Strategic Management Paper (M.B.A.) -- Jose Rizal University, 2014

Includes bibliography: leaves 122-123

EXECUTIVE SUMMARY "Strategic management analyzes the major initiatives taken by a company's top management on behalf of owners, involving resources and performance in external environments. It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. J Sainsbury is researched by using of strategic framework in this paper. J Sainsbury plc is the parent company of Sainsbury's Supermarkets Ltd, commonly known as Sainsbury's, the third largest chain of supermarkets in the United Kingdom with a share of the UK supermarket sector of 16.5%. The group's head office is in the Sainsbury's Store Support Centre in Holborn Circus, City of London. The group also has interests in property and banking. Sainsbury's was founded in 1869 by John James Sainsbury and his wife Mary Ann Sainsbury (née Staples), in London, England, and grew rapidly during the Victorian era. It grew to become the largest grocery retailer in 1922, pioneered self-service retailing in the UK, and had its heyday during the 1980s. In 1995, Tesco overtook Sainsbury's to become the market leader, and ASDA became the second largest in 2003, demoting Sainsbury's into third place. As of May 2011 the largest Sainsbury family shareholders are Lord Sainsbury of Turville with 4.99%, with Judith Portrait the trustee of various Sainsbury settlements and charitable trusts holding 3.92%. The largest overall shareholder is the sovereign wealth fund of Qatar, the Qatar Investment Authority, who hold 25.999% of the company. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. This report is based on Sainsbury management and business plans and performs an analysis of the company performance, governance and strategies in accordance with the literature review conducted for our study. The literature review focuses on the use of loyalty schemes as introduced by Sainsbury and business strategies related to marketing that affect the sales and profits of a company. Sainsbury approach to business is providing quality services to make the company great as well as to retain customers and long term relationships with suppliers and distributors. In this regard Sainsbury seems to have succeeded as its last year sales figures have gone up by a considerable percentage and it leads the market in terms of sales, doing even better than Tesco. The management structure including corporate governance and the strengths, weaknesses, opportunities and threats of the company have been given here showing why Sainsbury could use its business strategies to become the largest retailer within the UK and move ahead of Tesco and other companies for a larger and more consistent consumer base. This report and analysis focuses on the strategic opportunities and directions available to Sainsbury after conducting a detailed analysis of its business strategies including governance and organizational structure and management decision-making processes. The financial reports of Sainsbury‚ and the report on the management process in general have been studied and further recommendations are made for future studies on marketing approaches of Sainsbury as well as directions that the company should take in the future. Considering the company mission and objectives, recommendations for better sales and focus on increased profits have also been given. To help analyze collected data, SWOT analysis, SPACE analysis, IE analysis, BCG, GSM and QSPM analysis tools are used in this paper. As a result of those analysis, a common strategy is reduced, which is the aggressive strategy. It suggests that the company should hold and maintain its position, it should focus on increasing market development, market penetration, product development, forward integration, backward integration, horizontal integration and conglomerate diversification."-- Provided by the author.

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