Study Of J Sainsbury Plc: Mission, Vision, And Alternative Strategic Options Essay.

Strategic Planning is the assignment for submission to the UK University
It has to be a reflective assignment of Strategic Planning
Incitation of references has to be provided in the assignment
Also, provide a quality work from resource person with knowledge in business planning and management studies

Critically analyse and identify the organisation’s strategic aims and objectives including the approach adopted to strategic planningDetermine alternative strategic options available and the implications for the organisation
Critically evaluate the impact of stakeholder expectations on a strategic plan and the planning horizon
Critically evaluate the strategic options available to the organisation over the existing planning horizon and factoring in wider context market and competitor impacts.

Overview of J Sainsbury plc

It is required for each of the business to maintain few different strategies from the market which make their market more competitive and improve the overall performance of the company in the market. In order to manage the performance and becomes the leader in the market, a business has to review the mission, strategic plan and the vision on regular basis so that all the required changes could be done in the business and the business becomes capable to be the leader in the industry. In this report, the study has been performed on j Sainsbury plc which is mainly a UK company but it is also operating its business at global level that also includes the UAE market. The UAE market performance has been studied in this report.

J Sainsbury plc is one of the largest grocery and supermarket store in the UK market. The company has been formed in the year of 1869. The main product of the business include food product. The main focus of the business is to offer tasty and quality food in lower price to the customers of the company. The demand and need of the customers are studied and on the basis of those needs, the products are sold by the store. The business is continuously expanding its business at international market in order to improve the financial and non financial performance of the business (Srivastava, Bartol and Locke, 2006). Currently, the corporate statement of the business explains that the need of the customer and the product quality are the main focus of the business which makes it easier for the business to meet the common goal and strategic objectives of the business. The current states of the business explain that there are 890 stores of the business which contains 343 comfort stores and 457 general stores. The store has also market its presence at online market to grab the online customers as well so that the overall performance of the business could be improved at better level.

Aim and objective of organization:

Each of the organization has some aim and objectives for which they work hard in the market to meet. Different strategies, policies, procedure etc are planned and implemented by the business in the market in order to meet these goals. The main and objective of an organization depict about a way through which the company could move forward and improve the market and internal performance of the business. In order to evaluate the main aim and objective of Sainsbury, the study has been done on the corporate statement of the company.

Aim and objective of organization

The study over the Sainsbury explains that there are huge numbers of aims and objectives which are planned by the company and tried hard by the company to achieve this level. Through these aims and objectives, the company is true to assure that the highest level of customer services is provided by the company and better products could be offered to the customers (Schaubroeck, Lam and Cha, 2007). The mission statement of the company explains that the main aim of the business is to be the first priority of customers for food. The company focuses a lot on the quality so that the great services and outstanding products could be offered to the customers of the company in lower price. The company works on a statement which explains that the work must be faster, simpler and it must be done together so that the achievement of these objectives and aim could be simpler for the business. The below image depicts about the main aim and objectives of the business:

The vision statement of Sainsbury explains that the company wants to be the most trusted retailer in the UK market where people love to shop and work and give the first priority to the company in terms of food. The company is trying to accomplish the vision through putting the customers first at every stage and working and producing the product on the basis of the customer’s needs. The main values of the business are as follows:

• Health
• Sourcing
• Environment
• Community
• Our colleagues (Reader, Flin, Mearns and Cuthbertson, 2009)

In order to accomplish the strategies, mission, vision, aim and objective of the business, business strategy has been prepared by the business which indicates that there are 5 pillars on the basis of which the company works and improve the performance of the company. The company explains that the company is always there whenever the customers or the employees need the company through offering them the better quality products and services in the competitive prices and through helping in each scenario to the colleagues. The business understands the worth of their employees and state that because of their employees, the company makes its value different in the market. The main pillar of the company includes the environment, community, health, sourcing and the colleagues.  

Alternative strategic option:

The strategic position of the business has been studied and it has been found that there are various points which need little improvement in the business and after the alteration in those points, the overall performance of the business would be improved at better level.

Alternative strategic option

BCG matrix:

BCG network is arranging instrument of an items or administrations which is spoken to graphically. It encourages organizations to take choice with respect to offering or speculation. This lattice has a four square box where all the boxes describe about different items of the business (freeman, 2010).

Star: It speaks to in the vast piece of the pie for a quickly developing industry. Here money can be produced yet because of developing industry venture is likewise required to look after guide. On the off chance that star will achievement then it will progress toward becoming money dairy products which would help the business to develop at great level. In case of star, it has been found that Sainsbury is performing better in the market. A good chances could be grab by the business where it would be easier to develop the association.

Cow: It additionally speaks to in a substantial piece of the overall industry for a moderate developing industry. In real money dairy animals venture is less and can produce money with the goal that it can contribute for different specialty unit. Cows are the items that business takes a stab at. Speculations into supporting framework can enhance proficiency and increment income female horse. In real money bovine quadrant Sainsbury have a decent position or in a well development circumstance with a low chances. Business falls towards the lower position in this scenario (Van Der Vegt and Bunderson, 2005).

Question mark: It is having low piece of the pie organization. This position is mainly found in the large organizations. It required a lot of money for keeping up and picking up the piece of the overall industry. It is for the most part to forthcoming products and ventures which have a decent business conceivable. Question mark ought not be disregarded supposing that it progresses toward becoming pooch in the wake of contributing enormous and its neglect to end up stars. The most ideal approach to deal with question mark circumstance is to either put intensely in them or to pick up piece of the overall industry. It is a popularity and low return which is because of low pieces of the overall industry. In this circumstance Scompany does not focus on what to do with the given chances. Climate are given few chances in this case (Noe, Hollenbeck, Gerhart and Wright, 2006). It is gainful or not. There are loads of inquiry emerge in this circumstance.

BCG matrix

Dog: It has a powerless piece of the overall industry of low down development markets. They neither focused colossal money nor produce money. The number of item in this box ought to be limited or stayed away from by an association. In this circumstance showcase is extremely feeble. Sainsbury, in this scenario, is not ready to make different decisions. It is a low development advertises circumstance where the offer esteem is too low. So procuring benefit in this circumstance is simply incomprehensible.

Ansoff Matrix of Sainsbury:

Ansoff network: It is likewise outstanding way to set a market development grid. This is an approach that helps the business to decide the items or market development of a business (Dallas, 2011).

Market penetration

It includes all the items that have their presence and also exist in a current market. In the market, entrance contribution of hazard in showcasing procedures is less on the grounds that items are recognizable to shoppers so it built up in the marketplace. Marketplace infiltration is where Sainsbury can build up another item in the market. Furthermore, it is a UK company which mainly run its business under the retail association, so they can absolutely centre on UK retail.

Product development:

Here the new items are presented in a current market. Improvement of item contrasts since it relies upon the presentation another item in a current market or it might be an alteration of a current item. For build up another item Sainsbury required development advances (Dean and Yunus, 2011).

Market development:

It otherwise called market augmentation. Here presence item is pitching to innovative market. It has been expected from that market that there is a requirement of wander into another market on the grounds that current market are completely misused. In Market advancement Sainsbury can go into another portion. Which are absolutely new regions where they need to deal with new clients? In this way, they could establishment in Hong Kong showcase which is absolutely another market.

Diversification:

Here another item is sold in another market in the meantime which depends in the development of an association. It is an extremely hazardous system since two questions are included, new item and innovative market. Business could identify and diversify the activities to other sections like beauty products and home appliances. the main business of the company in retail segment, thus, they can different it in a portion of the excellence and home items. They have a business on money related and in addition property.

Ansoff Matrix of Sainsbury

Impact of stakeholder expectation:

In order to make the new changes into the strategically position of the business, it has been found that the stakeholders of the business get affected at huge level. Because of the changes their personal interest in the business also gets affected. Basically the stakeholders of the business are of two types: internal and external stakeholders.

Internal stakeholders are those people who directly get affected with any changes in the business (Cravens and Piercy, 2006). These are the internal people of the company such as management and the employed whereas the external stakeholders are the people who are of outside of the organization such as trade association and government.

(Hitt, Ireland and Hoskisson, 2012)

Evaluate the strategic objectives:

On the basis of the study, it has been measured that there are various options available for the company which could help the business to improve the performance and become the efficient and first choice of the customers. Below are few tools which have been applied on Sainsbury to measure the strategic objective of the business:

Porter’s five forces of Sainsbury:

The company has focused on the “Differentiation strategies” in order to achieve the main goal of the business and improve the overall performance of the company. This system depended on various factors to measure the overall performance and the position of the company. Below is the analysis of the porter’s five forces model (Fournier and Lee, 2009).

Competitive rivalry:

It has been found that the retail industry of UK market is improving at great level and because of that the competition level has also been improved in the business. On the basis of the study, it has been measured that the market share of Sainsbury limited was around 14.9% by the end of year 2017. The three major grocery stores in UK retail market are Tesco, Morrison and ASDA. The performance of Sainsbury must be improved to be the leader in the market.

Barriers for entry:

It has been found that the retail industry of UK market is quite competitive and it is quite easier for the new competitors to enter into the market and exit at any time, this improves the competition level in the market. On the basis of the study, it has been measured that the Sainsbury limited is required to make few strong strategies so that the new comers could not affect the performance of the company ((Gaughan, 2010).

Threat of Substitutes:

Food and retail industry of UAE market mainly focuses on the huge advertisement and the promotions so that the people get to know about the product and improve the performance of the company.  There are huge numbers of substitute products in the market which affect the total turnover of the business and thus the company is required to maintain string policies against it.

Buying power:

Buying power of the business has been studied further to idneitfy the level of buyers in the market and their impact on the company. On the basis of the study, it has been recognized that there are huge number of competitors which are additionally offering similar items (Elmuti and Kathawala, 2011). Because of that the buyer power of the company is higher and the company has to offer the product in cheaper price.

Supplier Power:

Lastly, it has been found that the supplier’s power of the company is also great because of the huge buyers in the market and less supply of raw material. In case of Sainsbury, it has been found that the better connection with suppliers have helped the company to manage overall performance.

Value chain analysis of Sainsbury:

Sainsbury made investor esteem and an upper hand over others to comprehend its exercises in a greatly improved manner. Sainsbury actualized a progression of significant worth chain exercises which could create income and benefit for the firm (Jain and Haley, 2009).

PESTLE factors of Sainsbury:

Political:

Sainsbury is rising up with the most recent globalization to substantiate itself as a test and also a chance. Business need to ensure that to go up against new powers to keep up effective nature of items that they offer.

Financial elements:

The expansion in costs of nourishment internationally laid an accentuation on the general business of Sainsbury prompts increment in expense of creation and buying power. This prompts ascend in cost of the items. Purchasers have less cash to spend on extravagance items that can cut the overall revenues for Sainsbury.

Social Factors:

Sainsbury can create ongoing recopies of sustenance that is anything but difficult to cook and furthermore solid for the clients. These days’ individuals will in general eat crisp nourishment as they are very cognizant about their wellbeing. Along these lines there is an open door for Sainsbury to grow more on sound nourishment items (Dotson and Hyatt, 2005).

Innovative:

The upside of utilizing web as a publicizing media can be embraced by Sainsbury as the organization can globalize itself with less expense and this can support up its deals too. Sainsbury can likewise jump start self look at machines to help client dedication by sparing their season of shopping and simplicity in solace upgrades.

There are various strategic options which could be followed by the business in order to meet the goals and improve the performance of the company; some of them are as follows:

(Pride, 2008)

(Pearson, 2008)

Through studying over the different stargazes of the market, it has been estimated that the main strategy which must be focused by the business is acquisition strategy as it would help the business to set in the UAE market efficiently. If the business would acquire an already existing comapny in UAE market than it would improve the performance of the company in the market and the market share could also be grabbed by the business easily (Quester et al, 2007).

(Leonidou, Leonidou, Fotiadis and Zeriti, 2013)

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