Report: Accountant's Role in the Business Environment, Sainsbury's

This report provides a comprehensive analysis of the accountant's role within a business environment, using Sainsbury's as a case study. It begins with an overview of the company, its organizational structure (hierarchical), and its various functions including marketing & sales, finance, and human resources. The report then explores leadership and management principles, including decision-making, development of good traits, division of labor, and unity of command. It discusses Black and Mouton's managerial grid, identifying different leadership styles such as impoverished management, task management, middle-of-the-road, country club, and team management. The report further examines Sainsbury's organizational culture through Handy's model (power, role, task, and person cultures) and conducts a SWOT and PESTLE analysis to evaluate internal strengths and weaknesses, as well as external opportunities and threats. The report concludes with a summary of the accountant's role in the business and the challenges and problems faced by the business.

Accountant in the
business
environment

Contents
INTRODUCTION......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Overview of organization.....................................................................................................................3
Principle of leadership and management..........................................................................................5
Organizational culture and impact of internal and external factors....................................................8
Problems and challenges with solution............................................................................................11
CONCLUSION........................................................................................................................................12
REFERENCES........................................................................................................................................13

INTRODUCTION
Main objective of this report is to analysis the concept of accountant in business
environment (Small and et. al. 2019). Accountant of a company is responsible for
keeping and interpreting financial records of company. This report help in better
understanding the concept of organization and organization structure.For this report
Sainbury’s company is taking into consideration which is the largest non-food retailer
company of U.K. first Sainsbury start its business with fresh food but later on it expand
its business into packaged groceries. It is type of public limited company which is
established in 1922. This report includes a proper introduction of selected company with
its organizational structure and functions. Other than this it includes various principles of
leadership and management of employees. It includes various internal and external
source which influence business in context of organizational culture. In last it includes
various problems and challenges faced by business and its solution.
MAIN BODY
Overview of organization
Company overview-
Organization refers to a detailed arrangement of work and working condition
which is useful in performing the assigned task or activity in an effective manner. In
other words organization includes a group of people who work together for the
achievement of common goal or objective. Sainsbury is the second largest chain of
supermarket in United Kingdom. It was founded by John James Sainsbury in 1869 with
just one shop in Drury Lane, Landon. After that in 1922 it become the largest retailer
company of grocery. It is a public limited company and it’s headquarter is in London,

United Kingdom. It has around 1428 number of shop location and almost 111,900
numbers of worker are successfully working with it. Company mainly deals in four
brands which are Argos, Habitat, Nectar and TU. It deals with various products in
hypermarket, supermarket, convenience shop, forecourt shop. In 1990 company face a
big downfall and in present it trying to retrieve its position in U.K market and also
expand its business in global market. Sainsbury is well known for its quality and
services beside its price. Selected company always try to provide best quality product at
low price.
Organization structure-
It refers to a system that defines how various activities in an organization are
directed for achieving a common goal of organization. These activities includes roles
and responsibility of people working in organization. An organization structure of an
organization determine the flow of information between various levels. Organization
structure is classified into various types such as hierarchical, functional, matrix,
divisional and so on. Sainsbury organizational structure is hierarchical this is because it
includes a series of level of peoples. Hierarchical organization structure refers to a chain
of command from higher authorities to employees. According to selected company
organization structure each level has a responsibility towards above level (Carvalho and
et. al., 2019).
Functions of Sainsbury
Business functions of sainsbary includes marketing and sales department,
finance department, human resource department and so on. Selected company

efficiently perform their all functions which help in better achievement of their
organization goal. While performing their marketing and sales function to conduct
proper research through survey and questionnaire for better understanding needs and
wants of customers. Selected company mainly use T.V, radio, magazines, newspaper
for advertising their product. While its finance department perform a function of
managing all financial needs of business so that business operations are never stop.
Most important function is performed by its human resource management. Their highly
motivated employees provide quality services and products to their customers (Nielsen,
2018).
Principle of leadership and management
Principles of leadership- In context of selected firm various principles of
leadership which helps in motivating and increasing efficiency of employees are discuss
below:
 Take right and timely decisions- In relevance of chosen company, their leaders
are effectively follow this principle of leadership which helps them in properly
guiding and motivating their employees towards achievement of common goal.
Their leaders have a power to understand the situation and take effective
decision regarding any problem (Busse and Weidner, 2020).
 Develop good traits- leaders of selected firm, always try to create a sense of
responsibility in their employees so that they are more attentive towards their
responsibility and developing good traits which helps in maintaining
organizational culture.

Principles of management of employees- selected company adopt various
principles of management of employees which helps them in properly control their
human resource and maintain their origination culture. These principles are discuss
below:
 Division of labor- In relevance of sansbary, they identify their employees skills
and ability and divide them according to their skills and knowledge which helps
them in effectively manage their employees. By identifying their employee’s
strength and weakness and divide teams according to specialization increase
their efficiency and productivity.
 Unity of command- In context of selected firm they have a clear chain of
command and only have one higher authorities for each team and employee is
responsible towards one manager. This will help in maintain a good relation
between employee and manager. Two or more managers on an employee create
conflicts and confusion. Selected firm properly manage its employees with the
help of unity of command (Rudani, 2020).
Black and Mouton’s managerial grid-
This model is developed by Robert Black and Jane Mouton which is also known
as leadership grid. They state that the style of leadership in any organization is
identified on the bases of manager’s have a concern for people and production.
Concern to people refers to the degree to which an individual is focus or committed
towards achievement of goal of organization and satisfying interpersonal relationship. In
context of selected firm, this theory identify five leadership styles which are mention
below:

 Impoverished management- a manager having this type of leadership style
having a minimum concern for people and production. Manager put minimum
efforts to get the work done by subordinates and workers. Manager having this
type of leadership style give arises to disharmony, dissatisfaction and
disorganization inside an organization.
 Task management- A manager having this type of leadership style give more
focus on production while pay less attention on personal needs of their
subordinates. It is also called dictatorial style where the subordinate are require
to perform the task which is assigned by manager or superior. In context of
selected firm, this style will increase the production but it give rise to labor
turnover rate.
 Middle of the road- In context of selected company, their managers use this
leadership style which helps them in maintain a balance between the goal of
organization and personal needs of their employees. In this type of leadership
the leader focus of effective performance with the help of maintain balance
between work requirement and satisfactory morale.
 Country club- In this type of leadership style leader or manager give more
attention on personal needs of their employees and less attention on output.
This leadership style helps managers to maintain a friendly and good working
environment for their employees. But less attention towards work will effect on
the goal of organization.
 Team management- This is the most effective leadership style in which a leader
take both people and production hand in hand. This style is based on theory Y of

McGregor’s in which the employees of an organization are committed towards
the goal achievement and manager intervention is not required at every step. In
context of selected firm, this type of leadership style build a good team
relationship which will increase employee satisfaction and overall production of
organization.
Organizational culture and impact of internal and external factors
In context of selected firm, organizational culture refers to the values,
perception, norms interpersonal expectation, concepts etc. are share within an
organization. Organization culture of selected company is its backbone. Organization
culture play an essential role in influencing behavior of employees. The concept of
organizational culture is describe with the help of model of organization culture (Erthal
and Marques, 2018).
Handy model of organizational culture-
This model is given by Charles Handy in 1999 and it divide the type of
organization culture into four important parts. Which are person culture, role culture,
task culture and power culture. According to him the concept of all these culture is
based on distribution of power and level of cooperation. Various types of culture are
discuss below:
 Power culture- An organization having a power culture in their organization
have only few individual who take decision regarding whole organization. While
employees are judge by their achievement rather than how they perform. In this
type of organization decisions are taken very fast.

 Role culture- Selected firm have a role culture in their organization which is
based on rules. In selected organization every member have clearly knowing
their roles and responsibility. They have a role culture in their organization
because of their long chain of command.
 Task culture- This type of culture is only developed when a team do work for
achievement of special task. Power within the team is depend on the mix of the
team members and status of project (Zarei and et. al., 2018).
 Person culture- In this type of organizational culture an individual seen
themselves very much unique and superior to the organization. An organization
having this type of culture is just a collection of persons who are working for
same organization (Kennedy and et. al., 2020).
SWOT Analysis-
 Strength- In context of Sainsbury, it has a hierarchical culture which defines the
roles and responsibility of each member of company. All important decisions are
taken by higher authority which helps in quick decision making and because of
role culture their employees only focus on their job and provide efficient services.
 Weakness- In context of selected firm, layers of management in approving new
project will experience a weakness in responsiveness to a rapidly change in
marketplace (Hajizadeh, 2019).
 Opportunities- In context of selected firm, its organizational culture motivates
employees to effectively achieve organizational goal. Which takes various growth
opportunities for company to success in market. Good organization culture helps

in creating a good image in marketplace and customers. Which provide more
options for success.
 Threats- An organization culture based on hierarchial structure sometimes
creates conflicts between management and employees as they feel that they are
no included in decision making process. Which will cause reduction in their
performance (Teoli, and An, 2019).
PESTLE Analysis-
 Political- It refers to an external factor which affect selected business by
regularly change in political party. In context of selected firm, change in political
party cause change in government policies and standards which influence
policies and code of conduct of business that will affect organizational culture of
selected firm.
 Economical- It refers to an external factor which includes the interest rate, tax
rate, income level and so on. In context of selected firm, raising salary
expectation of employees create a problem for company. This is because if
company rise salary of their employees it will increase the cost of production
which will reduce the sales for company.
 Social- In context of selected firm, now a days people are prefer to buy and eat
healthy food which will affect the sales of company product. But selected
company introduce new healthy product for their customers.
 Technological- It refers to an external factor which includes the rate of change
in technology. In context of selected firm, they use innovative and new

technology which helps them in reducing the effect of this factor and achieve
higher growth in market.
 Legal- In context of selected firm, there is no legal factor which will influence the
growth of company. This is because Sainsbury perform its all activities and
operations by fulfilling all rules and regulation or legislation governed by
government.
 Environmental- It refers to a factor which includes various important aspects
related to environment such as weather, carbon footprint and wastage of
resources and so on. In context of selected firm they regularly making effective
strategies so that they can control effect of environmental factors.
Problems and challenges with solution.
In relevance of chosen company it is analysis that they face many challenges
and problems in their business. Various example of problem encounter by Sainsbury
Company is mention below:
Problems/Challenges-
 The biggest problem faced by selected company is because of COVIDE-19. At
the time of COVIDE company facing a watershed moment. Employees of
company are not able to do work effectively because of the situation of lockdown.
Keeping employees on board during period of intense transformation create
problems for leaders. This will create a big problem for company.
 Another big problem which is faced by selected company is that because of its
hierarchical organization culture. They follow a strict chain of command which

create conflicts and disputes between management and employees. As they feel
that they are not important for company (Nielsen, 2018).
Solutions-
 In context of selected firm, they solve their first problem by appreciate their
employees very clearly and Sainsbury, award 10% thankyou payment to almost
157,000 employees at the time of COVIDE-19. Which will again encourage and
motivates their employees to do work with their full efficiency and effectively
perform their responsibility.
 For other problem, selected firm can conduct various activities for interacting with
its employees which helps in clear communication between employee and
management. This will develop a feeling in employees that they are also an
important part of organization. Which will motivates them to do work with their full
efficiency towards achievement of common goal.
CONCLUSION
From above discussion it is concluded that accountant play an essential role in a
business. It helps in development of financial statement of an organization which show
the growth of company. From this report it is analyses that organization culture play an
essential role in development of employee behavior and precipitation. For success of
any organization it’s very important that they have a unique and effective organization
culture.