Page | 1 The purpose of this report is to critical analysis of Sainsbury’s incremental strategies to its strategic management and to developa strategy for business resilience and sustainability. This report will also evaluate a change management programme within Sainsbury’s. The change management programme of Sainsbury’s Supermarket is influenced by the current business scenario that is dominated by the external factors, including fierce competition, integration across global markets and advancement of technology. The internal factors of Sainsbury’s are its managerial talent and the employee motivation level that influence the company’s strategic management. The importance of strategy is that it improves the organisation’s effectiveness as it leverages the individuals’ and the institution’s capabilities in a cohesive way. As Sainsbury’s is looking for business resilience and sustainability, so the perfect development strategy for the company is an incremental strategy. Task 1 Detailed Analysis of the Sainsbury’s Internal and External Business Environments Within the present dynamic business environment in the retail industry, implementation of incremental strategies is effective. To effectively tackle change and sustain profits, a key factor in the selection of incremental strategy is regulatory convergence. To make strategic management effective, the challenges posed by global competition have to be comprehended within the wide-ranging regulatory framework. So, an ever changing corporate environment that is complex in nature can be handled by implementing the incremental approach to strategic management. Thus, the strategic process moved in incrementally conforming to changes occurred inthe organisation’s internal and external environment. Multiplegoals will then drive decisions. A comprehensive incremental strategy will be perfect development strategy for the retailer as transformations to its current operational activities are reflected by organisational goals, missions and strategies(Hannagan, 2002). Incremental strategy also goes after business resilience and sustainability across the business operations(Sanders and Wood, 2014). As the present-day retailbusiness environment is all the time more dynamic, the incremental strategies would be ideal for Sainsbury’s, as usually incremental strategies do not change in major shifts of direction, but they usually change by resting on and adjusting what has gone Page | 2 before (Werbach, 2009). Former decisions have a tendency to make influence on prospect directions giving rise to the type of pattern. An organisation’s coherent and logical strategy may establish based on its strategic initiatives each of which be reasonable, logical and comprehensible in terms of formerinitiatives(Lang and Murphy, 2014). It is possible that a decision about heavy investment, or a product launch, creates a strategic direction which gives guidance to decisions on the subsequent strategic initiative. Such an initiative may be an acquisition(Lang and Murphy, 2014). This approach is very helpful as it consolidates the strategic direction. Every initiative is informed by this developing strategic pattern with the passage of time that ultimately makes stronger it(Lang and Murphy, 2014). The financial business resources level of Sainsbury’s Bank is low(J Sainsbury plc, 2015). The major financial risks for the Sainsbury’s are the availability of financial resources (both short andlong-term) to achieve business needs and variations ininterest, commodity and exchange rates. Now, full ownership of Sainsbury’sBank has been acquired by the business which poses a risk that the financialperformance of Sainsbury may be badly affected if theBank transition and overall performance is not delivered as planned(J Sainsbury plc, 2015).The transitional risk can also negatively affect people,processes, regulatory submission and technical set-upand failure to tackle the transition effectively may have a negative impact on the Sainsbury’s brand. However, the retailer is making effort to improve and expand its financial business(J Sainsbury plc, 2015). In this regard, Sainsbury’s must have high business resources to stand out in the industry. The incremental strategy would be perfect as it effectively tackles the challenges of dynamic retail environment(FitzRoy, Hulbert and Ghobadian, 2012; Wheelen and Hunger, 2004). Currently, Sainsbury’s is confronting with a changing socio-economic atmosphere (J Sainsbury plc, 2015) and by adopting an incremental strategy the retailer would be able to deal with this effectively. The retailer would also be capable of to achieving its organisational mission and vision that can be done by merging all the goals (short, medium and long term) within the current dynamic and changing business atmosphere (Cho and Hambrick, 2006; FitzRoy, Hulbert and Ghobadian, 2012). As compared with inventive strategic approach, an
Get 20% discount on your first order