Sainsbury's: Knowledge Management and Information Systems Report

This report provides a detailed analysis of Sainsbury's, a major UK retailer, focusing on its knowledge management and information systems. The introduction outlines the company's background, founded in 1869, and its position in the retail sector. The main body delves into Sainsbury's corporate objectives, business overview, and organizational structure, highlighting its hierarchical structure. The report examines Sainsbury's business model, emphasizing its focus on customer satisfaction and quality products. A SWOT analysis is conducted, exploring the company's strengths (diversified product portfolio, low cost, brand value, effective distribution network, and stable financial position), weaknesses (non-trendy products, outdated technologies, and financial planning issues), threats (competition and inflation), and opportunities (product and business expansion, and technological advancements). The PESTEL analysis assesses external factors, including political, economic, social, technological, environmental, and legal aspects influencing Sainsbury's operations. The report also discusses the challenges the organization may face and concludes with insights into the future of Sainsbury's knowledge management and information systems, referencing relevant academic sources.

KNOWLEDGE
MANAGEMENT AND
INFORMATION SYSTEM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1.Overview...................................................................................................................................3
2.Organization Analysis..............................................................................................................4
3.Knowledge management information system..........................................................................9
4.Challenges the organization may face....................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Knowledge management refer to the process in which the process creates, utilise, share and
manage all the information which are associated to the organization. The report is based on the
case of the company Sainsbury’s. Sainsbury’s was founded in 1869 and the founder of the
company was John James Sainsbury. Sainsbury was largest retailer in UK in the year 1922.
Company works in the sector of retail which one of the largest market sectors globally. Company
is in top 3 market with the market share of 16% in UK retail sector in the market share. Company
deals in the top-quality food, grocery, clothing, electric and other house products. The report will
overview the company operation. Structure of the company will be overlooked in the report. The
business model and the channelizes of the company. Report will guide in the strength, weakness,
threat and opportunities of the company Sainsbury’s. Further in the report the report will keep an
eye on the knowledge management and information system in the context to the performance of
the company in the future. The report will also explain the external factors of the business
environment in the company context (DeLone,2016).
MAIN BODY
1.Overview
Corporate Objectives
Sainsbury’s main motive is for customer satisfaction and the other business operation of the
company support following objective: -
 To achieve best customer in the retail market and give the best service in the retail market
and product.
 To increase the market share and dominate the sector of retail with eliminating the
competition from the market with the strategies.
 To achieve the profitability ration as the leading in the sector (Hislop,2018).
Business Overview
Sainsbury’s started its business first in 1869 and the founder was the Jhon James
Sainsbury who started it with a shop in Drury lane, London. Company operates all its working in
the retailing sector in the UK and is one of the leading brands in today’s market in UK in the
retail sector. The company works in the products like clothing, food product, electrical items and
other products. Company offers all the top brands in its outlets and promote other brands and
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influence the market in the consumer mind. In 1922 Sainsbury’s was on the top in the retail
market and the largest retailer in the sector. The company is registered under the London stock
exchange and FTSE 100. As a leading food retailer and also a part of property sector. The food
retail chain of the company is its main business accounting and create major turnover for the
company. With the group employees in the company of approx. 145,000 people creates major
player in the economy, the company is known for its best quality and pricing in the market. The
company create the revenue in the 2019 was approx. £29.007 billion
Corporate structure
The corporate organization structure of the company is hierarchical because there are
series of level above, for example the managers are responsible for line manager and the line
manager are responsible for the sales assistant in the company and so on. Flat structure of the
company helps in more decision power to the human resources. Structure helps in more
authorities to employees involved in position in organization. The structure supports the
company in better way of performing the task and helps in effective decision making in a short
period of time. Authorities also create effective employee and its wellbeing in the company.
Outline of business model
Business model of the company is to provide better quality in the market of retail
products in a most effective pricing range. Company is focused in providing the customers the
best relation and satisfaction from the business operations.
2.Organization Analysis
Analysis of the Sainsbury’s can be summarised with the support of the models. Models
are as follow: -
SWOT Analysis
SWOT analysis explain the strength, weakness, opportunities and threat of the company
and it is an internal analysis of the company in its environment.
Strengths of Sainsbury’s
Diversified portfolio of the products: - Sainsbury’s carry portfolio of the product with the well
diversified product range in it to maintain all the business needs of the customer towards the
business. Diversifies product help the company in providing more options to its customer to
choose within. Sainsbury’s cater all top brands in the company and provide all those brands to
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the customer in their retail stores. Product diversification helped the company in achieving the
high goals and provide high customer satisfaction from the business to customer. Diversification
of product provide better variety to support customer to choose from different product option.
Portfolio enable the companies to satisfy the needs and different social factor which also support
the Sainsbury’s in achieving the target market and effective brand image in the market
(Dalkir,2017).
Low cost: - The most strength a company gets its from its low-cost product variants. The low-
cost product of the company is the key strength in the business of Sainsbury’s. Company follow
the policies which help the company in making the low-cost product and keep the low margin to
the profit in serve cost friendly products of the company. This strategy of low cost always
favours the company and gives strength to the company in the business. Even company also give
discount option time to time to its customer which also help the company in the goals. Low cost
strategy of the Sainsbury’s creates brand image and value and target the market.
Brand value: - Sainsbury’s Operating its business operations from the year 1869. Company is
kept on providing the retail product to its customer from so long run in the market and with a
great goodwill in the market. Brand values play a huge role in the business of the company and
in the Sainsbury’s case it is helping the company as company have a good brand value in the
market from long period of time and customer also rely on the Sainsbury as Sainsbury provide
all the services to the customer in the best quality and satisfy the customer needs.
Effective Distribution network: - Salisbury’s has established and well distributed market
network across the globe and support partnership strategic. Distribution and supply chain of
network play a huge role in the availability of trends and fashion product at the stores of the
company worldwide. It also helps in improving the customer base as to cope up with the needs
and demand in the market for the potential customer.
Stable Financial position: - Stability of the company can be seen as the company is working for
more than 100 years so its easy to see the stability of the company in the market and it helps the
company in getting the trust of the customer as the company is well stable in the market and
work in the best of the quality ways. This stability helps in getting the financial stable in the
company. The financial stability of the company gives a strength to the company in the
expansion and can also helps in any loss to the company.
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Weakness of Sainsbury’s: -
Wicked publicity as non-trendy products: - Sainsbury’s had been engaged in a bad publicity
as it’s a non-trendy product. This is one of the key weakness of the company in which the
company is engaged. This spoiled the image of the company across the global market. Non-
trendy product shows the offering of unfashionable products to their customer and due to it the
company couldn’t attract new customer (Laudon,2017).
Outdated technologies: - Company is lacking in outdated technologies in the operation which is
keeping the company in slow growth and making the things hard for the company. Outdated
technologies directly affect the trends and new innovations and shortage of these things cause a
huge market loss to the company.
Not proper Financial planning: - The financial planning is not that good of the company and it
affect the company in getting the losses as the planning of the financial in the system f the
Sainsbury’s are not that strong which affect the financial stability of the company. Financial
source is limited in the nature and its crucial to channelize the financial resources of the company
properly.
Much reliance on UK market: - The major problem of the company is that they rely much on
the UK market and keep on giving the main focus on UK market keeping the company in
making a good image outside the UK market.
Threat of Sainsbury’s
Competition: - The major threat to the company is the competition in the market. The retail is
one of the largest sectors of the global business and the competition in the business in one of the
threats to the company. One of the top competitors of the company is TESCO.
Inflation: - Inflation rates in the economy is a major threat to the company as it is associated to
the economy that can affect the purchasing capacity of the customer towards the
company(Gürel,2017).
Opportunities: -
Product expansion opportunities: - Sainsbury’s carry huge expansion opportunities of product
portfolio. As the company can launch more brands to improve the market share, more brands
provide more choices to the customer and better result in business.
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Business Expansion opportunities: - Company can also improve the business by expanding the
business and opening up new stores in the new locations. This will help in the brand image of the
company and expansion of the image. And improving of the customer base.
Technological advancement: - Improving the technologies will help the company in finding the
business goals more easily as it helps in getting new innovation and trends. Technologies
upgradation of the company will help in improving the growth of the
company(Phadermrod,2019).
PESTEL Analysis
PESTEL Analysis is works as external analysis of the business and environment.
POLITICAL FACTOR: - Political factor indicates the political stability in all the countries the
company is working in or working its operations. As the retail sector is one of the factors which
help the country to grow in the market sector which also enable to contribute in the economic
growth. As the retail sector is increasing the growth the government is also supporting in the
retails sector to get the growth in the country.
ECONOMICAL FACTOR: - Economic factors shows the economic stability of the nations and
the nations where the stores are sets of the Sainsbury’s. Economics stability helps in the
improvement of the growth of the company. Inflations in the economies as for example if a
country is developing then is a challenge for the company to reduce the purchasing capacity &
potential of customer from such countries.
SOCIAL FACTOR: - Social factor indicates about the business aspects of the company in the
market like fashion, trends, demand, need of the people in the society. Social factor plays an
important role in the demand of the product, it influences the demand of the product in the target
market. Due to the demand social factor directly influence the profitability of the company.
TECHNOLOGICAL FACTOR: - Technologies factor is one of the most important factors of
the business and the external environment factor of the PESTEL analysis as the government all
across the world are aiming to improve the technologies so that it can improve the working and
help in better result. The involvement of the government helped the E-commerce trade increase
(Vestrum,2017).
ENVIRONMENT FACTOR: - Environment factor of the PESTEL analysis shows the
important of the environment in the business aspect and it shows that the environment need to be
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preserved. Environment factor drives the company in the eco-friendly products in the market.
Company also involved in the social responsibilities as a part of the environment factor.
Company can achieve the higher potential growth of the company.
LEGAL FACTOR: - Legal factor indicate all the different legislation and laws of the company.
Company need to provide all the requirement in the industry with all the legislation and law
which are made by the government need to be full fill by the company to improve the working
and work smoothly (Alarmoti,2019). Legal factor as the Sainsbury’s need to maintain all the
labour laws and employment laws.
Porter’s five forces model
The competition in the market is increasing therefore Sainsbury’s uses this framework so
that they can find an effective measure for themselves to be able to compete with them in the
future. Competitive rivalry (High)
There is an aggressive competition in the retailer industry across the globe which is why
there is a high threat of competitive rivalry for the business (Castrogiovanni and et.al., 2016).
There are a lot of restrictions which this factor gets in for Sainsbury’s to be able to grow in the
market and get a larger customer base or higher profitability. Buyer Power (Medium)
The company changes their products from time to time according to the trends and have
unique products in the organization which makes the company maintained their customer base.
There are new products being launched for the customers and offers on the products so that there
is going to be a higher capture of customers and increase the sales. Supplier Power (Low)
Sainsbury’s has been able to expand them globally and has more than 1428 stores. The
company has good contacts which is why the company can shift from one supplier to another
anytime which is why this is not the concern of the organization. To improve the supplier base
the company has strong strategic partnerships with other suppliers so that the organization can
profit (Masuin, Latief and Zagloel, 2018). The products of the company is improved and
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innovated according to the trends and needs of the customers with having the right suppliers so
that the end product is going to be effective and satisfactory for the customers. Threat to new entrants (Low)
Sainsbury’s is having low threats of any new entrants in the market because there is already a
lot of competition in retailer sector. There is also a requirement of high investments which a
retailing industry requires and a new business will not be able to compete with Sainsbury’s and
other large organizations. Threat to substitute (High)
The products Sainsbury’s is producing are imitable in nature which is why the company will
be having a threat. There is going to be a huge influence on the sales of the organization.
3.Knowledge management information system
There are different knowledge systems which is being channelized in Sainsbury’s which
are going to be discussed in the further report.
 Groupware
This is a very effective system which Sainsbury’s uses so that the employees can have all the
information which they require so that there is going to be clarity in the organization (Hussinki
and et.al., 2017). This is a very strong method of communicating in a large organization
effectively so that the productivity and operations does not get affected. This system provides the
team with the right knowledge and also team meetings. Expert System
Sainsbury’s has been in the market from a long run which is why they have a brand image
which has to be maintained and using expert systems is going to be effective for the
organization. There are expert advises and key information which can be provided to all the
employees of the organization. With the help of this system the companies in the market will be
able to make the right decisions and plan their strategies effectively. There are necessary
feedbacks which the organization can receive from this system so that the changes can be made
for a strong portfolio of the organization. The key role of this system is for product development
in Sainsbury’s.
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 Decision support system
There are potential decisions which are picked up with the help of this system so that the
organization can have better performance (Mardani and et.al., 2018). This system helps the
company to take the right decisions for the future of the company and planning as well.
 SharePoint
This system is very effective for Sainsbury’s because the management and the employees are
allowed to save the data which is going to be used in the future on this system. This system is
going to be helpful for storing data and information which is required by the organization.
Impact on business performance of knowledge management system
There has to be good knowledge management in the organization which is the employees
have to be aware of the changes which have taken place. The knowledge systems which are
being used in Sainsbury’s are updated from time to time. With the help of a knowledge system
there are going to be less errors and the efficiency of the organization is going to be maintained.
The company is going to have a good reputation in the market because of this factor there are
going to be better decisions which are going to be taken. The employees have to be trained about
the knowledge system which is being used by the organization which puts a lot of pressure on
the human resource (Kianto and et.al., 2019). To get a competitive advantage in this increasing
market there has to be a use of an effective measure so that the company can have more
experience and the organization will be able to perform better. Sharing the right information is
very essential in the company after the organization has gotten online as well. There have to be
less mistakes the company can make because that can affect the portfolio of the organization
which is not a good factor for a long run and the objectives of the company are not going to be
achieved on time.
4.Challenges the organization may face
Sainsbury’s has to face a lot of challenges in the market and have to find an effective
method to avoid or solve that so that the company can have better performance and operations.
The challenges which are faced are going to be discussed in the future report.
 Adaptability
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For the changes to come in the company effectively there has to be strong adaptability which
is going to make the productivity and operations be maintained. The employees have to be
motivated in the organization from time to time so that they can give their best and get the
changes in the company effective. The old employees are not use to changes so easily which is
why the organization will have to find better plans to get in the changes. The human resource and
management will have to have a good communication so that there is going to be a good
understand (Israilidis, Odusanya and Mazhar, 2019). Sainsbury’s has got a reputation with the
customers and that will have to be maintained so that the company can have better functioning
and expand themselves further globally.
 Communication
Knowledge system is going to get in a strong communication in the organization which is
good for the operations. There are times when there is a lack of communication but updating the
knowledge system is going to make the communication be maintained for the productivity and
producing the end products for the customers. Sainsbury’s has expanded themselves in a lot of
countries which is why the organization will have to face a lot of challenges to get in knowledge
system but this is going to maintain the communication throughout which is a very helpful factor
for the organization. The competition in the market is increasing which is why these changes in
the organization are very important so that the employees know what is expected out of them so
that they can give in their best. The efforts of the employees is going to reduce and they will feel
less pressure of working which is good for the productivity and the expectations of the customers
are going to be met on time.
 Location
The knowledge management system is not going to be limited and all the employees must
have access to it so that there is going to be better satisfaction of the customers. There are a lot of
important decisions which can be made by the organization with the help of this factor so that the
company can benefit from this factor which is going to be very good factor for the company
(Tseng, 2016). There is going to be no misuse of this system in the market and this system is also
going to require a lot of investment as well which the management will have to analyse and then
get in the best information and knowledge system in the company. The brand image and value of
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the company must increase and it can take place with this factor which is going to be very good
for the company.
CONCLUSION
From the report above it can be concluded that all the businesses in the market must have
information knowledge so that there is going to be a better performance of them and the
reputation of the business can increase in the market. There are going to be lesser errors and the
portfolio of the organization is going to increase which is a great factor. The changes in the
company are going to be well maintained and the organization will be able to profit from this
factor and have a large market share for them.
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REFERENCES
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