Analysis of Contemporary Business Management Issues at Sainsbury

This report provides a comprehensive analysis of contemporary business management issues, focusing on their impact on the company Sainsbury. The report delves into several key challenges, including the economic effects of stock markets and commodity prices, the influence of demanding customers, the impact of government intervention in business operations, and the difficulties associated with recruitment. It examines how fluctuations in stock prices affect the company's market value and capitalization, the strategies needed to manage demanding customers, and the implications of government regulations on business practices. Furthermore, it explores the challenges in recruiting skilled employees and the internal and external factors influencing the recruitment process. The report concludes by assessing the overall impact of these issues on Sainsbury, highlighting the need for effective issue management skills and strategic planning to ensure the company's success in a dynamic business environment.

Issues in Business
Management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Contemporary issues faced in the company................................................................................1
Impact of business issues on the company..................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Contemporary business management issues are related to the operations and production,
management of human resources, marketing and finance problems which effect the business
entity in achieving successful (Lilien, Petersen & Wuyts, 2022). Almost all the organisation in
the world facing multiple issues about legal and ethical problems impacting the activities of the
company. Different issues faced by the company are hiring skilled people, poor teamwork, time
management, performance pressure, decreasing performance levels, skepticism, performance
pressure and many more. For this report Sainsbury is taken into consideration for better
understanding. It is founded in 1869 and based in Holborn, London, United Kingdom. Its
founder is John Jams Sainsbury and is a public limited company.
The report highlights critical analysis of contemporary issues in the field of leadership,
business and management. Critical evaluation and identification of contemporary issues on
company, along with this it also covers the debate on personal outlook on contemporary business
management problems.
MAIN BODY
Contemporary issues faced in the company
Contemporary issues refer to any idea, event, topic and opinion related to the present
problems and issue that impacts the today of an individual (Raut & Et. Al., 2019). These issues
can be seen in different aspects of someone's life like health and education, environmental issues
and many more. There are various issues which the top level management of Sainsbury faces in
day to day working and are described below:
The economic effects of stock markets/commodity: The main issue faced by Sainsbury
business is the impact of share or commodity prices. These commodity prices are considered to
be inflations leading indicator with the help of two basic channels. The ups and downs of the
prices of share value impact the organisations market value and its capitalization. The main issue
which managers of Sainsbury have to face in stock market/commodity is a procedure offering
security to raise money or funds from their investors. It is difficult to raise fund from the
inverters as they purchase stocks of the business according to its goodwill and profitability
(Brondoni, 2018). Various factors which impact the stock market of the company are interest
rates, fluctuations of exchange rate, political upheaval, current events, natural calamities and
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many more. The prices of stock market keep on fluctuate ups and down because there is a less
number of buyers than sellers.
Demanding customers: It is the biggest problem or issue faced by the managers of
Sainsbury that the demand and needs of the people or customers keeps on changing according to
their taste and preferences. The customers of Sainsbury are highly demanding and wants the
products and goods according to their needs. Their consumer’s zaps lots of their time and energy
in selecting the goods and products according to their needs but sometimes do not get satisfy
with the products. People become demanding when government policies and rule gives
liberalisation to customers to increase their power of purchasing, change their lifestyle and
become well informed (Pettinger, 2020). Because of this reason people become more demanding
about the quality of the product and goods. Demanding people wants something that are not
authorized by the Sainsbury company. The demand of the customer arises after they desire
something and have a willingness and ability to purchase the product. Some of the people in the
market are more demanding it means their standard are high and it is difficult for the managers
of Sainsbury to fulfil their demand. Customer wants or needs something more than they think is
appropriate or necessary for them.
Intervention of government in the business: The intervention of the government is also
known as a market rules or regulations must intercede properly in transaction argument between
players of market, mobilizing private and public resources to solve the fights in the process of
governance of market. To promote real competition and protect the society interests, there is a
need of state intervention. It controls the private firms size that is called the monopoly houses.
The various kind of government intervention includes taxes, property rights, subsidies and
government provision and many more (Schrempf-Stirling & Van Buren, 2020). For the
international business, Sainsbury managers have to face some issues of trade barriers like
intervene in different ways that alter or restrict trade free policy, government erect barriers for
trade and many more. Some of the intervention of government which effects the market are
income policies, immigration control, public, occupational licensing, trade union legislation,
immigration controls, legislation governing firing and hiring and many more. The main and
biggest example of the government intervention is minimum wages legislation. It is the body of
law which ban the managers of the organisation from hiring or employing the workers or
employees for less than a given monthly, daily ot hourly minimum salary or wage.
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Recruitment issues: The employees of the business is the key factor to achieve success
and goal of the business. It is the main challenge which every company have to face in the daily
operations of their business. The problems faced by the manager of Sainsbury are attracting the
right candidate for perfect job, hoe to hire fast, ensuring good experience of candidate, how to
recruit by using data driven recruitment and many more (Butler, 2022). There are various
internal and external factors that impact the process of recruitment in human resource
management. The factors include size of the organisation, growth and expansion, labour market,
recruitment policy, cost involved in recruitment, supply and demand, human resource planning,
image and goodwill of the company and many more. The various kind of challenges which are
faced by the managers of Sainsbury are budgetary support, finding right candidate in time,
internal policies within the organisation, under polished candidates, technology risk, etc. It is
important for the business manager to hire a person according to their skill and knowledge for
the particular job in order to attain success and profitability of the business.
Impact of business issues on the company
Impact of the effects of stock market in Sainsbury:
The stock market affects individual business in many different ways in an economy. The
rise and fall of share price value can affect the capitalization of Sainsbury and also the market
value of the organisation. It can also affect the cost of capital of Sainsbury. When managers of
Sainsbury will keep the market performance expectation higher than the cost of equity capital
will also be higher. The managers of Sainsbury must use a higher discounting rate, as cost of
equity capital rise present value calculations become lower. The organisation may also have
substantial capital investment capital investment in their stocks which can lead to penalty if the
stock falls (Dana & Et. Al., 2021). Positive increase in stock can lead to generation of new
interest for Sainsbury. This can even lead to revenue generation from sales or attractive
customers. If Sainsbury will not perform good at stock market than its market value will decrease
which will affect its Brand image among customers. Low market value can decrease the
customers of Sainsbury which leads to less sales and the organisations objectives will not be
fulfilled.
Impact of demanding customers on the company:
A demanding customer impacts a Company in both positive and negative manner. If there
will be more demanding customers for Sainsbury than the organisation will try to bring more
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new products in the product portfolio. The company will always try to produce new products
which are more demanded by the customers to satisfy their needs. Including new variety of
products will increase the market value of the company which will help the company to generate
more sales. The demanding customers are ton be handled very carefully and patiently. The more
demand will increase the productivity of Sainsbury, it will enable the managers of the
organisation to produce more sale. A demanding customer can also zaps lot of energy and time
of the management personnel of the organisation (Williams Jr, 2018). They will not accept any
alternative for the product or service they need or want. Sainsbury can lose its other customers
due to focusing more on the demanding customers. But overall more demand can increase the
variety of products offered by the company.
Intervention of government in the business
Business that follow the rules and regulations in a proper manner combined with the
agencies and regulatory acts can minimise their chance of fines and other options. The
intervention of the government impacts the Sainsbury as it has self-control on the private
practices as they have capacity to change the market. They can even boost the value of the
currency which results in the gains for the managers of Sainsbury. The government have the
control over the large companies and monopoly businesses as they can easily increase or
decrease the current price in the market. Sainsbury get affected by the intervention of
government as the managers are not able to rule the market where they can set the prices
according to them. Needs and demands of the customers are not fulfiled as the prices gets high
which some low standard people cannot buy. Therefore, the managers of Sainsbury are not able
to grab the customer base segment, people are not attracting towards the products and services
they are providing to them (Bougie & Sekaran, 2019). They are lacking in sales as people are
not happy with the set prices which makes them the feeling of not buying the products. The
managers of Sainsbury may also face issues as the development of public companies as other
option to private organisations to make sure the competitive dualism.
Impact of recruitment issues on the business:
There can be recruitment issues which organisations can face while working with the
goal of achieving it. There can be lack of qualified subordinates which can be recruited in the
organisation. This can impact the managers of Sainsbury negatively as the person do not have
such skills to perform any of the task which is required by the firm. Keeping the right person on
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the right place, in the enterprise the task should be divided between the candidates according to
their capabilities. They should not keep the unskilled person for the task as they will lack in
fulfilling the needs of the organisation. The managers of Sainsbury should target on the passive
people who are actually interested in doing the job. The cycle of recruitment goes on till the
company's target is not achieved so they may face in getting effective subordinates in the
company (Shepherd & Griffiths, 2021). They can face problems in building the talents
proactively so that employees can even learn more new things which are profitable to the
company as well. Inefficient talent sourcing of the workforce can be done by the managers of
Sainsbury as they do not know the interest of the people in the local market. The manages of
Sainsbury can also face the issue in recruitment as when the process of recruitment is done then
the task are assigned and they may get confuse in assigning them. They can also face in building
a strong employer brand as all the workforce are new and not connected to the organisation so
this can make them not achieving the organisational goals on time. quantity of the personnel can
also impact them as miscommunications can happen between many people and affect the
managers of Sainsbury.
CONCLUSION
From the above report, it is concluded that issues in business management are a part of
every organisation showcasing their products and services in the market, therefore, productive
issue management skills are important for the companies. The issues related to business
management and how it impacts them includes demanding customers, economic effects of stock
market/ commodity, intervention of government in business, recruitment issues.
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REFERENCES
Books and Journals:
Bougie, R., & Sekaran, U. (2019). Research methods for business: A skill building approach.
John Wiley & Sons.
Brondoni, S. M. (2018). Competitive Business Management and Global Competition. An
Introduction. In Competitive Business Management (pp. 21-42). Routledge.
Dana, L. P., & Et. Al. (2021). The journal of small business management: A bibliometric
overview of 1996–2019. Journal of Small Business Management, 59(sup1), S215-S236.
Lilien, G. L., Petersen, A. J., & Wuyts, S. (Eds.). (2022). Handbook of business-to-business
marketing. Edward Elgar Publishing.
Pettinger, R. (2020). Introduction to management. Bloomsbury Publishing.
Raut, R. D. & Et. Al. (2019). Linking big data analytics and operational sustainability practices
for sustainable business management. Journal of cleaner production, 224, 10-24.
Schrempf-Stirling, J., & Van Buren, H. J. (2020). Business and human rights scholarship in
social issues in management: An analytical review. Business and Human Rights
Journal, 5(1), 28-55.
Shepherd, E., & Griffiths, A. (2021). Investigative interviewing: The conversation management
approach.
Williams Jr, R. I. (2018). Measuring family business performance: research trends and
suggestions. Journal of Family Business Management.
Online:
Butler. S. 2022. Sainsbury’s warns of shortages due to Covid and recruitment issues. [Online].
Available through: <https://www.theguardian.com/business/2021/jul/06/sainsburys-
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%20is&text=Sainsbury's%20has%20warned%20of%20gaps,isolate%20because%20of
%20covid%2D19.>
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