Strategy for organizations Essay Example | Topics and Well Written Essays - 2750 words

Strategy for organizations - Essay ExampleThese retail stores can be called convenience stores, supermarkets, superstores etceteraThese retail outlets ar often part of large multiple chains and they eat their shops all over the ara. In UK such stores are quite successful. People trust their brands and prefer them to former(a) brands.Sainsburys is a symbolic identify in British retail market. There are different reasons that make it great, its strong brands, resentment for food, its history of innovation and a trusted moral approach to business. All these things make it the household name of UK.J Sainsburys plc operates multiple types of businesses. Their operations range from Sainsburys supermarkets, convenience stores, a home shopping service and Sainsburys Bank. In this paper the external and internal environment, strengths and weaknesses of this great alliance will by analyzed by employing various models and techniques.Various models and techniques are utilise for anal yzing the external environment of any organization. PESTEL model will be used here for analyzing external means affecting the performance of the company.PESTEL is actually abbreviation of Political, Economic, Social, Technological, Environmental and Legal factor analysis. By analyzing all these very important external factors that affect the performance of any organization a clear picture can be obtained for evolving correct and effective strategy. This analysis gives an outline of the different factors that the company has to take into consideration. For a comprehensive PESTEL analysis it is important to consider some minor sub factors that are dominant factors for a particular industry. These dominant factors for a company like Sainsburys plc are market size, background knowledge of competitive rivalry, market growth rate, number of rivals and their relative sizes, etc. Knowledge of these external factors is important because of the implications they have for the evolving effect ive strategy.Sainsburys plc is one of the largest and trusted name in Britain. It has extensive chain of stores all over the country and according to recent reports the company gets more than 10% of market share. There are some other(a) big names like Morrisons, Safeway and Asda. These are Britains best-known companies and Sainsburys has to compete with them in the expanding supermarket of Britain. The company was under insisting for last few years and even suffered the first loss in its 135-year history. Some of the main causes of weaker performances are given below.Political and Economic factorsGlobalization had great impact on its performance. Global companies like Wal-Mart entered the British Market and affected the sales of company. Sainsburys offers over 30,000 products in its supermarkets about 50% of them are their own brands. Because of wretched economic policies it was difficult for them to maintain quality and price parity favorably.Oversees losses as in Egypt in addi tion affected their overall performance.Social, Technological, Environmental and Legal factorsThere was lack of appeal to customers in comparison to other competitors. The