales and profitability of the
business. By it management maintained their dealings with the purpose to satisfy their
consumers. They offer high term of facilities to consumer, suitable atmosphere, high set of goods
and it will help the management in increasing higher term of attention from their loyal consumer
base.
More product simplification = Supplies of products and goods has rise up by 30%. The
management has cut down sort of products from their basic section in current months as per to
the taste and preference of consumers.
Improve customer experience by strong digital capabilities = Customer are moving to
new brands that will satisfy them in a suitable manner with varied term of facilities that have
high quality of the food. In respect to encounter that, the management has declared new set of the
program that will supports in increasing consumer experience by offering digital experience to
them.
TASK 2
An evaluation of the critical models and tools used by organisations to determine their strategies
Strategic planning procedure plays an essential role in a potential manner by which
management can achieve their long and short term objectives (Ngo, 2021). In respect to create a
strategic plan or procedure it is important for the management to fill the gaps and have smart
goals or strategies. In relation to the Sainsbury, it has been determined that the business of
management maintained their dealings with the help of strategic planning and take benefits by

PESTLE, SWOT, VRIO framework, Portal generic model. By these models the management
ascertain various factors that are frequent in external or internal environment in respect to create
strategies for development and high set of competencies in the field of the marketplace. By the
help of PESTLE analysis it is an efficient strategic model in management that will determine the
factors and change as per to political, economic, social, technological, environment and legal
(Taeuscher, and Rothe, 2021). It will have positive and negative impact on the managerial
functions and operations.
By the help of this model, Sainsbury identify the plan of actions and execute it with the
objective to increase the global profitability and productivity as effectively. As on the other side,
by the help of VRIO framework it is an effective strategic model in organisation that identify the
factors and changes by Value, Rarity, Inimitable, Organized. By the help of Porter's five forces
model that include the following factors like Threat of new entry, Bargaining power of suppliers,
Bargaining power of buyer, Threat of substitutes, Competitive Rivalry. The management
determine its new section in the field of marketplace that can maintained their orientation in the
business. As on the other side, SWOT analysis will supports the management in determining its
strength, weaknesses, threats and opportunities. In respect to this, it has been measured that, such
model will offers high support to the management of Sainsbury by which the business will
identify its real strength and overcome its weaknesses in an efficient way. As with Porter's five
forces that will help the management to undertake the benefits of varied sections at preceding
stage comparatively with other rivals in the management.
Hence, as per to the above mentioned analysis it has been measured that such models will
supports the management of Sainsbury by getting high market share in retail field of sector.
PESTLE, SWOT, VRIO framework, Portal generic model will help the management to increase
its present orientation and brand goodwill in respective field of marketplace (Kazancoglu, and
et.al., 2021). Such sort of models that are being utilised by Sainsbury by which the management
effectively identify diverse sort of factors and components that might have negative and positive
impact on the managerial development and performance. Such factors will also facilitate the
management to initiate an effective decisions by which higher advancement will get assured.

TASK 3
An application of these tools to a real organisation
VRIO
In the competitive world it is an essential term to identify the welfare in the business that
might get high competition with other competitors in the company. In order to measure the
competitive advantages, VRIO framework will be considered. The VRIO analysis will represents
the competitor advantages that are maintained by Sainsbury, in order to achieve the success as
effectively. The VRIO framework are as follows - Value = Sainsbury are utilising an orientation in the field of market for implanted a brand
goodwill by the manner of quality of goods that they offers to their customer (Chan, Lee,
and Jung, 2021). The management will also offers high set of conditions and services that
will influence varied set of customers and will also encouraged them to use their fields
that are valuable. It will shows the manner of research and development that will offers
the form of innovation. Rarity = The management operates their functions at various sections to form the
strategies for their customer with suitable process. The products and facilities that are
provided by Sainsbury to their consumer are rare in their terms of competition. Effective
financial resources that are controlled by fewer of management in their company. Inimitable = As there are various aspects that are offers by Sainsbury in wider terms to
imitate the challenges of goods and products with suitable way of maintaining it that
might not get replaced by the company (Dinçer, Karakuş, and Richter, 2021). The
management will create such sort of capitals that are difficult to replicate by rising the
varied and progressive fields to their customers. It will supports in maximising the
effectiveness of an organisation. Organized = It will involve the analysis of the sections of the company that understand
the manner that how it will be organised their capitals for the benefits of their staff
faculty. As the manpower are also organised in the management of Sainsbury who have
organised business resources that is essential for various organisation for their betterment
and development as effectively.
Resources Valuable Rare Inimitable Organised

Brand goodwill Yes No No No
Distribution
network
Yes Yes No No
Organisation
arrangement
Yes Yes Yes No
Manpower Yes Yes Yes Yes
Porter's five forces model
Porter’s five force model is utilised to measure the company's weaknesses to form the
business corporate plan of actions. In context to the Sainsbury, the management utilise five
factors to evaluate its business relations and increase the profitability that are as follows - Threat of New Entry - Sainsbury is world-wide formulated enterprise that has various
actions and course of activities in terms of barriers (Dušková, 2021). The management
will need tremendous amount of the liability, capital and human resources that will help
them to operate it. In relation to the, Sainsbury the management has risk of new
challengers with wide term of possibilities. Bargaining Power of Suppliers – Suppliers will perform their course of activities as per
to source of quality of goods with their customers that manage their terms. The suppliers
will control the manner that have an impact on the company and on its limited sum of the
demands with suitable profit margin in the company. In relation to the Sainsbury, the
management focuses on conserving an effective dealings with their customers to whom
they supplies products as effectively and efficiently. Bargaining power of Buyer – Buyers are the leading targets for the management as they
try to continue a healthy dealings with them to hold them for longer period of time. In
relation to the Sainsbury, company have various factors and varied aspects that will
functions in their favour for blockading the negotiating control of customer and their
products quality (Yadav, and et.al., 2021). The company have effective approach of
innovation and research method as because that us essential after sales of their products.
 Threat of Substitutes – Excess set of products that act as a formal tool to draw the
suitable manner of the customer who want high term of quality with low-budget values.

All management has this risk factor that will increase their customer base and it will also
have an impact on their market shares. In relation to the Sainsbury, it will focuses on
making current products that will present the broad term with their customers.
 Competitive Rivalry - The field of industry who are facing high set of competition
through which the management have to concentrates towards preserving their customer
base (Nurjaman, and et.al., 2021). The management are demanding to decrease their
operative value that will supports them in financing their investment towards taste and
preference of customers. In relation to the Sainsbury, competition will supports them in
focusing the customers and several channels by performing task and achieving targets of
an organisation.
PESTLE Analysis
PESTEL analysis is the basic structure that are maintained by the management for
analysis of the external factors and will have an impact on the growth of the management. It will
concentrates on all the factors that are not covered in the SWOT analysis and holds the suitable
manner of the changes in the external state of the business of management. The framework of the
PESTEL analysis are as follows -
Illustration 1: Porter's five forces model, 2020

 Political factors - political factors will involves the intervention of the authorities in the
operations of the management and the manner that how political terms will have an
impact on the management. The supervision or authorisation will create certain rules and
regulations that are valued in terms of employees who have an excessive impact in the
management by Brexit. As in relation to the Sainsbury, the Brexit policy have major
impact on the organisational operations. The organisation who have formed several rules
and regulations that will include the tax rules and safety rules that will get affected the
output of the business (Urbancová, and Depoo, 2021). The authorial executives have
political unit of values that will also get affected on the managerial growth and excess
possibility.
 Economic factors – It will have a broad impact on the accomplishment of the managerial
targets that are essential for the organisation to measure such economic environment for
the consistency of the business in the field of marketplace for longer period of time. The
economical factors that will have an impact on management will involves the variations
in product cost or its tax rates. Sainsbury have various variations in the field of
economical strategies that will have an impact on the managerial functions in a negative
way. The management might consider such sort of factors to neglect the utilisation of the
capitals. As per to necessities in the existing managerial condition and inflation rates will
act in a negative way.
 Social factors – It will also termed as a social cultural factor that will represent the
manner of values of the targeted customer in the management. Such sort of factors that
will consider the suitable style and approach or taste or preference of customer in order to
sustain in field of marketplace with high goodwill (Cheng, and et.al., 2021). The
customer have unique taste and preference by which management will offer them
products with effective security and growth that will presented in the company. Sainsbury
has evaluated the buying behaviour of the customer to determine what they actually want.
Such factors might be recognised as per to the managerial objectives and current trend of
marketplace to maximise their course of activities.
 Technological factors – Technological factors will termed as the dynamic force for the
growth and betterment of the management. It is an important term of component for

attaining such feasible source as across to the world. In relation to the Sainsbury, the
management basically focuses on various technological factors that are arranged in a
section of supermarket. The contemporary knowledge will involves several new customer
towards their products and motivate other for their advancement.
 Environmental factors – It will include the manner of standard section by which the
management is maintained and their functions will supports the manner of their
commercial customers. As the factors that will starts from the basic fields to hold and
continue the fundamental changes (Möller, and McCaffrey, 2021). Such sort of factors
will have an impact on the managerial procedure and their workforces who are
performing in persuasive situation. In relation to the Sainsbury, the business of
management will focuses on maintaining their environment and atmosphere and role of
operations towards to the accomplishment of the purpose of the management as
effectively and efficiently.
SWOT Analysis
STRENGTH WEAKNESSES
Illustration 2: PESTLE Analysis, 2021

 Sainsbury is having an effective brand
goodwill by its high quality of goods
or facilities and loyalty for consumers
in retail field of area.
 The management have potential
relationship with government
authorities that will continue all the
rules and governance that are
implemented on retail field in an
efficient way (Obel, and Gurkov,
2021).
 Sainsbury is having an influencing
promotion and marketing schemes as
compared to other challengers in the
business.
 Leading weakness that Sainsbury
faced fear by the changes in their
workers by which their managerial
operations will get affected.
 The management is having deficiency
of growth and training services for
workers in the business as compare to
other challengers.
THREATS OPPORTUNITIES
 By maximising in authorial rule in
some of managerial facilities with
suitable geographic fields. Sainsbury
faced threat of smooth managerial
function that will have an impact on
business.
 Dynamic variations in retail field as
per to basic concept that have threat
on Sainsbury's revenue producing
method.
 Sainsbury is having an important
opportunity to offers an integer course
of training to their candidates as across
to all its divisions in respect to
increase their abilities to adapt
variations (Shin, and et.al., 2021).
 Sainsbury is having suitable
opportunity to increase execution and
delivery procedure in respect to serve
consumers in an efficient way.

TASK 4
Critically appraise the importance of change management that are based on the complexity of the
transformation process, its costs, risks and sustainability
Change management model will also aid the management to adapt new techniques by
which consumer will get served in an efficient way. It has been determined that employees are
the first who face changes and on the other side, managers and leaders plays an essential role as
they have responsibility to deliver business values and need of changes to employees and make
them aware about the advantages of change for them in respect to execute the changes (Franco,
Almeida, and Calili, 2021). Sainsbury will determine several sections by ADKAR Change
management model and offer and efficient training to their employees in respect to offer an
effective support to execute changes. As such analysis of this model are as follows -
Awareness -
In this stage it is important for leaders in the management to offer awareness and an
adequate data to their candidates that are linked to the requirement for change in the
Illustration 3: SWOT Analysis, 2021