BUS6001 - Strategic Analysis: Sainsbury's Takeover of Argos

This report provides an analysis of Sainsbury's acquisition of Argos, focusing on the strategic responses to change drivers. It examines the motivations behind the acquisition, particularly Argos's strength in digital retail and delivery networks. The report evaluates the impact of environmental and social change drivers on Sainsbury's strategic decision-making and operational activities, including the expansion of product lines, implementation of self-scan technology, and sustainability initiatives. It also assesses how Sainsbury's has responded to these drivers, emphasizing the importance of adapting to evolving consumer preferences and environmental concerns. The report recommends enhancements to Sainsbury's strategies, such as targeting the boomer generation and strengthening environmental community engagement. Ultimately, the analysis highlights the significance of strategic decision-making in achieving business growth and maintaining a competitive edge in a dynamic market environment. Desklib provides access to this and many other solved assignments for students.

Contemporary
Management Issues

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of Sainsbury and motive to acquire Argos..................................................................3
select any two drivers for change discussed in the module materials and critically evaluate
how they are currently impacting upon strategic decision-making and other activities
(commercial or operational) of Argos take over by Sainsbury’..................................................4
how Sainsbury’s has strategically responded to these drivers of change with consideration for
the nature of the pressures for change.........................................................................................5
Recommend how the organisation might enhance its responses highlighted above...................7
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................11
Books and Journal......................................................................................................................11

INTRODUCTION
Contemporary Key Challenges relates to the numerous types of challenges that different
managers in an organisation may confront, and which can have a significant impact on them. As
a result, it can be claimed that organisations are impacted by these difficulties, and this can have
a significant impact on them. As a result, determining how to overcome these difficulties is
critical in order to take the essential activities. Therefore, the managers of an organization are
required to make sure that they can identify the issues quite quickly so that the appropriate
actions can be taken. This will help in ensuring that the attainment of the goals and objectives
quite effectively and efficiently in a proper and appropriate manner. The report is completely
based on the case history which is on Argos take over most Sainsbury trading. Apart from this,
this report also going to select any two drivers for change and also going to evaluate that how the
company and drivers currently impact on the strategic decision-making and other activities of
They are girls that take over by Sainsbury company.
MAIN BODY
Overview of Sainsbury and motive to acquire Argos
Argos, a chain store traditionally known for its children's clothing and Christmas wish list
publications, had been progressively changing itself into an iPad-style terminals for some time.
The home store had rebuilt itself with a digital retail leader thanks to such measures announced
in 2012. As a result, Argos became a market leader in terms of selling and delivering things on
time, as Morgan Stanley, an investment banker, described it. Argos could sell things at any time
and deliver them on time, usually within a few hours (Ewins, 2017). As a result, Sainsbury's
move was sensible because it provided these delivery routes, which they had never had before.
They claimed that by acquiring Argos, they would be capable of improving their sales, expand
their transport, and sell a product to each other's clients. Furthermore, over half of Argos stores'
contracts were up for renewal in the next five years, according to the superstore. This provided
an ideal ability to decrease the stores and relocate to nearby Sainsbury's. Sainsbury's had
determined over 150 locations where this treatment may be performed.

select any two drivers for change discussed in the module materials and critically evaluate how
they are currently impacting upon strategic decision-making and other activities (commercial or
operational) of Argos take over by Sainsbury’
Many critics were sceptical of Sainsbury's announcement of interested in Argos and Home Base,
and questioned the logic behind this one. Sainsbury's, on the other hand, seems adamant on
acquiring the home shopping firm, offering £1.3 billion to do so. This was interpreted as either a
desperate effort or a brave move to broaden the company's market base. Joining forces with the
home shopping business would benefit them in a variety of ways, and having trailed Argos in a
lot of its supermarkets, this was clearly a counter-offensive strategy. Furthermore, the
supermarket stated to provide a wide range of products that were complementary to the home
retailers (UddinAhmed, Mazid and Ahmed, 2020). Opponents also stated that this would assist
enhance Sainsbury's 'click and collect' service.
Sainsbury's has been adequately reacting to both environmental and social change drivers
throughout the last years. In terms of societal transformation driver, the organization has
progressed in expanding product line to satisfy consumer demand. The company also have
implemented the SmartShop self-scan technology, which allows for checkout-free purchasing, to
enhance the buying experience for youthful market groups .Each of these developments are
driven by market demands and client enthusiasm in certain products or services. As a result, it's
clear that Sainsbury's used strategic research and decision-making to help drive sales and
participate in social change. Nonetheless, the majority of these improvements are focused
towards the youth. With the UK's ageing population, the corporation should try to acquire
consumers from the boomer generation group, who may trouble with computers and have
respective requirements. It would assist Sainsbury's attract additional customers by adding value
to various client segments. Sainsbury's also established blogs and conversation communities
dedicated to organic farming, staff behavioural change programmes, and training courses. All of
these modifications are the consequence of the environmental change driver's push, and it can be
stated that the business's action is adequate and meets industry requirements. Environmental
community engagement efforts aiming at behavioural change, as well as improved logistical and
the promotion of environmentally goods, could help this area develop even further. Sainsbury's
acquisition of Argos needed an evaluation of the circumstances at the time of takeover in order to
make the required and appropriate decisions. As a result, the organisation needed to make sure

that Strategic Decision-Making was used to improve overall efficiency and effectiveness. As a
result of the increased demand for new goods by clients, the company had to ensure that it was
able to make the necessary adjustments in order to achieve the essential goals and objectives.
Through taking over Argos, Sainsbury's will thus be able to identify the right way in which it
will be able to provide the new goods to the customers as per their needs and requirements which
will be highly helpful in enhancing the overall level of efficiency and effectiveness level. Thus, it
can be stated that the managers had to evaluate the situation and take decisions accordingly.
Sainsbury's acquisition provided a once-in-a-lifetime opportunity to enter the non-food
market. They had already attempted to make this move by branching out into the Tu apparel line
and retailing home goods. This action was warmly received, particularly by its stakeholders,
given that the non-food industry has larger profit margins than the food market. Furthermore,
Sainsbury's conducted a trial with 10 Argos outlets in their stores. It was a successful event, with
the potential to sell over 20,000 general retail items.
how Sainsbury’s has strategically responded to these drivers of change with consideration for the
nature of the pressures for change
After takeover of Argos the company seems very become capable to make sure that they
can find out new avenues where the attainment of higher level of growth can be carried out by
the company that will become very helpful for the company to target new consumers as well as
to enhance their productivity in the marketplace. Apart from that no organisation is also become
capable to analyse the way through which they can manage different kinds of activities in their
company. Along with this in order to improve their shopping experience for their marketing
means that organisation is also working on different technology so that they can improve their
efficiency. All of these kind of modification are completely reliant on the requirement of the
consumers in the marketplace and on their interest in their specific product and services. Hence it
is the proof that the company is using strategic analysis as well as decision-making so that they
can support sales and growth of the organisation in order to respond towards the social change.
Most of this kind of modification at target at the younger populations. Apart from this the
organisation should also concentrating on the consumers these all things helps the company to
attract more consumers towards the company. After takeover and grows the company become
gay people to improve their efficiency and achieve their goals. As Argros provided variety of
product and services in the marketplace and in 2016 Sainsbury’s supermarket And also working

on the front strategies in order to get more competitive advantages. It is an important Driver of
Change which impacts Sainsbury's. The reason for this is that the company has to consider the
appropriate decisions can be taken which will therefore help in the attainment of the goals and
objectives in the future. The Business Environment nowadays is quite dynamic in nature and
therefore there are different types of changes which occur in it which can thus create a high-level
of impact on the organization(Blakley, 2021) .
In the context of environmental change drivers, the organisation has been making more
strategies as well as positive environment so that the company can overcome the problems. The
current strategies or model which are adopted by the organisation in gauge appraising suppliers
for their sustainability as well as for their ethics and also appraising for reducing emissions,
water waste through operation modifications as well as design (Berkhout, 2019). The company
Sainsbury has developing and formulating most effective sustainability plan with describe about
the performance indicator so that the company can achieve their sustainable development goals
that fit in with the United Nations. The environmental change driver's sort of change is primarily
practical. This entails the business altering its everyday procedures to minimize pollution and
environmental input. Nonetheless, as element of the industry's sustainability promise,
adjustments in organisational culture, marketing, and supplier evaluation may be needed. The
environmental change driver, for example, is increasingly changing such as increasing
dependency on eco friendly suppliers rather than firms that pollute the environment and boosting
recycling programmes in the workplace. Apart from that the company is also concentrating on
the sustainable farming and behavioural change programs for the workers so that the company
can achieve their goals and objectives and also accomplished (Asllani,Grima and Seychell,
2020).The target by environmental community that out reach the programs and their major aim
at behavioural changes As well as by enhancing their logistics as well as they Promoting equal
friendly good and services in the market place. Through the takeover of Argos, Sainsbury's will
be able to make sure that it is able to find out the new avenues where the attainment of higher-
level of growth can be carried out which will therefore be helpful for the company to be able to
ensure that it can target the new customers in the different segments in the market and thus apply
the appropriate strategies for the particular purpose of enhancing the overall level of revenues so
that the profitability level can be enhanced. The Strategic Decision-Making is impacted by the
influence created by this factor which is created by this particular factor because there are

different types of decisions which are highly necessary to be taken so that the Business can make
the right-level of progress in the future.
Sainsbury's should make sure that it identifies the way in which the decisions are required
to be taken so that it is able to attain Business Growth in the future which will therefore help it a
lot effectively and efficiently in a proper and appropriate manner. The key drivers of change in
Sainsbury's example, according to the research mentioned, include environmental and social
factors that influence the business future. To raise the value, Sainsbury's must address the needs
of its different customers and their evolving preferences. Because of the variety of Sainsbury's
clients, the form of change brought by this factor is multi-faceted. Changes made on by social
pressures affect the techniques employed, the products sold, the pricing and offers offered, and
the entire customer service experience. Sainsbury's might increase its sales and market share by
effectively responding to the requirements of a varied range of customers, improving its
competitive position. Sainsbury's is under constant pressure to enhance its processes. Active
participation in sustainability initiatives is critical for many reasons. To begin with, it is
associated with the social change factor and purchaser bargaining power, as environmentally
concerned customers prefer enterprises with an active sustainable profile. Second, sustainability
programmes ensure that the organisation complies with state-mandated ecological footprint
criteria. Finally, due to increased competition in the food retail market, sustainability is crucial.
Sainsbury's might become the market sustainable company by setting high sustainable goals,
thereby encouraging positive changes in the environment in other businesses (David, 2020)
.
Recommend how the organisation might enhance its responses highlighted above
While Sainsbury's response to both of the abovementioned change drivers is acceptable,
the corporation might improve its performance over next generation by implementing new
techniques. In terms of the social change driver, the corporation should concentrate on providing
value to older consumer segments. While tech development is necessary for progressive change,
certain technologies might well be confusing to previous people, limiting the advantages of
current technology to certain client segments. It is critical that firms are willing to put forth the
effort and pressure necessary to ensure that they can remain competitive. The development of
proper tactics is both crucial and necessary for this aim (Dmochowski, 2016). As a result, it's

critical to ensure that adequate solutions can be supplied and that the right and effective approach
can be taken to cope with the impact generated by the Drivers of Change. The following are
some suggestions that could be made to Sainsbury's executives:
 Sainsbury's should strive to develop a handling customer experience to improve its
responsiveness towards the social reform driver. Sainsbury's present responsiveness to
social progress, for example, might be supplemented by developing features that allow
checkout-free in-store shopping and providing help to seniors who use them. Optimizing
the online store's usability to meet the demands of persons with limited eyesight and
boosting over-the-phone service are two other feasible ways (Aboramadan and Karatepe,
2021).
 In the future, managing the environmental factor may necessitate various tactics.
Sainsbury's has indeed introduced environmental behavioural change initiatives in the
workplace. Sainsbury's sustainability strategy would benefit greatly from extending these
activities to surrounding people.
 Additionally, it is suggested that the advertising of environment friendly materials and
brands be improved, as this may help buyers make more conscientious decisions.
Sainsbury's response might be aided by focusing on logistics optimization, which could
help to reduce carbon emissions and waste even more.
 Organizations must be able to undertake Market Research in order to take the proper
measures. Sainsbury's must ensure that they can do market research in order to determine
client wants and expectations and ensure that they can be met. As a result, it is critical to
ensure that the organisation can make significant decisions that benefit it, as well as that
the management of all sorts of needs and requirements can be done in a proper and
appropriate manner that is highly effective and efficient (Gardner, 2016).
 By conducting a Market Research, managers of Sainsbury's will be able to make sure that
they are able to assess the strategies which can be used. Thus, In this way the attainment
of goals and objectives in the future can be carried out. Sainsbury's will be able to make
sure that it can easily take over Argos in this way which will help it a lot in sustaining in
the market. Thus, In this way the company will be able to acquire a much-needed
competitive and strategic edge over the various types of competitors which exist in the
market.

 It is quite necessary to make sure that the implementation of the changes can be done as
per the needs and requirements of the customers to ensure their full satisfaction. For an
organization like Sainsbury's, it is therefore quite important that the right changes can be
made by it which will help in ensuring that the enhancement in the overall level of
satisfaction of the customers can be done and thus the attainment of the goals and
objectives in the future can be done which will help the company a lot in the future.
 It is vital to employ innovation in order to make the necessary adjustments in order to
meet the needs and requirements of clients. It is therefore critical for Sainsbury's to make
use of innovation in order to make strategic decisions that will aid the company in
effectively and efficiently managing the many types of client wants and requirements.
 It is highly necessary to make sure that the identification of the strategic decisions to be
taken should be done so that the Decision-Making can be done in a proper and
appropriate way. In the context of Sainsbury's, it is therefore quite important and crucial
that this should be done so that the company is able to make sure that it can take over
Argos successfully which will help it a lot.
 It is necessary to make sure that this is carried out so that the appropriate conclusions
and recommendations can be drawn. For Sainsbury's, it is highly important to make sure
that it can ensure this so that it is able to take the right decisions which will help it a lot
in the future.
 It is important that the enhancement in the efficiency and effectiveness level can be done
so that the crucial and important strategic decisions can be taken in the future. For
Sainsbury's, it is highly appropriate that it is able to make sure that this can be carried out
so that it can take important decisions which will help it a lot. Thus, In this way it will be
able to take over Argos successfully (Paulsen, Höjer, and Melke, 2018).
 It is vital to make various types of adjustments that will aid in guaranteeing that
organisations are able to become successful in the future. In the case of Sainsbury's, it is
critical that these modifications be made in order for the company to improve its overall
profitability. As a result, the corporation will be able to effectively acquire Argos.
 It is also necessary that a proper Controlling and Monitoring Mechanism can be set in the
organizations. This will be highly crucial and helpful in ensuring that the appropriate
steps can be taken for the particular purpose of attaining the goals and objectives in the

future. It is required because through making its use the organization will be able to make
sure that it can manage the different types of needs and requirements in a proper and
appropriate way. Thus, In this way it can be stated that this should be used so that
Sainsbury's is able to enhance the overall level of efficiency and effectiveness level. In
this way, Sainsbury's will be able to take over Argos successfully.
 It is important that the Determination of Future Strategy can be carried out so that the
organization is able to make sure that it is able to take the important and crucial
decisions in a right way. Thus, Sainsbury's will be able to make sure that it can
appropriately enhance the profitability level in this way. Thus, In this way, Sainsbury's
will be able to successfully take over Argos.
 It is critical that the changes are implemented in a timely and orderly manner. This will
be quite beneficial in ensuring that the wants and requirements can be managed. This
will be beneficial for a company like Sainsbury's to ensure that it can improve its overall
efficiency and effectiveness, which will benefit it greatly in the future.
 The ability to develop key conclusions and recommendations is required. This will assist
a company like Sainsbury's in ensuring that these conclusions and recommendations are
used in such a way that the plans are implemented correctly. This will assist in
increasing overall profitability in a proper and appropriate manner.
 Businesses must be able to take corrective action if it is necessary. This is significant
because the management of wants and requirements can be done in a proper and
acceptable manner in this manner. As a result, Sainsbury's should ensure that the
management of various sorts of demands and requirements is possible by taking crucial
corrective steps.
 It's also crucial since it allows companies to ensure that they make the best judgments
possible. In the context of Sainsbury's, it is critical that the management of needs and
requirements be accomplished through its application. This will greatly assist it in
achieving its long-term aims and objectives (Key and Duening, 2020).
 It is critical that this be accomplished in order to develop extremely effective and
efficient conclusions and recommendations. It is critical for a company like Sainsbury's
to achieve this because it will allow it to make strategic and critical decisions in the best

possible way. It will be able to successfully take over Argos in this manner (Conradi,
2020).
 It is critical that profitable market niches be targeted so that organisations may ensure
that they can address the wide range of wants and requirements that exist in the market.
It is critical for Sainsbury's to be able to identify these segments in order to make the
critical decisions that will affect its future market growth. It will be able to ensure that it
can effectively take over Argos in this manner.
CONCLUSION
From the above report, it can be concluded that Contemporary Management Issues refer
to the problems which can be faced by the managers in managing the organization. It is therefore
quite important and crucial that the managers are able to make use of the methods and techniques
so that they are able to solve these problems. It is necessary for them to make sure that they carry
out relevant adjustments according to their needs and requirements and are able to make sure that
the attainment of the necessary goals and objectives can be carried out. Thus, the managers of the
firms are required to make sure that they can take the actions which are highly necessary and
thus in this way they will be able to make sure that they are able to enhance the overall level of
efficiency and effectiveness in a right way. The managers are required to make sure that they can
identify the way in which the solution to these issues has to be found out.
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