Analysis of Management and Operations at Sainsbury's - Unit 4 Report

This report provides a comprehensive analysis of management and operations within Sainsbury's, a major UK supermarket chain. It begins by differentiating between the roles and characteristics of leaders and managers, illustrating their responsibilities and the importance of their qualities. The report further examines how leadership and management functions are applied in various situations, particularly in response to market competition and the need for improved customer service. It then delves into the application of different leadership and management theories, including contingency, system, and situational theories, to enhance organizational performance. The report continues by exploring key approaches to operational management, such as Total Quality Management (TQM) and Lean Manufacturing, and their impact on productivity and efficiency. It also addresses the significance of operation management and analyzes how factors within the business environment affect operational strategies. Through this detailed examination, the report offers insights into Sainsbury's management practices and provides a practical understanding of leadership and operational management principles.

Unit 4
Management And Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Explain the role or characteristics of a manager or leader......................................................1
P2 Explain the role of leader and functions of manager in different situation............................3
P3 Apply different theories and models in the organisation........................................................4
P4 Key approaches of operation management ............................................................................5
P5 Explain the importance or value of Operation management..................................................6
P6 Explain the factors of business environment which impact the operation management .......7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management & Operations include the various activities which help the manager to
implement different business strategies for the high-level performance or effectiveness. This
process includes the conversion of raw material into finished goods which is ready to sell in the
market for the use of consumer (Eghtedarpour and Farjah, 2014). This process includes the
efficiency as well as possibilities of maximizing profit to achieve their business goals &
objectives. Sainsbury's company choose for the better understanding of this concepts. It is UK
based supermarket and it was founded in 1869 and founder of the company is John James
Sainsbury.
This report cover various topics such as difference between the role of leader or function
of manager and apply them in organisation according to different situation. It also includes the
various theories or models for the effective leadership in the organisation. In addition, it includes
the key approaches of operational management and demonstrate the relationship between
leadership and management.
MAIN BODY
P1 Explain the role or characteristics of a manager or leader
Overview of the Organisation:
Sainsbury's is third largest chain of UK's supermarket where currently it has approx.
16.9% market share of this sector. Company established in 1869 and founded by John James
Sainsbury. Headquarter of Sainsbury's is in Durury Lane, London where company become
popular retailer of groceries in the year 1922. Tesco is the biggest competitor and become market
leader of this industry in the UK market (Sainsbury's, 2019).
Role of leader: Leader is the person who conduct various activities such as controlling,
monitoring, provide training and motivating employees for the successful completion of task in
order to achieve business goals & objectives. As per Adair’s theory, leaders main role is to see
the behaviours of group as well as the requirement of followers. This theory majorly focus on
task, team or individual.
 Planning is the essential requirement of every organization so leader required to done
planning for the business.
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 Organize the production function which required training to the employees for the
effective performance.
 Leader have to control the internal functions which help the business to run smoothly.
 Leader also provide the direction to their followers, provide proper guidelines regarding
their work.
 Leader provide the various training to their employees in order to enhance their skills
and performance.
 Motivate employees to complete their task and achieve required performance which
further helps in increasing productivity or profitability of the business.
 Leader share the vision or objectives with employees so they clearly work according to
their objectives to fulfil the requirement.

Characteristic of leader: It includes the various qualities which help the individual to
make it good leader and some of it discussed below:
 Leader should be honest and integrity because this is the perform who handle the
organisation and accountable for their work (Fang and et.al., 2012).
 Effective leader is required to be confident, so followers will be follow their command
 Leader should have charismatic personality to inspired others, if workers not listen their
leader's instruction then they are not able to effectively perform their duty.
 Leader should be committed or passionate about their work because if leader is not
committed then their followers also not completing their work on time.
Role of Manager: Manager is the person who manage the whole activities related to the
organisation to fulfil the organisational objectives. They have knowledge regarding work as well
as accountable for it.
 Manager build various strategies for the purpose of achieving organisational goals &
objectives.
 Other than strategies, manager take effective decision which required to fulfil the
operational activities in order to achieve their targets.
Characteristic of Manager: It include the various traits which required for the effective
manager and make them capable to take decision in respect of the organisation. It will be
discussed below:
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 Manager required critical thinking process to build effective strategies for the successful
outcomes in the organisation.
 Manager have to be responsibility of their operational functions and become accountable
for it.
 Manager should have team building quality which help the business to complete their
group project effectively.
Difference between the role & characteristics of leader or manager:
Basis Leader Manager
Role Leader have to provide various
training & development in order to
enhance their skill. Which further
help the Sainsbury's organisation to
achieve their goals 7 objectives.
Manager of the company need to build
strategies and take effective decision
which increase the productivity as well
as profitability of the organisation.
Characteristics Leaders should be confidant and
honest so employees of the
Sainsbury's company can follow
and achieve their business goals &
objectives.
Manager required various skills which
help the organisation such as critical
thinking, problem solving and other
managerial skills. It helps the
Sainsbury's to take effective decision
and build strategies for the effective
performance.
P2 Explain the role of leader and functions of manager in different situation
Leader and Manager play very important role in the organisation as well as done various
activities in order to increase productivity as well as profitability of the company. It further helps
in achieving their business goals & objectives. Basically, both prepare a strategies and other
policies to accomplished Sainsbury's objectives & vision. Role of manger is to manage their
internal process such as operations (Lahou and et.al., 2012).
They have to control various activities and monitor them on regular basis which provide
the effectiveness in their work. Same as, leader plays also very important role in the Sainsbury's
organisation. They provide the training to an individual for enhancing their skills, so they further
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perform well in their organisation in order to achieve their business goals & objectives. In the
Sainsbury's, there are various situations occur where manager as well as leader perform their role
very well to overcome from this situation.
 For example: Sainsbury's is vary popular in the market but they face the difficulties
to attract more customers due to their competitors. Tesco & Asda both are the
biggest competitor of the Sainsbury's. In this situation, manager have to analyse the
market as well as demand of customer to innovate something new which helps the
company to being creating in the supermarket. Leader also have to train their
employees for the better customer service. If customer experience is good then,
consumer visit again in the store for the shopping. So manager or leader need to
work according to the requirement of the organisation.
 For the effective workplace culture, manager or leader play their role very well and
try to make is more comfortable & healthier for their staff members or customers.
Leader have to conduct various program where they teach that how to interact with
customer (Minchala-Avila and et.al., 2016). Manager focuses on employees
engagement where employer and employee have good relation, so they share their
views or problems with each other. With further helps in reducing conflicts and
other problems in the organisation.
 In order to gain more profit, Sainsbury's need to expand their business and for this
they have to make sure that product quality and price is affordable for the consumer.
For this manager build various strategies to enhance their operational functions.
Leader make sure that, employees are capable to complete their task on time for the
effectiveness.
Manager or leader help the organisation to deal with various situations and build
strategies to overcome this.
For example: Company face the issues regarding lower product quality so manger of the
company take necessary actions to improve it. Firstly leader provide the required training for the
effective work which enhance the individual performance of employees.
P3 Apply different theories and models in the organisation
Leadership and management help the organisation to complete their task in order to
increase their production or profitably. Which further help the business to achieve their goals &
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task through effective performance of employees. There are various theories which can be
adopted by Sainsbury's organisation for the effective implementation.
Contingency theory: It is an organizational theory which claim that, there is no effective
way to organize the business or to make decision in respect of the organization. Various internal
as well as external situation occur which affect the performance of employee as well as whole
production. Sainsbury's is retail company where they must beat the competitors and reduce the
risk through satisfying more customer (Parisio, Rikos and Glielmo, 2016). If consumer is not
satisfied with the product or services, they consume then management must done something to
inverse their satisfaction level or build trust on them. For this, leader ensure that employees have
all relevant skills which helps in productions and other skills which is required when they are
standing in the store to handle the customers. Because on floor behavior also affect the customer
and it can increase customer shopping experience. When consumer satisfied with service then it
helps the business to achieve their goals.
System theory: This theory used for completing groups objectives where they work
together to complete task and get the result from it. Basically, this theory used by the top
management to increase their productivity. Sainsbury's can adopt this theory for the more
production which automatically increase the profit margin. Leader set the targets for their
employees, so they perform according to the requirement and achieve their target.
Situational theory: This theory work according to the situation where leadership play
their role. For example: in Sainsbury's, management take decision regarding recruiting new
people or not because if they recruit then expenses of the company will increase but if they not.
Then it will affect the production and profitability of the organization. Similarly, leader motivate
employees to increase their performances and achieve the given target.
Sainsbury's follow the situational theory which help the manager of leader to take their
decision according to current requirement (Park and Jho, 2012). situational theory is more
effective for the organization because in thus case, manager as well as leader both are perform
for the according to the situation.
P4 Key approaches of operation management
Operation management is the business practice which provide the high level outputs and
help the organization to increase their productivity as well as profitability. This process include
the conversion of raw material into finished goods and done daily adjustment which support the
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operational situation which helps in developing strategic goals. To increase production or
efficiency, Sainsbury's adopt the various key approaches which is discussed below:
Total quality management (TQM): It is a structural approach which help the manage
overall organization and production process. By using this approach, business improve the
quality of output along with product & services. In Sainsbury's, manager focus on customer
because they will help the organization to maximize their profits and it only happen when
customer is satisfied with product or services. Manager build the various strategies which help
the company to improve their product quality to satisfy their customer. Leader provide the
required training & development program which help the employee to enhance their skill or learn
new techniques for the production. So basically, TQM approach help the organization to improve
their quality which create the demand among the consumers or make it popular. It increases the
productivity and profit margin which further help the organization to achieve their business goals
& objectives (Prichayudh and et.al., 2014).
Lean manufacturing: This approach focus on minimizing or eliminating the wastage in
the production because it increase the cost of product which direct affect the product price which
reduce the demand. So manager of the Sainsbury's adopt this approach it help the business to
reduce their wastage in the manufacturing or in the stores. Manager reduce those expenses which
is unnecessary for the organization, but it increase the overall cost. Leader of the company set a
program where they provide unique techniques which help to reduce the wastage. For example:
maintain items on shelf, so customer can easily get what they want. Because at the time of
finding, customer harm the product which comes under the wastage (Reim, Parida and Sjödin,
2016). This cost will be bear by the Sainsbury's, so this approach help the company to reduce
their waste as well as cost.
Six Sigma: It is a methodology, which help the organization to improve quality of their
operations. It reduce the errors, cost, defects or save the time. This approach is very expensive so
it can only afford by the large organization. Sainsbury's is the large size company who follow
this approach to reduce the errors in their operations. It help the manager to improve the quality
or reduce the cost which directly affect the organization and it's productivity or profitability.
P5 Explain the importance or value of Operation management
Operation management include the various process which include planning, organizing,
controlling, managing or directing the organization functions. Main aim of the operation
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manager is to make sure that work complete on deadline and delivery will be happen on time.
There are some of it's importance and value which is discussed below:
 Operational management include various activities which is same as other
management industry follow it. It has obligation to manage their daily activities
which include the process to convert raw material into finished goods.
 It is important or value for the organization because it improve the overall production
through minimizing the waste in the floor or production. Because it will increase the
product cost which automatically increase the price which affect the demand of
product.
 With the help of operation management, Sainsbury's measure the performance of
their manager or leader as well as employees which give their efforts to achieve their
business goals & targets (Ruiz-Alvarez and et.al., 2012).
 It include the various activities which help the business to fulfill the requirement of
customer in order to increase their productivity which automatically inacr4se the
profitability.
 Operation management develop organizational value in the market as well as in front
of the customer. Because optimum utilization of resources will generate the quality
product and it complete the consumer's desire. It increases the demand and provide
the growth in the market to achieve their business goals & objectives.
 It is a complicated process because for the effective management, manager required a
deep knowledge which help the organization to complete their task in order to
achieve their goals & objectives.
 Operation management important for the organization to handle the issues in the
production which affect the production and profitability of the company.
Value of operation management:
 Higher Standard of Living: With the help of operation management, it will increase the
individual performance which provide the high standard of living to an individual.
 Ability to increase productivity: It is an effective way which helps in increasing
organizational productivity which further helps in increasing profitability.
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 Lower cost of goods and services: By using operational management, company increase
their productivity with the help of latest technology. Mass production will reduce the cost
of each unite which automatically increase the profit margin of the company.
 Better Quality Goods and Services: Operational management help to increase the quality
of product and services. It will increase the customer loyalty as well as demand of the
consumers.
P6 Explain the factors of business environment which impact the operation management
External environment: It include the all the activities which affect the organization but it
is not related to the internal functions of the business. Stakeholders of the companies are affect
the whole business. With the help of stakeholder analysis company identify their need and their
interest.
CSR activities, different culture, value ethics and sustainability all of them affect the
management and leadership which further affect the organization in term of productivity or
profitability.
Business environment is the combination of internal or external factors which affect the
business and it's operations. They separately as well as together affect the organization and it
further it will be analyzed through PESTEL analysis which helps the Sainsbury's to identify
those factors which influence the business and affect the productivity or profitability of the
company (Thomas, Deblecker and Ioakimidis, 2018).
PESTEL analysis: It is a framework used by the market researcher for the analysis of
macro factors which affect the organization and it is also called external factors. It includes the
political, economic, social, technological, environmental or legal factors which affect the
Sainsbury's and it's production. These factors discussed below:
Political Factor: Political stability of UK is positively affecting the Sainsbury's company
because customer demand is very high. Attitude of consumer regarding product also impact the
operation of the company. Due to political pressure, some of the factors not in favor so it affects
the business. Sainsbury's company sustain in the market for the longer period because they offer
wide range of product which is high quality product and offer to the general public on
competitive price.
Economic Factor: It affect the organization & it's profitability, economic factors provide
the global growth of any business. This factor include the inflation, exchange rate,
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unemployment etc. these factors affect the Sainsbury's company which also affect the
productivity or profitability. Food price inflation or long year of depression affect the company
and after reducing food price it become beneficial for the consumers but it reduces the profit
margin of the Sainsbury's (Torkildsen, 2012).
Social Factor: This factor includes the attitude or behavior of customer which is differ
according to the product. So manager of the Sainsbury's need to analyses the market or customer
demand which affect the whole organization. Change in the habit of shopping also affect the
grocery market because change is the taste & preference can decrease the demand of product. So
manager of the company, need to provide various discount offers which attract the customer.
Technological Factor: Change in the technology affect the organization in term of their
production process. It provides the low cost of each unit which help the organization to set their
price which is affordable for all. Adoption of new technology will help the Sainsbury's to reduce
their cost and it increase the production which automatically increase the profitability. It further
helps in achieving their business goals & objectives.
Environmental Factor: This factor includes the climate effect, weather, geographical
location etc. they build a pressure to complete their social responsibility and try to safe
environment from hazardous activity. Sainsbury's organization change their packing method
which exclude the use of plastic and take initiative regarding recycling waste (Xu Yang, Ouyang
and Hua, 2012).
Legal Factor: It include the certain law's which affect the business or secure the rights of
employees. It includes the various legislation or regulation which is mandatory to follow by the
business for the compliance of law. In the Sainsbury's, Sugar Tax was introduced by the UK
government to reduce the use of sugar in the drinks by 20% by 2020 which affect the whole
supermarket or Sainsbury's too. Ban on advertisement which is related to the High- fat, sugar or
salt (HFSS) for children under 16 banned. So Sainsbury's, need to take care of these rules or
regulation and then build marketing or sales strategies according to it.
Recommendation:
 Company need to analyze market trends on regular basis which help the manager of
Sainsbury's company to take effective decision or build strategies according to it.
 Organization required to provide necessary training for the enhancement of their skills.
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CONCLUSION
From the above discussion it has been concluded that, management & operations help the
organisation to manage their internal activities. Manager or leader also plays very important role
in term of developing strategy, provide training, motivating employees or take effective decision.
Along with this, various operational approaches help the business to improve their quality or
reduce the waste in the operations. By adopting various approach or theory, company effectively
improve their performance which further helps in increasing productivity or profitability.
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