Unit 1

Introduction
J Sainsbury plc was Iounded in 1869 and today operates a total oI 872 stores comprising 537
supermarkets and 335 convenience stores. It jointly owns Sainsbury`s Bank with Lloyds Banking
Group and has two property joint ventures with Land Securities Group PLC and The British
Land Company PLC.
The Sainsbury`s brand is built upon a heritage oI providing customers with healthy, saIe, Iresh
and tasty Iood. Quality and Iair prices go hand-in-hand with a responsible approach to business.
Sainsbury`s stores have a particular emphasis on Iresh Iood and we strive to innovate
continuously and improve products in line with our customer needs.
We now serve over 19 million customers a week and have a market share oI over 16 per cent.
Our large stores oIIer around 30,000 products and we oIIer complementary non-Iood products
and services in many oI our stores. An internet-based home delivery shopping service is also
available to nearly 90 per cent oI UK households. We employ 150,000 colleagues.

TASK 1
1. Strategic management


~Strategic management is an ongoing process that evaluates and controls the
business and the industries in which the company is involved; assesses its
competitors and sets goals and strategies to meet all existing and potential
competitors; and then reassesses each strategy annually or quarterly i.e. regularly]
to determine how it has been implemented and whether it has succeeded or needs
replacement by a new strategy to meet changed circumstances, new technology, new
competitors, a new economic environment., or a new social, financial, or political
environment. (Lamb, 1984:ix)

There are a variety of perspectives, models and approaches used in strategic
planning. The way that a strategic plan is developed depends on the nature of the
organization's leadership, culture of the organization, complexity of the
organization's environment, size of the organization, expertise of planners, etc. For
example, there are a variety of strategic planning models, including goals-based,
issues-based, organic, scenario (some would assert that scenario planning is more of
a technique than model), etc.

ontinuous Improvement: Focuses on improving customer satisfaction through
continuous and incremental improvements to processes, including by removing
unnecessary activities and variations. ontinuous improvement is often perceived as
a quality initiative.

Balanced Scorecard: Focuses on four indicators, including customer, internal-
business processes, learning and growth and financials, to monitor progress toward
organization's strategic goals.


2. Leadership

Leadership has been described as the ~process of social influence in which one
person can enlist the aid and support of others in the accomplishment of a
common task". Definitions inclusive of nature of leadership have also emerged. Alan
Keith of Genentech states that, "Leadership is ultimately about creating a way for
people to contribute to making something extraordinary happen." According to
Ken "SK" Ogbonnia, "effective leadership is the ability to successfully integrate
and maximize available resources within the internal and external environment for
the attainment of organizational or societal goals."

3. Relation between strategic management and leadership

The key to business success largely depends on two main Iactors, good leadership and
eIIective management. Just in case you are not yet inIormed, I want you to know that
they are two diIIerent things. Leadership and managements are two words that people,
especially those in the line oI business, usually interchange the meaning. This Iault is
sometimes the cause oI Iall down oI some enterprises. Applications and approaches being
used Ior each are distinct, that iI you don't to which one they should be assigned, chances
are high that you will end so. Leadership and management are both skills that an
organization should possess, courtesy oI a chosen leader, with the support oI its
personnel. Good leadership can be attained through practice while eIIective management
is learned through a course. Some good leaders are born; managements is achieve by
consulting management consultants. See, it is not just in dictionary that the two terms
diIIer.

Leadership is when you guide the organization into a result that your group has agreed
upon. You and the rest oI the team have a deIined understanding to determine the ability
and to articulate visions and goals. Leadership is said seen just as a Iacet oI successIul
manager. It usually works on precedence Ior strategic planning and management and
long-term success.
On the other hand, management is the planning and organizing oI projects and
operations, allocating resources to minimize costs and maximize beneIits, directing
practices and procedures, establishing controls to measure the eIIectiveness and
eIIiciencies, and motivating subordinates. Management is concerned with present
activities and the immediate results oI those activities. Generally, the task oI management
is a lot heavier than that oI leadership.
A leader is the spearhead oI the group going to a direction. And once they've Iound the
direction, manager will take over to have consistency and make the group prosper aIter
being established. Managers are incremental, while leaders are radical. Manager's
decision are usually based on the book or ethics that every members constructed but
leaders decide based on their intuitions.

But still, one cannot live without the other. Management won't take eIIect without the
presence oI the other. A leadership without management will only give you a short-time
pleasure because more probable than not, your organization will Iall as soon as the way
you succeed. Management without leadership also goes the same way. You may have the
right ingredients so you can continue, but you don't have the authority to make them all
happen. There is no such mission, vision and goal to Iollow so you can have a deIined
direction.
When good leadership is combined with eIIective management, you can set a direction
and be able to manage the resources the way you want. Not only that, you will arrive to
your destination the way you have planned and wanted it.

4. Discuss any two leadership styles

The leadership theories and styles discussed so Iar Iit within Iormal theoretical Irameworks.
However, many more terms are used to describe leadership styles, even iI these don't Iit within a
particular system. It's worth understanding these!

1. Autocratic leadership

Autocratic leadership is an extreme Iorm oI transactional leadership, where leaders have absolute
power over their workers or team. StaII and team members have little opportunity to make
suggestions, even iI these would be in the team's or the organization's best interest.
Most people tend to resent being treated like this. ThereIore, autocratic leadership oIten leads to
high levels oI absenteeism and staII turnover. However, Ior some routine and unskilled jobs, the
style can remain eIIective because the advantages oI control may outweigh the disadvantages.




2. Bureaucratic leadership

Bureaucratic leaders work "by the book." They Iollow rules rigorously, and ensure that their staII
Iollows procedures precisely. This is a very appropriate style Ior work involving serious saIety
risks (such as working with machinery, with toxic substances, or at dangerous heights) or where
large sums oI money are involved (such as handling cash).

TASK 2
1. Transformational Leadership

TransIormational leadership is deIined as a leadership approach that causes change in
individuals and social systems. In its ideal Iorm, it creates valuable and positive change in
the Iollowers with the end goal oI developing Iollowers into leaders. Enacted in its
authentic Iorm, transIormational leadership enhances the motivation, morale and
perIormance oI Iollowers through a variety oI mechanisms. These include connecting the
Iollower's sense oI identity and selI to the mission and the collective identity oI the
organization; being a role model Ior Iollowers that inspires them; challenging Iollowers
to take greater ownership Ior their work, and understanding the strengths and weaknesses
oI Iollowers, so the leader can align Iollowers with tasks that optimise their perIormance.

2. Transactional Leadership

The transactional leadership style developed by Bass is based on the hypothesis that
Iollowers are motivated through a system oI rewards and punishment. The transactional
leader's view oI the leader / Iollower relationship is one oI quid pro quo - or this Ior
that. II the Iollower does something good, then they will be rewarded. II the Iollower
does something wrong, then they will be punished.
3. hich is better for Sainsbury`s?
At the extreme, the only relationship that develops between the transactional leader and the
Iollower is an "unwritten agreement" to carry out all orders. In Iact, this unwritten agreement
may begin to Iorm very early in the manager or leader relationship as demonstrated in the
example that Iollows:
Immediately aIter the hiring process, it may be clear that the transactional leader is in charge,
and the Iollower can hope to get better raises in pay by Iollowing orders. This type oI
agreement with the transactional leader may come about through consistent reinIorcement oI
certain actions the Iollower takes.
When the Iollower completes an important assignment on time, and under budget, the
transactional leader may reward them monetarily. II a deadline is missed, or a budget is
"blown," then the leader may make it very uncomIortable Ior the Iollower.
This is not to suggest that all managers and leaders that exhibit the transactional leadership
style are locked into what might seem like extreme relationships. As mentioned earlier,
leaders will likely Iall on a continuum, and exhibit behaviors characteristic oI other
leadership styles too.
As discussed in our article on Leadership Style, and again in Situational Leadership, the
success oI the leader is usually assured through the use oI diIIerent leadership
styles. EIIective leadership aligns the current work environment with the disposition oI
Iollowers.
TASK 3
Developing leadership skills
Well, leaders are born, but only in la la land!!! You can be born with the traits oI a leader but the
right encouragement is a must Ior developing leadership skills.
While developing leadership skills at an early stage has its advantages, it`s never too late to start
iI you haven`t yet discovered the leader in you! And that`s not a whole load oI motivational
hogwash.
In this piece, let`s take a look at the why and how oI developing leadership skills.
SuccessIul management requires more than just assigning tasks to the team. It calls Ior a leader
who can inspire team members to achieve their Iull potential. People want to be guided by a
person they respect, someone who has a clear sense oI direction. To be that person, there are
certain things that you must BE, KNOW and DO. And that`s what developing leadership skills is
all about.
Robert K. GreenleaI
The only test oI leadership is that somebody Iollows.
II you want to set an example Ior others to Iollow, may we suggest the Iollowing check-list?
1. Test the waters: Iind out what people think about your style oI management. This could
be a real eye opener, and the key to making changes to your leadership style. Employ a
360 degree approach wherein you receive Ieedback Irom your team members and peers.
Let your team in on the objective behind the survey. A relaxed and open environment
will help draw out their honest opinion.
2. Listen hard: when your team members speak to you about all their work related worries,
hear them out. You could convey empathy, suggest alternatives and create harmony
within the team. GREAT LEADERS ARE GREAT LISTENERS!!!!!
3. Connect: take complete responsibility Ior how you are heard. Always rephrase your
message to make it sound positive. EIIective communication is a Iine art.
. Be a people`s person: an integral part oI developing leadership skills is to learn to respect
your team`s capabilities. Let the team members take decisions on certain issues. Trust
them with their work; don`t be a watchdog.
5. Lead by example: your team must believe in your integrity, and that you really mean
what you say. Be prepared to put your money where your mouth is. It works like a
charm!
6. Share leadership: distribute tasks among group members depending on the situation and
individual strengths. You become a better leader by involving more people in the
leadership process.
7. Evaluate your success in tandem with that oI the team: your prime responsibility is to
ensure success and development oI the team. Focus on building their skills as this will
enhance motivation and team perIormance. Remember, their success is yours too!
Following are the ways to develop leadership skills:
1. Formal training
The ultimate success oI your business depends upon the team you have in place to carry out
the mission and vision oI your organization. And the need Ior on-going training and
development has never been greater, as increased competition and the need Ior improving
organizational eIIectiveness and eIIiciency demand a continual upgrading oI skills. To
increase your competitive edge, managers need the skills to:
O Manage and motivate a diversiIied workIorce
O Increase communication and understanding among members oI the work team
O Maintain a Iocus on continuous improvement
O Train and mentor younger employees
O Improve customer service
O Manage conIlict
As your training partner, CCBC is uniquely positioned to help you develop your Iirm's
human resources. CCBC can help your managers to become leaders through customized
training in areas
2. Developmental activities
Explaining and understanding the nature oI good leadership is probably easier than practising
it. Good leadership requires deep human qualities, beyond conventional notions oI authority.
In the modern age good leaders are an enabling Iorce, helping people and organizations to
perIorm and develop, which implies that a sophisticated alignment be achieved - oI people's
needs, and the aims oI the organization.
The traditional concept oI a leader being the directing chieI at the top oI a hierachy is
nowadays a very incomplete appreciation oI what true leadership must be.
EIIective leadership does not necessarily require great technical or intellectual capacity.
These attributes might help, but they are not pivotal.
Good leadership in the modern age more importantly requires attitudes and behaviors which
characterize and relate to humanity.
The concept oI serving is Iundamental to the leadership role. Good leadership
involves serving the organization or group and the people within it. IneIIective leaders tend
to invert this principle and consider merely that the leader must be served by the people. This
Iaulty idea Iosters the notion that leadership as an opportunity to take: to acquire personal
status, advantage, gain, etc., at the expense oI others, which is grossly wrong. Leadership is
instead an opportunity to give; to serve the organization, and crucially the people too. The
modern notions oI 'servant leader' and 'servant leadership' are attributed to Robert K
GreenleaI (in his 1970 essay The Servant as Leader) however the philosophy and concept oI
leadership being a serving Iunction rather than one that is served, is very old indeed and
Iound in ancient civilizations and religious writings.
Leadership is centrally concerned with people. OI course leadership involves decisions and
actions relating to all sorts oI other things, but leadership is special compared to any other
role because of its unique responsibility for people - i.e., the Iollowers oI the leader - in
whatever context leadership is seen to operate.
Many capabilities in liIe are a matter oI acquiring skills and knowledge and then applying
them in a reliable way. Leadership is quite diIIerent. Good leadership demands emotional
strengths and behavioral characteristics which can draw deeply on a leader's mental and
spiritual reserves.
The leadership role is an inevitable reIlection oI people's needs and challenges in modern
liIe. Leadership is thereIore a proIound concept, with increasingly complex implications,
driven by an increasingly complex and Iast-changing world.
Leadership and management are commonly seen as the same thing, which they are not.
Leadership is also misunderstood to mean directing and instructing people and making
important decisions on behalI oI an organization. EIIective leadership is much more than
these.
Good leaders are Iollowed chieIly because people trust and respect them, rather than the
skills they possess. Leadership is about behavior Iirst, skills second.
This is a simple way to see how leadership is diIIerent to management:
O Management is mostly about processes.
O Leadership is mostly about behavior.
We could extend this to say:
O Management relies heavily on tangible measurable capabilities such as eIIective planning;
the use oI organizational systems; and the use oI appropriate communications methods.
O Leadership involves many management skills, but generally as a secondary or background
Iunction oI true leadership. Leadership instead relies most strongly on less tangible and
less measurable things like trust, inspiration, attitude, decision-making, and personal
character. These are not processes or skills or even necessarily the result oI experience.
They are Iacets oI humanity, and are enabled mainly by the leader's character and
especially his/her emotional reserves.
Another way to see leadership compared with management, is that leadership does not
crucially depend on the type oI management methods and processes a leaders uses;
leadership instead primarily depends on the ways in which the leader uses management
methods and processes.
Good leadership depends on attitudinal qualities, not management processes.
Humanity is a way to describe these qualities, because this reIlects the leader's vital
relationship with people.
Qualities critical Ior a leader's relationship with his/her people are quite diIIerent to
conventional skills and processes:
examples of highly significant leadership qualities
O integrity
O honesty
O humility
O courage
O commitment
O sincerity
O passion
O conIidence
O positivity
O wisdom
O determination
O compassion
O sensitivity
3. Self-help activities
Building selI-conIidence and assertiveness is probably a lot easier than you think. 'Non-
assertive' people (in other words 'normal people') do not generally want to transIorm into
being excessively dominant people. When most people talk about wanting to be more
assertive, what they usually really mean is:
O 'How can I become more able to resist the pressure and dominance oI excessively
dominant people?'
O 'How can I stand up to bullies (or one bully in particular)?'
O And also, 'How can I exert a little more control in situations that are important to me?'
Pure assertiveness - dominance Ior the sake oI being dominant - is not a natural behaviour Ior
most people. Most people are not naturally assertive. Most people tend to be passive by
nature. The assertive behaviour oI highly dominant people tends to be driven by their
personality (and oIten some insecurity). It is not something that has been 'trained'.
For anyone seeking to increase their own assertiveness it is helpIul to understand the typical
personality and motivation oI excessively dominant people, who incidentally cause the most
worry to non-assertive people.
It's helpIul also at this point to explain the diIIerence between leadership with dominance:
Good leadership is inclusive, developmental, and a Iorce Ior what is right. Good leadership
does not 'dominate' non-assertive people, it includes them and involves them. Dominance as
a management style is not good in any circumstances. It is based on short-term rewards and
results, mostly Ior the beneIit oI the dominant, and it Iails completely to make eIIective use
oI team-members' abilities and potential.
The Iact is that most excessively dominant people are usually bullies. Bullies are deep-down
very insecure people. They dominate because they are too insecure to allow other people to
have responsibility and inIluence, and this behaviour is generally conditioned Irom childhood
Ior one reason or another. The dominant bullying behaviour is eIIectively reinIorced by the
response given by 'secure' and 'non-assertive' people to bullying. The bully gets his or her
own way. The bullying dominant behaviour is rewarded, and so it persists.
Dominant, bullying people, usually Irom a very young age, become positively conditioned to
bullying behaviour, because in their own terms it works. Their own terms are generally
concerned with satisIying their ego and selIish drives to get their own way, to control, to
achieve status (oIten implanted by insecure ambitious parents), to manipulate, make
decisions, build empires, to collect material signs oI achievement, monetary wealth, and
particularly to establish protective mechanisms, such as 'yes-men' Iollowers ('body-guards'),
immunity Irom challenge and interIerence, scrutiny, judgement, etc. Early childhood
experiences play an important part in creating bullies. Bullies are victims as well as
aggressors. And although it's a tough challenge Ior anyone on the receiving end oI their
behaviour they actually deserve sympathy.

Unit 7
TASK 1

Role of strategic marketing:
O Sequencing and scheduling oI activities
To produce a marketing plan, we have to put all its components in it. By using components
we shall be able to produce a complete and successIul marketing plan. To produce a
marketing plan we have to put these components in it:
O Market research
O Target market
O Product
O Competition
O Mission statement
O Market strategies
O Pricing, positioning and branding
O Budget
O Marketing Goals
O Monitor your results

O Integration

First oI all we have to do research on the market to assess that where is the suitable market
that is buying the product we are going to sale and also where is the market or producer
those are selling the product we want to buy. When we shall look on the market we shall
understand all these matters. We have to write down all the related inIormation about the
market to produce a triumph marketing plan.

O Monitoring and control
When we shall complete market research then we shall take a market as a target that here we
shall sale our products or the market Irom where we shall buy the products. Then we shall
describe those markets in the marketing plan those we have selected Ior the business.

O Long term planning
AIter looking Ior market we shall describe our product by providing all the related
inIormation. Then we shall describe that how our product is related to the market. We shall
also need to observe about the customer needs that what are they using now and what their
extra needs Irom the existing product are.

O Competitive advantage
We have to describe the promotion strategies those we shall use to promote our product. We
can do it by using diIIerent ways just like advertisement, direct marketing, publicity and
websites.

!rocess Involved:

1- Conduct a situation

Set a goal Ior the organisation that what we want to achieve. Just like our target is to sell IiIty
items per day or some other. In goal setting we also look at the sales and customer
satisIaction.

2- Develop marketing objectives

Buslcully, the mlsslon und vlslon stutement of un orgunlsutlon determlnes the ulms und & ob|ectlves. To
muke the theme of the buslness, the mlsslon & vlslon stutement need to be mude. The theme ls the ulm
und ob|ectlve of un orgunlsutlon. The gouls of the orgunlsutlon should be uchleved effectlvely & efflclently
us the stutement helps the employees to be more effectlve. The mlsslon of compuny ls to glve muxlmum
sutlsfuctlon to customers by selllng quullty goods ln lurge quuntlty, good servlce, lmmedlute response,
door step servlces und retuln the customer us permunent wlth better envlronment. The compuny should be
uble to wln the heurt of customers.

3- Determining the positioning

The ob|ectlve ls known us short term goul of un orgunlsutlon set for short perlod such us
for few yeurs or less. The compuny need to plun the strutegles put the best ulternutlve to
uchleve und meusure the uchlevement us well us for future run of the orgunlsutlon

- Selecting the target markets

1o achleve goals and ob[ecLs ln shorL Lerm Lhe acLlon plan has been made Lhere are called shorL
Lerm sLraLegles 1he Lechnlcal represenLaLlon and Lhe Lhlng whlch adds value Lo Lhe producL
servlce by lnnovaLlve creaLlve ldea as well as producL deslgn soluLlon Lo fulfll Lhe needs wanLs
of cusLomers 1hls can be done wlLh Lhe lmprovemenL of exlsLlng producLs and brlngs some new
producLs ln Lhe markeL
5- Design a strategic market mix
9ollLlcal facLors can be Lrade resLrlcLlons Lax pollcles Larlffs eLc Lconomlc growLh lnflaLlon raLes
lnLeresL raLes comes under economlc facLors Soclologlcal facLors lncludes age dlsLrlbuLlon culLure
healLh consclousness eLc 1echnologlcal facLors lnclude ecologlcal aspecLs raLe of Lechnologlcal
change research and developmenL
Link between Sainsbury`s corporate strategy and marketing strategy
It is a Iield that deals with the major intended and emergent initiatives taken by general
managers on behalI oI owners, involving utilization oI resources, to enhance the perIormance
oI frms in their external environments. It entails speciIying the organization's mission, vision
and objectives, developing policies and plans, oIten in terms oI projects and programs, which are
designed to achieve these objectives, and then allocating resources to implement the policies and
plans, projects and programs. A balanced scorecard is oIten used to evaluate the overall
perIormance oI the business and its progress towards objectives. Recent studies and leading
management theorists have advocated that strategy needs to start with stakeholders expectations
and use a modiIied balanced scorecard which includes all stakeholders.
Strategic management is a level oI managerial activity under setting goals and over Tactics.
Strategic management provides overall direction to the enterprise and is closely related to the
Iield oI Organization Studies. In the Iield oI business administration it is useIul to talk about
"strategic alignment" between the organization and its environment or "strategic consistency."
According to Arieu (2007), "there is strategic consistency when the actions oI an organization
are consistent with the expectations oI management, and these in turn are with the market and the
context." Strategic management includes not only the management team but can also include the
Board oI Directors and other stakeholders oI the organization. It depends on the organizational
structure.
'Strategic management is an ongoing process that evaluates and controls the business and the
industries in which the company is involved; assesses its competitors and sets goals and
strategies to meet all existing and potential competitors; and then reassesses each strategy
annually or quarterly |i.e. regularly| to determine how it has been implemented and whether it
has succeeded or needs replacement by a new strategy to meet changed circumstances, new
technology, new competitors, a new economic environment., or a new social, Iinancial, or
political environment.

Corporate strategy is concerned primarily with the decisions over the scope oI the Iirm`s
acLlvlLles lncludlng
l !7oduct scope. How specialized should the Iirm be in terms oI the range oI products it
supplies? Coca-Cola (soIt drinks), SAB Miller (beer), Gap (Iashion retailing), and Swiss Re
(reinsurance) are specialized companies: they are engaged in a single industry sector. General
Electric, Samsung, and Bertelsmann are diversiIied companies: each spans a number oI diIIerent
industries.

Geog7,phic, scope. What is the optimal geographical spread oI activities Ior the Iirm? In the
restaurant business, Clyde`s owns 12 restaurants in the Washington DC areas, Popeye`s Chicken
and Biscuits operates throughout the US, McDonald`s operates in 121 diIIerent countries.

Je7tic, scope. What range oI vertically linked activities should the Iirm encompass? Walt
Disney Company is a vertically integrated company: it produces its own movies, distributes them
itselI to cinemas and through its own TV networks (ABC and Disney Channel), and uses the
movies` characters in its retail stores and theme parks. Nike is much more vertically specialized:
it engages in design and marketing but outsources many activities in its value chain, including
manuIacturing, distribution, and retailing.

Marketing strategies serve as the Iundamental underpinning oI marketing plans designed to Iill
market needs and reach marketing objectives.
|2|
Plans and objectives are generally tested Ior
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing speciIic actions to be accomplished in the current year. Time horizons
covered by themarketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed oI change in the environment increases.
|3|
Marketing
strategies are dynamic and interactive. They are partially planned and partially unplanned.
See strategy dynamics.
Marketing strategy involves careIul scanning oI the internal and external environments which are
summarized in a SWOT analysis.
||
Internal environmental Iactors include the marketing mix,
plus perIormance analysis and strategic constraints.
|5|
External environmental Iactors include
customer analysis, competitor analysis, target market analysis, as well as evaluation oI any
elements oI the technological, economic, cultural or political/legal environment likely to impact
success.
|3||6|
A key component oI marketing strategy is oIten to keep marketing in line with a
company's overarching mission statement.
|7|
Besides SWOT analysis, portIolio analyses such as
the GE/McKinsey matrix
|8|
or COPE analysis
|9|
can be perIormed to determine the strategic
Iocus.
Once a thorough environmental scan is complete, a strategic plan can be constructed to identiIy
business alternatives, establish challenging goals, determine the optimal marketing mix to attain
these goals, and detail implementation.
|3|
A Iinal step in developing a marketing strategy is to
create a plan to monitor progress and a set oI contingencies iI problems arise in the
implementation oI the plan.
TASK 2
(a)
1- Do a SOT analysis of Sainsbury`s

W The takeover bid by the Qataris Private equity Iirm last year (Arnold and Politi ) can have
some implications as people are gravitating towards British companies and the prospect
oI Sainsbury's being governed by a Ioreign Iirm can lead to consumers switching
loyalties.

W Unlike Tesco's expansion plan (economist.com |online|, Sainsbury's is not present in
markets other than the UK. This can lead to trouble especially iI there is some problem
within Iood retailing in the UK or iI there needs to be a source oI extra growth.

SOT - Opportunities

W Sainsbury's alternative business presents a great opportunity Ior Iuture growth. Its
investments in property and a goal oI 0 million proIit through its bank seem like a
good strategy to pursue

Online sales are a great opportunity as well, since online margins are higher and
investments are not huge.

SOT - Threats
W There needs to be continuous heavy investment in environmental and green issues
without immediate beneIits. The problem lies in maintaining a balance e.g. Bio-Iuel is an
important tool to curb global emissions and its use aIIects Sainsbury's supply chain
directly, so Sainsbury's should support it. However, a spurt in bio-Iuels has made corn
dearer (independent.co.uk |online| aIIecting its prices within the UK and making
Sainsbury's consumers bear the brunt.

W Sainsbury's operations are subject to a broad spectrum oI regulatory requirements
particularly in relation to planning, competition and environmental issues, employment,
pensions and tax laws and in terms oI regulations over the group's products and services.
2- Tell the position
Diversification is a form of corporate strategy for a company. t seeks to increase
profitability through greater sales volume obtained from new products and new markets.
Diversification can occur either at the business unit level or at the corporate level. At the
business unit level, it is most likely to expand into a new segment of an industry that the
business is already in. At the corporate level, it is generally very interesting entering a
promising business outside of the scope of the existing business unit.
Diversification is part of the four main growth strategies defined by the Product/Market
Ansoff matrix:

AnsoII pointed out that a diversiIication strategy stands apart Irom the other three strategies. The
Iirst three strategies are usually pursued with the same technical, Iinancial, and merchandising
resources used Ior the original product line, whereas diversiIication usually requires a company
to acquire new skills, new techniques and new Iacilities.
ote: The notion oI diversiIication depends on the subjective interpretation oI 'new market and
'new product, which should reIlect the perceptions oI customers rather than managers. Indeed,
products tend to create or stimulate new markets; new markets promote product innovation.


(b)
Need to tell that how Sainsbury`s is using relationship marketing tactics like nectar card,
discount vouchers etc.

Once you have decided what your marketing objectives are, and your strategy Ior meeting them,
you need to plan how you will make the strategy a reality.
Many businesses Iind it helpIul to think in terms oI the Iour Ps:
O Product - what your product oIIers that your customers value, and whether/how you should
change your product to meet customer needs.
O Pricing - Ior example, you might aim simply to match the competition, or charge a premium
price Ior a quality product and service. You might have to choose either to make relatively
Iew high margin sales, or sell more but with lower unit proIits. Remember that some
customers may seek a low price to meet their budgets, while others may view a low price as
an indication oI quality levels.
O Place - how and where you sell. This may include using diIIerent distribution channels. For
example, you might sell over the internet or sell through retailers.
O Promotion - how you reach your customers and potential customers. For example, you might
use advertising, PR, direct mail and personal selling.
For a more comprehensive approach, you can extend this to seven Ps:
O People - Ior example, you need to ensure that your employees have the right training.
O Processes - the right processes will ensure that you oIIer a consistent service that suits your
customers.
O Physical evidence - the appearance oI your employees and premises can aIIect how
customers see your business. Even the quality oI paperwork, such as invoices, makes a
diIIerence.
(c)
hich strategic option will be best for Sainsbury`s out of the following and why?
Options are:

.Prospective:
%hough technically, each one differs from the other, spam mail, junk mail, and bulk mail have become
synonymous with marketing tactics that turn people 411 more than turn them into prospective buyers. Any
information associated with these is often treated with suspicion.

Direct marketing involves eliminating the presence of media agencies during the product transition from
manufacturing to sale by precluding costs incurred in a typical factory-to-retailer chain product or service.
However, direct marketing often draws criticism for being little more than get-rich-quick schemes.

%he following are factors that usually contribute to a negative image of direct marketing from the
consumer's perspective.
arketing objectives proposed:
!roduct:
t is a tangible good or an intangible service that is mass produced or manufactured on a large scale with
a specific volume of units. ntangible products are service based like the tourism industry & the hotel
industry or codes-based products like cell phone load and credits. %ypical examples of a mass produced
tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced
service is a computer operating system. Packaging also needs to be taken into consideration. Every
product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the
product approaches market saturation. %o retain its competitiveness in the market, product
differentiation is required and is one of the strategies to differentiate a product from its competitors.

!rice:
%he price is the amount a customer pays for the product. %he business may increase or decrease the
price of product if other stores have the same product.
!lace:
Place represents the location where a product can be purchased. It is oIten reIerred to as the
distribution channel. It can include any physical store as well as virtual stores on the Internet.
!romotion:
It represents all oI the communications that a marketer may use in the marketplace. Promotion
has Iour distinct elements: advertising, public relations, personal selling and sales promotion. A
certain amount oI crossover occurs when promotion uses the Iour principal elements together,
which is common in Iilm promotion. Advertising covers any communication that is paid Ior,
Irom cinema commercials, radio and Internet adverts through print media and billboards. Public
relations are where the communication is not directly paid Ior and includes press releases,
sponsorship deals, exhibitions, conIerences, seminars or trade Iairs and events. Word oI mouth is
any apparently inIormal communication about the product by ordinary individuals, satisIied
customers or people speciIically engaged to create word oI mouth momentum. Sales staII oIten
plays an important role in word oI mouth and Public Relations

TASK 3
1- Do a SOT analysis of Sainsbury`s Fair Trade strategy
At the centre oI the debate surrounding sustainable development is recognition that
companies can make a major contribution by being environmentally and socially responsible
and that tools associated with these concepts can enhance the competitiveness and economic
perIormance oI the Iirm. In this paper we go Iurther in arguing that in a world oI
globalization it is equally important to look at issues oI international trade.
In an examination oI Iree trade we argue that it is neither Iully consistent with sustainable
development nor to the beneIit oI business. We point to a new imperative to develop sound
sourcing, and equitable and Iair trading relationships. We identiIy issues associated with Iair
trade (including issues oI human rights, Iair wages, sustainability reporting procedures and
codes oI conduct on ethics) and associated tools oI analysis (guaranteed prices, codes oI
conduct and end price audits).
The paper argues that in a world oI globalization with greater transparency and inIormation
availability it will be important Ior companies to be clear about their policies on supply chain
management and trade. Indeed, with the growth oI an active and sophisticated civil society, it
will be argued that policies associated with sound sourcing, equitable trade and Iair trade
could provide companies with a new competitive strategy based on ethical standards
communicated to the consumer through a strategy oI diIIerentiation. We explore strategies
Ior the integration oI Iair trade policies, strategies and standards, and the opportunities Ior
new markets and niches that this presents. It is argued that the integration oI Iair trade into a
business strategy can enhance competitiveness.
SWOT analysis is a strategic planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in a projector in
a business venture. It involves speciIying the objective oI the business venture or project and
identiIying the internal and external Iactors that are Iavorable and unIavorable to achieve that
objective. The technique is credited to Albert Humphrey, who led a convention at StanIord
University in the 1960s and 1970s using data Irom Fortune 500 companies.
A SWOT analysis must Iirst start with deIining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning has been
the subject oI much research.
Strengths: characteristics oI the business or team that give it an advantage over
others in the industry.
Weaknesses: are characteristics that place the Iirm at a disadvantage relative to
others.
Opportunities: exte73, chances to make greater sales or proIits in the
environment.
Threats: exte73, elements in the environment that could cause trouble Ior the
business.
IdentiIication oI SWOTs is essential because subsequent steps in the process oI planning
Ior achievement oI the selected objective may be derived Irom the SWOTs.
First, the decision makers have to determine whether the objective is attainable, given the
SWOTs. II the objective is NOT attainable a diIIerent objective must be selected and the
process repeated.
2- ow you are going to lead Sainsbury`s !L in future
The devil is in the details. Even a great strategic plan can be destroyed by poor
implementation. SuccessIul implementation requires an understanding oI the "big picture," as
well as all the sequential steps that lead to it.
2pe2e3ti3g St7,tegy gives you a broad view oI implementation and a thorough
understanding oI each piece oI the implementation process so you can make more inIormed
decisions on eIIiciency and eIIectiveness. You will learn how to properly align corporate
structure with corporate strategies and how to integrate strategy Iormulation and
implementation by Iocusing on Iive core areas:
1. Strategy Implementation odel: Equip your organization to adapt to change by
developing a model oI appropriate structures, objectives, controls, integration
mechanisms, and incentives Ior implementing your strategy.
2. Strategic hange: Understand the stages oI implementation, Iorces Ior and against
change, and ways to overcome resistance to change; and develop structures and tactics
to implement change.
3. uman Resources and Strategy Implementation: Integrate HR policies with strategy
implementation needs.
. Strategy and Structure: Understand how strategy aIIects structure and how the choice
oI structure aIIects eIIiciency and eIIectiveness.
5. Incentives and ontrols: Discuss ways to motivate and control perIormance, including
methods to achieve eIIective coordination.