Business Strategy -Sanisbury

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 organisation.

• Political factors: This factor relates to political issues that occur in organisation for the business development and that need to be sorted. The trade agreements between the other countries gives a new scope for market growth (Leonidou, Fotiadis, andet.al., 2015). The increasing globalisation challenge for the sainsbury organisation to increase its growth with growing market value.
• Economical factors: The factors that economically affect the firm is the employment rate which is very high so it costs much to hire skilled and qualified staff. As the highly trained staff will lead to high standard market which is likely popular in all supermarket. So the monetary value increases as the fuels price is also increasing. The revenues totally depends on consumer's buying power. So net income must be sufficient to spread and renovate stores.
• Social Factors: These are the factors that are related to society. Managing social relations or can say friendly relations with the customer develops a trust in customer's mind for the employee. If the customer find easier service and employee is helpful then the customer would come to same store every time when required so maintaining social factors is very important. Sainsbury participates in charities, develops finances for various causes, This shows the company is involves in many social affairs which is good the positive image of the firm.
• Technological factors: The use technology in the organisation in a right way is very important and necessary for the organisation's growth. For large amount of products , the details cannot be filled manually like making bills, stock list, update stocks,etc. These things need a proper technology that is automatic and just needs a skilled employee who knows to use it and can fill all the details appropriately (Bull, obstvogt and et.al., 2016). The online shopping that is another feature available at Sainsbury is a part of this factor .This is a great advantage to company for increasing customer base and to customer for easy access in the store by installing right technology in the right place.
• Environmental factors: These factors are very important as it is related to consumer's health. This is a policy of government to keep the environment and country clean. So dustbins are kept everywhere outside and inside the stores and also to manage waste new policies are adopted: “Reduce, Reuse, Recycle”. Also, the poly bags are banned to reduce pollution. All major steps are taken to improve the environmental factors that harm the people.
• Legal factors: These are the factors the related to government rules, laws, policies that are needed to be followed by the organisation do that no issues can hinder the growth of organisation later. So all laws must be followed and policies of company must be made according to government rules and has to be followed by everyone in the firm.

From the Swot and Pestle analysis, it can be said that company must make itself that strong to not get affected by the weaknesses and the competition around. Many new ideas must be created to add new products in the firm that are unique and liked by the customers. After the pestle analysis is done it can be said that the company can use all the factors and gain the profits by keeping in mind about the threats that can destroy the business and to grab the opportunities that come in the way of the firm (Gumusluoglu and Acur, 2016).

Go through this sample: Business Essential Assignment

P2. To analyse the internal environment and capabilities of Sainsbury

Sainsbury is the second largest retail stores in UK. It has 17.5% share of the sector in the market. It is basically a retail industry which deals lifestyle and household chores. It provides the customer with different attractive offers like shop and save which focus on promotions, switch and save which aims at quality and value and cook and save which helps customer manage their household budget. It focusses more on STP that is Segment, Target and positioning. It basically states the segment up to which the organisation has spread itself. Sainsbury's customer can shop online or offline. Both the facilities are available. The main target of Sainsbury is Households. They sell products that are necessary for living so customer gets attracted to buy the necessary product that result in increasing the productivity and popularity of the organisation.The next is positioning that means providing the products necessary for households to customers at very fair price or can say affordable price which gives a positive impact on the stores growth. The competitors of Sainsbury are Tesco , Asda Waldemar,etc.

Tesco is the market leader and holds 29% of market share. Asda Waldemar holds 17% shares. Sainsbury has placed itself as a reliable markets who give the best quality products at right process. Sainsbury is not involved in any of the issues like poor prices-poor quality products. Sainsbury was declared as the free from adulteration of food. This attracts more customers to sainsbury than other stores (Parnell, 2016). Also Tesco has found involved in adulteration of food in horse meat scandal. So Sainsbury has the positive image in the eyes of customer. Also, the employees are helpful and friendly so it comforts the customer which attracts them to come again to the store. The environment of the store is also good and clean.

Operations on Primary Activities:

Certain activities are related to production department in the organisation. This can be divides into various departments in the organisation. Eg :information counter, Cashier,etc. In Sainsbury. The major role of operation management is

Supporting the company's strategies:

This management is the essential part of a organisation. The strategies are made by board of directors that must be supported by operation management. It is the duty of the management to arrange the essential resources that are beneficial for company's strategies. The management has the duty to ensure sustainability of production which gives maximum profit for the company.

• Product Postioning:

It is the duty of operation management to make sure that the product that is launched in the market is a better option in the market than the other. Also positioning includes the presentation of product (Malerba, Caloghirou and et.al., 2015). The way in which it is shown to customer matters. Eg: both Sainsbury and Tesco sells the same product their way of presenting it must be some different to attract customers. This can increase benefits and profits and creates large no. of companies.

• Interdepartmental integration:

It is possible for the organisation to integrate various departments and this is done by operational management staff. The manager gives the work to certain departments separately and inform them where they have to integrate with other to obtain company's goals. Without this operation it is impossible for managing the work accurately.This is essential for avoiding conflicts and also it saves time in the process of production.

• Product differentiation:

The main aim of the organisation is to increase customer's base by satisfying them so satisfaction of customer is must. So the business focus on customer's demand. Sainsbury is large store containing large categories of products and also large no. of different categories of customers (Schaltegger, Hansen and Lüdeke-Freund, 2016). So the company focus on all consumers effectively.This is a way to enhance quality of product.

4 Vs of Operations Management- Volume which includes Sainsbury providing more food for less money.Variety which includes the firm providing different types of products. Variation which include services can be online and delivery services are also available. Visibility which includes product labelling and shelf positioning that makes it possible for buyers to find what they need.

The organisation must ensure the management is accurate because the way work is managed is the way it served to the customer.It is the aim of the organisation make sure that customer gets quality services and quality products both every time they visit the store in order to retain the customers again and again. Also, the organisation should use certain strategies to grow in the market and enhance their productivity and manage to make more profits. Sainsbury also developed banking services as to maintain position in the market (Kellermanns, Dibrell and Cruz, 2014.) . This facility helped the organisation a lot to gain popularity, increase customer base, enhance profits.

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PART B

P3 Porter's five force models for organizations-

Porters five forces model defines the tools for understand the business competition and business strategic planes who increasing the growth of business. This model also determines the intensity of competition in industry and its profit level. This model five forces are determines the company affecting and industry. Is also determine the structure of the level of the business. This recognizes that organizations keep close and watch their rivals, its examine the what other factors impact on the business environment. In the Sains-burry they adopt five forces model strategy to implements in its own business. Sains-burry is a large enterprise who selling their products to the customers in retail price. This model helps to define the Sains-burry organizations problem and their solution. This model helps to organizations to determines the impacts of external environments (Scholes,2015). Sains-burry is retail organization their business affects by the external environmental factors. In this five force model defines the starting business new threats the power of suppliers, threats of substitutes and the rivalry among existing competitors. Those five model mainly identifying the business strategy how to business start and their starting point of the business Their following five porters model which is identifying the business environmental factors and their working skills-