Contemporary Management Issues at Sainsbury's: BUS6001 Report

This report provides a comprehensive analysis of contemporary management issues at Sainsbury's, focusing on organizational changes and their impact. It examines Sainsbury's structural adjustments following the acquisition of Argos, exploring changes in position and perception. The report delves into various change types, including developmental, transitional, and transformational changes, and identifies key change drivers using PESTLE and SWOT analyses. It assesses how Sainsbury's responds to these drivers, considering the Burke-Litwin theory, and offers recommendations for adapting to change. The report emphasizes strategic decision-making, considering external factors like political and economic influences, as well as social and technological trends affecting consumer behavior. It concludes with an overview of how Sainsbury's can better manage change and improve its overall performance in the competitive retail market.

BA Hons’
BUS6001
Contemporary Management Issues
Report (4000 Words).

Table of Contents
Introduction......................................................................................................................................3
Sainsbury's Changes in Structure.................................................................................................4
Changes and their impact on Sainsbury's........................................................................................4
The impact of the new position on Sainsbury's...........................................................................4
Changes in perception have an impact on Sainsbury's................................................................5
Sainsbury's Change Types...........................................................................................................6
Change drivers that have an influence on strategic decision-making..............................................7
PESTLE Analysis: External Change Drivers..............................................................................7
SOWT Analysis: Internal Change Drivers................................................................................11
How Sainsbury perceives the nature of the changes in response to the causes listed above.........14
Responding to Change Drivers..................................................................................................14
Burke Litwin Theory: respond to change..................................................................................15
The nature of the changes that are taking place at Sainsbury's..................................................16
Recommendation...........................................................................................................................17
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

Introduction
Organization is an inextricable component of a corporation that is derived from external and
internal variables in order to capitalize on opportunities and minimize risks in order to achieve
competitive advantages. Organizational change helps a company to improve its present processes
to a certain extent, and it may be both planned and unplanned. This report will show how
changes occur in the selected company (Sainsbury), as well as how these changes are generated
from the effect of external and internal variables (Santoro, Fiano, Bertoldi, & Ciampi, 2018).
Source: (Santoro, Fiano, Bertoldi, & Ciampi, 2018)
The report will also show how the company will make strategic decisions in order to adapt to the
changes. To make strategic decisions, Sainsbury's must assess the effect of external and internal
factors, as well as how these forces affect corporate practices and decision-making processes.
The last section will concentrate on how supermarkets may better cope with change and impact
models. J Sainsbury PLC is the second biggest supermarket chain in the United Kingdom, with a
market share of 16.0 percent in the food business. It was founded in 1869 by John James
Sainsbury with a modest shop in London(SainsBury, 2021).
Sainsbury's Supermarkets Ltd (which includes convenience stores), Sainsbury's Bank, and the
recently purchased Sainsbury's Argos make up the parent firm J Sainsbury PLC. This report will
illustrate how the firm adapts to and responds to changes in its strategy and personnel(SainsBury,
2021).

Case Study: Sainsbury's&Argos
Sainsbury's is the largest retailer, and its acquisition by Argos has altered its general operating
structure. Business procedures that will assist the organization in achieving string art of retail,
allowing it to expand its potential. The organization's creative framework has been moved to a
single framework, allowing Sales, Production, Development, and Purchasing to be
integrated(JonghanHyun, KiwonLe, & JihyunKim-Vick, 2020). These structural modifications
will allow a single structure to have a comprehensive perspective of the whole organization. By
permitting mass manufacturing, the organization will be able to develop the complete process
from start to finish.The organization has established a new operational executive job that was
affected following Argos' purchase, and this addition will hire the suitable individual to speed
advancement by merging the positions of existing operating office and higher-level managers
(Ascani & Iammarino, 2018).
Changes and their impact on Sainsbury's
Sainsbury has been left with an insatiable hunger for more since their acquisition of Argos in
2016, and as we approach mid-year 2018, the FMCG retailer has announced ambitions to
combine with their well esteemed competitors, north of the border; Asda. Following the
successful integration of Argos into Sainsbury's shops two years ago, many may now wonder if
the actual goal of this approach was more advanced than ostensibly providing consumers with
extra value and a more convenient in-store customer experience (Reimers, Chao, & Gorman,
2016).
Positional change in Sainsbury's
In beginning a task, the firm should think about the benefits and drawbacks of altering the
company's mentality. The organization having the best chance of putting the most experienced
and capable people on the front lines. Changes in position affect the leadership position and, as a
result, the company's top management structure. To avoid generating controversy, the firm
should take prudence while considering personnel changes (Kaur, Arora, & Bali, 2020).

Source: (Kaur, Arora, & Bali, 2020)
When an industry's policies for developing an acceptable and senior executive role are changed,
the organization's working environment may be modified.Position changes, on the other hand,
should be made on a frequent basis to keep employees motivated to advance and upper
management and other employees engaged in their job. However, if a person's position or
leadership changes, it may appear that the organization's direction and leadership qualities have
changed (Kaur, Arora, & Bali, 2020).
Perception change in Sainsbury's
Perspective modifications have an impact on how companies’ function, producing differences in
production, regular operations, management, and other leadership responsibilities. Sainsbury's
produces a shift in viewpoint that sets it apart from its competitors, and if done effectively, these
improvements will pay off in the long run(JonghanHyun, KiwonLe, & JihyunKim-Vick, 2020).
Customers' perceptions may be changed by providing high-quality items at the lowest feasible
cost, resulting in greater customer loyalty. When everyone in the business has a positive attitude,
it is much easier to attract more potential clients and provide the finest service. These items will
improve their entire experience and degree of enjoyment (Balaji & Roy, 2016).

Source: (Balaji & Roy, 2016)
To influence people's minds, a corporation must be aware of the possible implications of these
changes; otherwise, the company will suffer in the long term. The leadership's personality, as
well as the company's business environment, have an influence on employee perceptions.
Employees are devoted to this company because it follows a democratic leadership style in
which everyone has virtually equal opportunities to contribute to the company's success. The
retails company is more competitive in the market due to the dedication of its employees (Balaji
& Roy, 2016).
Sainsbury's Change Types
 Developmental
Change
Change in progress might be intentional, emergent, or gradual. These
changes may occur within the company over time, which would be
closely monitored to avoid any possible dangers from the changes.
Organizations may also undertake proactive change, also known as
planned change; to improve efficiency and productivity will make
them more competitive after the changes are implemented
successfully(JonghanHyun, KiwonLe, & JihyunKim-Vick, 2020). The
organization's transformation to boost efficiency and enhance existing
parts of the organization to improve production, distribution, sales, and
other operations by bringing planned and emergent changes in strategy,
position, and perception, among other things (Yoon & SuhORCID,
2020).

 Transitional
change
This is the amendment that have to be carried out with a view to
beautify the company's present circumstance and obtain the focused
degree of development. In this case, the organization alters its strategy,
structure, leadership, and different elements with a view to accomplish
the alternate and obtain the preferred state (Kaur, Arora, & Bali, 2020).
This change can be planned, episodic, or second-order, with the
business enterprise focusing on a quick change to be able to beneficial
useful resource withinside the business enterprise's improvement on a
selected degree. It is crucial to assume the future scenario and likely
end result of the change that the business enterprise is probably to
introduce a good way to make this transformation sustainable. If the
business enterprise fails to forecast the end result of this transformative
shift, struggle can also emerge withinside the future, posing a risk to
the business enterprise (Romi, Carrasco, A, Camors, & Masselli, 2021).
 Transformation
Change
This is a shift that impacts Sainsbury Company's gift operations with
the aid of using introducing new processes, personnel, and technology.
For example, while a organization makes enormous adjustments to its
organizational way of life and strategy, that is known as
transformational change. The business enterprise calls for a shift in
assumptions made with the aid of using top control with a view to
supply modern change. This transition happens while the structure,
strategy, and way of life range from what they have been previously,
and those adjustments are the end result of a chronic process (Soo,
Silvia, & Riper, 2020).

Change drivers that have an influence on strategic decision-
making
PESTLE Analysis: External Change Drivers
Sainsbury's is the second-largest supermarket chain in the United Kingdom. The business, which
was founded in London 150 years ago, is hardly a fresh brand on British streets. The store has
always faced stiff competition from rivals such as Tesco, the market leader, and Asda, a close
competitor(Ascani & Iammarino, 2018). In such a competitive climate, it's critical for
Sainsbury's to keep a careful eye on its immediate business environment and how it could
influence internal operations. PESTLE study, which examines the Political, Economic,
Sociocultural, Technological, Legal, and Environmental aspects impacting a firm, is one
approach to discover possible issues that could affect Sainsbury's (Ramachandran, 2021).
Source: (Ramachandran, 2021)

 Political
Factors
In the organizational and industrial settings of Sainsbury's, there are
huge political variables. First and foremost, due of Brexit, the political
state of affairs withinside the United Kingdom is alternatively
uncertain. Due to its probably poor results on UK-primarily based
totally firms, Brexit has created a weather of uncertainty for
organizations withinside the United Kingdom. Sainsbury's and
different grocery store organizations withinside the United Kingdom
can be impacted in quite a few approaches due to Brexit(R. & M, 2019).
It would possibly, for example, cause a boom in import price lists or a
alternate in product rules. Furthermore, due to migrant hard work
limitations, Brexit may also impair the supply of the body of workers
withinside the nation. Because supermarkets normally rely upon
inexpensive, low-professional hard work for his or her ordinary
operations, this can have a large effect on Sainsbury's. Reduced hard
work availability would possibly cause an boom in hard work
expenses, impacting profitability. If the organization makes a decision
to reduce charges with the aid of using hiring fewer employees than
necessary, the fine of carrier may also suffer, main clients to are
seeking for out opportunity grocery store chains (Ramachandran, 2021).
The UK-Qatar connection is other political aspect that could affect
Sainsbury's in the future. Since Qatar Holdings LLC, which is wholly
controlled by the State of Qatar, is the largest shareholder in J
Sainsbury PLC, political relations between the two nations can affect
Sainsbury's business and results can lead to significant organizational
disruption at Sainsbury's (Ramachandran, 2021).
 Economic
Factors
Globalization is one of the fundamental financial factors that can have
an effect on Sainsbury's future. Globalization is connected to a upward
thrust withinside the connectivity and interdependence of globalwide
economies. The financial hyperlink among the United Kingdom and
different international locations might also additionally have an effect
on funding possibilities, product export, import, and foreign money

ranges on this scenario. Currency fluctuations would possibly have a
right away affect on Sainsbury's given that they have an effect on
profitability. The fall withinside the fee of the pound would possibly
have a negative effect on Sainsbury's with the aid of using proscribing
profits and elevating expenditures, consisting of hard work and items
imports. The gift political instability withinside the United Kingdom
has already motivated GBP movements, hurting its function withinside
the years after the Brexit referendum effects in 2016 (Ramachandran,
2021).
 Social Factors Sainsbury's is laid low with more than a few social variables, along
with a lot of traits that affect shifts in client needs and attitudes. To
start with, ultra-modern public is greater involved than ever earlier than
approximately moral conduct and company social responsibility (Yoon
& SuhORCID, 2020). Today's maximum beneficial groups are
individuals who have interaction in shared cost advent thru enticing
with clients and communities. With such a lot of distinctive items and
types to choose from, many consumers base their shopping choices at
the company's image. This necessitates Sainsbury's undertaking
company social obligation regulations and making moral choices
(Ramachandran, 2021).
Secondly, because Sainsbury's he stores cater to such a large clientele
that the company is being influenced by social change in the UK.
Sainsbury's in particular must meet a wide range of consumer needs in
order to attract customers of all generations. a premium for
convenience and affordable prices, but younger people are interested in
technology integration which, depending on the approach chosen, can
be barriers and opportunities for the company to increase its market
share (Ramachandran, 2021).
Finally, societal Trends affect the attractiveness of certain articles or
categories of goods. For example, growing concerns about obesity and
physical fitness led to the development of low-calorie, organic and

device-based products for preparing healthy meals. Sainsbury's can
lose consumers if it cannot. find what to look for in Sainsbury's
supermarkets or convenience stores when they don't adapt to such
social trends. (Ramachandran, 2021).
 Technological
Factors
The effect of era development may be visible in each issue of present-
day business. Innovation is a vital technical issue impacting
Sainsbury's performance. The term "innovation" has a extensive
definition, however it's far often used to consult technical
breakthroughs that open up new methods to apply era, boom
efficiency, or supply new data(Voynarenko, Mykoliuk, Kucherova, & V.
Bobrovnyk, 2016). In the company world, innovation includes the usage of
current era to satisfy the needs of customers. Most customers in industrialized
countries make use of era on a normal foundation nowadays. They assume
groups to apply era to enhance the purchasing revel in considering that they
may be familiar with modern devices. Most grocery companies, consisting of
Sainsbury's, now rent on line purchasing systems and self-checkout
equipment. When new technology develop, Sainsbury's can be capable of
appeal to new purchasers via way of means of the usage of them in shops or
on line, influencing performance (Ramachandran, 2021).
Improved data-driven analytics is another important impact of
innovation. Businesses can acquire data about consumers' preferences,
likes, and dislikes when they use the Internet and utilize it for market
research or advertising. Facebook and Instagram, for example, use
search history to gather information about users' interests in order to
serve personalized advertising. Using technology for market analysis
and advertising has a significant positive effect on business
performance (Ramachandran, 2021).
 Legal Factors The legal issues that Sainsbury's is dealing with are primarily laws and
regulations that govern how particular items are marketed, advertised,
imported, and taxed. A new levy was imposed in 2018 for firms who
make high-sugar beverages. While this has no direct impact on
Sainsbury's shops, the tax has resulted in an increase in the price of

sugary drinks. This might have a good or negative impact on the
company's revenues, depending on whether the higher price deters
people from purchasing sugary drinks. Another important rule is the
prohibition of advertising of foods and beverages that are high in fat,
salt, or sugar (HFSS)(Voynarenko, Mykoliuk, Kucherova, & V.
Bobrovnyk, 2016). Ads for HFSS goods cannot be aimed at children in
any media, according to existing UK laws, which are among the
toughest in the world. Children are protected until they reach the age of
16, which is much longer than in most other nations, where regulations
only apply to children under the age of 12. This limits supermarkets'
capacity to push certain items in order to influence sales, lowering
revenue from such purchases (Ramachandran, 2021).
 Environmental
Factors
Businesses are required to engage in sustainability initiatives to
preserve a favorable image and fulfill their corporate social
responsibility since the general public is more concerned about the
environment than ever before. Sainsbury's success is primarily
influenced by three elements connected with this trend. To begin with,
store packaging options are limited because to worries about plastic
waste. For example, many supermarkets' sustainability commitments
include utilizing paper or reusable bags instead of plastic bags and
minimizing plastic packaging for stored items (Ramachandran, 2021).
Secondly, Reducing waste is a popular trend that companies want to
follow to reduce environmental damage, which in turn affects the day-
to-day operation of supermarkets in the UK (Solnet, Boztug and
Dolnicarc, 2016). now forced to reduce waste in all aspects of their
operations, including food waste. In response to this trend, zero waste
supermarkets emerged in the UK, which quickly became popular with
customers and increased competition. Increasing and eliminating waste
reduction will have an impact on business profitability and consumer
interest. (Ramachandran, 2021).
Specifically, the decrease in GBP could cause a negative influence on