Leadership Theory and Internal Environment of Sainsbury

INTRODUCTION TO BUSINESS
Business environment is generally mixture of internal as well as
external factors which impacts the operations of organizations directly
or indirectly. Sainsbury is retail organization being established in 1869
by John James Sainsbury and headquartered in London, U.K.
This poster gives a brief about leadership theory and internal
environment of organization.
Leadership style
Transformational leadership
Leadership is basically the process of guiding as well as
influencing behaviour and the activities of others for
accomplishing the specific task goal or objective. The most
widely known theory of leadership is transformational leadership.
This is the theory in which leaders mainly works along with
teams for identifying the changes and for designing vision to
accomplish goals. In this, leaders mainly encourage the
employees for innovation and helps in their growth (Birt and
et.al., 2020). There are various leadership styles which are
followed by organizations like autocratic, participative,
democratic leadership, laissez-faire leadership. The leadership
styel which Sainsbury uses is participative leadership. In this, the
management of Sainsbury solicit the input from employees and
hence encourages them to provide their feedback for the effective
decision-making.
Departments and divisions
• Birt, J. and et.al., 2020. Accounting: Business reporting for decision making.
John Wiley & Sons.
• Brondoni, S.M., 2018. Competitive business management and global
competition. An introduction. In Competitive Business Management (pp. 21-
42). Routledge.
• Allen, C. and Imrie, R., 2016. The knowledge business: A critical
introduction. In The Knowledge Business (pp. 1-20). Routledge.
• Online
• Leadership Styles. 2015. [Online] Available through: <
http://www.nwlink.com/~donclark/leader/leadstl.html>
• SWOT Analysis. 2019. [Online] Available through: <
https://www.mindtools.com/pages/article/newTMC_05.htm>
Marketing department
Marketing department basically plays a great role within the organization and
the main role of this department is oversee the various sales activities of
organization and thus promote the products as well as take the brand message
to the wider audience. The leadership style as well as leaders plays a
prominent role within this department in Sainsbury. The style of leadership
which leaders mainly adopts helps to motivate the employees for attaining
goals and objectives (Allen and Imrie,2016).
Leaders in Sainsbury have a crucial role in motivating as well as
encouraging their team members to attain the sales target. Besides this,
leaders are also responsible for managing the overall marketing budgets.
HR department
Although the scope of HR department is wide but the main role of HR
department in Sainsbury is to provide the effective training to
employees and retain them and focus on workforce planning.
Leadership plays an important role within this department. The effective
leaders in this department in Sainsbury drives the productivity of
employees and hence helps to build the positive environment within
organization (Brondoni,2018).
Finance department
The major role of finance department in Sainsbury is to manage the
funds of organization and effectively plan the expenditure of funds.
Besides this, it is also responsible for managing the financial
performance of Sainsbury. Leadership has a great role to play in finance
department in this organization. The leaders help to take the strategic
decision for company which will be beneficial for achieving financial
goals of company and provides the clear view of various opportunities
and challenges.
INTRODUCTION
References
Internal environment
SWOT analysis
SWOT analysis is the model which helps the organizations in strategic planning by identifying strengths, weaknesses, threats as well as
opportunities.
Strength
The major strength of Sainsbury is its high brand awareness and brand image among customers which has helped company to achieve
competitive advantage. Due to its great brand image as well as brand recognition. Sainsbury has enlarged its customer base and thus has
helped the company to achieve competitive position. Another strength is its presence across various countries. Sainsbury is present in
more than 42 countries that has helped it to establish position in market. Due its wide presence, Sainsbury has established the great
economies of scale.
Weaknesses
The major weakness of Sainsbury which has dominated its functions and operations is its low investment within research and
development. The investment of Sainsbury is generally below average in innovation due to which its innovation intensity is much low.
Due its low investment, company is not able to bring various innovative products as well as services for customers which has somewhat
affected its market position. Another weakness of Sainsbury is its high turnover rate. In comparison to competitors like TESCO, the
turnover and attrition rate of Sainsbury is generally high. According to the report of 2019, the turnover rate in Sainsbury has increased
from around 32.5% to 43.2% (Allen and Imrie, 2016).
Opportunities
The biggest opportunity available to Sainsbury is expansion in the rural areas. As now even the villagers have become brand conscious
thus Sainsbury has the opportunity to expand its operations and supply chain in rural areas. Thus, company has the opportunity to take
their brand message as well as their products in the rural areas and attract the customers. Another opportunity is increasing investment in
innovation. Company can increase its innovation capability by investing heavily in research and development. Sainsbury can even invest
a great amount in building the new online platform and opening different sales channels (Leadership Styles,2015).
Threats
The major threat which might hinder the position of Sainsbury in market is strong presence of competitors like TESCO, Asda. Due to
their great brand image and competitive advantage, Sainsbury might face a brunt in market. Another threat for Sainsbury is the changing
legal regulations. As company operates in more than one country thus it remains exposed to high political changes which might affect it
negatively. Thus, this is the biggest threat which might affect the competitive position of company and hinder its overall performance
(SWOT Analysis, 2019).
CONCLUSION
It has been summarized that leadership plays an important role
within organization and thus affects the various departments of
organization like HR, Finance etc. Each and every organization
adopts different styles of leaders and the main advantage of
leadership is that it helps organization to take effective decision.
Besides this, SWOT analysis is the model which helps
organization to analyse their various capabilities (Brondoni,
2018). Through this, organizations are able to assess their
competitive position.
Recommendation
Sainsbury can improve its leadership style by effectively listening to the
feedback of their employees and what are their viewpoints on a particular
aspect. Besides this, company can also improve by changing its
behaviour and encouraging the employees to give their suggestions by
setting a perfect example of behaviour (Birt and et.al.,2020).