Sainsbury's Business Environment Mission Vision Objectives Goals Essay

Excerpt from Essay :

Sainsbury's Business Environment

Mission, vision, objectives, goals and core competence

Sainsbury's chain of supermarkets is the leading store of food retailing in Britain. A single store offers approximately thirty-two thousand varieties of products among them fresh produce and own brand comprising of fifty percent total products. A variety of grocery products and quality foods are sold by the chain of supermarkets. Additionally, they offer other services and products such as petrol stations, restaurants, coffee shops, pharmaceuticals, home ware, clothing, fish, meat, and bakery. The company emphasizes on the mission of "ensuring Sainsbury regains its greatness" (Comim & Qizilbash, 2008). Following this mission, the firm has established the following goals:

Delivering a regularly improving the experience of quality shopping to clients at fair prices for great products

Exceeding customer expectations for tasty, fresh, safe and healthy food to help ensure customers' lives are easier every day

The core values of Sainsbury include:

I. To get better every day; the business has focused its efforts on enhancing their services

II. To drive sales through great services; the provision of better services seeks to get higher sales for individual responsibility in team delivery. Although the company encourages team work, everyone is responsible to meet required service standards

III. Maintain simplicity; efficiency and simplicity in service delivery offered by the company

IV. Individual respect; every employee across the organization is respected

V. Treat the company money as your own; the company emphasizes that their revenue is aimed at improving the company and distribution

The core competencies of the business

Ensuring that the company regains its greatness is the focus of the company and the priority of the business agenda. Sainsbury attempts to get customer feedback and compare their products with rival products understanding what customers want as they eliminate obstacles. The company concentrates on dealing with factors that can enhance the company's services through accelerated features that help them reach their goals (Browne, 2011). To recreate a global customer appeal through the provision of better shopping experiences is the primary goal of the business. The provision of quality goods appears to be dependent on improved availability of products and services. The business has organized and arranged their stores in a manner that welcomes customers in a clean atmosphere. This seeks to minimize or reduce queues as service counters become very efficient.

Therefore, the underlying objective rests on the fact that great sales are driven by great services; this is the primary priority of Sainsbury. Customers are increasing demanding tasty, fresh, safe, and healthy foods, and Sainsbury aims to improve customer satisfaction and fulfill the above demands so that they can win customer loyalty. The healthy and premium product ranges are frequently made available and in large quantities. The aim of Sainsbury is to be part of customers' daily lives through the provision of weekly and daily grocery and food shopping needs and clothing, as well as other products. Because its size and locations, Sainsbury operates with the vision of being the market leader in the industry through the provision of products that meet customer needs (Great Britain., 2012).

Stakeholders' interests

For years, there has been an increasing awareness of the company that the managing of stakeholders' interests is critical to the success of the company. Stakeholders are always interested in contributing to major company decisions. If this is not met, the company risks reputational and financial costs. Sainsbury's treatment of its outsourced employees would precipitate consumer loyalty. Further, if the company does not take into considerations the livelihoods of surrounding neighborhoods, it would result in tremendous lawsuits against the business. Substantially, this argument proposes that if Sainsbury involves its stakeholders, the company might better decisions. They might acquire information, which otherwise might not be available, they can use local practical experiences and knowledge, moreover, the firm can ensure that cultural and social values are put into consideration (Comim & Qizilbash, 2008).

Ansoffs' strategic planning technique

Ansoff's growth matrix is used as a marketing plan tool by companies like Sainsbury to determine their market and product growth strategies. According to this matrix, Sainsbury's attempts to expand rely on whether it markets existing or new products. This growth matrix generates a series of possible growth strategies likely to set direction for Sainsbury's growth strategy. This has been summarized as follows:

Market penetration

This is a growth strategy whereby Sainsbury focuses on marketing existing goods in already existing markets. By adopting this strategy, Sainsbury seeks to achieve two major objectives:

I. Increase or maintain the current market share of existing goods - The business can accomplish this via combining competitive advertising, pricing strategies, sales promotions and investing more resources in personal selling.

II. Market dominance -- attain a strong market presence by driving competitors away. For Sainsbury to achieve this, it needs to be more aggressive promotion campaigns backed up by pricing strategies that make it impossible for competitors to survive in the market

Market development

This is a growth strategy whereby Sainsbury focuses on selling existing goods in new markets. The company has various ways of approaching this strategy. First, they can export their products to new countries or geographical locations. Another approach includes designing new channels of distribution, re-packaging products and new pricing policies for the company to attract new market segments (Browne, 2011).

Product development

This growth strategy seeks to introduce new goods into current markets. For Sainsbury to adopt this strategy, they need to develop new competencies and modify their products in order to appeal to the current market segments. This strategy is precisely the most suitable for Sainsbury because they have to differentiate their products, which in turn will enable them gain a competitive advantage. For this strategy to become successful, Sainsbury must place notable emphasis on innovation, research and development, as well as be up to detail about customer demands.


This growth strategy argues that Sainsbury must sell its products in new markets. This is an out rightly risky strategy because it requires the business to shift into new markets, where they have no or little experience. Therefore, for Sainsbury to adopt the diversification strategy, it needs to formulate clear ideas of what to expect from this strategy while assessing possible risk factors.

STEEPLE and SWOT analysis respectively

The Sainsbury chain of supermarkets has been the leading food retailer in the UK market until 1996, when rivals such as ASDA Group and Tesco PLC took over the industry.

Political factors

Political activities in the UK are likely to have a great impact on how businesses operate. At the moment, the consumer debts and the UK government debts are extremely high. This influences customer behavior thus businesses experience enormous pressures. Sainsbury is forced to operate in this market environment by maintaining consistent business development.

Economic factors

This industry is highly influenced by economic factors. These factors include profitability, cost, demand and prices. In regards to the current economic slowdown, high unemployment rates, and inflating food prices, these are the leading factors affecting the growth of Sainsbury. Because of the increasing commodity prices and rampant unemployment, it is expected that the demand for products produced by Sainsbury will go down; this will reduce its rate of production. Furthermore, this is expected to a vicious cycle fostering increments in food prices and unemployment (Browne, 2011).

Social factors

Customers are developing a trend of preferring one stop shopping. Therefore, they prefer stores that offer all products under one roof. Sainsbury had induced non-food items and benefited from this strategy.

Technological factors

Advances in technologies have made positive impacts on business organizations. There is a potential online growth and web-based business activities. Through online operations, Sainsbury is poised to expand their growth capacities. Similarly, Sainsbury web-based food delivery service has been growing.

Environmental factors

Various groups have been imposing great pressures on Sainsbury to adopt socially responsible practices to ensure the environment remains safe. Companies can impact the environment in both direct and indirect aspects. In this regard, the management of Sainsbury has embraced initiatives that champion their recycling and reusing philosophical approach that effectively manages recycling, packaging and waste management (Henry, 2008).

Legal factors

Government policies and legislations directly impact on the performance of this company. For instance, the new legislations that introduced new advertising taxes on fatty foods and highly processed foods were notable. The company adapted this tax through product modification and compliance with the requirements of the legislations.


This is a tool used to explain the position of a company relating to the environment in which the company operates in. This tool is very significant in the formulation of a strategy. It is mainly about the company makes use of its resources and outsourcing of all the operations intended to achieve objectives. This tool also focuses on the strengths and weaknesses of the organization.


Investment diversity: These are the depicted potentials and resources that the company has and are perceived to be successful. Sainsbury has embraced diversity in its business units. This usually assists to reduce the risk…

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