The scenario in this report is stating to understand macro and micro factors that are impacting the business of Sainsbury.
- Analysis of those factors which are impacting Sainsbury in an effective manner.
- Assessment of internal capabilities holds by Sainsbury.
- Evaluation of porters five force model for Sainsbury.
- Application of various theories in order to give strategic direction to Sainsbury.
INTRODUCTION
The term business strategy itself says the strategy or plan to reach high level of business aims. Strategy is a success when its executed and it gives business profits,growth, etc. Strategy must be changed if it does not give any profits to business. It is basically an organisation's work for achieving certain goals of company for its vision,competition and performance (Dahlberg, Hokkanen and Newman, 2016).It is a plan to see how a firm works to meet the goals of the organisation. Here the organisation is Sainsbury which is a grocery store. This report states the growth of company by analysing the capabilities of Sainsbury organisation by applying pestle and swot analysis and Porter's five forces model . Also the analysis of internal environment and capabilities of the firm with respect to other companies is shown. And lastly a strategic plan is made applying theories, concepts and models of the organisation.
PART A
P1 Analysing the capabilities of Sainsbury organisation by applying PEST/LE and SWOT frameworks on the organization
Sainsbury is the third largest food retailer in the United Kingdom. The retail sector is going through a rapid change, as customer shopping habits continue to increase. This led in increasing competition across grocery, general products and clothing, as customers see more value, options and convenience. Sainsbury and Asda together will result in a more competitive business that will be able to invest in price, quality, range and the technology to create easier ways for customers to shop. It has the products and services available at one call and at fair price. The employees in the firm make a great difference in the performance sector. They are available 24*7 for the customers (Scholes, 2015). The morales of the organisation makes the organisation different from other.The employees build strong relation with the colleagues to build trust, reduce operating costs, and attract more people in a crowded marketplace.
SWOT Analysis of Sainsbury-
The swot analysis is conducted to increase the profits and gain objectives of the company. This includes strength, Weakness, opportunity and threats.
- Strength: It is one of the largest supermarket chains in the UK. It has the large number of loyal customer base. It is famous for its fair price and quality of products. It has the large number of trained employees who focus on customers and attend every customer with dignity. It provides various famous and good brands products and promotes the products as well in a very attractive way. The company focus on investing more in developing infrastructure and additional features for the benefit of the firm to attract more customers. Different facilities are provided in the firm for customer's usage ,satisfaction and east access to store.
- Weakness: There is continuous competition in the market for retail stores so it affects the firm a lot. There is more problem in getting trained and skilled employees .It is restricted to UK only. It totally depends on the local market (Johnson, 2016).The communication skills of the employees is limited and sometimes it becomes difficult for customers to get desired products easily.
- Opportunities: As the market is expanding, so it brings more opportunities for the organisation to expand the business at national or international level. It can also grow or start its chain in other emerging countries. Some countries also offer low labour cost. The company can increase some features and some new products for the business growth. Opportunities to grow online is also there as customers love to shop online so it is the best way to increase productivity.
- Threats: There are various competition in market in the same business and those are the biggest threat to the organisation. Also, some natural disaster that occurs sudden are a danger to the organisation. Company tries to achieve a targeted margin every year and that is difficult to achieve so that becomes a problem for the company.
PESTLE analysis of sainsbury-
It contains political, economical, social, technological, legal and environmental factors that are included in this analysis which done for the development of the org
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