Case Study of Sainsbury's & Argos - PESTEL and SWOT Analysis

BA Hons’
BUS6001
Contemporary Management Issues
Report (4000 Words).

Table of Contents
Introduction......................................................................................................................................3
Sainsbury's Changes in Structure.................................................................................................4
Changes and their impact on Sainsbury's........................................................................................4
The impact of the new position on Sainsbury's...........................................................................4
Changes in perception have an impact on Sainsbury's................................................................5
Sainsbury's Change Types...........................................................................................................6
Change drivers that have an influence on strategic decision-making..............................................7
PESTLE Analysis: External Change Drivers..............................................................................7
SOWT Analysis: Internal Change Drivers................................................................................11
How Sainsbury perceives the nature of the changes in response to the causes listed above.........14
Responding to Change Drivers..................................................................................................14
Burke Litwin Theory: respond to change..................................................................................15
The nature of the changes that are taking place at Sainsbury's..................................................16
Recommendation...........................................................................................................................17
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

Introduction
Organization is an inextricable component of a corporation that is derived from external and
internal variables in order to capitalize on opportunities and minimize risks in order to achieve
competitive advantages. Organizational change helps a company to improve its present processes
to a certain extent, and it may be both planned and unplanned. This report will show how
changes occur in the selected company (Sainsbury), as well as how these changes are generated
from the effect of external and internal variables (Santoro, Fiano, Bertoldi, & Ciampi, 2018).
Source: (Santoro, Fiano, Bertoldi, & Ciampi, 2018)
The report will also show how the company will make strategic decisions in order to adapt to the
changes. To make strategic decisions, Sainsbury's must assess the effect of external and internal
factors, as well as how these forces affect corporate practices and decision-making processes.
The last section will concentrate on how supermarkets may better cope with change and impact
models. J Sainsbury PLC is the second biggest supermarket chain in the United Kingdom, with a
market share of 16.0 percent in the food business. It was founded in 1869 by John James
Sainsbury with a modest shop in London(SainsBury, 2021).
Sainsbury's Supermarkets Ltd (which includes convenience stores), Sainsbury's Bank, and the
recently purchased Sainsbury's Argos make up the parent firm J Sainsbury PLC. This report will
illustrate how the firm adapts to and responds to changes in its strategy and personnel(SainsBury,
2021).

Case Study: Sainsbury's&Argos
Sainsbury's is the largest retailer, and its acquisition by Argos has altered its general operating
structure. Business procedures that will assist the organization in achieving string art of retail,
allowing it to expand its potential. The organization's creative framework has been moved to a
single framework, allowing Sales, Production, Development, and Purchasing to be
integrated(JonghanHyun, KiwonLe, & JihyunKim-Vick, 2020). These structural modifications
will allow a single structure to have a comprehensive perspective of the whole organization. By
permitting mass manufacturing, the organization will be able to develop the complete process
from start to finish.The organization has established a new operational executive job that was
affected following Argos' purchase, and this addition will hire the suitable individual to speed
advancement by merging the positions of existing operating office and higher-level managers
(Ascani & Iammarino, 2018).
Changes and their impact on Sainsbury's
Sainsbury has been left with an insatiable hunger for more since their acquisition of Argos in
2016, and as we approach mid-year 2018, the FMCG retailer has announced ambitions to
combine with their well esteemed competitors, north of the border; Asda. Following the
successful integration of Argos into Sainsbury's shops two years ago, many may now wonder if
the actual goal of this approach was more advanced than ostensibly providing consumers with
extra value and a more convenient in-store customer experience (Reimers, Chao, & Gorman,
2016).
Positional change in Sainsbury's
In beginning a task, the firm should think about the benefits and drawbacks of altering the
company's mentality. The organization having the best chance of putting the most experienced
and capable people on the front lines. Changes in position affect the leadership position and, as a
result, the company's top management structure. To avoid generating controversy, the firm
should take prudence while considering personnel changes (Kaur, Arora, & Bali, 2020).

Source: (Kaur, Arora, & Bali, 2020)
When an industry's policies for developing an acceptable and senior executive role are changed,
the organization's working environment may be modified.Position changes, on the other hand,
should be made on a frequent basis to keep employees motivated to advance and upper
management and other employees engaged in their job. However, if a person's position or
leadership changes, it may appear that the organization's direction and leadership qualities have
changed (Kaur, Arora, & Bali, 2020).
Perception change in Sainsbury's
Perspective modifications have an impact on how companies’ function, producing differences in
production, regular operations, management, and other leadership responsibilities. Sainsbury's
produces a shift in viewpoint that sets it apart from its competitors, and if done effectively, these
improvements will pay off in the long run(JonghanHyun, KiwonLe, & JihyunKim-Vick, 2020).
Customers' perceptions may be changed by providing high-quality items at the lowest feasible
cost, resulting in greater customer loyalty. When everyone in the business has a positive attitude,
it is much easier to attract more potential clients and provide the finest service. These items will
improve their entire experience and degree of enjoyment (Balaji & Roy, 2016).

Source: (Balaji & Roy, 2016)
To influence people's minds, a corporation must be aware of the possible implications of these
changes; otherwise, the company will suffer in the long term. The leadership's personality, as
well as the company's business environment, have an influence on employee perceptions.
Employees are devoted to this company because it follows a democratic leadership style in
which everyone has virtually equal opportunities to contribute to the company's success. The
retails company is more competitive in the market due to the dedication of its employees (Balaji
& Roy, 2016).
Sainsbury's Change Types
 Developmental
Change
Change in progress might be intentional, emergent, or gradual. These
changes may occur within the company over time, which would be
closely monitored to avoid any possible dangers from the changes.
Organizations may also undertake proactive change, also known as
planned change; to improve efficiency and productivity will make
them more competitive after the changes are implemented
successfully(JonghanHyun, KiwonLe, & JihyunKim-Vick, 2020). The
organization's transformation to boost efficiency and enhance existing
parts of the organization to improve production, distribution, sales, and
other operations by bringing planned and emergent changes in strategy,
position, and perception, among other things (Yoon & SuhORCID,
2020).