Sainsbury’s Market Presence

Introduction

Strategic management is the practice of formulating and implementing the strategies in the organisational workplace to fulfil the goals and achieve future sustainable development (Walton, Petrovici and Fearne, 2017). After conducting the internal and external business environmental analysis, the firms try to develop proper strategic planning by utilising the organisational resources and capabilities. The study aims at discussing the strategic planning and management process of the organisation. Through this paper, it is possible to conduct internal and external environmental analysis by using the strategic management tools and technique for identifying the future market opportunities and threats of the company Sainsbury’s, which is one of the major leading supermarket chains in the UK (Sainsbury’s, 2020a).

Simsbury’s is the second largest supermarket chain in the UK, having 16% market share where the organisation is efficient to serve the customers with high quality products and services. The major products of the company are related to hyper market, super market, and forecourt shop, discounted stores where the customers can find daily necessary goods including groceries, clothing and accessories, health and beauty products as well as home appliances. The organisation has more than 1415 stores and it is successful to serve the consumers across the UK (Sainsbury’s, 2020a).

Process used by organisations to determine their strategy

It is important for the organisations to have proper strategic management process, through which the firm can develop appropriate strategic planning and fulfil the organisational goals in long run. The strategic management process is a step by step technique, where the organisations firstly try to develop the mission and vision. By reviewing the organisational capabilities, the firm aims at developing the strategic planning and create the organisational mission. After that, strategic formulation is important where the external and internal business environment is evaluated for identifying the organisational resources and capabilities (Jegede, 2019). Through the internal environmental analysis, the firm is able to identify the strength and weaknesses as well as the external environmental analysis provide a scope to identify the future market opportunities and threat. After analysing the business environment, the organisation develops the business strategy and corporate strategy which improves the organisational wings to achieve success. By developing the leadership change and managing strategic activities in the organisational context, the multinational corporate brands try to implement the planning in the workplace and evaluate the results through understanding performance and organisational excellence.

The organisation Sainsbury’s is also efficient to follow proper strategic management process in order to sustain in the competition and gain high competitive advantage in the retail market of the UK. The company tries to develop proper organisational vision and values for developing appropriate strategic planning. The visions of the organisation are to be the most trusted retailer, where the people love to work and shop. By putting the customers at the heart of everything, Sainsbury’s tries to invest in their store to manage colleagues and channels for offering the best possible shopping experience (Sainsbury’s, 2020b). The missions of the organisation is to maximise the customer’s values by delivering high quality products and efficient services at affordable price which further helps the buyers to make effective purchase decision for the organisational products and services. The organisation is also efficient to develop the values which are sourcing integrity, living healthier lives, respecting for the environment, making positive contribution to the social communities and developing a great place to work (David, and David, 2016). The major strategy of the brand is to create values for all the stakeholders of the business, including the employees, managers, customers, suppliers and distributors, government, shareholders and social communities as a whole. The products diversification and cost leadership strategy of the firm is effective to utilise the organisational resources and deliver high quality products to the customers. The financial position of the organisation is strong where it has generated £29.007 billion revenue in the year of 2019 and the company also has strong infrastructure to run the business operational activities strategically (Sainsbury’s, 2020c). The organisation aims at strengthening their employee base by hiring more than 116400 employees at the company which is also improving the capabilities of the company to implement the strategic planning in the workplace. The other strategies of the firm are to market expansion and brand promotional activities as well as people management to develop a strong company in the market. The strategic planning process is hereby beneficial for the firm Sainsbury’s to evaluate the market condition to run their business operations and implement the strategies successfully (Sainsbury’s, 2020d).

Models and tools used by organisations to determine their strategy

The major models and tools utilised for determining the strategy are such as PESTLE, SWOT and Porter’s five forces model, which are beneficial for the organisation to identify the internal and external business environment and develop further strategic planning to run the business successfully. The PESTLE analysis is mandatory to analyse the external market condition where the firm Sainsbury’s can assess the market trend and the current practice in the retail industry. Through the PESTLE analysis, it is possible to analyse political forces in the UK economy, economic growth and social developmental activities, technological advancement, legal framework and environmental condition in the retail industry.

Table 1: PESTLE analysis

Table 2: Porter’s five forces analysis

Table 3: SWOT analysis

Evaluating the tools in the organisation

The above mentioned tools are utilised properly for analysing the external and internal business environment for the organisation Sainsbury’s, where it is possible for the organisation to assess the market condition and develop proper strategic planning for future sustainable growth. The strategic management process is also utilised in the company Sainsbury’s for effective management of the business and securing future sustainable development (Sainsbury’s, 2020e). The organisation is successful to manage the operations by utilising the organisational resources and capabilities. It is also beneficial for the firm to utilise the UK retail industry where legal framework and the government cooperation are beneficial to run their operations sustainably. The environmental protection rules and legislations further influence the organisation to act responsibly and create values for the social communities as a whole. As per the external and internal environmental analysis, the major opportunities for the firm Sainsbury’s are high chance for market expansion, utilising latest technology, utilising the ecommerce growth and developing online groceries and convenience store, which would be beneficial of the organisation to make effective strategic planning to internationalise the firm and secure future sustainable development (Sainsbury’s, 2020d). On the other hand, the above analytical tools are effective for the organisation to identify the market threats in future which are intense competition, the threat of substitute products and the incident of Brexit. It further influences the organisation to identify alternative strategy to mitigate the threat and improve their performance for further expansion of the business.

Importance of change management based on the complexity of the transformation process, its costs, risks and sustainability

As per the above analysis, the organisation must focus on develop effective strategic planning to expand the business and represent it in the international retail market and for this transformation process, it is mandatory for the organisation to manage change at the workplace and lead the employees towards achieving future success (Rothaermel, 2016). It is a complex phenomenon of the organisation to transform the business activities and implement new strategic planning where the major issues are related to internal conflicts, conflicts of interest among the stakeholders, resistance to change as well as misunderstanding, lack of communication and non-cooperation (Ansoff et al., 2018). Hence, change management process is important for Sainsbury’s to manage the strategic planning and implement the new tactics in the business. Through the change management procedure, the organisation can manage the employees and maintain diverse workforce for the business excellence. Additionally, the change management process is effective for Sainsbury’s to secure future sustainable development by managing changes and running the organisation uniquely. It further provides a scope to Sainsbury’s to maximise the organisational profitability and enhance sales volume of the business in long run. It is essential for the company to manage change at the workplace properly by developing sustainable options and utilising the organisational resources and capabilities (Sainsbury’s, 2020d). The major risk factors of change management and implementing the new strategy in the firm are failure to implement the new strategic planning are influencing internal conflict among the stakeholders mainly the employees due to differences in the interest of the stakeholders, poor management of the workplace, disturbance in the organisational culture, lack of trust and loyalty and employee turnover (Schilling and Shankar, 2019).

The major cost associated with the change process at Sainsbury’s are financial lose, breakdown of the organisational activities and performance, as well as management of the activities related to the new strategic planning. Trough the change management process, it is possible for the organisation to manage changes at the workplace and lead the employees towards achieving future success. The strategic planning would be sustainable in near future, if the organisational leader can adopt proper change management process in the workplace (Sainsbury’s, 2020c). The organisational leader and the management team of Sainsbury’s are efficient to lead the employees, by developing suitable working environment. Harmony and freedom to work at the workplace as well as encouraging the employee’s creativity and cooperation further motivate the staff to perform better and improve their participation in achieving future success. The organisational leader at Sainsbury’s also aims at sharing the important information related to the organisation as well as the leader tries to convince the people and let them understand the need for the changes in the workplace (Sainsbury’s, 2020f). This further helps to improve understanding among the employees and influence them to adopt changes. The leader also aims at enhancing communication among the staff as well as developing strong corporate bonding by improving trust and loyalty. For managing change, the leader also develops the incentive model and performance appraisal to encourage the staff members as well as empower them in the workplace for better management and leading them successfully towards achieving future success. Hereby, through proper change management practice, it is possible to make the strategy successful and sustainable in near future, where the leader can cooperate with the people at the workplace and develop tactics to achieve future organisational success (Sainsbury’s, 2020f).

Conclusion

It can be concluded that, the organisation Sainsbury’s is efficient to run their operations in the retail market of the UK and manage the strong workforce to secure future sustainable development. As per the market analysis, the major opportunities are customers insights, market expansion and technical advancement, where Sainsbury’s can utilise their resources and capabilities to fulfil the organisational vision and mission strategy. The company is also efficient to manage change at the workplace by developing proper organisational culture, providing suitable workplace to perform better and managing the staff by providing monetary incentives and non-monetary rewards. Hereby, the strategic planning process can be implemented properly through creating organisational vision, utilising the resources and implementing the tactics where the change management should be handed properly by the suitable leadership and managerial style.

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