Unit 32 - Business Strategy, Strategic Management Plan Assignment Sample

Introduction of Unit 32 – Business Strategy, Strategic Management Plan Assignment

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Current study topics specifically include the strategic planning for the organizational management and enhancing the activity in an effective scenario. The present study paper specifically chose Sainsbury plc to include different types of value-added management in the business scenario for the global trading context. On the other hand, establishing a stakeholder activity and identification of different types of potential clarification of the business management is also included in this study paper. The following section of this paper also includes the new market entry related to different types of potential risk factors and advantages. It specifically clarifies the competitive market management with strategic decision-making related business components.

Part A: Internal and external analysis for strategic decision making

1. Evaluation of capabilities of Sainsbury PLC

1.1 PESTLE

Table 1: PESTEL analysis of Sainsbury plc

(Source: Influenced by Vorobyov et al. 2019)

Sainsbury plc and its multinational cooperative management with the largest supply chain scenario in the UK related supermarket situation are also greatly expanded in the global business context. As viewed by Ginter et al. (2018), through different types of political and economic management in the present time Sainsbury plc suffers due to the inflation rate and other economic conditions. Consequently, through some creative management in the business situation and important stakeholder opportunities in the business scenario help to expand, they are supply chain management in the global context and it also includes different types of internal management to enhance the business (Sainsburys.co.uk, 2021). Environment related important policy and their carbon footprint related to some important management also enhance their business in an effective pathway. “Sugar – tax” policy specifically enlarges their business context in a great situation and with the help of UK Government related eco-friendly management Sainsbury plc significantly enhances their business credibility with some understanding approaches to their external business factors (Mbaskool.com, 2021).

1.2 SWOT

Table 2: SWOT analysis of Sainsbury plc

(Sources: Created by Researcher)

2. Porter's five forces model

Table 3: Porter's five forces model

(Source: Self-created)

3. Competitive advantage analysis

3.1 Identification of the potential competitive advantage of

An appropriate definition of competitive advantages is to improve the ability to stay in the competitive market scenario and evaluate the business strain that weaknesses with the approachable management (SATO, 2020). A convenient approachability to the new innovative market strategy with value added service is the main and largest factor of Sainsbury plc. "Competition and Market Authority" include a spontaneous business strategy in the competitive market scenario that enhances the individual business management of Sainsbury plc (Sainsburys.co.uk, 2021). Frequently the direct and indirect investment with appropriate time span helps to engage; their potential activities that help to establish a long-term sustainable business management.

(Source: Stratechi.com, 2020)

Sainsbury plc's latest blend of loyalty and different types of priorities information help to manage a great network development across the UK related business scenario and it also helps to take a little step on the international business market (Stratechi.com, 2020). Innovative ideas about the business sale and the appropriate leadership quality with some effective business substitute engage a satisfied marketplace desire to engage their target customer in an appropriate pathway.

3.2 Justification of the organization’s existing

Appropriate market analysis and different types of network impact are now enhancing the value added business policy for both domestic and international business situations. As viewed by Ginter et al. (2018), Sainsbury plc related different types of social networking with the virtual platform and technology. Some innovative uniqueness also enhanced the business management in an approachable way. The appropriate justification for Sainsbury plc's largest existing supermarket in the UK based supermarket specifically includes the brand loyalty and innovative idea for the customer satisfaction with an appropriate supply management system (Sainsburys.co.uk, 2021). Lockup supply is another major supply management that includes the retail partnership and different types of a distributor to provide on time delivery.

(Source: Pngwing.com, 2021)

It is also involved in customer demands and also includes cost effective management in the business area (Sainsburys.co.uk, 2021). Globalization is now one of the important factors for the growth of business and expansion in the entire world related business area and it needs an appropriate economical shift. The explanation of the business management with a unique strategy always needs a promotional activity and some online presence related to effective business networking (Pngwing.com, 2021). Sainsbury plc includes a great business approach in the UK related market area and they also try to implicate some important shareholder management to enlarge their business in the global context.

4. Devise valid strategies and tactical objectives to achieve overall strategic objectives 

Expand business through acquisition and collaboration

The overall objective of Sainsbury PLC is to provide great quality food to the potential consumer at an affordable price. Demand for Sainsbury PLC's food is high in the international marketplace. For this reason, expanding business through merging and acquisition is an effective strategic plan to fulfil the ultimate objective of Sainsbury PLC. As cited by Rohwer and Topi? (2019), acquisition is very common in current market scenarios and it is the most efficient way to adapt to an unknown marketplace. Merging and acquisition provide pre designed infrastructure to a company which increases competitive advantage in an international marketplace. Sainsbury PLC will be able to expand its business in mode regions through this strategic decision.

Develop supply chain management

Impact of covid 19 has been seen in the supply chain management of every company however it has created an opportunity for Sainsbury PLC to develop its supply chain management and gate a competitive advantage in the international marketplace. As opined by Baset et al. (2019), most companies are focused on designing a green supply chain for their business activities. In this way, Sainsbury PLC will be able to establish its brand in the global marketplace and maintain cost competitiveness with green supply chain management. Green supply chain management is the most effective strategic decision for Sainsbury PLC to achieve long term strategic objectives.

Control increasing cost of products

Different kinds of uncertainty have been seen in the global marketplace which has created uncertainty in global business. Increasing cost of raw materials for grocery products is a big threat for Sainsbury PLC; however, Sainsbury PLC needs to implement efficient workers who can operate technologically advanced devices to control increasing costs. Mission of Sainsbury PLC is to provide best quality products to the consumer at a low price and controlling cost is most necessary in current work. Sainsbury PLC is the second largest grocery supermarket in the United Kingdom and it has more than 1500 shops in different regions (sainsburys.co.uk, 2022). Increasing production units can help Sainsbury PLC to control the per unit cost of products.

Improve corporate social responsibility

Maintaining corporate social responsibility is the current trend in the global marketplace Sainsbury PLC can achieve its strategic objectives by improving its CSR activities. As cited by Li and Belal (2018), CSR activities help to increase awareness about a particular brand and provide a competitive advantage in the market. Sainsbury PLC is focused on creating innovative products for potential consumers that offer a different marketplace. Evaluating the competitiveness of Sainsbury PLC in the current market, it has found that it has a strong base that it must make decisions on expanding business in different regions. Corporate social responsibility will guide Sainsbury PLC to meet strategic objectives without any complications.

Part B: Strategic options for Sainsbury

1. Strategic directions available for Sainsbury

Mission

Mission of sense very is to become the first choice of grocery products among global consumers. Sainsbury PLC needs to improve its cost management strategy as well as take innovative initiatives to provide service in different cultural places. The tagline of Sainsbury PLC is"help everyone eat better" and it needs to expand its availability in the global marketplace (sainsburys.co.uk, 2022). Strategic direction is a plan which focuses on implementing progress strategies to fulfil the goals of the organization. Helping the consumer to get products with their minimum effort and maintain their quality at an affordable price will help to achieve its strategic objectives.

Vision

The vision of Sainsbury PLC is to become the most trusted retailer in the global marketplace as well as provide a healthy environment to the employees. Sainsbury PLC has decided to create an environment where people will love to work and shop (sainsburys.co.uk, 2022). Increasing the reward system for innovative ideas of employees is going to improve strategic options for Sainsbury PLC. Supplier environment and consumer behaviour are effective for Sainsbury PLC however increasing competition has created uncertainty for Sainsbury PLC. It is difficult to adapt to an ever changing environment and maintain a consistent cost of product in the global marketplace. Consulting with an expert and product development manager will help to create an effective vision that can sustain strategic direction for Sainsbury PLC.

Development plan

A development plan is the most effective strategic option for an organization. Several types of strategies are undertaken by global organizations in order to expand their business that is acquisition, collaboration, venture capital investment and other relevant strategies. Considering this type of strategic option Sainsbury PLC will be able to expand its business in different regions which are going to create a lot of opportunities to develop its revenue. Financial condition of Sainsbury PLC is stable and it has executed approximately 29048 million GBP of revenue in the year 2021 however Sainsbury PLC has suffered to maintain its liquidity over a long period (wsj.com, 2022). Consideration of sustainable technology and an effective development plan is a strategic direction to become a global leader in the retail marketing industry.

Periodic goals

Identifying uncertainty and potential outcome of an organization for a long period are difficult because setting up periodic goals is a strategic direction for Sainsbury PLC to establish short term plans and sustain profitability for a long period. As cited by Yaakob et al. (2019), short term plans are most effective to deal with uncertainty. This strategic option is going to be more beneficial to balancing strategic decisions and the organization's growth in a competitive marketplace. Sainsbury PLC is already established and holds number two positions in the grocery market in the UK however it needs to improve production lines as well as work on training programs for diverse team members to increase productivity.

2. Recommendations for growth strategy

Expand business

Growth is dependent on market capture of a company that Sainsbury PLC needs to expand its business in different places and deal with diverse team members to operate a business. Business expansion is going to be a growth strategy for Sainsbury PLC because it has a good brand value in the international market. As cited by Lin et al. (2020), most organizations are expanding their business in different regions through digital marketing strategy because it is the most efficient way to expand a business. It is recommended to improve the activity of Sainsbury PLC in social media and enhance business expansion plans in the global marketplace.

Understand ever changing consumer behaviour

Demands of consumers and their moral values differ according to their cultural values and their region. Understanding the behaviour of consumers is essential to developing business plans and sustaining product development processes. As cited by Alessa et al. (2021), understanding consumer behaviour is a difficult process which needs a strategic plan to communicate with potential consumers and identify their psychology. There are different kinds of uncertainty and threats for Sainsbury PLC which have been evaluated in the part a while discussing the internal and external environment of Sainsbury PLC. By understanding consumer behaviour Sainsbury PLC will be able to improve its performance and enhance its existence in the global marketplace.

Maintain cost competitiveness strategy

Mission of Sainsbury PLC is to provide quality products at a low cost which is one of the major strategic options for Sainsbury PLC to attract potential consumers. The current ratio of Sainsbury PLC in the year 2021 is approximately 0.60 which represents the efficiency of Sainsbury PLC to maintain a balance of working capital (wsj.com, 2022). In this context, Sainsbury PLC needs to develop financial planning and reconstruct its budget to maintain cost competitiveness in the global market. A large number of funds are required in the business expansion plan and the cost competitiveness plan will contribute to maintaining the financial stability of Sainsbury PLC.

Innovative strategy and new product

Demand for food is changing day by day due to the change in food behaviour of the consumers. In this context introducing new products and foods for consumers that can provide a healthy diet is recommended for Sainsbury PLC to improve its competitiveness. Sainsbury PLC includes more than 15000 varieties of products in its retail and online store (sainsburys.co.uk, 2022). However, Sainsbury PLC has to improve its infrastructure and recruit diverse members to create new products for new consumers. Offering a wide range of foods creates brand value and sustains the existence of a business for a long period.

Develop production line

Development of the production line is essential for Sainsbury PLC in order to maintain cost competitiveness. Infrastructure of most of the stores of Sainsbury PLC is old and will change with time. Sainsbury PLC has to organize a running program for its employees in order to increase their efficiency and behaviour to deal with potential consumers. Production line and service quality improvement are recommended for Sainsbury PLC to achieve strategic objectives in the upcoming period.

3. Evaluate ways and means by which the chosen strategy

Digital marketing

Digital marketing strategy is chosen that will help Sainsbury PLC to expand its business in the global marketplace without investing a large number of funds. Sainsbury PLC has to strengthen its online website to manage engagement of a large number of consumers and maintain safety and privacy of potential customers. As opined by Santoso (2020), digital marketing helps to provide statistical data through different diagrams that help in strategic decision making of a company. Sainsbury PLC will be able to become a market leader in the upcoming period through consideration of digital marketing strategy because after covid 19 most the consumers have preferred to purchase products from online stores instead of visiting physical stores which are time consuming and expensive.

Financial analysis

Sainsbury PLC has provided consistent growth over a long period however a large number of funds are required to develop a cost competitiveness strategy in the current market. As cited by Akter et al. (2020), dealing with financial uncertainty and maintaining the cost of the product is difficult for digital financial analytic tools to improve the decision making ability of the manager. Accurate financial analysis is required to maintain working capital and satisfy employees with incentives and rewards for their excellent work.

Run a campaign to understand consumer behaviour

Understanding consumer behaviour is a difficult task for a company, however, organizing a campaign to our potential consumers about a particular product helps to interact with consumers directly. In this way employees of Sainsbury PLC are able to understand the behaviour of consumers for a particular product or service. A lot of organizations organize campaigns to increase social awareness of different topics. It increases the living standard of people and helps to develop society. Campaign plays a vital role in every organization to sustain its competitiveness in the global marketplace.

Diverse team

Innovative products are required within the organization to improve performance of Sainsbury PLC. As stated by Wang et al. (2019), expanding business in different regions is going to allow Sainsbury PLC to recruit diverse team members to the employee team. Collaboration of diverse team members helps to increase innovative strategies and develop cost competency in the global marketplace.

Implement advanced technology

Efficient supply chain and production line are recommended to sustain the growth of Sainsbury PLC. Implementation of advanced technology is the most effective strategy to develop infrastructure and production lines for the growth of Sainsbury PLC. Consideration of advanced technology is going to increase opportunities for Sainsbury PLC to deal with uncertainty and establish the number one choice of a consumer in this particular industry. aAdvanced technology is required to improve performance of production line as well as contribute in sustainable development of workers skill that they can provide more output for the company

Conclusion

In the first part of this study, the internal and external environment has been analyzed which has represented the infrastructure of Sainsbury PLC and its potential opportunity in the marketplace. Evaluating SWOT it can be said there are a lot of uncertainty and threads however Sainsbury PLC can take necessary initiatives to become a market leader in the upcoming period. This study has evaluated Porter's five forces to analyze market competitiveness which has helped to identify competitive advantage of Sainsbury PLC and justified its existence. However strategic options for sense have been discussed by identifying its mission and vision for the development plan. It has been found that Sainsbury PLC needs to expand its business in different regions and develop financial management through consideration of advanced technology to contribute to the consistent growth.

Reference

Book

Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care organizations. John Wiley & Sons.

Journals

Abdel-Baset, M., Chang, V. and Gamal, A., 2019. Evaluation of the green supply chain management practices: A novel neutrosophic approach. Computers in Industry, 108, pp.210-220.

Akter, S., Michael, K., Uddin, M.R., McCarthy, G. and Rahman, M., 2020. Transforming business using digital innovations: The application of AI, blockchain, cloud and data analytics. Annals of Operations Research, pp.1-33.

Alessa, A.A., ALOTAIBIE, T.M., ELMOEZ, Z. and ALHAMAD, H.E., 2021. Impact of COVID-19 on entrepreneurship and consumer behaviour: A case study in Saudi Arabia. The Journal of Asian Finance, Economics and Business, 8(5), pp.201-210.

Barbosa, M., Castañeda-Ayarza, J.A. and Ferreira, D.H.L., 2020. Sustainable strategic management (GES): Sustainability in small business. Journal of Cleaner Production, 258, p.120880.

Chofreh, A.G., Goni, F.A., Klemeš, J.J., Moosavi, S.M.S., Davoudi, M. and Zeinalnezhad, M., 2021. Covid-19 shock: Development of strategic management framework for global energy. Renewable and Sustainable Energy Reviews, 139, p.110643.

Kang, E. and Hwang, H.J., 2018. Strategic management plan for transnational organizations. The Journal of Asian Finance, Economics and Business, 5(2), pp.119-128.

Li, T. and Belal, A., 2018, June. Authoritarian state, global expansion and corporate social responsibility reporting: The narrative of a Chinese state-owned enterprise. In Accounting forum (Vol. 42, No. 2, pp. 199-217). No longer published by Elsevier.

Lin, W.T., Chen, Y.Y., Ahlstrom, D. and Wang, L.C., 2020. Does international expansion constrain growth? Business groups, internationalization, institutional distance, and the Penrose effect. Multinational Business Review.

Rohwer, L. and Topi?, M., 2019. The communication of Corporate–NGO Partnerships: analysis of Sainsbury’s collaboration with Comic Relief. Journal of Brand Management, 26(1), pp.35-48.

Santoso, R., 2020. Review of Digital Marketing & Business Sustainability of E-Commerce During Pandemic Covid19 In Indonesia. JIET (Jurnal Ilmu Ekonomi Terapan), 5(2), pp.36-48.

SATO, H., 2020. Strategic management of medical incidents for patient safety and crisis management Applications of the principles of crisis management and recent developments in Japan. Journal of the National Institute of Public Health, 69(1), pp.41-51.

Trotsenko, A.A., Belevsky, T.V., Kievskaya, O.G., Alexandrova, E.Y. and Gurevskaya, L.A., 2018. Definition of the effective strategic enterprise management model in context of economic security. Revista Espacios, 39(36), p.18.

Vorobyov, A.D., Pozdeev, P.V., Kruglova, N.V., Nogovitsyna, O.S. and Tokareva, P.V., 2019. A Unified Methodology of Strategic Management and a Knowledge Management Model. TEM Journal, 8(2), p.554.

Wang, J., Cheng, G.H.L., Chen, T. and Leung, K., 2019. Team creativity/innovation in culturally diverse teams: A meta?analysis. Journal of Organizational Behavior, 40(6), pp.693-708.

Yaakob, M.F.M., Musa, M.R., Habibi, A. and Othman, R., 2019. Strategic management and Strategic Planning in school: Is it worth for teachers?. Academy of Strategic Management Journal, 18(3), pp.1-6.

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