Understanding Strategic Management

Understanding Strategic Management
(MAN0208M)

A Strategic Management Analysis of Sainsbury’s local

Module leader: Dr Ken Gadd

Report prepared by Wanying Song,UB number: 13019615

Executive Summary
Sainsbury’s local is a second largest convenience stores chain in the UK. Its parent company, J Sainsbury plc., is the second largest retailer in the UK. Besides, Sainsbury’s convenience stores provide essentials to customers and bring convenience to customers with convenient locations and good quality products. Sainsbury’s Convenience stores have boosted the growth rate of parent company.

By using different strategic analysis tools for both external and internal environment, the key factors have been found out and also given comprehensive analysis. These factors are involved in the decreased real disposable income and convenience driver trend. These factors could affect the direction of development of Sainsbury’s local stores. The fiercer market needs Sainsbury’s local to improve competitive advantage for achieving sustainable development, as a result of the more emphasis on convenience stores set by main competitors, such as Tesco and Morrison’s. The competitive advantage could be improved by reducing cost with effective procurement，increasing customers’ satisfaction, innovation application, and motivating employees.

According to these findings, Sainsbury’s local stores may find new opportunities and ideas of development by considering the recommendations given. Sainsbury’s local could expand into overseas market and increase new profit from these markets and catching the trend of globalization. These recommendations are analyzed based on the current operations of the company and would be helpful for Sainsbury’s local increasing sales and improving competitive advantage.

cONTENTS
1.0 Introduction 4
1.1 Company Summary 4
1.2 Brief introduction of financial performance 6
2.0 The External environment analysis 7
2.1 The environmental analysis 7

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