Introduction to Business Management Report: Sainsbury's Analysis

This report provides a comprehensive analysis of business management, using Sainsbury's as a case study. It begins with an introduction to business management and then delves into Mintzberg's theory of management, exploring various managerial roles and how they complement management tasks. The report emphasizes the importance of critical thinking and stakeholder interests. Part B employs PESTLE analysis to examine Sainsbury's external environment, considering political, economic, social, technological, environmental, and legal factors. It also assesses the implications of these forces and how managers should prioritize them. Porter's Five Forces model is then applied to analyze the competitive landscape of the retail industry. The report concludes with a discussion of corporate responsibility and national culture within the context of Sainsbury's, offering a well-rounded understanding of the company's management practices and external influences.

Introduction to Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
PART B............................................................................................................................................3
PART C............................................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Management refers to the practices which are adopted by the managers for the
purpose of ensuring the right management of their business (Aithal, 2017). When the managers
make use of it this ensures that they are able to achieve the distinct goals and objectives of the
organization without problems and issues. Different types of factors influence the style which the
managers adopt for the management of their organization and this is able to determine the
various outcomes. Thus they are required to put their focus on ensuring the best management of
the enterprise. For this report, Sainsbury's has been considered. It is a British Retail Company
which deals in different types of products and services which are provided to the customers. In
this report, focus will be made on management and business environment. Additionally, specific
analysis of Corporate Responsibility & National Culture will be discussed as a part of this
project.
PART A
Management refers to the coordination and administration of different types of tasks so
that a goal can be achieved (What is Management? Definitions and Functions, 2020). It ensures
that it performs the functions of planning, organizing, staffing, directing and controlling in a
highly effective manner so that it can take the organization towards the path of sustainable
success in the future time period. In the context of Sainsbury's, management ensures that
functions are coordinated in a proper manner and thus the different types of goals and objectives
are achieved.
Mintzberg's theory-
The use of Mintzberg's theory is made within the organizations so that the managers are
able to make sure that they assume the different types of roles as and when required according to
the prevailing situations in the organizations.
According to Mintzberg, there are various types of roles which are played by managers in
the different types of circumstances. These roles are explained as follows-
Figurehead- A manager is required to act like a figurehead. For example- In Sainsbury's,
sometimes the managers make sure that they are able to look at the situation and take the desired
action in an appropriate manner.
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Leader- A manager has to assume the role of a leader and thus guide the subordinates so
that they can achieve the distinct goals and targets effectively (Baumgartner and Rauter, 2017).
For example- In the context of Sainsbury's, the managers are required to act like leaders and thus
in this way make sure that they are able to provide proper guidance to the subordinates.
Liaison- In the firms, the managers are are required to create liaisons which can be very
helpful for them (Davis and Comeau, 2020). This helps them in better connecting with the
workers and ensuring the completion of the tasks. For example- Forming of inter-personal
relationships in Sainsbury's between the managers and workers require creation of liaison.
Monitor- In the organizations, the managers assume this role because they are required
to monitor the various activities which are being conducted (Dibrell and Memili, 2019). For
example- In Sainsbury's, the managers assume this role when they are required to make sure that
the functioning of the entire organization has to be held in a proper manner.
Disseminator- In the companies, the managers have a role of ensuring that the reliable
and valuable information is transmitted to the employees in a proper manner. For example-
Sainsbury's managers rely on using appropriate communication methods for providing the
required information to the subordinates.
Spokesperson- In the firms, the managers need to assume the role of a spokesperson.
Their views and thoughts can easily represent the organization. Therefore there is a requirement
on the part of the managers to share their views wherever required. For example- The managers
of Sainsbury's is required to ensure that they share their views whenever required as per the
situation.
Entrepreneur- In the organizations, the managers need to assume the role of an
entrepreneur when they wish to inspire the change and innovation (Đuričin and Herceg, 2018).
For example- In the context of Sainsbury's, the managers assume this role when there is a
requirement to introduce change and innovation in the company.
Disturbance-handler- In big companies, there are certain disturbances which are created
sometimes. There is a requirement on the part of the managers to handle them appropriately. For
example- In Sainsbury's, there are diverse teams and conflicts may arise when the tasks are
allocated. Therefore the managers are required to handle these disturbances in an effective
manner.
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Negotiator- In the firms, a manager has to be a negotiator. The need to assume this role
arises when there is a need to negotiate (Edelson, Senk and Stock, 2018). For example- In
Sainsbury's, there may be certain situations when the manager needs to assume this role and
therefore ensure that proper negotiations are carried out in an effective manner.
Identification of tasks with the use of this theory- When this theory is used in the
organizations, the managers are able to identify the various types of tasks which they are able to
do. Thus they can choose the right tasks which can be allocated to the different people within the
organizations according to their specialization. For example- In Sainsbury's, the managers need
to identify the tasks and allocate them to different individuals according to their capacity. This
will ensure specialization and therefore the individuals be able to display more efficiency,
effectiveness and productivity in their work ensuring the achievement of goals and objectives of
the organization in the future time period.
The use of critical thinking- When the managers make use of critical thinking, they are
able to find out the action which they can take in a particular situation which is there in an
organization. The managers of Sainsbury's make use of critical thinking so that they are able to
assess the situation in a highly effective manner and thus in this way make sure that they can take
the correct action. This not only leads to a development of their critical thinking ability but also
ensures the development of their decision-taking power.
Diverse interest of stakeholders- There are different type of stakeholders in an
organization. These can be internal as well as external in nature. In the context of Sainsbury's,
the managers are required to consider this diverse interest of the various types of stakeholders so
that they are able to take an action appropriately. When they consider these diverse interests they
are able to ensure that the needs and requirements of stakeholders are fulfilled.
PART B
Pestle analysis:
It is framework that describes about the macro environmental factors that utilise for
scanning and measuring of environmental impact to the impact of organization perspective.
There is Pestle analysation of Sainsbury's plc company to rectify the external impact in terms of
Political, Economical, Technological, social, Environmental and legal. Political: This factor is comprise about all the rules and regulation that regulated through
corporate and government for better political stability measure (Kwilinski and et.al.,
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2019). As United Kingdom political is stable where Sainsbury's plc is the second largest
supermarket In UK. As it is based on UK, So, there is less chance to be affected by the
economic slowdown in other nation. But due to Brexit, all UK companies are exited from
European regions as it will create an certain consequences on Sainsbury's business. Economical: According to this factor, it comprise about the specific country's economic
performance in terms of supply and demand, economic value in currency rate, inflation,
recession etc. In context of UK, its economic background is very valuable and optimum
performing as Sainsbury's plc perspective, the rate of inflation rates are getting high and
demands of products are getting decreasing through which revenue is generating less in
number. But as Sainsbury's products are in range of economic scale so people easily buy
the product as it enhance the growth. Social: In this factor is derives about to measure the particular market to be chosen as per
the customer traits or through demographic factor in terms of age, gender, religion etc. As
per today scenario customers are likely to purchase from supermarket because they are
many alternative products they can approached with reliable prices along with certain
offer discounts benefits. Technological: It is factor that emphasis about new resource availability in the United
Kingdom region as well as UK is having opportunities related with advanced technology
existence (Lombardi, 2019). The company Sainsbury's are able to offer the latest form
technology through their vehicles, they come with the concept to selling online food to
the customer from local stores. The most beneficial aspect about the technology can
reduces the overall production of the product. Environmental: By providing the better contribution towards the environment through
procuring the optimum raw material and eliminate the unwanted illegal products that
harm to the environment (Mendling and et.al., 2017). According to the Sainsbury's
company they abide all the norms of UK environmental aspect to support the U.N.
Sustainability goal and working towards it as well. Sainsbury's had began to reduce the
waste material beef and lamb supply chain . Basically they have recycling their waste
material food for further useable product.
 Legal: It defines about how the laws affect the business which operate the customer
behaviour as well as particular country laws are regulated in specific country like UK
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where the employment law and other regulation related with organisation are to affected .
Government of United kingdom has stopped to Sainsbury's plc for manufacturing the
high Sugar food that causes diseases to the children and other adults which is not good
for health. As they have hold to their production for some time unless the higher authority
not provided the legally authorization.
Which of the external forces is having more implication to the business?
The Legal external force is more enhance the implication by making stop for the high
sugar food product manufacturing.
On to what extent the organisation policies taken account of forces?
The only force which can undertaken the organisation policies is Political factor is
because their having different types of norms and regulation composed by corporate governance
that will enhance better mobility to the Sainsbury's plc.
How should manager decide which of the many factor identified in the Pestle analysis they
should attend to?
The managers of Sainsbury's plc have to focus towards Political, Legal and Economical
because mangers can measure the policies and norms changes and implement in their internal
premises, economic stability in term of inflation and recession are major consequences where
Sainsbury's plc need to control their liquidity and last abiding all the legal guidelines which are
composed to the retail and food market.
Porter's 5 forces-
Porter's 5 forces is a model which is used in order to identify and analyse the competitive
forces which can shape an industry and help in the determination of its strengths and weaknesses
(Mendling and et.al., 2018).
The impact which these 5 forces create on Sainsbury's is explained as follows-
Competition in the industry- It refers to the level of competition which is present in the
industry. Sainsbury's operates in the retail industry and therefore in this industry there is a
presence of high-level of competition. Thus this force has a high power for the company.
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Potential of new entrants- It means the potential which the new entrants have in a
particular market or an industry. In the context of Sainsbury's, this force has a low power
because in the retail industry there are higher costs for establishment and setting up of business
and therefore this makes it difficult for the new players to be able to enter into the market.
Power of suppliers- This means the power which the suppliers have in the market to
influence the prices of the various types of inputs. In the retail industry, the suppliers are quite
dominant and therefore are able to control the prices of inputs in an effective manner. Therefore
for the managers of Sainsbury's this force has a high power.
Power of customers- This refers to the power which the customers have to influence the
strategies of a particular company in the market (Parris and et.al., 2016). The retail industry is
totally dependent upon the demand of the products and services which is generated by the
customers. For the managers of Sainsbury's this force has a high power. Therefore they need to
meet the needs and requirements of the customers.
Threat of substitutes- This means the threat which is posed by the substitutes. In the
retail industry, there are different types of substitute products which are available. They are much
cheaper as compared to the branded products of the big companies. Therefore the branded
products of big companies face a threat from them. In the context of Sainsbury's, this force
therefore has a high power.
Justification- 4 out of 5 forces have a high power and only 1 force has a low power for
the company. Therefore the managers of Sainsbury's are required to adopt different types of
strategies through which they are able to deal with the impact which is put by the influence of
these forces.
For countering with the high power which is put by the competition in the industry, Tesco
which is a big player in the retail industry had to bring the required changes in its strategy. It had
to reduce its prices and therefore in this way has made sure that it is able to counter the
competition effectively and efficiently.
PART C
Corporate Responsibility- Corporate Responsibility refers to the role which an
organization is required to play towards the society by adding value for them (Parris and et.al.,
2016). It is quite important from the point of view of the companies. In the context of
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Sainsbury's, it is crucial that it is able to fulfil it in an appropriate manner so that value creation
can be facilitated.
Corporate Governance- Corporate Governance means a combination of rules, processes
or laws through which the businesses are operated, regulated or controlled (Raczkowski,
Sułkowski and Fijałkowska, 2016). It is required that companies like Sainsbury's are able have it
so that they can organize and manage their activities in a proper manner.
Practices of the organization to promote and monitor corporate responsibility-
Tackling of climate change- The focus of Sainsbury's has been primarily on the tackling
of climate change. It aims to do this by making sustainable products which are friendly towards
the environment.
Tackling of injustice- In Sainsbury's, the focus is put on the tackling of injustice which
prevails in the society. It aims to do this by identifying the bad practices which are prevalent in
the society and taking the steps to remove it.
Tackling of inequality- In the society inequality is prevalent in many sections.
Sainsbury's aims to tackle the inequality in the society by taking steps for it in order to fulfil its
corporate responsibility.
Ending poverty- Poverty is a major social problem which prevails in the society.
Therefore, Sainsbury's aims to put its focus on ending poverty by taking various types of
measures in an effective manner.
Corporate Malpractice- Malpractice refers to improper, illegal or negligent professional
behaviour (Soomro, Shah and Ahmed, 2016). If it is displayed in the corporate arena it can be
termed as Corporate Malpractice. This can badly hurt the reputation and goodwill of the
companies and therefore they need to take steps so that they are able to avoid it.
Examples of Corporate Malpractice-
U.K. Healthcare System- In some public hospitals in U.K., there is improper utilization
of the budget which is provided by the government. Therefore this is an example of corporate
malpractice in which the funds are under-utilized and the patients are deprived of good
healthcare facilities.
Fraud transactions in companies in the name of charity- Some of the companies are
conducting fraud transactions by interpreting it in the terms of charity and philanthropic
behaviour. Therefore this is an example of corporate malpractice.
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Not following government rules and regulations- In some of the companies,
government rules and regulations regarding philanthropic behaviour are not followed. This leads
to issues created due to corporate malpractice.
Hofstede's Cultural Dimensions-
Hofstede's Cultural Dimensions refers to a framework which can be used in order to
analyse the organizational culture in a particular organization (vom Brocke, Zelt and Schmiedel,
2016). By making its use the companies can make sure that they are able to make their
organizational culture even more better. The different categories under it are as follows-
Power Distance Index- It refers to the extent up to which inequality in power is
acceptable in an organization. In the context of Sainsbury's, high power distance index means
that there is autocracy in the organization and a low power distance index means there is
decentralization in the decision-making process. For example- In Sainsbury's the managers are
delegating their authority to the subordinates to ensure that the decision-making power can be
developed in them. This means that the power distance index in the organization is low.
Individualism vs. Collectivism- It means the importance of the individuals in the
organization. In the case of Individualism the focus of individuals is on individual goals while in
Collectivism the focus is put on the collective goals of the organization. In Sainsbury's, the focus
is put on collectivism so that the collective goals in the company can be attained. For example-
In Sainsbury's the focus is put on collectivism as the workers of different teams can group
together to achieve their specific goals and objectives.
Uncertainty Avoidance Index- It refers to the way through which uncertainty is avoided
within the organizations. If it is high then this means that there is high uncertainty and ambiguity
within the company. If it is low then this means that there is low uncertainty and ambiguity in the
organization. In Sainsbury's it must be low. For example- Sainsbury's has a low uncertainty
index as in the company there is a focus put on its reduction.
Masculinity vs. Femininity- Masculinity means toughness in taking actions. Femininity
means tenderness. There is a need to maintain a balance between both of them within an
organization which should be targeted by the managers of Sainsbury's. For example- In
Sainsbury's managers put their attention on both of them so that they are able to attain their
different goals and objectives.
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Long-term orientation vs. Short-term orientation- Having a long-term orientation
means that there must be a focus put on the future within the organizations. Short-term
orientation means that the focus is there on the near future. In the context of Sainsbury's, there
must be a balance between both of them. For example- In Sainsbury's plans for both short-term
and medium-term are framed.
Indulgence vs. Restraint- Indulgence means the freedom which is given in an
organization to the subordinates. Restraint refers to the strictness within the organization on the
subordinates. In Sainsbury's, there has to be a balance between both of them so that a proper
organizational culture is maintained. For example- In Sainsbury's employees are handled strictly
in some cases and in some cases they are given freedom to take the necessary action.
CONCLUSION
From the above report, it can be concluded that business management is a skill which is
required to be present in the business managers. Mintzberg's theory has different roles which the
managers have to play at different stages. Business Environment can be analysed using PESTEL
analysis and Porter's five forces. Corporate Responsibility can be analysed through the activities
of the organization and Hofstede's Cultural Dimensions can be used to identify the type of
organizational culture which is prevalent in the organization.
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Online
What is Management? Definitions and Functions. 2020. [Online]. Available through:
<https://www.indeed.com/career-advice/career-development/what-is-management>
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