Managing Information and Technology

This document provides an overview of managing information and technology in organizations, with a focus on the retail industry. It discusses the application of Porter's five force model and value chain analysis to analyze the competitive environment. It also explores ways to deploy information technology for business improvement.

Managing Information
and Technology

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction about the company..................................................................................................1
Background information and discussion related to products and services of the entity..............2
Analysing competitive environment of business through applying Porter's five force model
along with justification of analysis..............................................................................................2
Analysis of inbound, operations along with outbound logistics..................................................5
Analysis of two support activities within Porter's Value Chain of company..............................6
Identification of key value adding activities along with justification..........................................7
Building on understanding for “Porter's Five Force Model” as well as “Porter's value chain”
analysis.........................................................................................................................................7
Ways in which business can deploy information technology addition to using innovative ideas
for improving business processes and enhancing competitive positioning.................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Now a days, organisations are more focused towards managing information addition to
technology as when these are not managed properly then may result in huge losses. Managing
information is all about collecting, storing and maintaining relevant information of company in
all its kind (Baggio, Czakon and Mariani, 2016). Similarly, managing technology comprises of
preparing, scheming, optimising, operating and effectively using all organisational technological
commodities. To understand about managing information together with technology, Sainsbury is
selected. It is leading supermarket chain that was set by John James Sainsbury in 1869 at London
UK. The report covers organisational introduction and its background information. It further
includes application of Porter's five force model to analyse competitive environment. In addition,
it also discusses about Porter's Value Chain of business. At last, it reflects on the ways
information technology is can be deployed and usage of innovative ideas for the purpose to
improve processes of businesses and increase the competitive positioning.
MAIN BODY
Introduction about the company
Sainsbury is most popular company in retail industry that have its headquarters located in
London, UK. The vision of it is to become leading company which is most trusted by people to
shop and work. It keeps its customers at heart of everything they performs and invest in the
channels, stores as well as colleagues for offering best and effective experiences (Sainsbury,
2020). Moreover, its vision is to deliver healthy products that have outstanding quality along
with great services in faster and simpler manner. Along with this, it also aims to be consumers'
preferential choice to shop. The company provide great food in market at fair prices and
executes activities associated with suppliers and environment in fair manner. In the year 2019,
total revenues of £ 29.007 billion was achieved by it. Moreover, it also gained operating income
of £ 312 million and net income of £ 219 million in the same year. It has approx 116500
manpower working in its different premises at international destinations. Organisational
managers source products from more than 70 nations as per the potentials of supplies for meeting
safety, ethical together with quality standards. It is also focused towards catering huge value of
financial services to wide customers across UK.
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Background information and discussion related to products and services of the entity
Sainsbury is UK based retailer which was formed in 1869 as shop in Holborn, London.
John James along with Mary Ann Sainsbury played important role in establishing the company.
It was started with a shop that offered fresh food and as time changes, the shop expanded to
provide packaged groceries that included tea and sugar. “Quality perfect and prices lower” was
trading philosophy of the company for the first shop. In 1922, it was incorporated as private
organisation and became largest retailer of UK for groceries. Its products comprises of
convenience shops, superstores, forecourt shops and supermarket in which different departments
are set for commodities like dairy, cooked meats, groceries, bacon and hams, fresh meats,
poultry and game. In present era, There are approx 1420 shops of the entity in UK and among
these around 820 are convenience stores (Sainsbury stores. 2020). The rest number are of super-
marketers. In relevance with convenience shops, it is small shop which stocks wide variety of
daily products including confectionery, groceries, newspapers, coffee, magazines and many
more. These shops also offers services related to money order addition to wire transfer services.
Superstores of Sainsbury are big box stores that have physical establishments and sells dry
goods. Its supermarket are self service shops that provides diverse variants of household
products, food and beverage items that are organised into sections. These also offers wide
services that are mobile phone services, banking services, insurance services and restaurant
facilities. With passage of time, the business concern continued its practices for refining
commodity offerings along with maintaining leadership in context to convenience, cleanliness as
well as shop designs.
Analysing competitive environment of business through applying Porter's five force model along
with justification of analysis.
Competitive environment is impulsive and driving extrinsic system wherein a company
competes and function for attaining objectives. When businesses sells more number of similar
commodities then compete against others in more competitive business (Barak, 2017). In
relevance with Sainsbury, managers can apply Porter's five Force Model for analysing
competitive environment within retail sector where it operates and functions. Explanation and
application of the model is underneath.
Porter's Five Force Analysis
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The framework which is majorly opted for analysing organisational competitive
environment. It assists in determining weaknesses and strengths of particular industry. Moreover,
it is used for analysing industrial structure so that all the corporate strategies are determined on
time and in effective modes (Basu and Wright, 2016). By applying the model, Sainsbury
managers analyses competitive environment as it provides insights about competitive rivalry,
suppliers bargaining powers, threat of substitutes, customer's bargaining power and threat of
entrants. By considering all, effective strategies are set that aids in sustaining brand position and
generating potential profits. Along with this, it is also applied by company for addressing issues
related to external forces that have capability to influence financial performance and other
performances in real world. The forces are as analysed:
Competitive rivalry: The first force that involves competitors number along with ability
for undercutting an entity. When larger number of competitors offers equivalent products and
services than it creates high competitive rivalry. However, low competitive rivalry involves
limited companies with few products. In case with Sainsbury, Competitive rivalry is high and
this is because large number of entities performed and functions in the retail industry by
providing similar and wide variants of commodities that creates huge competition. Some of
business concerns that prevails retail industry are Morrisons, Tesco, Amazon, Walmart, Boots,
Asda and Debenhams that have gained huge market shares and development levels. All these
companies offers wide products that have similar characteristics and relative low price that
makes the competitive rivalry high for the company.
Threat of new entrant: The another force that affects organisational powers through
threat of new entrant in the industry (Bladergroen and Chigona, 2019). In retail industry, flexible
regulations and policies that are governed by political authorities has resulted in enhancement of
new entrant existence. Moreover, digitalisation is also another element that increases new
companies entrance in the sector. Moreover, to enter and make strong position, new companies
are required to make diverse investments and significant capital also. In case with Sainsbury,
new entrant threat is extremely low as organising and managing a business against the institution
is very challenging and required investments as well as significant brand development that takes
years to get establish. Moreover, the industry provides little scope to new businesses for their
establishment and because of this new entrant threat is low for Sainsbury.
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Bargaining power of buyers: The force generally represents number of purchasers in
industry, their order size and transition costs (Chen, 2017). Buyers are the one who makes
purchase decisions for organisational commodities. Various companies sells similar commodities
in retail industry at relative low prices that provides buyers huge bargaining powers. In context to
Sainsbury, it has large customer base that make purchasing in large volume. Along with this, it
also offers specialised and differentiated products with higher quality on time that provides
aspects of low bargaining powers to customers. Moreover, the company provides variants of
commodities at reasonable prices that they set after analysing perceptions of the customers for
some particular offering and this is the main reason for low bargaining power of customers. A
part from it, high switching costs, less price sensitivity, purchase of specialised products along
with fewer substitute commodities also indicates that customers have low bargaining powers in
the market.
Bargaining power of suppliers: The force which describes about bargaining power that
suppliers have with the company. In the competing business environment, it is very difficult to
understand suppliers and categorise them (England, Pelissero and Morgan, 2016). Suppliers are
the one that provides sources or materials to produce commodities and also render services
among companies to fulfil requirements. When there are situations related to unavailability of
substitutes, high switching costs of purchasers, small suppliers against buyers and low
dependence on sale to specific customer then in these situations suppliers have high bargaining
power. In contrary, the reasons for low supplier powers to bargain includes large suppliers than
buyers, limited dependence of purchasers of suppliers, low buyer switching cost and many more.
In association to Sainsbury, it is analysed that the company performs operations in retail industry
where there are small suppliers against buyers and posses low switching cost that results in low
bargaining powers to suppliers. Moreover, the company makes contractual relationships with
various suppliers and when one of them increases the prices then the company reduces activities
or transactions with that one. Presently, the company has strong image and market shares and all
suppliers wants to remain in their contact list. Because of it, Sainsbury have low bargaining
powers of suppliers.
Threat of substitutes: The last force that depicts about the substitute threat a company
has in competitive business environment (Epstein, 2018). When products that offers similar
benefits to customers are available in market then there will be high threat of substitutes for
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company. However, when no company produces the products which offers benefits to consumer
then it results in low threat of substitutes. Commodities which is provided by another company
and have similar benefits and usage as the product offered by the entity are said to substitute
products. In relevance with Sainsbury, it is analysed that it has high threat of substitutes for
grocery addition to non grocery items because of potential food substitutes which are offered by
other retailers and have same taste and utilisation criteria. The retailers time to time offers food
substitutes along with other substitutes of products that have same usage as like those Sainsbury
and it leads to high substitute threats.
The above analysis justifies that different forces have distinct aspects that helps in
analysing competing environment. There are different reasons for the high and low levels of
forces which are analysed by applying Porter's Five Force Model in context to Sainsbury. The
analysis drives forces which helps in identifying intensity of competition in particular sector.
With the analysis, managers of the company have also gain understandings for barriers of
entrants, rivalry competition, powers that suppliers and buyers and substitute threats. So , it is
said that the model is one of effective framework through which suitable information are gained
related to business competitive environment.
Analysis of inbound, operations along with outbound logistics
Primary activities are those activities that are related with buying materials, converting
them into valuable commodities and selling merchandise (Kannan, 2016). These are majorly
involved in aspects related to production and selling organisational valuables to targetted
population. They covers physical product creation, sales and transferring ownerships to potential
buyers. The major primary activities that are performed at Sainsbury are analysed as the
followings:
Inbound logistics: The activity that comprises of transportation, storage addition to
delivery of items that are coming inside premises of company. Moreover, it is about purchasing
outputs including raw materials and many more. Sainsbury do not produces its own products and
in this case, Inbound logistics involves activities related to material handling, inventory
controlling, scheduling transportation, warehousing along with returns to supplies.
Operations: The activities to convert inputs or raw materials in desired commodity are
said to operations. As Sainsbury do not execute production procedures and because of this the
company have different activities related to operations from those of its rivals. Activities in its
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operations includes machining, equipment maintenance, printing, packaging, assembly and
facility opeartions.
Outbound logistics: It is mentioned to the process related to storing, transporting
addition to distributing commodities in market (Letcher, 2018). It begins with orders of customer
sales, moving towards warehouse packaging and ends at delivery of product to ultimate users.
Few of outbound logistics activities in consideration to Sainsbury involves finished product
warehousing, delivery operations, scheduling of work, processing of order and handling of
tangible items.
Analysis of two support activities within Porter's Value Chain of company.
Porter's value chain is a framework that combines organisational systems for making
money. It is made of diverse subsystems that are utilised for creating products addition to
services. The model was described by Michael Porter as strategic management tool to analyse
value chain of company. It involves various types of internal activities in which a business is
engaged to transfer inputs into desired outputs. Primary activity and supporting activity are two
of main activities that are involved within value chain of a business. Two support activities of
Sainsbury are as analysed:
Firm infrastructure: The activity which serves organisational needs together with ties
various parts together are said to firm infrastructure (Martin, 2017). Moreover, it covers support
systems along with functions which allows companies to maintaining all the operations
effectively. In association with Sainsbury, firm infrastructure activity includes strategic
management, accounting, quality management, finance and political affairs. With these
activities, the retailing entity enjoys competitive advantages and manages entire operations.
Human resource management: Activity that involves managing human elements
through recruitment, selection, orientation, training, compensations and laying off are mentioned
as human resource management. Hiring, motivating and retaining human resources helps in
designing, manufacturing, promoting, selling and delivering valuables of the company for
executing business strategies to achieve objectives. Few activities of Sainsbury that are part of
the supporting activity are recruitment, selection, performance management, compensation,
rewarding and training and development. All institutions rely on this activity as it provides
talented people in different department who executes operations as determined.
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Identification of key value adding activities along with justification
Value adding activities are those activities which increases benefits of products to
customers and organisation to huge level (Mayzlin, 2016). These activities generally adds values
for company. Certain key value adding activities of Sainsbury are as identified with justification:
Marketing: It is an activity that builds exchange relationships to satisfy customers by
exchanging values. In context to Sainsbury, marketing is one of key value adding activity that
adds values for organisational commodities through promoting them in competing market and
provide information to wide distant customers. Moreover, marketing distinguishes the products
that are offered by company and through this it develops brands with the help of messages along
with imagery benefits. Hence, marketing results in creating awareness about brand that adds
various valuables within the entity and its commodities.
Customer experience: The activity which adds values through interactions among
customer and business within the duration of relationship is customer experience activity
(Sapaty, 2017). Customer journey, brand touchpoints and environments are some elements of
customer experience that assist to add values in products and company. When Sainsbury
provides favourable experiences to customers by using the commodities then it satisfies the
requirements of such people and with this diverse vales are enhanced on time. Moreover, it also
ensures building brand loyalty, evangelising products and gaining positive reviews from
customers that increases values of company in market.
Building on understanding for “Porter's Five Force Model” as well as “Porter's value chain”
analysis
Through Porter's Five force analysis of Sainsbury, it is understood that substitute threat
is high because of large retailers selling similar food and other items which offers same
advantages in market. Competitive rivalry with the company is also high and major competitors
are Tesco, Morrisons and Debenhams. Bargaining powers with suppliers are low as the entity
have wide number of suppliers to purchase required materials. Along with this, buyers have low
bargaining powers as all its prices are set as per their affordability. Moreover, New entrant threat
is low as huge capital and investments are to be made by new companies to sustain in the
competing market (Pearlson, Saunders and Galletta, 2019).
From the analysis of Porter's value chain, it is understood that primary activities of
Sainsbury are inbound logistics, operations addition to outbound logistics through which it
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manages inventory and delivers products to customers. In addition to this, supportive activities of
the firm are human resource management and firm infrastructure. Furthermore, the activities
which adds values are marketing and customer services as they enhances valuables to great level.
Ways in which business can deploy information technology addition to using innovative ideas
for improving business processes and enhancing competitive positioning.
Information technology is all about usage of computers for storing, retrieving,
interpreting along with manipulating data addition to information of company (Rowley and
Hartley, 2017). At Sainsbury, managers can deploy information technology through installing
updates software in the computer systems that are used in warehousing, billing counters and
many more. Along with this, introducing artificial intelligence as robots in work premises of the
company can also lead in deploying information technology. These robots will guide employees
and customers about the products and other aspects. By using innovative ideas in activities of
company can result in improving processes of business along with enhancing competitive
positions. Managers of Sainsbury uses various innovative ideas in form of marketing
commodities that attracts wide customers and understanding their needs so that all are fulfilled
effectively and timely. With this, all procedures are performed on time and in systematic manner
and with proper monitoring managers analysis deviations and implement suitable solutions that
improves processes of firm in large manner. Moreover, innovative ideas also assist in keeping
customers loyal with brand and making unique position in market that is different from rivals
(Tidd and Bessant, 2018). By grabbing large market share and fulfilling market choices then
organisation gains success in increasing competitive positions in dynamic environment.
CONCLUSION
From above report it has been concluded that it is very crucial for business concerns to
manage information together with technology for gaining competitive positions in market. With
changes in time, a company makes wide changes from its establishment till the date within its
products and services that they offers to customers. Porter's Five force analysis is majorly
applied for gaining understanding about competitive environment of enterprise. Porter's Value
chain analysis assist managers to create values to customers through various activities that are
primary and secondary. Moreover, information technology is deployed in many ways in a
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company and innovative ideas are also used in many ways that leads to improve business
processes together with enhancing competitive positions.
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REFERENCES
Books and Journals:
Baggio, R., Czakon, W. and Mariani, M. M. eds., 2016. Managing tourism in a changing world:
Issues and cases. Routledge.
Barak, M., 2017. Science teacher education in the twenty-first century: A pedagogical
framework for technology-integrated social constructivism. Research in Science
Education. 47(2). pp.283-303.
Basu, R. and Wright, J. N., 2016. Managing global supply chains. Routledge.
Bladergroen, M. C. and Chigona, W., 2019. Managing information and communication
technology in South African classrooms: pre-service teachers’ experiences. Africa
Education Review. 16(3). pp.22-35.
Chen, Y. C., 2017. Managing digital governance: issues, challenges, and solutions. Routledge.
England, R. E., Pelissero, J. P. and Morgan, D. R., 2016. Managing urban America. CQ Press.
Epstein, M. J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Kannan, R. ed., 2016. Managing and processing big data in cloud computing. IGI Global.
Letcher, T. M. ed., 2018. Managing Global Warming: An Interface of Technology and Human
Issues. Academic Press.
Martin, W. J., 2017. The global information society. Routledge.
Mayzlin, D., 2016. Managing social interactions. In The Oxford Handbook of the Economics of
Networks.
Pearlson, K. E., Saunders, C. S. and Galletta, D. F., 2019. Managing and using information
systems: A strategic approach. John Wiley & Sons.
Rowley, J. and Hartley, R., 2017. Organizing knowledge: an introduction to managing access to
information. Routledge.
Sapaty, P. S., 2017. Managing distributed dynamic systems with spatial grasp technology (Vol.
690). Berlin: Springer.
Tidd, J. and Bessant, J. R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Online:
Sainsbury. 2020. [Online]. Available through: <https://www.Sainsbury.co.uk/>
Sainsbury stores. 2020. [Online]. Available through:
<https://www.statista.com/statistics/386475/Sainsbury-store-numbers-by-convenience-
and-supermarket-united-kingdom-uk/>
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