Contemporary Management Issues in Sainsbury: Drivers of Change and Strategic Response

Contemporary Management
Issues
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INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Two drivers of change............................................................................................................4
How Sainsbury's has strategically responded to these drivers of change with consideration for
the nature of the pressures for change....................................................................................9
Recommend how the organisation might enhance its responses highlighted above............10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business environment is inclusive for number of factors, forces and elements. It is essential
for an organisation to continuously analyse these forces in order to conduct activities and
operations in effective manner while ensuring profitability and competitiveness (Fagetan, 2021).
Contemporary management include planning, leading, organising and controlling activities of
organisation in order to accomplish overall goals and objectives. In this with help of examination
of contemporary management issues organisation can identify the forces that can impact on
strategic decisions and growth of company. Change is a dynamic element that have tendency to
benefit and destruct organisation. For this, leaders and managers with the company are required
to build contemporary management skills by providing training and development to workers in
order to enhance their performance and make operational improvements. Different type of
training allows leaders and managers to develop expertise in progress and documenting policies.
Contemporary management mainly focused upon working in an effective manner in order to
manage change. Contemporary management skills benefit to manage individuals within an
organisation to accomplish tasks, establish discipline and assure direction and plan consistency
with the help of establishing a culture of innovation and adoption. This will benefit organisation
to analyse change and further implement strategies to for higher growth and profitability.
Present report is conducted on Sainsbury which is operating its business services in retail
industrial sector. Company was founded in the year 1869. Report discusses takeover of Argos by
Sainsbury in order to boost trading and ensure higher competitive growth in market segment.
This report include discussion upon key dynamic forces which impact on business and use of
effective decision-making tool to address those temporary drivers of change. Significant
recommendations are also being included in this report.
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MAIN BODY
Two drivers of change
Business environment is inclusive of number of factors, elements or drivers that are having
tendency to impact strategic decision making of organisation. Sainsbury is operating its business
functioning as the United Kingdom second largest supermarket chain. This organisation offers
wide range of products and services to consumers and has been active since 1869. With
approximately more than 1500 stores across United Kingdom Sainsbury offer products and
services to consumers. It has been identified that there are number of driving forces in business
environment which is creating challenge in front of company in terms of higher competitiveness
in market. Evaluation of the driving forces is being done with the help of pestle and Porter five
forces analysis which is a strategic tool.
PESTLE
Political:
Without any doubt the biggest political factor which is creating challenges for Sainsbury
decision making process is Brexit. This is a major driving force which is essential for company
to overcome, as it is affecting organisation cost to acquire raw material and other inventory, as
before Brexit Sainsbury can easily acquire raw materials and other essentials from suppliers
around European Union. After Brexit it become difficult for super market to import product from
EU, as it significantly increases the cost of foreign product which will directly impact upon
consumers. Along with this it has been identified that Brexit also increased import rates which
automatically lead towards rising the end product pricing. This will affect large base of
consumers as they will move towards cheaper option (De Lyon and Dhingra, 2021). It has been
identified that increase in foreign product and import will also make Sainsbury to increase the
cost of operations in order to perform business operations. From the analysis of this factor, it has
been identified that Brexit is emerging as biggest political factor and acting as a driver of change
which is important for organisation to emphasize upon in order to conduct business efficiently.
Economical:
It is an essential factor of pestle analysis which includes elements related to interest,
inflation rate, working hours, employment, cost-of-living etc. Sainsbury is majorly operating its
business operations from United Kingdom and have more than 1500 stores in this province. It
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