Analysis of Sainsbury Company: Leadership, Culture, and Strategy

This report provides an observational study of Sainsbury Plc, a British retail company operating supermarket chains in the UK. It analyzes Sainsbury's democratic and participative leadership style, where employees contribute to decision-making, and its implementation of a Task culture, emphasizing employee involvement. The report highlights the impact of these practices on the company's operations, including its focus on the domestic market and the potential for delays in decision-making. It also discusses the application of Fayol's administrative theory in Sainsbury's management practices, such as division of work and unity of command. The report suggests that Sainsbury should consider shifting from a democratic to an autocratic leadership style to facilitate quicker decision-making and business expansion into international markets. The study concludes that while the current culture benefits the employees in short-term, there is a need to adapt to achieve long-term goals and growth.

Context of Business -
Sainsbury Company

ABSTRACT
This report is based on the observational study of Sainsbury Plc company. Sainsbury Plc
is the British retail company that deals in supermarket chain in United Kingdom. The company
focus on harnessing the talent, creativity and diversity of the employees to ensure that the
customer receive great service on their every shopping. Sainsbury company follows democratic
and participative leadership style. The management includes the division of the organizational
activities as per the employee's qualification and capabilities. Another management practice of
Sainsbury includes the principle of authority and responsibility which includes the employees
taking part in the decision-making for the company but the manager has the authority to make
the final decision as by considering all the facts and suggestions. Sainsbury has adopted and
implemented the Task culture in its business operations and organizational functions. This
culture includes the authority of decision-making in the hands of manager but it considers all the
reviews and suggestions from the employees and make them part of decision-making process of
the company. The culture has resulted in the growth and profitability of the Sainsbury business in
UK markets as due to responsibility and efficiency of its management and employee. But this in
turn has resulted in company's operation of business only in the domestic market and no sense or
idea of expansion in other countries. Democratic leadership and culture has resulted beneficial
for the organization in short term profits and only for the benefit of employees and not towards
the long term goals of the company. Sainsbury company needs to change the leadership style
form democratic to autocratic, this in turn will benefit the company to make quick decisions and
avoid the delays. The company needs to modify substructure and to be responsible for quick
decisions so that they can accomplish more activities in less time and result in company's benefit.

Table of Contents.
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................5
1. Summary of the business organization....................................................................................5
2. Organizational Structure of the company................................................................................5
3. Impact of organizational culture on its business operations and functions.............................7
4. Recommendations for improvement in management practices and leadership styles in the
organization..................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management refers to the managing of all the activities in an organization for the purpose
of achieving various organizational objectives. Leadership is a part of management that involves
influencing a group of people towards one common goal that favors the organizational
objectives. This report is based on the observational study of Sainsbury Plc company. The report
will highlight the management practices, leadership styles and organizational culture of the
selected company. The report will also include the impact of organizational culture and
management practice on the business operations, functions and strategies of the company. The
report will also mention some recommendations related to the improvement in management
practice, leadership styles as well as strategies to initiate growth for the organization.
1. Summary of the business organization
Sainsbury Plc is the British retail company that deals in supermarket chain in United
Kingdom. The company was established in 1869 in Holborn, London, UK and currently has
1,415 shops in the whole of UK. Sainsbury has the overall revenue of £28.456 billion and
consists of 186,900 employees working for it. Sainsbury is the third largest chain in the
supermarket category in United Kingdom and acquires 16.9% of the overall market share in the
supermarket business. Currently the company has merged with Asda supermarket chain and have
estimated to acquire 30% of the market share in grocery stores in UK.
2. Organizational Structure of the company
Vision- The vision of Sainsbury is to be most trusted retailer where people love to work.
The company focus on harnessing the talent, creativity and diversity of the employees to ensure
that the customer receive great service on their every shopping.
Leadership style- Sainsbury company follows democratic and participative leadership
style. Here the employees of the company takes part in the decision-making process of the
company. The employees of the company are given opportunity to participate, their ideas are
exchanged freely as well as discussion is encouraged by the management. However, the
employees provide their views, suggestions and ideas to the leader and manager, who guides
them as well as make the decisions as per these suggestions(Bird and Mendenhall, 2016). The
creativity and ideas of the employees ins appreciated by the managers. Sainsbury deals in the
number of products to be sold in supermarket chains and hence the company experience dynamic

changes in their environment such as change in consumer's demand, tastes, quality preferences
etc. Hence, the company needs to come up with new or modified products to cater their demand
and to deal with the change. Thus, creativity and ideas of the employees help the company to
find out different strategies to be implemented(Arnold and et.al., 2015). There are 186,900
employees working for Sainsbury and the views and suggestions of these employees enables the
company to make different strategic decision for the business. This style of leadership make the
best experienced and professional team of employees. It improves their skills and talents by
making them share their views rather than just making them work on the ordered things. This
makes the company to acquire in the top 3 position in case of supermarket chain in UK. This
leadership style has also established effective communication between the management and the
employees which leads to proper understanding of the work allotted and the work performed as
well as results in more production and efficiency by the company.
Management practice- The management practice initiated at Sainsbury company is
implemented on the consideration of Administrative theory of management by Henry Fayol. The
management includes the division of the organizational activities as per the employee's
qualification and capabilities(Andy-Wali and et.al., 2018). This has resulted in the uniformity
and coordination in task performance by the employees as they are completely aware for the
tasks that they need to perform and the areas of operation. This also enables the optimum
utilization of workforce in case of different functions of Sainsbury company.
The next practice of management includes the principle of unity of command from
administrative theory. This principle states that the employees must receive the order from only
one leader or manager to avoid confusion and manipulation of the tasks to be performed by
him(Amanchukwu and et.al., 2015). The employees of Sainsbury receive the orders and
command from the one single leader and manager which avoids the confusion among them, and
they perform their tasks efficiently without any complications and issues. This lead to efficient
production and management of the work without any fluctuations in the operations.
Another management practice of Sainsbury includes the principle of authority and
responsibility. This principle states that the authority should be in the hands of manager and the
employees must be given the responsibility of the work to be performed. This principle matches
the leadership style of the company which includes the employees taking part in the decision-

making for the company but the manager has the authority to make the final decision as by
considering all the facts and suggestions(Alefari and et.al., 2017).
Employees of Sainsbury company are being benefited with the attractive rewards and
incentives as well as with the attractive salary packages. This increases the morale of the
employees and keep them engaged in the company for longer period. This practice of
management satisfies the principle of remuneration from the administrative theory of
management(Bussu and et.al., 2018).
Organizational culture- According to Handy's culture typology, Sainsbury has adopted and
implemented the Task culture in its business operations and organizational functions. This
culture includes the authority of decision-making in the hands of manager but it considers all the
reviews and suggestions from the employees and make them part of decision-making process of
the company(Ah-kee and Khan, 2015). This in turn helps the company to motivate the
employees as well as the employees feel as they are considered a part of the organization. The
employees also helps the organization to generate new ideas and creative techniques and makes
it easier for the manager to arrive at particular solution after addressing and considering the
views of employees. This culture of Sainsbury also reduces the dominance of management on
employees and also helps them to understand each and every aspect of their organization in deep.
It also increases the coordination and cooperation between the manager and the employees as
they communicate on timely basis with employees regarding certain decisions of the company to
be initiated.
3. Impact of organizational culture on its business operations and functions.
The following are the cultural impact on the business and operations of Sainsbury company-
 Organizational culture of Sainsbury defines the identity and image of the organization.
The company is popularly known for its employee's friendly and effective decision-
making by its management(Carnall, 2018).
 The involvement of employees in the decision-making process of the company has led
the company to acquire higher market share in the UK supermarkets chain.
 It has also improved the employee's well-being and created a sense of responsibility
among them to work efficiently as per the goals and objectives of the organization.

 The adoption of task culture by the Sainsbury organization has resulted beneficial for the
company but in turn it creates a hurdle for the ideas that are out of the box rather than just
simple suggestions and views of the employees(DuBrin, 2015).
 The culture has resulted in the growth and profitability of the Sainsbury business in UK
markets as due to responsibility and efficiency of its management and employees(Ferlie,
2018). But this in turn has resulted in company's operation of business only in the
domestic market and no sense or idea of expansion in other countries.
 The organizational culture of Sainsbury company leads to the growth of the company but
it does not lead to its development which means expansion in other countries market so
that the company can earn foreign exchange revenues(Moralee and Exworthy, 2018).
 The prime focus of the management over the employees suggestions and reviews stops
the broad thinking of managers and restrains them from thinking on broader perspective.
That means the managers are concerned only with the internal development and its
growth in domestic market and cannot think about the company's expansion in
international markets(Hayes, 2018).
 Democratic leadership and culture has resulted beneficial for the organization in short
term profits and only for the benefit of employees and not towards the long term goals of
the company.
 The participation of employees in decision-making has resulted to the delay in decisions
by management, as every person has different mindset and all the employees have
different views on the same topic which delays in the decision-making of the
employees(Lewis, 2019).
 This culture of Sainsbury is very much time-consuming as it consumes most of the
valuable time of the company in discussions and reviews form the people. This in turn
delays the process of operations and does not let the management to initiate quick
decisions for the company.
 The managers have to provide an explanation and apology to the employees for nit
considering their suggestion and ideas as in case of difference in ideas in relation to the
company goals(McCaffery, 2018).

4. Recommendations for improvement in management practices and leadership styles in the
organization.
The recommendations being recommended are for the expansion of business of
Sainsbury company in international markets as the company is operating only in the domestic
market of UK. The following points shall be used by the company to initiate the same-
 Sainsbury company needs to change the leadership style form democratic to autocratic.
Autocratic leadership means the manager are the only authority to make the decisions for
the company. This in turn will benefit the company to make quick decisions and avoid
the delays.
 Manager must be command the employees to bring the change in the business operations.
The change will be regarding the expansion of Sainsbury company into international
markets and different countries. As because the collection of reviews and suggestion will
make the process slow and difficult to initiate the quick actions by the company.
 The company needs to integrate the employees towards a particular goal of expanding the
business and the manager must use their skills and experience to design the strategy for it
as well as allocate different targets to the employees sop the change can be successful.
 Leader in an organization is responsible to influence the employees to adapt the change
and so same should be practiced by the team leaders of different departments in
Sainsbury company to implement the same and influence the employees over specific
goals for the company.
 Manager needs to create short term goals and strategies in relation to the company's
expansion in different countries so that they can allocate and integrate the employees for
their tasks to be performed and make a systematic order of activities that move towards
the path of these short term goals.
 Sainsbury has adopted the hierarchical structure of organization which is the main
drawback in making decisions and passing the information between the management and
employees. The company needs to modify substructure and to be responsible for quick
decisions so that they can accomplish more activities in less time and result in company's
benefit.

CONCLUSION
From the above report it is summarized regarding the understanding of organizational
leadership style, its management practices being followed and the culture adopted by the
organization in order o perform its business activities. The report discussed the positive as well
as negative impacts of the leadership style and management practices that have been
implemented by the organization. The report studies the impact of organizational culture on the
business operations of the organization and states how the culture affects the management,
growth and development of the organization. The report concludes by stating the
recommendations and suggestions regarding the improvement in the management practice,
culture and leadership to initiate its growth and expansion in business.

REFERENCES
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