Strategy planning

Introduction to strategy planning

Sainsbury has good position in UK retail market. Company is facilitating different kinds of products and services in food, cloth and other consumer products. For this, company is managing its business form different platforms. It includes supermarkets, small stores, online stores etc. Company is also dealing in financial and insurance product as well banking services in UK. But, the retail business is core operation of company (Chrusciel, 2011). This report determines basic profile of company. It contains values, mission and vision of company. Research defines various business strategies that can meet mission and objective of organization. It explains impact different stakeholder of company on business operations. Report conducts audit of various internal and external elements of Sainsbury. This report determines importance of business expansion in new emerging markets. It also analysis impact of expansion of business activities and competition of company.

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Sainsbury is the one of the largest retail supermarket chain of United Kingdom. It was founded by the John James Sainsbury in 1869 as a shop of Drury Lane in London. Presetly company is dealing food, clothing and other kinds of consumer products. Sainsbury is managing third rank among top retail companies of UK (J Sainsbury’s plc, 2014). Today company is operating around the 1200 supermarkets and other stores in UK. Organization is managing around 161,000 employees at different locations in London.

Vision/Mission and business strategy

The vision of the Sainsbury is to become most trusted retail company by developing good relation with people. For this, company makes efforts in order to build Sainsbury and its environment as best place for shopping and work. The primary goal of management is to make lives of consumers easier by offering premium quality of products and services within fair price. For this, company always determines different kinds of procedure for cost reduction (Brooks and Simkin, 2012). Business entity wants to facilitate best services at their stores.

In order of fulfill the needs and requirement of consumer, the management and employees of Sainsbury develop new product and services according to alteration made in the needs and interests consumers. Employees follow different kinds of traditions and values in their job.

Values of Sainsbury

The main promise of company is provide best services within fewer prices. Development of good relationship with suppliers, colleagues and other stakeholders is important part of values of company for development of good business environment (Patten, 2007). Top management considers the following values in business operations:

  • In development of food product, the primary objective of company is health and safety of consumers. The food quality meets lifestyle of the buyers and gives assurance to buyers regarding safety.
  • In the process of development raw material for different kinds of products and services, management follows ethical practices in selection and purchase of inputs.
  • For safety of environment, organization makes efforts for development green stores that can save energy (Rendtorff, 2011). Sainsbury is using high-tech equipment in production process for the value of protection of environment from climate changes.
  • Community development is anther main objective of company.
  • Management develops organization as great place for work with proper support, involvement and motivation.

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Stakeholders of Sainsbury

Stakeholders are main backbone of every organization. So, administration of Sainsbury has to manage business practice according to needs and expectation of different stakeholder of company (Lancaster and Reynolds, 2005). Retail Company is managing proper balance among various individuals. In order to achieve business objectives and vision, the relations and participation of many external and internal individuals create huge impact on success and failure of business.

Internal stakeholders:

Top management: Top managers are main stakeholder of Stakeholders. All these control all operations and management practices of company. The objective of top manager are enhancing performance of company, sustaining in adverse market conditions and reduction in risk (Anderson, 2011). The management maintains proper balance between needs and expectations of share holders and business goals.

Employees: Workforce of an organization is playing a vital and most important role in the success and failure of company. The administration of Sainsbury has developed various practices and policies for development of efficient working conditions. In order to increase motivation level of consumer, company is facilitating proper remuneration and avoids partiality (Eigeles, 2003). Management also provides monetary and non-monetary incentive plans for extra-ordinary performance in sales, production and other operations. Management also considers the suggestion and response in formation of various business decision in terms of new product development, marketing and consumer service.

External Stakeholders:

Shareholders: These are the main owners of the company. The top managers of Sainsbury provide regular information regarding financial performance of company. Management also takes suggestion and response from investors on various risky decisions and future plans of company (Chowdhury, 2011). In order to meet requirement of shareholders, Sainsbury pays dividend within predetermined time period and makes effort to increase sales volume. Retail Company facilitates information through annual reports and mobile messages.

Consumers: It is main stakeholder of retail organization. Satisfaction level of consumer directly influences demand and profit. So, top mangers takes suggestion from consumer regarding needs and preference on new product development with the help of executives of company at retail stores and online websites (Robertson and Athanassiou, 2009). With the help of this operation, management can increase consumer satisfaction by solving complaints and increasing quality and features of products.

Suppliers: The management has to develop good relation with suppliers that assists manager in order maintain uniformity of inputs. The good relation with supplier gives opportunity of manager in new product development in terms of proper conversation and determination of quality and features of basic martial. For this, Sainsbury pays all dues without any delay.

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Government: This creates huge impact on profit and development of various plans (Wilson and Gilligan, 2005). For development good relations, Retail Company considers all legal obligation and laws in the production and sales process. Corporation pays all taxes and other duties within prescribed time period.
Market share and Share value

Sainsbury is managing over 1200 stores and supermarket in London. So, organization is maintaining good market share in retail industry. The present market share of business entity is 16.7% in retail sector of UK. The current market price of Sainsbury’s share is 270.10p (J Sainsbury’s plc, 2014). The growth in share prices shows that firm is earning good profit and revenue. The evaluation of financial data of last five years determines that company is generating average 19.90% net profit and the growth rate of revenue is 4.84% (Sainsbury (J) PLC SBRY, 2014). On the basis of above facts it is identified that management is getting good response from consumer in terms of sales of company and consumer are satisfied with product and services.

External and Internal audit of Sainsbury

SWOT Analysis

This tool provides reliable information regarding capabilities as well as difficulties of an organization. The SWOT analysis of Sainsbury is carried out under this statement:

Strength: Sainsbury is one the four largest supermarkets as well as retail market chain of United Kingdom which is the major strength of company. Organization is having over 150000 highly qualified workers. A highly experienced leadership team manages different operations successfully. The excellent branding and marketing approaches make a well known and reputed firm in UK (SAINSBURYS, 2014). Big infrastructure in the form of over 550 supermarkets and over 350 other stores develop excellent connectivity with consumers. In the retail outlets, business entity is managing 20% of own-label goods. All these factors create strong market position the company.

Weaknesses: Due to rising in food prices in all over the world, managers of Sainsbury has to increase prices of food products (Men and Stacks, 2013). The stiff competition in retail sector in each segment from other organization like Tesco and ASDA create negative impact on the profitability o

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