Contemporary Management Issues Report Case Study

Contemporary
Management Issue

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of case study..........................................................................................................1
Two drivers of change............................................................................................................1
PESTLE analysis of Sainsbury's............................................................................................4
Define strategy........................................................................................................................5
Strategic decision....................................................................................................................5
What is organisational change?..............................................................................................6
Porter’s Five Forces of Sainsbury's........................................................................................6
Key stakeholder’s for the change in Sainsbury......................................................................8
CONCLUSION................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
References:.....................................................................................................................................11
Books and Journals...............................................................................................................11

INTRODUCTION
In the contemporary business world there is huge amount of problems and issues that the
business comes across on the periodic basis. The businesses face some major contemporary
management issues which impact their daily operations as well the future growth. The issues
faced by the firms are associated with the changes in political conditions, environmental changes
or financial changes of the company (Desselle and et. al., 2019). The present report is a
discussion over the identified primary drivers of change and how Sainsbury response to the
various changes. Beautiful theories and frameworks are incorporated in order to understand the
respective dynamic forces of change and its impact over the company. In addition to this
recommendations are provided for enhancing the Sainsbury performance as the response to the
key drivers of change.
MAIN BODY
Overview of case study
The case study is based on the British multinational supermarket chain Sainsbury. in the case
study there is discussion of takeover of Argos by the Sainsbury. In 2016 the famous supermarket
retailer Sainsbury of UK acquired the catalogue retailer Argos. The cost saving technique of the
Sainsbury was already improving the profits of the company while the acquisition with the Argos
outlets with the Sainsbury stores was driving the use amount of increment and the trading
intensity (UddinAhmed, Mazid and Ahmed, 2020 ). According to the chief executive Mike
coupe of the Sainsbury’s the grocery market of the UK remains extremely competitive. It is also
mentioned by the chief executive of Sainsbury that there are the pleasing set of results in against
of the difficult market backdrop which are enforced by the acquisition synergies from the Argos
business (Quix and van der Kind, 2019 ). Also the bricks it has caused a major challenge to the
retail industry of UK and especially to Sainsbury since the company sells 30% of goods that are
imported from the EU. Sainsbury also mentioned that availability of the stock remains bumpy
during the early summer but with the acquisition now returned to the normal.
Two drivers of change
When an organisation adopt any variety of change within its functions, operations or as an
overall changes in organisation there are several drivers that force or support the change. Drivers
of change are the internal or external forces that shape the form of changes within organisation
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and also help in decision making. There are several types of drivers of change that impact the
organisation’s functions such as human resource, political drivers, globalisation, competitive
market, business instability, technology advancements and many more. These drivers of change
are sometimes useful for an organisation and sometimes act as disrupters. In case of Sainsbury
acquisition with catalogue retailer Argos there are multiple drivers of change that allowed
company to take such step that has proved to be profitable for the company (Rhodes and Zhou,
2019). The two major drivers of change in case of Sainsbury are discussed below:
Lower profitability: In half year of the 2016 the company due to the Brexit was facing the low
profitability issue which acted as a driver to make certain changes within an organisation that can
pull up the company’s sales and revenue. The low profitability is major driver of change that let
the Sainsbury to take over the Argos after which in half of the year the company was able to
increase its trading and save operating cost that lead to higher profitability and larger revenue.
Competitive Market: the retail market of UK is highly competitive as there are huge numbers
of large size organisations like ASDA, Tesco and Morrison that rule the market effectively.
Therefore the higher competitive market for the Sainsbury becomes a reason for the change in
organisation in order to gain competitive edge and also to reduce the bumpy stock. It was also
conveyed by the Chief executive of Sainsbury that the market of grocery is extremely
competitive therefore; the acquisition of Argos with the Sainsbury has lead to pleasing results
against the market.
Sainsbury takeover of Argos has boosted the sales in the market also the merger of the
company with the Argos has led to the different changes in the organisation. Significant drivers
of change and the acquisition of Sainsbury with the Argus the company has led to the
development changes transformational changes and transitional changes as company has to
modify all its marketing strategies in order to make the successful acquisition and to overcome
the financial losses. Company also made the transitional changes by clearing out some of its
sales in order to fill up with the catalogue of Argos. Benefit with the change as this increase the
sales of the company and also help the company in maintaining its strong competitive presence
in the market of UK thereby making the bumping stocks to normal (Rice and Pan, 2020).
In order to successfully implement changes Sainsbury has utilise the Kotter’s 8 step change
model that will help the company to understand the current changes as well as to the solution to
implement the changes as per the Sainsbury’s objectives and strategies.
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