MAN7131 International Strategic Management Student name Student id Introduction This presentation is about a well-known brand known as Sainsbury's. Strategic management tools, ideas, and frameworks for assessing Sainsbury's are shown in this presentation. Organisational strategies assist firms in simplifying decision-making by explaining optimum approaches to attain objectives (Dawes, 2018). Overview of the Company: The company excels at meeting and even exceeding the high standards set by its customers throughout a broad spectrum of service offerings. One hundred sixteen thousand four hundred people work for Sainsbury and are committed to the company's growth and prosperity (Dawes, 2018). Sainsbury's company may benefit from having direction and consistency in its operations if it adopts an organisational strategy. Strategic management A solid, well-thought-out strategy is the backbone of every successful business. There are several levels at which strategy operates, the most basic of which is the company or corporate level (Nguyen, 2020). The ultimate goal of every organization is to become the market leader, therefore that is the foundation upon which a company's growth, competitive, and marketing strategies are built. VMOST Analysis Porter’s Five Forces SWOT PESTLE Ansoff’s matrix VMOST ANALYSIS • Vision: Provide Superior Products at Competitive Prices. • Mission: Sainsbury is committed to providing consumers with products and services that meet or exceed industry standards. • Objectives: Offers quality products at affordable prices. • Strategy: Use a fair pricing policy as a strategy. • Tactics: Limited range with price change policy and provide branded products Sainsbury's vision, purpose, business goals, and values may all be mapped out using the basic strategy model. This model provides guidance for Sainsbury as it maps out its strategy for achieving its objectives in the United Kingdom, keeps tabs on its progress to ensure that everyone remains on track, and deals with problems as they emerge (Dawes, 2018). Figure out what Sainsbury's main objectives are. The success of Sainsbury's team may be improved by establishing and communicating defined company objectives. Outline tactics that will assist Sainsbury in attaining Sainsbury's aims. Determine the longterm, intermediate, and short-term objectives that must be accomplished if Sainsbury is to achieve these targets. Construct plans to put the methods above into motion. Plans of action will keep staff inspired and Sainsbury's on track. Keep an eye on Sainsbury's progress in the UK and make adjustments to(Dawes, 2018) strategy as needed. The mission of Sainsbury's: Sainsbury's "Live Better for Less" mission statement for 2021 is meant to signal to prospective consumers that the firm is wholly committed to meeting their needs in whatever way, shape, or form (Dawes, 2018). As part of this tagline, you will find: It is a way of saying that a business cares more about its customers' happiness than making a profit. The goal of Sainsbury's: Its mission as a supermarket chain is to provide its customers with the highest quality fresh, nutritious, and delicious food possible in the United Kingdom at the lowest possible prices. As a result, consumers' lives are improved and made more secure at less cost. Their mission is to provide all prospective consumers with a positive and rewarding shopping experience by providing high-quality goods and services at reasonable costs (Dawes, 2018). Objectives of Sainsbury's: According to Sainsbury's objectives, the company aims to provide its customers with a wide range of high-quality foods and household goods at competitive prices. Sainsbury's are also focused on providing its customers with good service by offering a range of services such as online ordering, click & collect service, loyalty card, and more. Values of Sainsbury's: Sainsbury, a British supermarket chain, places a premium on providing customers with nutritious, high-quality, and delicious food. Their primary goal is to provide you with the most persuasive items at the most reasonable prices (Dawes, 2018). Porter’s Five Forces Model Competition from Newcomers Suppliers' Ability to Bargain Purchasing power in negotiations Possible Competition from Alternative Products and Services Competition Amongst the Current Market Players(Godet, 2019) Threats of New Entrants: Sainsbury (J) Plc confronts competition from new retailers that provide cheaper pricing techniques, save costs, and bring unique benefits to shoppers. Sainsbury (J) Plc must cope with these risks and build efficient barriers if it wants to keep its competitive edge. Countering New Competitors: What Sainsbury (J.) Plc Should Create state-of-the-art products and services. New products from Sainsbury (J) Plc bring in new customers and provide the company's established clients a reason to keep buying. The increasing output might lead to economies of scale, allowing for lower fixed costs per unit. Putting money into research and development and building up the current system (Nguyen, 2020). Bargaining Power of Suppliers: Nearly every company in retail obtains its primary inputs from a wide range of providers. Sainsbury (J.) Plc's profit margins may be impacted by suppliers in a dominating position. Some suppliers in the Consumer Services industry have the clout to force retail companies to pay higher costs as a result of price hikes they have negotiated. Having more leverage in negotiations with suppliers tends to reduce retail profits as a whole (Nguyen, 2020).Methods through Which Sainsbury (J.) Bargaining Power of Buyers: Shoppers have a reputation for being fussy. When it comes to purchasing the best goods and offerings on the market, they want to do it while spending as little as possible. For Sainsbury (J) Plc, this was bad news for the bottom line in the long run. The more dense and important a company's client base is the more sway individual customers have in pricing negotiations with Sainsbury (J) Plc, and the higher the likelihood of receiving favorable terms. Options for minimizing consumer haggling that Sainsbury (J.) Plc may use. Threats of Substitute Products or Services: The market may be disrupted when a new product or service meets an unfulfilled need in a way that is fundamentally different from the status quo. Cloud-based services such as Dropbox and Google Drive may replace traditional hard drives. When a substitute product or service offers a different value proposition from the norm, it poses a severe threat to the incumbents in the market. If the customer's primary concern is not the quality of the product or service, it may be easier to identify and meet those demands. Customers' ability to switch service providers is hampered (Nguyen, 2020). Rivalry among the Existing Competitors: How Sainsbury (J.) Plc Can Create a Sustainable Differentiation to Conquer Fierce Rivalry among the Existing Competitors? How Sainsbury (J.) Plc Can Create a Sustainable Differentiation to Conquer Fierce Competition From Its Peers in the Retail Industry Scaling up to better complete working together with rivals to grow the market rather than squabbling over a limited share (Nguyen,2020). SWOT Analysis The SWOT analysis is a widely used tool for developing effective strategies. Sainsbury may benefit significantly from a SWOT analysis, which will assist the company in discovering potential growth and security issues. The acronym SWOT refers to a company's "strengths," "weaknesses," "opportunities", and "threats". Strengths: Affordable food: Direct the buyer through the whole life cycle of a food item, believing just as firmly as the client that food should be both healthy and delicious. Sainsbury's takes the initiative to maintain its position as an industry leader by providing customers with highquality goods at competitive rates from reliable suppliers. When we last checked, they were the most prominent online vendor of fair trade products in the world. Expanding Supermarket space: Increases in supermarket square footage to grow gross area by 15 percent over the next two years; the company has announced plans to open several additional supermarkets selling a full range of food and non-food goods. Weakness: Companies battle for more profits since that is their primary goal. It is hard to optimise revenues. Companies can only generate money if the market permits it. Limiting competition is one way to boost profits. Due to market rivalry, Sainsbury's has low earnings. The prior year, Sainsbury's had a net income loss. Sainsbury's sustained a loss by undercutting competitors' pricing. Growing retail competitiveness and online retail danger make it unsustainable. To earn the highest profits, businesses constantly strive to reduce operating costs. Costs will be more significant for a company with a high cost of operations. Less profit will be made as a consequence. Opportunity: 24*7 Service: Sainsbury's should offer self-checkout automated tech. This would enhance sales by simplifying and speeding up the process. Globalisation: It Pays to Look Beyond the UK! The Competition and Markets Authority (CMA) denied Sainsbury's merger with ASDA, but the company is open to new challenges. Threats: Globalisation: Globalisation is a worldwide phenomenon that has been fostered by technological progress. Several companies have attained global prominence via successful expansion into new foreign markets. The company's legal and expansion initiatives are greatly hampered by the wide variety of applicable national laws and regulations. Competitors: Sainsbury's faces a real danger from its rivals, both those who can keep up with it and those able to create new technologies simultaneously. Sainsbury's has a wide selection of goods from many different departments. Although they face stiff rivalry from others in similar fields, niche-focused rivals in the various categories get the lion's share of the market. PESTLE analysis Political factors: Election, Unstable government. Economic factors: Costs of fuels, Converging trends of salary growth, and increased market competitiveness(Roberts, 2019). Social factors: Good trade and the promotion of healthy diets. Technological factors: E-commerce, Social network. Legal Factors: Legislation and policies have a direct impact on performance (Lu, 2019). Environmental factors: Carbon footprint, Plastic waste. The Final Thoughts on Sainsbury's PESTLE Analysis Sainsbury's is a major player among UK grocery stores. However, the company faces challenges such as high customer expectations for nutritious food selections, supplier welfare, and environmental consciousness, as well as tough competition, political instability, increasing fuel prices, and wages. With the use of cutting-edge analytics, Sainsbury's will be able to set itself apart from the competition in several important ways. Ansoff Matrix Increasing One's Foothold in a Market Progression of the Market Innovation in the product category Approach to Diversifying(Roberts, 2019) Market Penetration: Minimizing order processing times, increasing product visibility, and more are just a few ways that Sainsbury's might improve their business(Dawes, 2018). Market Development: Is there enough of a desire for Sainsbury to expand into new areas, as shown by Sainsbury's market share study in Sainsbury's current sectors? This may be informed, for instance, by utilizing Google's Keyword Planner or Uber’s suggestion to research the search intent for services in various areas. What kind of support does Sainsbury's currently have? (Dawes, 2018). Product Development: Can Sainsbury's come up with new items, maybe with more costeffective suppliers and better quality and packaging? Once again, doing market research to get comments from prospective clients and opinion leaders is useful(Dawes, 2018). Diversification Strategy: Analyze the level of knowledge and skill possessed. Can Sainsbury use its existing expertise to enter a new market and provide a new product offering? Does Sainsbury have a competent management team? (Dawes, 2018). Risk Analysis of Sainsbury’s Recommendation A firm's corporate strategy is an overall business plan with well-defined milestones(Roberts, 2019). A firm's competitive strategy is the measures it takes over time to improve its position in the market relative to its competitors, as determined by a SWOT analysis of those rivals. Marketing tactics used to increase interest in a certain service or product are collectively referred to as "promotion methods." (Godet, 2019). A marketing strategy is a business's comprehensive approach to meeting consumer needs and expanding market share over time (Roberts, 2019). I recommend Corporate strategy and Competitive strategy among that four strategies. Which are explained below: Corporate strategy: This strategy applies to the entire organization and directs and regulates the makeup of every business activity. It will help defining companies mission and vision and objectives and long-term goals. Competitive strategy: This strategy will help gain a competitive advantage over the competition in long term. Reflection Sainsbury has started opening stores in more remote areas, therefore to accommodate this growth, the company is working to streamline its supply chain. Sainsbury must improve the supply chain's efficiency if it wants to solidify its market position (Roberts, 2019). Given that the majority of its customers are young people who value social and environmental norms, Sainsbury should adopt new technology to make the company more sustainable. Young people seek out products from companies that place a strong emphasis on sustainability. What would I advise the company and why? Technological Change Growth in Product Affordable pricing Doing E-commerce business Conclusion With the use of SWOT analysis, Sainsbury is a well-known British grocery store chain, as can be seen (Roberts, 2019). It is well-liked by its target audience and widely acknowledged as a credible brand. Early on, it struggled and fought to establish itself in the market. However, since 2004, the company's fortunes have changed, and it has demonstrated strong development in terms of market share and profitability (Godet, 2019). References Dawes, J. (2018). The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. SSRN Electronic Journal, 1(1). doi:10.2139/ssrn.3130530. Godet, M. (2019). Effective strategic management is the prospective approach. Technology Analysis & Strategic Management, 1(1), pp.45–56. Lu, J.W. (2019). The evolving contributions in international strategic management research. Journal of International Management, 9(2), pp.193–213. doi:10.1016/s1075-4253(03)000061. Nguyen, T.T.T. (2020). Management education as an industry and MBA as a product: revisiting joint MBA programs using Porter’s five forces model. Global Business and Economics Review, 19(3), p.356. doi:10.1504/gber.2017.083961. Roberts, E. (2019). The Philosophy of Organization Strategy: Critical Areas for Successful Strategy. Public Policy and Administration Research, 35(2456). doi:10.7176/ppar/9-6-08.
