Contemporary Growth Challenges and Business Report: Sainsbury's

This report examines the contemporary growth challenges faced by businesses, using Sainsbury's as a case study. It analyzes five key dimensions: leadership, autonomy, control, bureaucracy, and structure. The report explores how leadership impacts employee faith and business process management, particularly in the context of the pandemic. It discusses the importance of corporate governance and its role in mitigating supply chain issues and maintaining organizational control. Furthermore, the report investigates bureaucracy's influence on employee satisfaction and organizational culture, as well as Sainsbury's divisional organizational structure. The report concludes by recommending strategies for improving leadership, such as analyzing leadership strengths and weaknesses, providing education and training, and encouraging networking skills to foster overall business growth and address future challenges. This detailed analysis provides valuable insights into the complexities of business management and adaptation in a dynamic market environment.

Contemporary Growth Challenges for Business
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Executive summary
The leadership aspect of the company can improve the faith of the employees in the business
process management. In this aspect, the business firms will be able to manage the
organisational process to add the aspect of business improvement in the operating market.
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Table of Contents
1.0 Introduction..........................................................................................................................4
2.0 Company background..........................................................................................................4
3.0 The current state of organisation (5 dimensions).................................................................4
3.1 Leadership........................................................................................................................4
3.2 Autonomy.........................................................................................................................5
3.3 Control..............................................................................................................................6
3.4 Bureaucracy......................................................................................................................6
3.5 Structure...........................................................................................................................7
4.0 Future recommended state...................................................................................................8
5.0 Summary..............................................................................................................................8
References................................................................................................................................10
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1.0 Introduction
The external influence in the companies can influence the business to grow or face a downfall
in the market of operations. In this regard, the companies need to understand the issues that
they can face in the market and determine the mitigation strategies as well. The development
of the strategies will enhance the market position of the companies and improve their
operational process. The purpose of the study is to understand different dimensions that are
important for the organisational management and improve the performance of the company.
The learner has provided extensive knowledge on the business process determination with the
consideration of the challenges that has been unleashed with the mentioned dimensions.
2.0 Company background
The company Sainsbury's is operating in the market of the United Kingdom for a long time.
The retail organisation that is operating to provide daily necessities to the people will be
capable of improving the lives of the people to improve the business performance in the
market. As per the reports of Statista (2022), it has been considered as one of the largest retail
organisations that have been working in the market. It has been in the top 10 companies
operating in the United Kingdom in the retail market. The operations of the company have
relied on the dimensions that influence the business of the companies to the fullest.
3.0 The current state of organisation (5 dimensions)
3.1 Leadership
As Nanjundeswaraswamy and Swamy (2015) have added, the leaders of the companies are
responsible for the business process improvement of the companies to get a good impact on
the improvement of the operations. In Sainsbury’s, the leadership aspect needs to be strong to
improve the business of the company to make sure of the business performance of the
company remains the same as before. The breakout of the pandemic has unleashed numerous
issues in the business management process of the companies, especially the ones operating in
the retail and hospitality sector. Sainsbury being one in the retail had to remodel the
leadership aspect in the company to ensure the comfort of the employees. It is evident that the
business retail in the organisation needs to be strong as the company is operating in the global
market. In this regard, the company has observed that the connection with the employees has
been a problem for the company at the time of the pandemic. As the companies were
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compelled to work with a limited amount of employees, they have not been able to maintain
the employee satisfaction in the workplace.
To mitigate the issue, the business firm has implemented differences in leadership styles to
enhance the performance in the market of operations. As per the study by Al Khajeh (2018),
the improvement in the leadership of the companies will create better opportunities for the
companies to improve the employee faith. The management and the leaders of the
organisation build a bridge of good communication between the company and the employees.
In this aspect, the company can improve their performance in the business market with the
mitigation of the issues. The communication issues that the company has faced has been
mitigated by the efficient management technique application in the operational process. The
efficient employee management has been done with the support of the efficient leaders. The
company has taken help from the digitalisation of the communication process to improve the
employee faith and clarify the strategies undertaken by them.
3.2 Autonomy
Autonomy can be considered as the aspect of governance in the companies that are working
in the market. As opined by Yermack (2017), the same can be capable of improving the
business of the companies as it can create a proper hierarchy for the management of the tasks.
The company Sainsbury’s has implemented changes based on the needs of the time and as
per the understanding the aspect of expansion in the global market. As per the organisational
website, Sainsbury’s (2022) has implemented corporate governance in the management
process of the employees of the company. The global presence of the organisation has
compelled the management to implement the management process as the same creates a good
hierarchy that clears out the reporting system in the business process. The corporate
governance is the combination of the rules and laws in the companies that control the
business operations of the organisations. Implementing corporate governance has been
capable of mitigating the issues that the business has faced during the breakout of the
pandemic.
As per the CEO of the company, the company has faced the labour and supply chain
challenges because of the breakout of the pandemic in the market. The company has prepared
the mitigation strategies to improve its performance in the business market of the country
with the support of the organisational leaders. The company has maintained a complement
governance with the corporate strategies that have benefitted their global organisational
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structure. The company management has sustained their performance with the company
strategies to implement an overall management approach with the corporate governance.
3.3 Control
The control of the organisation is the process of managing the operations and other tasks
included in the business. As mentioned in a study by Milosevic et al. (2015), the companies
can manage their operations better with the determination of the strategies of controlling. The
basic need for control is fulfilled by the company to ensure betterment in the management
process. The company owner or the person in the highest hierarchy of the organisation is the
responsible authority for the change management and implementation in the organisation.
The company has been facing issues in the management of the organisation regarding the
supply chain at the time of the pandemic. It can be asserted that the performance of the
organisation. The organisational control has developed the business process to improve the
performance of the organisation in the business market. The company has improved the
relationship with the supplier and the employees to improve the business management
process and market preference. The supply chain management process in the companies has
been improved with the improvement of the aspect of control.
3.4 Bureaucracy
The aspect of bureaucracy is the part where the company can implement the organisational
culture in the improvement of the workforce management process. As Griffith (2015) have
added, it has been important for the companies to maintain the employee satisfaction and at
the same the maintenance of a healthy work culture. The employees of the company will
work better if they are capable to work in a company that is capable to provide them with
utmost comfort. The bureaucracy in the company will deal with the same to provide a better
working atmosphere to the employees. It has been observed that the bureaucracy of the
company has observed the need of the companies to communicate the same to the employees.
The bureaucracy of the companies is in charge of the process of making the decision as per
the results of the market research and the decisions of change implementation. The company
management process in the organisation could only be done with the presence of an efficient
bureaucracy that can take of the decision making process.
The administration in the organisation is extremely complicated because of the global
presence of the company. The business needs to be managed in an efficient way to sustain the
business growth of the business firm in the market. The business management of the
organisation has been challenging as the time of the pandemic has compelled the company to
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manage the employees on the basis of the COVID protocol. In this regard, the breakout of the
pandemic has plates a role as the aspect of influence in employee dissatisfaction as the
company has to work with limited employees. The bureaucracy of the company has
maintained the satisfaction of the employees and improved their performance that has been
helpful for the maintenance of the customer satisfaction as well.
3.5 Structure
Sainsbury has been making continuous efforts in promoting organizational change to serve its
customers in the best possible way throughout critical and overwhelming situations like the
Covid-19 pandemic. They have been trying to develop such an organizational structure
within which they can effectively simplify their operations, accelerate their cost-saving
techniques, and also can invest more towards improving the quality of the food, promoting
innovation to their products, and delivering the products at lower prices to its potential
customers. The company through its well-developed organizational structure aims at reducing
the complexity of the daily business operations, transforming its overall cost structure,
improving its overall financial performance, gaining a better financial position, and also
delivering stronger returns to its potential shareholders (Sainsbury, 2021).
According to Kenton et al. (2021), the organizational structure within Sainsbury is considered
to be the system that determines how the organizational activities within the company are
directed that enables the company to effectively achieve its goals and objectives. The
organizational activity within Sainsbury includes organizational rules and the roles and
responsibilities assigned to the workers present within the company. The organizational
structure followed within Sainsbury also determines the flow of information from the higher
level of authority to the lower level of authority within the company.
According to Kozenkow et al. (2021), Sainsbury follows the divisional organizational
structure that consists of parallel divisions that are well-equipped with their resources, and
each of these divisions within Sainsbury functions independently. Sainsbury organizes its
activities based on the specialization of its products and services and also based on the
relevant market. The overall responsibilities within Sainsbury are divided independently
based on the operational requirements. The divisional organizational structure allows
organizational flexibility within the company helping it to fulfill its business needs around the
different markets and locations.
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According to Sobiya et al. (2021), the divisional organizational structure helps in gaining
accountability within Sainsbury wherein all the divisions are accountable for their activities.
The company can easily access which of the divisions are making a loss and which of the
divisions are gaining profit. This organizational structure also promotes better teamwork
within the company as it promotes better interaction between the team members of the
different departments. It increases the efficiency of the communication process that
contributes towards the overall growth and development of the company. Furthermore, the
divisional organizational structure promotes a well-defined organizational culture within
Sainsbury that enables the workers within the organization to value and respect each other's
cultural boundaries that help the company with better relationship management.
4.0 Future recommended state
● According to Rampton et al. (2015), Sainsbury can improve its leadership by
effectively analyzing the strengths and weaknesses of the potential future leaders.
This will help the company to identify the personality traits and characteristics of the
leaders that will help the company to develop successful leadership.
● The company can improve its leadership by constantly educating and training the
leaders, the qualities required for becoming a better leader. They can arrange regular
webinars and conferences for the employees that can help them in refining their
leadership skills.
● The company can frequently try and challenge its employees by assigning them
unfamiliar tasks that can help the company is testing the level of their skills. This can
also help in adding to the new skills of the employees, improving their confidence,
and improving the employee's commitment level.
● The company can consistently encourage the employees to improve their networking
skills that will help in increasing its customer engagement.
5.0 Summary
This study has highlighted the leadership aspect of Sainsbury that helps the company in
improving the faith between the employees and also enhancing their overall process
management. This study has explained the background of Sainsbury that is a popular retail
organization in the UK which deals with providing daily necessities to the people.
Furthermore, this study has evaluated the current state of Sainsbury regarding its leadership,
autonomy, control, and bureaucracy. Moreover, this study has discussed the organizational
structure followed by Sainsbury that is the divisional organizational structure wherein the
activities in the company are categorized in different divisions based on their operational
requirements.
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References
Al Khajeh, E.H., 2018. Impact of leadership styles on organizational performance. Journal of
Human Resources Management Research, 2018, pp.1-10.
Griffith, S.J., 2015. Corporate governance in an era of compliance. Wm. & Mary L. Rev., 57,
p.2075.
Milosevic, D., Andrei, S. and Vishny, R.W., 2015. A survey of corporate governance. The
journal of finance, 52, pp.737-783.
Nanjundeswaraswamy, T.S. and Swamy, D.R., 2015. Leadership styles. Advances in
management, 7(2), p.57.
Sainsbury’s, 2022. About us. [online] Available at: <
https://www.about.sainsburys.co.uk/about-us/corporate-governance > [Accessed on 7 January
2022]
Statista, 2022. Largest companies based in the United Kingdom on number of employees
worldwide in 2020. [online] Available at:
<https://www.statista.com/statistics/1218430/largest-uk-based-companies-employees/>
[Accessed on 7 January 2022]
Yermack, D., 2017. Corporate governance and blockchains. Review of finance, 21(1), pp.7-
31.
About. Sainsbury. Co. uk. 2021. Our business strategy. Available at: <
https://www.about.sainsburys.co.uk/about-us/our-business-strategy> [Accessed January 7
2022].
Kenton, W, 2021. Organizational Structure. Available at: <
https://www.investopedia.com/terms/o/organizational-structure.asp> [Accessed January 7
2022].
Sobiya, 2021. Divisional Structure: Examples, Advantages & Disadvantages. Available at: <
https://www.advergize.com/business/divisional-structure/> [Accessed January 7 2022].
Kozenkow, J, 2021. Characteristics of a Divisional Organizational Structure. Available at: <
https://smallbusiness.chron.com/characteristics-divisional-organizational-structure-
54774.html> [Accessed January 7 2022].
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