Unit 7 SWOT and PEST Analysis Assignment Help

Unit 7 SWOT and PEST Analysis Assignment Help



Strategic business policies are critical to a company’s success since they provide direction and scope to the company in the long run. Strategic planning assists in the arrangement of resources to meet stakeholder expectations and market demands in this tough climate. Sainsbury’s has been chosen as the case study for this project in order to investigate the many elements related with strategic analysis and the design of an appropriate business strategy in order to maintain competitiveness in a rapidly changing business environment. The entire work is separated into four important tasks: strategic plan creation, effectiveness, Sainsbury SWOT and Pest analysis, stakeholder importance, and Sainsbury strategy execution.

J Sainsbury Plc. is a major UK-based food retailer with operations in a number of countries across the world. Sainsbury’s has 455 supermarkets and 301 convenience outlets across the UK, servicing 16 million consumers every week. The firm employs over 148,000 people who are dedicated to providing ‘Great food at affordable pricing.’ Every year, Sainsbury’s sells about £6 billion worth of British food (Addmour & Ayish, 2005). Sainsbury works closely with small local suppliers to make local food available to customers, and has been successful in increasing the local network to over 3500 local suppliers. In an increasingly globalised and fast-growing corporate climate, Sainsbury’s plans to explore emerging markets such as China, India, and Brazil.

Task 1 Understand the process of strategic planning


The current task mission will discuss Sainsbury’s vision and scope of objectives. Steps of strategic planning and planning approaches to fulfil Sainsbury’s intended objectives would be listed here.

1.1 Assess how business mission, vision, objectives and goals inform strategic planning of Sainsbury.


Sainsbury’s principal goal is to offer customers with world-class service by blending quality and ethical standards into service delivery. An evaluation of Sainsbury’s purpose, vision, objectives, and goals is necessary for selecting an acceptable approach.


Sainsbury’s purpose is to be the customer’s first choice for food by delivering high-quality items and providing excellent service at a low cost, all while adhering to the company’s ‘faster, simpler, and together’ agenda.


Sainsbury Company’s Vision: Sainsbury Company has a clear vision to be the most trusted retailer for individuals who want to love working and shopping.



High Sale Turnover is one of Sainsbury’s main goals.

Low pricing ensure customer pleasure.

Employees were motivated and trained for the aim of progress.

A good product at a reasonable price.

Using more avenues to reach out to more customers



The major purpose of the Sbury Company is to provide excellent quality and service to clients at reasonable costs, making their lives easier. Sainsbury’s goal is to maintain strong social, ethical, and environmental standards as well (Arazy & Gellatly, 2012). a) Identify the strategic planning phases. Explain if strategic planning is a one-time event or a continual activity, and go over the issues involved.

To determine the Sainsbury Company’s purpose and mission statement.

The organization’s goals must be chosen for satisfying the aim of achieving the mission statement (Armstrong & Kotler, 2006).

Sainsbury must identify specific action plans for each strategy’s execution.

Finally, positive input from Sainsbury’s consumers is used to monitor and adjust the programmes. Classify the four levels of management in a diversified organisation and briefly outline each level’s responsibility for deciding and implementing the firm’s vision, purpose, objectives, and strategies.

The following table depicts the many levels of management and their respective duties for executing vision, mission, and defining objectives as well as planning strategies:

1.3 Describe the Ansoff matrix, the BCG growth-share matrix, and directed policy matrices as planning tools for meeting shareholder objectives.

Sainsbury may choose from four growth plans using the Ansoff Matrix. Because Sainsbury’s serves over one million consumers, it should provide them with a substitute product in addition to existing services. The following are the four risky matrix strategies:


Market penetration – In this phase, Sainsbury’s must expand its market sectors by promoting a variety of services and attracting a large number of consumers. Product development – Sainsbury’s can use this approach to provide new products or services to the existing retail market in order to attract additional customers.

Market expansion – As part of this plan, Sainsbury’s will expand their market sectors in order to attract new customers by launching a new product line (Grant, 2010).

Diversification – This approach is used to mitigate risk by bringing new products into new markets in order to spread the risks associated with older markets. BCG Growth Share Matrix: This matrix shows four different sorts of implications that the firm might face. Sainsbury’s may confront four major market difficulties by putting items in a BCG growth share matrix:


Stars: High Market Share and Growth

It will require significant finances, for which management must make financial judgments.

Cash Cows: High Market Share but Low Growth

The product will expand slowly in the market, but it will have a big market share, resulting in income and profit.

Dogs: Low Market Share and Low Growth

When a product ceases generating income, the firm should stop working on it and move on to another project.

High growth but low market share raises questions.

It means that manufacturing a Dog product is risky since the market share is minimal and the firm may lose money.

Directional Policy: In strategic planning, the ctional policy matrix serves as a competitive weapon. It aids resource allocation to each division or important business unit. It also aids in determining future levels of commitment to certain divisions. The first variable that is analysed with the use of this technique is Sainsbury’s competitive position and market performance. The business sector is the second variable assessed by this technique. Sainsbury’s will assess whether a given sector is expanding or contracting (Gudonaviciene & Rutelione, 2009). As demonstrated in the table below, the DPM offers a different perspective than the BCG Matrix:

Task 2. Be able to formulate a new strategy


By analysing Sainsbury’s SWOT Analysis and PEST Analysis, an appropriate strategy for Sainsbury would be established, taking into account the numerous elements. The importance of stakeholder analysis will also be investigated in the development of a new strategy.


2.1 Conduct a current Sainsbury’s SWOT analysis (organisational audit).

Sainsbury Organization’s SWOT analysis should be performed in order to identify the important issues, which will aid in the identification of internal and external elements affecting the company. SWOT refers to the company’s strengths, weaknesses, opportunities, and threats. These may be interpreted in the context of Sainsbury’s as follows:



Management and personnel are very dedicated and effective.

A well-run and well-rounded company

Research and development that is strong

Effective marketing skills include consumer self-checkout equipment.



Customers are unaware of the situation.

Legal Issues and the Recession

Narrow Directors’ Committee

Strong sales absence

Overreliance on a small number of important employees

Insufficient monetary resources and excessive reliance on borrowings



Export markets have a lot of promise.

Online commerce and network retailers are becoming more popular.

New items would be sought through distribution networks.

Market segment has a lot of room for diversification in linked market categories.

Opportunity to penetrate rising markets such as China, India, and Brazil, among others.



Products would become obsolete as new technology emerged.

A market downturn might lower demand, increasing the chances of particular items being price sensitive.

Influence on politics

Stiff competition

2.2 Conduct a PEST analysis (environmental analysis) of Sainsbury.

Political factors

Because stores like Sainsbury serve to create jobs in the economy, the government encourages such businesses because they provide a service to customers.

Even during a recession, the government encourages these merchants because they provide consumers inexpensive items (Ivanauskiene & Auruskeviciene, 2009).

Sainsbury’s will have to follow an increasing number of packaging and labelling requirements in order to comply with government regulations, adding to the company’s costs. In the United Kingdom, the government raised VAT from 17.5 percent to 20%, increasing product costs and affecting consumers’ purchasing power, which will have a direct influence on Sainsbury’s overall sales and employment levels.

The retail business is supported because of the significant money it generates.

Economic considerations


Consumers dislike buying luxury products due to a lack of money circulation in the market, therefore they will be more drawn to economic goods.

As a result of fast rising food costs throughout the world, suppliers will demand higher pricing, and Sainsbury’s may raise prices for most items in the shop.

Sainsbury’s provides incentives to employees and is developing a welfare system for them.

Increases in gasoline costs may lead to increases in distribution/supply costs, resulting in price increases.

Sainsbury’s biggest financial problem is keeping a huge pool of human resources for their operations.


The current research has looked at how Sainsbury’s tactics for accomplishing their strategic goals were evaluated. The whole study presented in this article has looked into the importance of strategic planning in establishing Sainsbury’s goal, vision, purpose, and goals. Furthermore, the research demonstrates Sainsbury’s strategic planning challenges, as well as numerous strategic planning strategies that are appropriate for Sainsbury. Stakeholder analysis for Sainsbury’s was conducted in this study to better understand the various viewpoints of the stakeholders. Sainsbury’s strategy was evaluated by looking into several market entrance techniques. In addition, the roles and responsibilities of employees responsible with strategy implementation have been assessed, and Sainsbury’s resource requirements have been estimated based on the timeframe necessary to implement the plan. All of the assessments were created for Sainsbury to help them improve their brand image and explore new market sectors in the industry by putting in place the right strategy.