Knowledge Management and Information Systems

This study material provides an in-depth understanding of knowledge management and information systems. It explores the concept of knowledge management and its application in organizations, with a focus on Sainsbury, a leading supermarket chain in the UK. The material covers corporate objectives, business overview, corporate structure, and more. It also discusses the evaluation of different aspects of the firm, environmental factors, and competitors.

Knowledge
Management and
Information Systems

Table of Contents
Introduction......................................................................................................................................1
Corporate objectives....................................................................................................................1
Business overview.......................................................................................................................1
Corporate structure......................................................................................................................2
Business model............................................................................................................................2
Evaluation of different aspects of firm, environmental factors and competitors........................4
Recommendation for appropriate KM information for Sainsbury..............................................8
Critically assess key challenges that organisation might face while execution of challenges..10
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

Introduction
Knowledge management is defined as process for creation, sharing, usage and
management of organisation for attainment of objectives by making enhanced use of knowledge.
It implies the concept for finding, collecting, assessment, organisation along with sharing of
information (Abubakar and et. al, 2019). Basically, it implies any kind of IT system that stores as
well as assume knowledge, identify its sources, carry our relevant improvisations in
collaboration for enhancing overall process of knowledge management. To understand the
concept of knowledge management, Sainsbury is taken into consideration which deals within
retailing industry. It is second largest supermarket chain in UK that was founded on 1869. The
firm has more than 116400 employees in around 1428 locations for satisfying demands and
needs of their customers with higher quality services. This report comprises of formative
discussions on firm like its objectives, structure and business model. Furthermore, environmental
factors by specifying SWOT analysis will be illustrated by making use of different models and
recommendations will also be given. The three management challenges faced by firm will also
be illustrated along with overview of the report.
Main Body
Corporate objectives
Sainsbury is rendering their services within the market with enhanced efficiency and aims
at providing them with quality services along with affordable access to things that are needed by
them. Their objective is to offer customers with distinctive products at competitive prices across
general merchandise, financial services and services. Driving efficiency within day to day
operations of Sainsbury aids them to invest in customer offer within the area which they value,
they are: low prices, quality, choice, convenience along with great services (Al Ahbabi and et. al,
2019). For this, they have formulated multi-brand, multi channel business that renders
flexibility, convenience and choice for their customers. Sainsbury has made investment within
digital offers and their stores through which customers can buy more as well as time and money
by opting for services for them.
Business overview
Sainsbury offer their customers with products via superstore, forecourt shop, convenience
shop and supermarket. Company have near about £29.007 billion revenue in 2019 which implies
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that are effectively catering needs of their customers. They aims at delivering their purpose
along with vision by laying emphasis on seven strategic priorities that are formulated for
ensuring that they furnish their customers with rapidly altering retail marketplace. The seven
priorities are: to be competitive on prices, render new categories and distinctive products,
friendly, fast & convenient, seamless & personalised physical and digital, drive in efficiency for
reinvestment, be a place where employees will love to work and by 2040 net zero.
Corporate structure
The hierarchical structure is being followed by Sainsbury where there exist series of
individuals and each entity is managed by higher authorities. Hierarchical structure is defined as
chain of command generally from executives and senior management to employees (Antunes and
Pinheiro, 2020). An instance can be taken with respect to Sainsbury, manager of firm give details
about project to team leader and then team leader is liable for giving further detailed instruction
to employees.
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Illustration 1: Corporate Structure of Sainsbury

The above figure illustrates the organisational structure of Sainsbury. In this structure, each
employee knows to whom they have to respond to and this enables them to deliver their
liabilities in an effective manner. Furthermore, they also know to whom they have to respond,
take guidelines and work with. The precise instructions will lead them employees to give their
best within responsibilities.
Business model
With respect to Sainsbury their business model is described below:
Supply Chain: Sainsbury source their products from more than 70 countries as per the
capability of suppliers for accomplishment of safety, quality along with ethical standards. They
make relevant investments within British farming for improvisation of productivity and minimise
the influence on environment (Chierici and et. al, 2019).
Logistics: They deliver fresh groceries, fresh food, clothing and general merchandise
from suppliers across the world through 33 different distribution centres.
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Illustration 2: Business model of Sainsbury

Channels: Sainsbury have more then 2300 supermarkets across Ireland and UK and are
also growing their online business. They have online app that accounts for near about 20% of
food orders.
Quality: Their passion for quality extends everything they sell. For this they check
quality of of food and improvise their brand product ranges.
Service: Sainsbury have more than 116400 employees who acts as critical foundation for
their business. They are liable for making difference within the community they are serving.
Value: Firm offer enhanced quality of services and products at reasonable prices as a part
of their commitment for helping their customers to live well (Ferraris and et. al, 2019).
Choices: By their Habitat, Sainsbury and Argos brands they comes under one of the
largest retailers across UK.
Evaluation of different aspects of firm, environmental factors and competitors.
Business environment comprises of distinct kind of factors which have direct as well as
indirect impact on operations carried out by the business. This implies that is crucial for firm to
have relevant understanding of factors for further development of policies and strategies through
which they can have competitive position within the market (Gunjal, 2019). For this Sainsbury
need to make use of distinct models by which they will be able to determine challenges as well
as deal with them in effectual manner. The pestle analysis is illustrated below with reference to
Sainsbury.
Political factor: This factor comprises of entities associated with political interference on
the functions of firm. Sainsbury have an edge across UK due to political stability as different
relaxations have been given within firms delivering their functionalities in retail sector. Through
this entity will be able enhance their profit shares as well as amplify their market share holding.
But there are certain hindrances due to Brexit that lower down profitability of entity. In addition
to this, dynamic alterations within political laws affects smooth operations of organisation
(Israilidis, Odusanya and Mazhar, 2019). Therefore, there is need for development of strategies
as well as policies for gaining maximised opportunities.
Economical factor: This factor comprises of elements that are associated with currency
rate, disposable income, GDP,, inflation and many more. It has been assessed that UK is
rendering enhanced economical opportunities for Sainsbury with various financial benefits. This
leads to furnish relevant opportunities for organisation through which levels of profitability can
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be amplified. It is determined that there exist higher labour rates within UK that leads to creation
of pessimistic influence on profits of firm. This implies that Sainsbury must formulate effectual
strategies for hiring potential and skilled employees for longer duration of time (Kassou, 2019).
This will further enable firm to enhance their competitiveness within the market segment.
Social factor: This comprises of entities such as beliefs, preferences, taste and many
others. It is identified that within UK individuals have higher levels of income. This enables
them to spend more on services as well as products. Sainsbury can take advantage from
opportunity for maximising their overall profitability. But due to rapidly altering requirements of
customers, firm might face various challenges and for this it becomes mandatory for them to
execute change management strategy within working premises to accomplish their requirements.
Technological factor: This factor is evolving at rapid rate which leads to creation of
relevant opportunities for firms to enhance their operations. UK is technologically advanced
nation that offers various advantages to firms. This has been assesses that by making use of
advanced technology firm can serve their customers with enhanced services and products
(Marchiori and Mendes, 2020). Furthermore, Sainsbury can also enhance their online delivery
process like instead of humans , robots can be utilised for delivering the products to customers.
Technology possess higher tendency for driving profitability for firm at greater extent.
Therefore, it is critical for firm to have significant understanding for regular updates in
technology for having competitive enhancements as compared to their rivals. But this will need
heavy investment and also training has to be given to employees so that they can use it in an
effective manner. For dealing with this issue, it is critical for Sainsbury to make use of policies
with reference to this aspect.
Legal factor: This evolves around government laws and legal objectives. Firm needs to
ensure that they are abided by them for conducting their operations in appropriate manner. This
has been identified that there exist various legal laws that are enforces by government of UK for
firms those are working within retail sector (Martins, and et. al, 2019). Therefore, to carry out
their functionalities in an effective manner it is critical for Sainsbury to have adequate
understanding related with laws that are formulated by government with respect to peculiar
sector. This will aid firm to ensure that they are carrying out their operations in an effectual way.
In case if this is not done, then penalties might be imposed.
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Environmental factor: It has been identified that government as well as individuals are
more concerned about safety as well as security of environment. Furthermore, it is evaluated that
many environmental protection measures and acts are forced on retail sector in this context
(Nisar, Prabhakar and Strakova, 2019). Therefore, it is crucial for Sainsbury to have affirmative
concerns regarding environment for gaining maximised advantage. Along with this, entity also
needs to execute environment safety measures and policies which will aid within enhancement of
brand image in the public that will enable to have increased profitability.
The Pestle analysis have been provided above that yields organisation with appropriate
opportunities by taking into consideration the factors that might creates pessimistic influence on
the overall functioning of organisation. This has been identified that the situations that prevail
across UK leads have political stability that have affirmative impact on the way in which
operations are delivered by them. Latest technologies and taking into account social factors will
lead them to deliver their services as per desired standards.
SWOT Analysis
STRENGTH WEAKNESSES
 Sainsbury is second largest retailer firm
across UK that comprises of impelling
brand image within the market. This
aids them to have high sales that leads
to relevant increase within profitability.
 Services are offered by firm at
reasonable prices (Shujahat and et. al,
2019).
 They have experienced leadership team
and have sponsored various events such
as Paralympics
 Firm do not took advantage from
technology which hampers their
operations as well as profitability.
 Sainsbury have restricted promotional
channels as well as marketing options
as compared to their competitors which
declines ratio of sales.
 There is a stiff competition in each
segment within the industry.
Opportunities Threats
 Sainsbury can have edge by making use
of technology for enhancing overall
profitability ratio. As this has been
 This is identified that retail sector is
going through issues due to aggressive
competition that creates an impact on
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determined that emerging technologies
will offer assistance to entities for
enhancing effectiveness of business
operations that leads to serve their
customers. Furthermore, it will enable
entity for expanding online presence as
well as serve customers in effectual
manner.
 Entity can have edge from government
relaxations which are offered to firms
within retail sector. This will aid firm
to ensure long term existence in context
of market.
profit generation capabilities of firm.
The rival organisation of Sainsbury are
ASDA, Walmart and Tesco.
 Sainsbury is facing threats because of
Brexit which enhances obligations to
laws, taxation along with operations of
entity.
 Sainsbury can opt for entering within
emerging market via partnerships or
ventures for exploring these markets
(Wang and Meng, 2019).
 Enhanced globalisation illustrates
challenges along with opportunity for
Sainsbury.
The internal analysis comprises of both the aspects the assets that are present within the
organisation as well as those which might create impact from outside on the organisation. It is
identified that threat of competition is high but firm have opportunity to expand their operations
at global scale so that they can reach maximum of customers. It is identified that Sainsbury have
high brand image through which they can deliver their services within the marketplace. The
certain aspects have been illustrated; here strengths enable Sainsbury to deliver their offerings in
an appropriate manner. Furthermore, there are certain weaknesses that they have to work on
through which they can be converted into strengths that will allow the organisation to enhance
their services offered. It is evaluated that there are certain risks along with opportunities present
within the market, both will have relevant impact on each other. Thus, it becomes important to
evaluate both these aspects precisely.
Porters five forces
It is effectual tool that enables firm within evaluation of various various forms of factors
which prevails within external environment as well as influence on operations of firm. This
model comprises of five components that are needed by firm for evaluation through which they
can have economic advantage (Wu and et. al, 2019). They are specified beneath:
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Barraging power of customer: As per evaluation, this has been found that there prevails
enhanced competition within the retail sector. Along with this, there are various leading firms
that offers identical forms of services and products for their customers. This leads them to have
high bargaining power for their buyers. For handling this challenge it is crucial for Sainsbury to
have advantage from effectual strategies as well as measures for offering higher quality of
services and products to their customers. Furthermore, entity can have advantage from attractive
pricing strategies for rendering organisational offerings to their customers in effectual pricing
base.
Barraging power of supplier: Sainsbury have lower levels of bargaining power. The
reason behind this is that the firm is second largest retailers and when suppliers are providing
their services to them then it increases their value within the market. Sainsbury take advantage of
this aspect and conduct negotiation and this also leads them to render higher quality of products
to their customers in cost efficacious manner (Abubakar and et. al, 2019). This will aid entity to
have significantly increased profitability and productivity at greater extent.
Threat of new entrants: There exist minimised or low threat from new entrants within
the retail segment, this has been identified that for execution of operation within this industry it
is critical for new entrants to make heavy investments and periodic capital investments also have
to be made. Therefore, Sainsbury do not have threat from any new entrant. This leads to
enhanced opportunities for firm to render services to larger customer base within effective as
well as well defined way. This can be only attained by formulation of effectual strategies along
with measures for influencing purchasing behaviour of customers. Furthermore, Sainsbury can
widen their offering for all income groups (Al Ahbabi and et. al, 2019). It will lead firm to have
increased sales ration along with productivity in effectual manner.
Threat of substitute: Sainsbury is facing high threat as there are various organisations
who are delivering their services within retail sector. This leads to creation of high impact on
their revenue as well as generation of revenue. The switching cost is negligible so substitutes can
easily opt for services from substitutes. For handling this challenge within effectual manner, it is
crucial for firm to attract customers towards their offerings that provide high quality within
affordable prices. Along with this, Sainsbury can design some discounts, coupons, gift
brochures, etc. for attracting customers towards services offered by them for having competitive
edge.
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Rivalry among the competitors: High rivalry in between rivals within the retail sector
because of assertive competition. This is identified that firms like Tesco, Walmart and many
others attracts larger costumer base with various offers as well as cost effective offerings. This
makes it mandatory for management of Sainsbury to take vantage via utilising attractive pricing
strategies and policies for increasing efficiency for satisfaction of ample of consumers within
well defined manner (Antunes and Pinheiro, 2020). In addition to this, firm needs to abide along
with have affirmative attitude for various conditions like environment safety which will enable
them to maximise brand image that provides them with more options for generation of revenue.
As per aspects mentioned above this is identified that through evaluation of porter five
force analysis, Sainsbury can have advantage from different opportunities through which they
can ensure long term growth and sustainability. The market analysis is conducted through the
usage of this model and it is evaluated that due to strong brand presence they have a strong
positioning in the marketplace. But there is high threat from the competitors thus it is important
that they make use of appropriate strategies through which they can ensure there sustainability
for longer duration of time. This will further enable firm to increase overall productivity which in
turn will lead them to attain high profitability at greater extent.
Recommendation for appropriate KM information for Sainsbury
With respect to Sainsbury, information system is recommended for having advantage
from high tech as well as enhanced system through which firm will not be only able to
accomplish requirements of their customers but will also improvise the ways in which they are
being processed and being given to them. This will aid them within attainment of objectives and
aim in effectual manner (Chierici and et. al, 2019). Along with this, firm is recommended to
utilise electronic business as through this they will be able to satisfy requirements of their
customers across the world. By taking advantage of effectual IS, entity can monitor information
of customers along with this, prevailing trends in adequate way. To ensure sustainability within
evolving market, it is crucial for Sainsbury to ensure that they are aware about preferences of
their potential customers. This will enable them to have adequate sales. Firm have carried out
both internal as well as external analysis and through this they are able to determine their
limitations. IT is important that firm make relevant alterations within their functionalities so that
they can address needs of their consumers in an adequate manner.
Method for creation of customer relation and supply chain
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Within the competitive environment it is critical for having enhanced customer
relationship as this aids within increase in sales. This will further assist within exploring the
market in effective manner. There exist diverse ways by which information system is utilised by
Sainsbury for rendering enhanced services to their customers. System possess huge amount of
information related with customers by which firm can determine their needs along with buying
behaviour and ensure that products are being offered to them according to satisfactory levels of
their user (Ferraris and et. al, 2019). In addition to this, regular feedbacks must be taken into
consideration so that if any problems are faced by probable customers then they can make
queries and have relevant solution. But it must also be ensured that they are reviewed as soon as
possible as well as they are being addressed. This will lead to formulate enhanced relationship
with their customers. Along with this, it will enable them to formulate their decisions
accordingly. For an instance, if firm have opted for decision making system then this will enable
them to formulate decisions easily through which it will become easy to coordinate their
functionalities as per goals formulated by them.
Performance objective for the company
Sainsbury is carrying out their business functions like a second largest supermarket
across the country but as the competition within the marketplace is increasing at greater extent
then it becomes crucial for firm to have relevant measures as well as plans for improvisation of
their operations so that evolving requirements of their customers can be addressed in appropriate
manner (Gunjal, 2019). This will enable organisation to ensure that they can attain their desired
objectives, goals and ensure sustainability within the marketplace for longer duration of time.
 By usage of enhanced development within IT solutions of organisation along with opting
for latest technologies, it will become easy for firm to conduct their operations in
adequate manner. Along with this, with effective usage of information system the
purchasing processes can be carried out in precise manner. This means that Sainsbury
will be able to attain required productivity and with higher quality.
 For gaining competitive enhancements within competitive environment, it is crucial for
management of Sainsbury to enhance quality of their services and products. For ensuring
this aspect, firm can make use of effective software such as screen capture platform for
company for having impelling quality (Israilidis, Odusanya and Mazhar, 2019). This will
aid firm within serving customers in best way.
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The objectives have been specified above and by making its use firm can attain relevant
levels of productivity as well as profitability. By making use of latest technologies, Sainsbury
will be able to deal with needs of customers and will also provide employees with an easy way
for delivering their operations. The certain recommendations have been provided but it is
important that the feasibility of all these aspects is considered before making any kind of
alterations in the ways firm deliver their services. The transaction information system will enable
them to make sure that all the transactions that are being conducted are accurate so that even a
single mistake is not present. Furthermore, the management information system will allow them
to have managed information associated with all the aspects. This will make it easy to formulate
the decisions by taking into consideration MIS and accordingly deliver their services in precise
manner. The competition, power of customers & suppliers, threat from alternative and new
entrants must be taken into regard. Critically assess key challenges that organisation might face
while execution of challenges
This has been identified that for implementation of changes, firms go through various
challenges which further leads to creation of disturbance within operations carried out by them.
For this, it is critical for entity to make relevant use of strategies along with measures. Apart
from this, this has been determined that while implementation of changes within the company
they can face resistance or hindrance from their employees that will lead to creation of conflicts
(Kassou, 2019). Thus, it becomes important for firm to make use of effectual strategical
measures for handling these issues as well as gain opportunities with respect to growth in future
and development. Some challenges have been illustrated below:
 It has been determined that execution of software within working premises make it
critical for employees to carry out their operations due to lack of understanding which
lead to decline within their overall performance. In addition to this, there will be impact
on relationship among management and employees. For handling this condition, it is
critical for Sainsbury to make sure training and development is provided with respect to
the software. This will enable them to be compatible with alteration.
 The other challenge is pessimistic influence on operations of firm that are related with
cost for implementation of changes. In this context, Sainsbury can formulate budget and
ensure that all the activities are carried out in accordance to this. To ensure this aspect, it
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is mandatory for management to keep track of what is going on and further carry out their
operations in effectual way (Marchiori and Mendes, 2020).
 This has been found that for adopting new delivery system, the logistic department of
firm goes through ample of challenges which further create an impact on overall sales.
Along with this, extensive usage of online delivery system leads to enhancement of job
security issues in between employees. Therefore, to overcome these challenges, it is
important for management of Sainsbury to have advantage of six sigma model for
minimisation of chances of failure.
The certain challenges have been made, in context of internal working of Sainsbury, the
crowd within the outlets will be minimised which means that they can emphasise on other tasks
like managing resources, inventory, etc. through the usage of online delivery system.
Furthermore, transaction processing system will yield them with affirmative way to manage all
their budgets and deals that have been occurred or occurring. The customer will have ease in
having their service by making online orders and having services at their doorstep easily. By
providing training and development sessions, it will be easy for employees to interact and make
use of technology in an affirmative manner.
Conclusion
From above, it can be concluded that, knowledge management refers to the process for
capturing, distribution and effective usage of knowledge. The goal of usage of knowledge
management is to improvise efficiency as well as save knowledge in company. This implies a
process for creation, sharing, usage and management of information of firm. Along with this, it
has been determined that through assistance of software, firm will be able to keep their
documentation updated and assist their customers within finding out answers. The software will
provide answer to questions that are frequently raised questions by their customers. This will
enable consumers to become their probable buyers. Therefore, firm needs to make effectual as
well as efficient form of knowledge management software as this will efficaciously assist them
within determination of outdated articles within timely way. This will further enable them to
have access to wide range of information which will further aid them within formulation of
strategies in an effectual manner. This can be regarded as significant benefit, for improving
experience of customers in defined and effectual way. Through the assistance of system, firm can
minimise wait time and can render more enhanced satisfaction levels for their customers. Along
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with this, by having online system that is available for 24*7 customers can identify answer by
their own. By taking advantage of effectual knowledge information system, firm can have
internal advantage like scaling of team in more effective manner, hire new employees in quick
way, keep continuity, etc. This will enable entity for maximisation of productivity and
profitability within adequate way.
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References
Books & Journals
Abubakar, A.M. and et. al, 2019. Knowledge management, decision-making style and
organizational performance. Journal of Innovation & Knowledge, 4(2), pp.104-114.
Al Ahbabi, S.A. and et. al, 2019. Employee perception of impact of knowledge management
processes on public sector performance. Journal of Knowledge Management.
Antunes, H.D.J.G. and Pinheiro, P.G., 2020. Linking knowledge management, organizational
learning and memory. Journal of Innovation & Knowledge, 5(2), pp.140-149.
Chierici, R. and et. al, 2019. Transforming big data into knowledge: the role of knowledge
management practice. Management Decision.
Ferraris, A. and et. al, 2019. Big data analytics capabilities and knowledge management: impact
on firm performance. Management Decision.
Gunjal, B., 2019. Knowledge management: Why do we need it for corporates. Malaysian
Journal of Library & Information Science (ISSN: 1394-6234).
Israilidis, J., Odusanya, K. and Mazhar, M.U., 2019. Exploring knowledge management
perspectives in smart city research: A review and future research agenda. International
Journal of Information Management, p.101989.
Kassou, I., 2019. Performance measurement for knowledge management project: model
development and empirical validation. Journal of Knowledge Management.
Marchiori, D. and Mendes, L., 2020. Knowledge management and total quality management:
foundations, intellectual structures, insights regarding evolution of the literature. Total
Quality Management & Business Excellence, 31(9-10), pp.1135-1169.
Martins, V.W.B. And et. al, 2019. Knowledge management in the context of sustainability:
Literature review and opportunities for future research. Journal of cleaner
production, 229, pp.489-500.
Nisar, T.M., Prabhakar, G. and Strakova, L., 2019. Social media information benefits,
knowledge management and smart organizations. Journal of Business Research, 94,
pp.264-272.
Shujahat, M. and et. al, 2019. Translating the impact of knowledge management processes into
knowledge-based innovation: The neglected and mediating role of knowledge-worker
productivity. Journal of Business Research, 94, pp.442-450.
Wang, H. and Meng, X., 2019. Transformation from IT-based knowledge management into
BIM-supported knowledge management: A literature review. Expert Systems with
Applications, 121, pp.170-187.
Wu, K.J. And et. al, 2019. Enhancing corporate knowledge management and sustainable
development: An inter-dependent hierarchical structure under linguistic
preferences. Resources, Conservation and Recycling, 146, pp.560-579.
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