Business Strategy

Various Objectives of Business Strategy

Introduction to Business Strategy

Business strategy is made by the organization to accomplish the goals and objectives of the firm in optimistic manner in order to earn profit in the market. It also help to make long term business plan which generally takes three to five years to accomplish any type of project in the organisation. Sainsbury is retail enterprise which provides effective services to its consumers in United Kingdom. The present file defines goals, objectives, core competencies, mission and vision of the firm. It also describes issues of the company which is associated with strategic planning. Further, it also stresses on environmental audit for Sainsbury in United Kingdom. It represents roles and responsibilities of strategy implementation for the enterprise. In addition, it also emphasize on resource requirements to execute new strategy in the organisation.

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Task 1

1.1 Explain missions, visions, objectives, goals, core competencies of corporation in strategic context.

Mission, vision, Objectives, goals and core competencies provides effective role to make appropriate business strategies for Sainsbury in UK.


It is valuable statement for the firm. It gives direction to the organization for striving in the market. Mission of the company is to provide optimistic services to consumers in retail field by giving better products.


It is also important statement for the corporation. It is considered as long term strategy for the company. It further assists in creating significant impact on procedure of strategic planning. Vision of the firm is to become leading retail organization in the world


It also provides direction to get better growth in the market. Main aim of the firm is “To sell maximum retail products in the country”.


It plays important role in the process of strategic planning within company. Goal of the enterprise is to make customers lives easy by providing better quality and services in fair cost in the market of United Kingdom.

Core Competencies

These things also creates major impact on the procedure of strategic planning in the firm. They contribute effectively in business operations by developing and amending value. It is necessary to hold these type qualities to earn optimistic profit in the market. Sainsbury provides wide range of services in products which renders effective criteria for the consumers to buy any type of commodities in its retail store. Firm also provides after sale services to consumers in the nation.

Strategic planning

It is an corporation procedure to define its strategy. It also contributes effective role to make decisions on allocating its resources to pursue this plan in the Sainsbury. Sainsbury vision helps the company to formulate strategic planning to achieve the long term objective. Mission and objectives of the company helps Sainsbury to achieve its strategic goals which are designed in order to generate effectiveness. Core competencies helps the company to create specification about the product it provides to the company. This also helps to design strategic planning module regarding the core competencies and objectives of the company. Further, it also provide effective help to control implementation of strategies in the organization.

1.2 Explain the issues involved in strategic planning

There are many issues which are involved in the strategic planning. It is described below in the paragraph. Mainly, strategic planning is affected by internal and external issues in the marketplace.

Internal Issues

These issues affect the operations of Sainsbury. Generally, these problems are basically related to resources, culture as well as monetary funds in the firm. Mainly, employee highly affects strategic planning of the organisation. If they do not make proper strategies to sell its products in the market then management realizes many complexities regarding selling in retail sector. Organisational culture also creates bad impact on Sainsbury because it affects the performance of staff members. This process also generates dissatisfaction regarding job in the firm. In addition, shortage of monetary funds also creates problems to implement any type effective strategies which affect the growth of Sainsbury in the retail market.

External Issues

It also impacts the strategic planning of organization in the market of United Kingdom. There are many issues like lifestyles, innovation, trend and fashion of consumers. These things highly affect the company in retail sector. These extrinsic issues are very dynamic in the market. For example, if Sainsbury does not make strategies by considering requirement and wants of consumers then organization can suffer with high loss of monetary funds in the retail market. So Sainsbury always innovate new products by lifestyles and requirement of consumers. Other wise, growth of firm can be impacted in the market.

1.3 Describe strategic different planning techniques

Strategic planning process plays major role to attain organization goals and objectives in the retail market. It also helps the Sainsbury to fulfil customer’s requirement by accomplishing its needs. Mainly, strategic planning techniques also help the organisation to sustain for long time to earn profit in the retail market. Generally, there are many Strategic planning techniques like BCG and porter model analysis for Sainsbury.

BCG Matrix

It was designed by Boston Consultancy Group. It is also considered as strategic planning tool in the Sainsbury. If product come under high market share and low  growth then it is categorised under cash cows in firm. If commodities lies between low market share and growth then it comes under dog matrix in enterprise. In addition, if product is hold in high market share and growth then it contains star matrix in the Sainbury. If commodities comes under the low market share and high growth. It is categorised under question mark. Means, it needs more improvement to develop in the market. Mainly, it categories the products and services in four parts on the base of market share and growth. For example, Sainsbury can also design its future strategies by measuring these factors in the retail sector regarding its product selling. there are This approach also helps the organisation to increase performance and efficiency in the retail sector. In an addition, it also aids Sainsbury to takes effective decisions to design its appropriate plans in United Kingdom. This way, organisation gets huge help in fulfilling the demand of consumers and stakeholders in the retail market.

Porter Five forces

It contribute effective role to analyse portfolio of market competition in the nation. This process also provides information for Sainsbury regarding degree of rivalry, threat new entrants, bargaining power of suppliers and consumers as well as substitute of product in the market. Threat of new entries is also high because many organizations are entering into retail area. Bargaining power suppliers are down due to frequency of vendors in the market. On the other side, negotiation power of consumer is very high due to higher frequency of retail organisations in the UK. Exiting rivalry among firms are high in the United Kingdom. These things are increasing competition in this industry. Currently, threat of substitution is low for Sainsbury due to optimistic economy of Britain. This method enable organisation to take competitive advantage in retail market. It also help to design promotion and price strategies to beat the its rivals in this sector .

Task 2

 2.1 Represent an organisational audit for corporation

Sainsbury can use SWOT analysis for organisational audit. This process can help the firm to identify its strength, weaknesses, opportunities and threats in the retail sector.

  • Research and development  strategies of Sainbury in retail products are very effective in the UK.  
  • Organization uses advertisement and promotion strategies to promote its commodities in the market.  
  • Sainsbury also keeps wide range of products for its consumers in store.  
  • Enterprise has optimistic capacity to innovate services which aid the firm to add new feature in products to give better features.
  • Organisation is also suffering with labour issues like salaries and etc.  
  • High turnover of staff members.
  • Competitive strategies of Sainsbury are not proper as comparison of its rivals like TESCO and ASDA in the UK.
  • Increasing competition
  • Raising wage rates of employees.
  • Enhancing prices of raw material in UK.
  • Organization can enter new emerging countries to expand its area for retail business in the world.
  • Corporation can start own production for its products in market of UK.
  • Sainsbury can also enter  in software business.

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2.2 Describe an environmental audit for Sainsbury

Organisation can use PESTLE analysis for environmental audit. This tool considers many aspects regarding political, economical, social, technological, legal and environmental which can provide help to make business strategy in the United Kingdom.

Political and legal Factors

It also support Sainsbury in UK. Corporation taxes and tariff are not higher as comparison to other nation. This thing also helps the firm to get higher profit in retail market. On the other side, legal factors are also strict towards the company. Sainsbury has to follow all rules and regulation regarding health care of employees and consumers. In addition, Organisation has to serious about proper rights of manufacturing services and product in the United Kingdom.  

Economic Factors

As per current situation of Britain, these factors give proper support supportive for Sainsbury. It also provides opportunities to earn profit from consumers in the nation. Better economy of country also provides good chances of investment for firm.

Social Factors

These factors support Sainsbury to get good earning from consumer in United Kingdom. Mainly, income level of people is higher as comparison to other countries. So lifestyle and trend of consumer is good which is giving many opportunities to the firm to sell branded and fashionable products to customers in the nation. This way, organization can generate better revenue in the retail market.

Technological Factors

These factors also create positive impact for Sainsbury. Better technology also helps company to promote its new products in the retail market. These things provides base to advertise its commodities in the nation. Further, this approach also contribute effective role to increase the sales in UK.

Environmental Factors

Enterprise also conducts many Corporate Social Responsibilities activities in the nation which gives appropriate benefits to the environment of country. Sainsbury does not purchase and manufacture any type of products which produces atmosphere pollution in the Britain.

2.3 Explain the significance of stakeholder analysis

Stakeholder analysis is also important for the firm which provides help to make business strategies in the nation. The stakeholder is of two types i.e. into internal as well as external. Internal stakeholders include the employees whereas external stakeholder consists of shareholders and consumers.


They are considered as external associates for firm. For example, They aid Sainsbury by providing appropriate monetary fund’s which helps to make its new strategic plans. In addition, Organization also prepares new strategies on the basis of its net earnings in the United Kingdom. Shareholder have influence over the decision making process of Sainsbury thus the company must make sure to meet the needs of shareholders. Shareholders also render many suggestions to improve its performance in the retail market.


They are also called internal associates of firm. For example, Staff members of Sainsbury also renders assistance by explaining effective ideas, views and their concept in meeting. These things also enable enterprise to develop new business strategies in retail market of United Kingdom. Some times, staff members also takes additional responsibilities to complete goal and objectives of Sainsbury. Employees are important as they perform the responsibility and duties assigned to them for their respective task, thus Sainsbury must show consideration about their needs and requirement. This way, organisation can improve its services in the market.


They are categorized as external stakeholder for organization. For example, Customers are also valuable because they provide their optimistic help to improve weaknesses of products for firm in retail market. Consumers are the key player as they bring profit and revenue to Sainsbury. The company must pay high attention on the needs and build consumer satisfaction are This way, Sainsbury takes many reviews and feedbacks from people of United Kingdom. Corporation get huge help to improve strategic planning on the basis of these data in the nation.

Task 3

3.1 Explain possible alternative strategies relating to substantive growth, limited growth or retrenchment

These possible strategies also help the Sainsbury to make strategic plan in the retail market of UK. It is described below the paragraph.

Substantive Growth

Sainsbury can utilize these concepts for strategic planning. This approach is classified in vertical, horizontal, related and unrelated diversification strategies. Enterprise can consider horizontal process for preparing strategy in UK. In addition, Sainsbury can use merger for expanding the business in different countries with help of substantive growth. In this procedure, mainly two corporations are held from distinct segment. Then after, both enterprise work together to amend value to design new product service. This process can also increase the productivity and efficiency of the firm. This thing directly contributes Sainsbury to get better income in different global markets. On the contrary note this approach also generates many complexities between firms to develop strategic plan. Consent of both enterprises is essential to conduct any type of operation in the retail market of world.

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Limited Growth

In this method, there are some strategies which are present like market penetration as well as product development in the retail sector. This approach can be utilized for improving future plan for Sainsbury in Britain. Enterprise can choose product development for the new market. This method also provides effective help to the organisation for manufacturing appropriate capacity. In addition, it also aid in achieving core competencies in this field. Limited growth supports enterprise because it can add new features in exiting product and services to improve the sales in market as per requirement of customers. This approach also contributes in enhancing the market attractiveness of the Sainsbury in new and niche segments.  


It is also utilized by corporation in specific conditions like recession, maximum loss of monetary funds, continuous negative cash flow, extra employees and operational instability. Sainsbury consider this method to make strong financial condition by reducing these extra expenses. Generally, it is the cost saving approach to decrease expenditure of training and maintenance for the organization. Sometimes, firm shut down that unit which is regularly generating negative cash flow or no profit in the country. A part from that, Sainsbury also terminate its staff members to reduce expenses for better functioning in the country.

3.2 Choose an proper future strategy for a corporation

 I can recommend Substantive growth for Sainsbury to make future strategies for global expansion.  In this plan, corporation can utilize merger plan for world-wide enlargement of its retail products and services in different countries. There are many reasons behind utilizing this plan in various nations. Network strategic planning of other firm can be utilized by Sainsbury to enhance sales in the global retail market. Substantive growth can also give genuine data and information to establish its business in various countries with help of connected firm. Organization can get many advantages by using this plan in other nation. Connected corporation can also help Sainsbury to resolve huge business constraints in this state. This process also decreases the salaries of top level of managers  in the other country. Enterprise can also share highly sensitive projects with associated organisation to decrease financial risk of money. Merger plays effective role for the firm to cover untouched international market with support of merged Company. It also provides advantage in taxes and tariffs because connected firm pay half duties from its net earnings in another nation. It also renders opportunities to Sainsbury for using other firm’s resources like technology, employees and tools to accomplish common goals and objectives in another country. In addition, merger also enables the company to enter into new and diversified areas with merged corporation in international market. This way, Sainsbury can get more revenue in various countries. Enterprise can get optimistic guidance to formulate its strategic planning in other nation. It also aids the firm to create new contacts in various states which help to expand its present retail business worldwide.

Task 4

4.1 Analyse the roles and responsibilities for strategy implementation

Roles and responsibilities of staff members provide effective contribution in the company. It is described below the paragraph.

Marketing Managers

They help the Sainsbury by submitting appropriate report on customer’s requirement, trend and lifestyle from retail market. They also guide the company to discover its weakness and issues. Further, they also render help in advertisement, promotion, market research, consumer’s service strategies and its execution in Sainsbury.  

Finance Managers

They also handover proper report of financial information like cash flow, annual budget and balance sheet of the corporation. Further, they give this information to the top directors for formulating the strategic planning and its execution in the Sainsbury. These kinds of report also help them to make financial plan such as tax, loan, and insurance policies in the firm. Further, financial managers also play important role to take decision about net earnings, fixed assets and future investments for strategic execution. They also render statement on various type of ratios like cash reserve as well as inventory to the top directors. This process also helps the firm to reveal weak areas of Sainsbury.  

Human Resource Managers

They are the one who help the organisation to make effective business strategies by recruiting best employees, conducting their training and making proper rule and regulations. This process also helps the management of Sainsbury to execute their planning which is decided by top directors.

4.2 Assess resource requirements to execute a new strategy for a given Sainsbury

Organisation needs many resources to implement merger strategy in another nation. Some of them are represented below in the paragraph.

Human Resources Level

Sainsbury will require financial expert, employees, business analyst, and functional managers. Mainly, managers of enterprise and merged company will provide help to make fiscal plan such financial strategy for execution. Middle level management of both organisations will give their contribution in recommending the norms and regulation of new firm in another nation. Staff members of Sainsbury and merged company will render better efforts to carry out the implementation of merger. International business analyst will share many information and knowledge regarding global rules, regulations, tariffs trade and taxes with top directors of both the firms. This approach will aid the organisation to execute merger in the country.

Technology level

Sainsbury also needs IT experts to implement effective technology like ERP (Enterprise Resources Planning) and Customer relationship management (CRM) for reliability for implementing new strategy. This process also helps both firms to access fast information. This process aid the firm to implement strategic planning in the nation.

Financial Level

It will also help Sainsbury and merged company in implementing merger to decrease issues of the organization. Top directors of both corporations will collect monetary fund’s by selling unused fixed assets, debentures, scrap and bank loan for the execution of new strategy in the country.


From the report it is found that goals, objectives, mission, vision and core competencies of Sainsbury help to make business strategic planning in the United Kingdom. BCG matrix and Porter five forces model also provides guidance to make strategic plan of corporation. Strength of the organisation also helps to increase profit in the retail market of UK. PESTLE Analysis of Sainsbury also effectively contributes in making business strategy in United Kingdom. Merger strategy of the firm is also proving beneficial for global expansion in another nation. Marketing, Human resource and finance managers also help the business by submitting their report to top director which is effectively aiding the organisation to make proper business strategy to make profit in the retail market. It can be concluded that appropriate resource of Sainsbury and merged firm play optimistic role in executing the business plan in other nation.


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  • Campbell, D., Stonehouse, G. and Houston, B., 2002. Business Strategy. An introduction. 2nd edn. London: Butterworth- Heinemann.
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  • Henry, C. S., 2012. Advances in microfluidics for environmental analysis. Analyst.
  • Hoejmose, S., Brammer, S. and Millington, A., 2013.  An empirical examination of the relationship between business strategy and socially responsible supply chain management. International Journal of Operations & Production Management.
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