Contemporary Management Issues at Sainsbury's: Change Management, CSR, and Porter's Five Forces

Contemporary
Management Issues

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
What types of change happened within Sainsbury?....................................................................1
Kotter's 8-step change model .....................................................................................................2
Corporate social responsibility ...................................................................................................3
PESTLE analysis of Sainsbury's.................................................................................................4
Define strategy............................................................................................................................6
Strategic decision........................................................................................................................6
What is organisational change?...................................................................................................6
Porter’s Five Forces of Sainsbury's.............................................................................................6
Critical review of response of Sainsbury's competitor to same change drivers .........................8
Is there any concern for ethical business with Sainabury?.........................................................9
What are the impact of social change, demographic change and globalisation on Sainsbury's ?
.....................................................................................................................................................9
Stakeholder and Stakeholder mapping......................................................................................10
CONCLUSION..............................................................................................................................11
RECOMMENDATIONS...............................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business firms in the current corporate world face various issues which impact daily
functioning and future growth of business firms. Some of the contemporary management issues
faces by business firms are related to political changes, environmental conditions and financial
health of the company (Green, Hargood and Charles, 2018).
Brief Overview of the Case Study: The takeover of Argos by Sainsbury's is the case
study for the present report. Sainsbury's is UK based retailer which acquired catalogue retailer
Argos in the year in the year 2016. This acquisition was beneficial for Argos as it improved cost-
savings, profitability and trading intensity. Sainsbury's was able to gain positive results despite
competitive grocery market. One of the primary challenges faced by the British retailer is the
increasing competition in the retail industry. This is because both regional and international firms
are competing in the UK retail industry (Gall, 2021).
The present report identifies primary drivers of change and the response of Sainsbury's to
various changes. Appropriate models and theories are applied in this report to understand the
response of the respective company to dynamic forces of change. CSR model, ethical concerns
for Sainsbury's, changes in the business environment, stakeholder mapping, application of
change management models is provided in this report. In addition to this recommendation on
how Sainsbury's can enhance their response is also included in this report.
MAIN BODY
What types of change happened within Sainsbury?
Sainsbury's acquired Argos in the year 2016 to boost its sales in market again after
Brexit. This merger helped the company in
Developmental changes: These changes refers to modification in present business
strategies that helps in fulfilling demands of market.
Transformation changes: These modification represents changes in management,
process and technologies of companies in order to make them more competitive in market.
Transitional changes: These alterations refers to those changes which are implemented
to replace current procedure with new one.
In case of Sainsbury's, the organisation faced many changes after and before acquiring
Argos. When company overtook Argos it faced transitional changes as it has to modify all its
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previous marketing strategies due to Brexit and to overcome its financial losses it took this
decision. The company get benefit by taking this step of acquiring Argos as its sales increased.
During COVID-19 the company went through transformational changes as it has to modify all its
product trading because the physical purchasing was stopped at that time as lock-down was
implemented in whole country (Jiang, Zevenbergen and Ma, 2018). These changes helped the
company in maintaining its strong presence in market and they also assist in overcoming its
financial losses.
Kotter's 8-step change model
This change management model helps business firms successfully implement change.
The application of this model to current changes faced by Sainsbury's is provided below:
 Create a sense of Urgency: This is the first step in which business firms focus on
creating sense of urgency to so that employees and managers understand the need of
change. Sainsbury's prepared employees to follow safety precautions and new Brexit
regulations in order to face change drivers COVID-19 and Brexit and recover from
financial loss.
 Create a guiding coalition: Building competent team to offer leadership to change
initiatives and influence stakeholders is essential for successful change implementation.
Sainsbury's created team to handle Brexit impact and prepare company for pandemic in
this step.
 Developing vision and strategies: This step focuses on developing a suitable vision
regarding successful change implementation and formulate strategies to achieve the
vision. The respective company focused on creating a vision to recover from COVID-19
and offering consumers high quality goods despite Brexit (Milano, Novelli and Cheer,
2019) .
 Communicating change vision: This step focuses on effectively communicating change
vision and strategies for change implementation to increase support from employees to
accept and contribute to change implementation. In this step, Sainsbury's interacted with
employees to gain support for change.
 Elimination of Barriers: The senior management at the company takes effort to eliminate
any barriers which hamper organizational wide change. The company focused on
eliminating various barriers to offering effective e-commerce service to face COVID-19
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