Sainsbury's: External Factors and Business Operations Analysis

This report provides a comprehensive analysis of Sainsbury's business effectiveness, examining various aspects of its operations within the current market scenario. The report begins with an introduction emphasizing the importance of maintaining operational activities to achieve business goals and ...Read More

EFFECTIVENESS IN
THE BUSINESS WORLD
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External factors............................................................................................................................3
TASK 2............................................................................................................................................5
Business operations......................................................................................................................5
Customer experience....................................................................................................................5
TASK 3............................................................................................................................................6
Globalization................................................................................................................................6
Globalization impact on the role of line manager........................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In current market scenario, it is significant for every business firm to ensure that the
operational activities are properly maintained so that goals and objectives can be accomplished
in desired manner. With an improved focus on effective work style the organization can easily
maintain quality standards and lead business to impressive level of success (Katz, 2007).
Companies are facing number of issues in the market and it is significant for entity to ensure that
the effectiveness factor is properly managed so that competitive advantage can be attained.
In order to understand the concept of effectiveness at the workplace, the work culture of
Sainsbury's will be evaluated in appropriate manner. It will also provide information about key
global factors that may influence business in diverse manner. It will also consider PEST analysis
is a strategic tool that can be used to analyse the external business environment of the
organisation. It will also focus on key operational activities that Sainsbury's performed in order
to meet goals and objectives. Furthermore, it will also provide learning about globalization and
its impact on the overall business of the retail firm. It will also consider the influence of
globalization on the role of line manager in an organisation.
TASK 1
External factors
As per the structured study, the Pest analysis is considered as one of most significant tool
that is accessed by the business firms in order to analyse diverse external aspects. With an
improved focus on Pest analysis the organisation can easily gather information about diverse
external factors such as political, economic, social and technological (Chen, 2008). Impact of
these factors on work performance can also be evaluated in appropriate manner by accessing Pest
analysis.
Political: It has been identified that the Sainsbury's is operating its business in diverse
geographical areas so it is significant for business firm to ensure about political aspects. Any
kind of changes in political aspects may influence the overall business and lead business to
various issues. If government is not stable then organisation may face issues in legal aspects.
Other than this, the changes in government policies also influences business in diverse manner
(Hill, 2008). For example, the UK government has decided to increase tax on retail products then
it will influence business of Saisnbury's in various factors. Currently in UK, the government
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debts and the consumer debts are very high which have direct influence on the customer
perception. It also has created indirect pressure on the organisation and influence overall
development in diverse manner (IMiller and Friesen, 2013).
Economic: It is necessary for every organisation to consider economic aspects as critical
factor because it helps in accomplishing goals and objectives. Any kind of changes in the
economic elements also creates modifications in the work practice. For example, the UK
economic system faces rescission issue, it means the company needs to cut down the cost of
products and services in order to have sustainable operations. If Sainsbury's does not have
changes in pricing policies as per economic aspects then financial and failure conflicts may be
occur (Black, 2010). It will have great impact on the operational activities of the business in
different manner. In this respect, it is also necessary for business firm to have improved level of
focus on the interest rates and tax rates. It also have great influence on the organisational
activities. If interest rates decreases then company will have advancement in the investment ratio
to identify better opportunities in the market (Britton, 2009).
Socio-cultural: Customers perception plays a vital role in the organisation so it is also
essential for the firm to ensure that their needs are properly identified. If company is not having
appropriate information regarding customer needs and social perception then business firm may
face critical issues. For example, the Sainsbury's is more focused towards food products but the
customers are now preferring low fat food products and organic products. If organisation is not
offering products and services according to customer needs then management may face critical
issues (David, 2010). It has also been noticed that in today's market, the customers tend to prefer
one-stop shopping. This means that they prefer to have all the products available under one roof.
It clearly indicates that the firm can also improve its focus on non food products. It will advance
the sales and profit margin ratio of firm along with leading business to impressive level of
success (Felson, 2007).
As per the detailed study of three external factors, it can be concluded that the Sainsbury's
can face number of issues due to changes in these factors. It means management need to consider
it in appropriate manner for sustainable development and better opportunities in the market.
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TASK 2
Business operations
Sainsbury is considered as one of leading retail business firm in the market that operates
its business from UK. It has been identified that the company is referred as third largest
supermarket chain in the UK. Organisation is more focused towards integrated work style in
order to meet objectives and goals (Grier, 2015). Management has effective actions that can
identify and prioritize the issues so that new solutions can be spotted in order to have immediate
resolution. In addition to this, the management is also looking forward to introduce wide range of
retail products so that goals and objectives can be accomplished in desired way. Recruitment
system of firm is started with an assistance of its official website as candidates can submit their
information on it.
Customer experience
As per the detailed analysis, it is necessary for every business firm to ensure that the
customers are attaining better experience so that competitive advantage can be gained in
appropriate manner. In order to provide better experience to the customers the organisations
provide better values in form of products and services (Bartle, 2015). In addition to this, the
business entities mostly consider four key factors in order to improve customer experience level.
Classification of the elements can be as customer service, price, availability and quality. With an
improved focus on these factors the businesses are rendering better values and meeting key needs
of service users.
In order to understand the key successive factors the work culture of Sainsbury's has
evaluated. It has been noticed that the organisation is offering better values by considering
customer service and price as significant aspect. In other words, the company is managing its
customer service and pricing policy in optimistic manner as compared to its competitors. It has
been identified that the organisation has established customer service centre in order to provide
better assistance to the customers (Chang, 2009). If client is facing any kind of issue in regard to
the services and products then they can have registration of complain over customer service
centre. It has also been witnessed that the customer service executives have 24 hours availability
that provides convenience to clients and help them meet their needs. Customer service executive
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provide solution of problems and ensure to turn client perception in positive manner. It increases
the morale of employees and also provides better opportunities to the business (Mathur, 2011).
On the other side, the management of Sainsbury's is also more focused towards pricing
strategy selection in order to meet goals and objectives. In this respect, it can be said that with an
effective selection of pricing of products and services the company is meeting customer needs.
Organisation is more focused towards competitive pricing strategy in which management ensure
that the business is offering products and services at competitive level but low as compared to
the competitors (Neuland, 2009). Low pricing as compared to the other businesses attracts more
and more customers and helps in accomplishment of goals and objectives. Premium quality of
products at low cost also provides better values to the service user and motivate them to have
repurchase of goods. Unique combination of customer service and pricing enhances the customer
experience level and lead business to impressive level of success (Elg, 2008). Moreover,
executives in store are also having friendly nature that enhances the morale of clients and
improve their experience.
TASK 3
Globalization
It is the process of international integration arising from the interchange of world views,
products, ideas and other aspects of culture. In regard to the globalization it can be stated that the
businesses may create better opportunities in the international market by improved focus on
globalization activities (Kunnanatt, 2011). In addition to this, it is also refereed as a worldwide
movement that helps business organisations to concentrate on diverse factors that provide
integrated work style. Classification of the key essential globalization factors can be as
economic, financial, trade and communication.
In other aspect, globalization also provides an opportunity to local and nationalised firms
to have expansion in the international market. It provides an interconnected and independent
arena that consist of free transfer of goods and services. However, it does not include unhindered
movement of labour and helps in development of economic system as well (Ravi, 2008). With an
assistance of globalization the management of Sainsbury's can improve its reach in the global
market and lead business to impressive level of success. It has also been identified that the
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company can determine various areas in the global market where they can access low cost
operations (Lubowe, Cipollari and Antoine, 2009).
Organisation can operate business in nations that have easy availability of the low cost
skilled workforce so that goals and objectives can be accomplished in most appropriate manner.
It will also increase the profit margin ratio and lead business to sustainable development.
Management of Sainsbury's can also have free movement of capital that also boosts the
opportunities (Ravi, 2008). Organisation can easily have easy establishment of new store in
global market. Moreover, the advancement in market share can also be accomplished through
business expansion under the standards of globalization. Purchase and sale of commodities are
not the only two transactions involved in international trade. It means the Sainsbury's can also
have outsourcing of services in order to meet objectives in appropriate manner (Kunnanatt,
2011).
Globalization impact on the role of line manager
As per the structured study, it can be concluded that the globalization is having great
level of impact on the role of line manager. It has been identified that globalization activities can
have positive and negative impact on the role of line manager while managing business
activities. Globalization provides easy availability of the talented workforce that means the line
manager can have effective accomplishment of recruitment system or allocation of work
activities. It will increase the overall productivity of firm and ensure that the goals and objectives
are accomplished in most appropriate manner (Elg, 2008). In addition to this, in few nations the
line manager may also face issue regard lack of skilled employees. It may create an operational
issue or increase the cost of operational activities. Globalization also provides low cost labour
that means the line manager can also have effective allocation of employees at very low cost. It
will cut down the overall cost of operation and lead business to impressive level of success. If
line manager is having operation in emerging market such as India and China then the low cost
operations can easily be completed (Neuland, 2009).
Moreover, with an assistance of globalization the line manager can also have easy
accessibility to the diverse technological tools that can improve performance of firm. It increases
the reach to internet and other technological tools that means the cost effective operations can
also be boosted which provides convenience factor to the line manager (Chang, 2009). It also
helps him to meet roles and responsibilities in most desired form.
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CONCLUSION
As per the above study, it can be concluded that the effectiveness in operational activities
need to be managed in appropriate manner. It has been identified that the information about
external factors helps businesses to take decisions and leads businesses to sustainable
developments. With an assistance of globalization the management of Saisnbury's can improve
its market share and profit margin. It also improves overall working of the firm such as helps line
manager in effective management of business activities in order to meet roles and
responsibilities. It has been noticed that the organisation is offering better values by considering
customer service and price as significant aspect.
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REFERENCES
Books and Journals
Bartle, I., 2015. Globalization and EU Policy-making. Manchester University Press.
Black, J. A., 2010. Fermenting change - Capitalizing on the inherent change found in dynamic
non-linear (or complex) systems. Journal of Organizational Change Management. 13(6).
pp.520-525.
Britton, C., 2009. Business Environment. Pearson Education Canada.
Chang, M., 2009. Global Business Strategy: Asian Perspective. World Scientific.
Chen, Y., 2008. Local amenities and life-cycle migration: Do people move for jobs or fun?.
Journal of Urban Economics. 64(3).pp. 519-537.
David, K., 2010. The Cultural Environment of International Business. South-Western Publishing
Company.
Elg, U., 2008. Market driving multinationals and their global sourcing network. International
Marketing Review. 25(5). pp.504 – 519.
Felson, M., 2007. Business and crime prevention. Criminal Justice Press.
Grier, J., 2015. Recent Developments in International Trade Agreements Covering Government
Procurement. Public Contract Law. 35(3).pp. 385-407.
Hill, C., 2008. International business: Competing in the global market place. Strategic Direction.
24(9).pp. 67.
Katz, J. A., 2007. Entrepreneurial small business . McGraw-Hill/Irwin.
Kunnanatt, J., 2011. Global business chain and twin advantage: Strategic opportunities for
developing countries. Competitiveness Review an International Business Journal. 21(4).
pp.352 – 368.
Lubowe, D., Cipollari, J. and Antoine, P., 2009. A comprehensive strategy for globally integrated
operations. Strategy & Leadership. 37(5). pp. 22 – 30.
Mathur, U., 2011. Global Business Strategies: Text and Cases. I. K. International Pvt Ltd.
Miller, D. and Friesen, P. H., 2013. Strategy‐making and environment: the third link. Strategic
management journal. 4(3).pp. 221-235.
Neuland, E., 2009. Global business: environments and strategies: managing for global
competitive advantage. Oxford University Press Southern Africa.
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Ravi, A., 2008. Managing Business Process Flows: Principles Of Operations Management, 2/E.
Pearson Education India.
Online
About us. 2016. [Online]. Available through: <https://www.sainsburys.co.uk/Aboutus/>.
[Accessed on 26 April, 2016].
Process Classifications for Operations Management. 2014. [Online]. Available through:
<http://www.dummies.com/how-to/content/process-classifications-for-operations-
management.html>. [Accessed on 26 April, 2016].
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