Contemporary Management Issues - Sainsbury's Response to Change Drivers

Contemporary
Management Issues

Table of Contents
Introduction.................................................................................................................................................3
Discuss how Sainsbury has responded towards the change drivers with consideration for the nature of
the pressures for change..........................................................................................................................4
Recommend how the organization can enhance its response.................................................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13

Introduction
Contemporary management issues are the issues which have not been resolved yet and
put a tremendous impact on the people. In management, there are numerous issues are
encountered by managers. These issues are related to uncertainty about the future, wellbeing of
employees, shaping the culture of company, hiring and on boarding right employees and more.
It is important for the managers to prepare suitable strategies so that they can face the
contemporary issues efficiently. In addition to this, they need to anticipate of the issue and
prepare suitable policies accordingly (Imazio and et. al., 2017). Main aim of the present study is
to examine the contemporary issues present in the current business environment. The study is
based on the takeover of Agro by Sainsbury. Here, Sainsbury is the second largest supermarket
chain in UK. It offers groceries and general items such as clothes, home appliances, mobiles and
more. In 2016, Sainsbury acquired Agro with an aim to expand the business. This takeover
boost the sales of the entity by strengthened the production capacity efficiently. The study will
cover change drivers and their impact on strategic decision-making of the organization. In
addition, it will include the strategic response of Sainsbury to the change drivers. Further,
suitable recommendations have also been included in the report for the further growth and
enhancement.
Overview of takeover
Sainsbury is one of the largest retailers of UK. It offers variety of products in order to
offer wide range of choices to customers. The company was founded in . Sainsbury acquired
Agros in 2016 with an aim to offer wide range of products to customers. Main aim of the
expansion was to earn substantial amount of profit. The acquisition proved beneficial in terms of
improving the sales and minimizing the cost. It was noticed that Agros outlets were increasing
trading intensity within the company (Argos takeover boosts Sainsbury's trading, 2018).
However, Sainsbury cut 3500 jobs and closed nearly 420 stores of Argos in order to respond
towards change in customer demand and growth in online shopping (Sainsbury's to cut 3,500
jobs and close 420 Argos stores, 2020). As a result, Sainsbury needs to find alternative roles so
that they can appoint the staff on those positions. The agenda to takeover of Argos was to make
business more profitable and efficient.