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Business Strategic Management Plan by Sainsbury

University: Queen Mary University of London

  • Unit No: 2
  • Level: Post Graduate/University
  • Pages: 10 / Words 2545
  • Paper Type: Assignment
  • Course Code: BO1BSRE301
  • Downloads: 839
Question :

This assessment will cover following questions:

  • Demonstrate the impacts of the micro environment  in the Sainsbury and the business strategies.
  • Business Strategy is the set of the plan, actions and goals which analyse products and services  to compete in the market. Generate the business internal environment  and its capabilities.
  • Business strategy helps in understanding the strengths and weaknesses of organisation. Evaluate and implement the outcomes of an of the analysis using Porters Five Forces model  to a given market sector.
  • Apply model, theories and concepts and assist with the understanding and interpretation of strategic directions available to  Sainsbury .
Answer :
Organization Selected : Sainsbury


Business strategy refers to the business tactics or actions that are used by the company in respect of attracting customers to the business. Strategy is mainly undertaken in relation to strengthening the performance of the company or also setting the goal which is to be achieved within the stipulated time period (Bentham, 2018). The present report is based upon Sainsbury which carries the renowned brand image in the market and such a concept is brought by John James Sainsbury in 1869. It is examined that they are carried to be the third largest supermarket chain in the UK. This report will include the matter relating to internal and external factors that provide information regarding planning for business strategy. It also carries the aspects relating to undertaking the theories and business tactics for initiating an accurate strategic management plan.

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PART A- Internal and external factors


In relation to undertaking the external analysis PESTLE is conducted which helps company to examine the factors which affects the strategy of business externally (PESTLE AND SWOT ANALYSIS OF SAINSBURY’S 2017, 2020). It carries the following such as:

  • Political:Sainsbury causes the major impact during the time of Brexit as most of the people decided to move from EU. This results in facing issue regarding importing the goods from abroad. Thus, the impact arises due to facing strict government norms regarding promoting the business into different countries (Edwards and et.al., 2019).
  • Economic:The impact which the Sainsbury faces externally is adapted in case of rise in fossil fuels which results in causing heavy expenses of transportation cost. It also causes impact regarding fluctuation in interest rate, thus impact arises due to raising in expectation of getting higher salaries to employees.
  • Social:This is one of the major external factors which results in causing deep impact to Sainsbury in form of changes in market trends (Mkansi and Nsakanda, 2019). Thus, in such aspects they are preferring healthy and eco friendly products and also conscious about knowing the dealing of raw material.
  • Technological:Technology play the important role in sustaining business in market for longer way. The impact arises due to lack of data security or also home delivery of products within the set stipulated time period. Thus, digital services are demanded in market by the consumer to order the products online.
  • Legal:In this factor, the impact arises due to changes in government norms such as in case of sugar tax, it results in reducing the amount or percentages in sugar drinks. Thus, impact arises regarding delay in taking the right decisions.  
  • Environmental:The impact arises due to changes in climatic conditions which arises due to reduce of carbon gases during the time of producing the products. Thus, the impact arises regarding not delivering the products within the stipulated time or also getting damaged products due to changes in weather conditions (Nazareth, 2019).

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It is undertaken to analyse the five forces which resulting in examining opportunity and threat to Sainsbury. It indicates the following such as :

  • Power of buyers:Sainsbury carries the high bargaining power as buyer had wider option to choose the products from particular supermarkets.  
  • Powers of suppliers:They carry the low bargaining power as Sainsbury deal with larger number of supplier regarding purchasing the raw material.
  • Competitive rivalry:They face competition from the three major supermarkets such as Asda, Tesco and Morrison. Thus, it arises to be major threats for Sainsbury regarding promoting the products in market (Shalhoub, Marshall and Ippolito, 2017).
  • Threats of substitutes:It is examined regarding dealing in same products in market which is similar to other company products. Thus, this is the opportunity for Sainsbury regarding attracting the customer towards offering the innovative and useful products in market.
  • Threats to new entry:It is mainly faced in relation to carrying the strict government norms. Thus, in such case Sainsbury faces low threats in entering into the new market.

2) Sainsbury capability (VRIO model)

This carries to be the internal analysis tool which is mainly adapted in respect of determining the internal working of the company and also it helps Sainsbury in examining the competitive advantages. This can be undertaken as follows:






Financial resources

Yes, highly valuable (Jellil, Woolley and Rahimifard, 2018).

Yes, they are rare.

No, They are not so costly.  

Yes, Sainsbury are well-organized.


Yes, they carry patent right in respect of resources.

Yes, they are rarely committed.

Yes, they are difficult to imitate (Mussa and Zhi Zhang, 2016).

No, they are lack in managing the patent rights.


Yes, employees are valued (Thompson and McLarney, 2017).

Yes, they are highly trained

Yes, employees are easily affordable.

Yes, due to high management skills.

Distribution network

Yes, valuable resource are undertaken.

No, it not considered to be rarely found.

Yes, they are costly.

Yes, they are organized in systematic way.

Through this manner, the strength and weakness of Sainsbury is identified regarding dealing in various activities to get better results.


This analysis is mainly conducted to examine the internal factors which helps in undertaking the business planning in better way (FATRICIA, 2016). It carries the following such as:

  • Strength: Sainsbury carries the strong marketing strategies regarding retaining the customer interest towards the business. The quality of the foods and the services which thy are offering resulting in sustaining the business in market for longer way.
  • Weakness: Sainsbury deals in single operating market which results in carrying only the stores in UK. This in case of fluctuation in prices or changes in taste of the customer regarding food products resulting in declining the profitability which arises through sales (Haleem and Jehangir, 2017).
  • Opportunities: Sainsbury attains the opportunity regarding dealing in providing healthier products to their customer, so that they can enhance the business for longer way. They also carry the opportunities regarding using the technology to promote the business at larger level.
  • Threats: Sainsbury faces threats in resulting to facing tough competition in market regarding promoting the same products. Threats also arises resulting to impact of Brexit which resulting in fluctuation in price rate (Devitt and et.al., 2016).

PART B - Strategic Plan

1) Strategies:

By applying Bowman's strategic theory, it carries 8 major aspects and among such aspects, it helps Sainsbury in dealing on which particular factors:

  • Differentiation:It is undertaken regarding providing the high quality products with enhancing the brand loyalty among customer (Aluko and Knight, 2017).  
  • Focused differentiation:It aims is to focus on particular segment regarding differentiating the products.
  • Risky high margin:In this business sets high prices with not offering any complementary services to customer.
  • Monopoly pricing: In this monopoly is maintained regarding offering single products which the choice of buying it or not (Sniehotta and et.al., 2019).
  • Loss of market share: In this minimal pricing is set regarding retaining customer towards the products for longer way.
  • Low price and low added value:In these products are to be sold in market with low pricing and also with low valued added on it.
  • Low price:Products are to be made with the motive of carrying the less profit's margin.  
  • Hybrid:It carries the mixture of low pricing with good valued added on the products and also different the products with other company products (Godley and Hamilton, 2019).

Thus, from this theory, Sainsbury adapts the differentiation factors, through which they differentiate the products from other company products. As Sainsbury is carried to be third largest chain of supermarkets in UK and thus it is necessary to bring changes in their promotional technique regarding retaining customer interest towards the business (McGreevy and et.al., 2019). Thus, by undertaking differentiation in products resulting in fulfilling the customer needs and demands in better way and also make strong connectivity through bring changes as per their demands.

Porters generic strategies theory:

This theory indicates that how company can achieve success through emerging from competitive environment. It mainly carries the following aspects such as:

Cost: In these, products are to be offered on lower pricing, so that they can enhance their interest towards the products for particular time period.

Focus: It mainly related to focusing on particular segment through which they promote their goods and services in better way.

Differentiation: In this differentiation, is to be done regarding differentiating the products with the other company products.

Sainsbury, uses the Concept of differentiation which is one of the basic needs examining through external factors. As lot of competitors are emerging in market, thus, it is necessary the healthy and eco friendly products are provided to customer to retain their interest towards the business (Souza-Monteiro and Hooker, 2017).

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2) Producing a strategic business plan





The key objective is to reduce heavy expenses.

The management of the company must focus on maintaining effective financial plan.

Relocating the office to more cost-efficient area. Make a strategic cost and attain economies of scale.

Management and financial assistants will review the plan.

To stand out in the market from its competitors.

To carry out a market research and understand the strategies adopted by Asda, Tesco and Morrison.

Sainsbury must focus on carrying out effective promotional and marketing techniques.

Marketing and reach team will review the plan.

To stringently comply with the norms and regulations of the government.

To prepare a legal team in order to make necessary decision associated with the legal norms, rules and regulations.

Continuously upgrading with rule and legislations implemented by the government in order to perform business activities in legal manner.

Company secretory, advisory team and legal team will review the plan.

To understand the needs, wants and preference of the customers.

To analyse the current market trend and preference of the customers.

To communicate with the customers and identify what are their current needs and preference.

Research team and management of the company will review the plan.

To increase the market share and sales of the company.

To analyse the target market.  

To integrate with online shopping platforms such as mobile application and personal website.

Research team and management of the company will review the plan.

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From the above study, the report conclude the matters relating to carrying various strategies which resulting in enhancing the growth and sustainability of the company in larger way. This report is prepared on the bases of Sainsbury company and also the strategy are undertaken regarding facing issues in expanding the business externally. It also determines the aspects relating to internal working of the company regarding managing the activity in better way. It also carries various strategies which resulting in providing better procedure to sustain in market for longer way.


  • Aluko, O. and Knight, H., 2017. From corner store to superstore: a historical analysis of Sainsbury’s co-evolution. Journal of Management History.
  • Bentham, J., 2018. Business and Economics in the News–Sainsbury's and Asda-the decade's mega-merger. Teaching Business & Economics. 22(3). pp.11-12.
  • Devitt, C. and et.al., 2016. Stakeholder perspectives on the use of pig meat inspection as a health and welfare diagnostic tool in the Republic of Ireland and Northern Ireland; a SWOT analysis. Irish veterinary journal. 69(1). p.17.
  • Edwards, C. H. and et.al., 2019. A single-enzyme system for starch digestibility screening and its relevance to understanding and predicting the glycaemic index of food products. Food & function, 10(8). pp.4751-4760.
  • FATRICIA, R. S., 2016. SWOT ANALYSIS OF SAINSBURY’S SUPERMARKET. Jurnal Manajemen Terapan dan Keuangan. 5(1).
  • Godley, A. C. and Hamilton, S., 2019. Different expectations: A comparative history of structure, experience, and strategic alliances in the US and UK poultry sectors, 1920–1990. Strategic Entrepreneurship Journal.
  • Haleem, F. and Jehangir, M., 2017. Strategic Management Practices by Morrison PLC, UK. Analysis, Lessons and Implications. Middle East Journal of Business. 55(4182). pp.1-7.
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