Sainsbury's Sustainable Business Strategies: A Case Study

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Executive Summary
Sainsbury's have been confronting an issue with expanded production costs that has led to
diminished benefit and along these lines; it has been significant for the organization to adopt
economical strategies towards business system and the board. The organization uses proactive
approach towards social obligation is hoping to expand adaptability in the business approaches
and hence, it needs to adjust quickly and drive sustainable development. It demonstrates a
practical way to deal with business procedure and the board. The management utilizes the Lean
Six Sigma model and it centers on utilizing collaborative effort to improve the efficiency of the
organization by removing waste and decreasing variety. Different approaches to CSR of Micro,
SME and Corporate Business have been analysed as well. Different approaches like obstructive
approach, defensive approach, accommodating approach, and proactive approach has been
described as well.
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Table of Contents
Part 1.............................................................................................................................................3
Introduction....................................................................................................................................3
Explanation of a sustainable approach to business strategy and management...........................4
Analyze the different approaches to CSR of Micro, SME and Corporate Business......................5
Conclusion.....................................................................................................................................6
Reference List................................................................................................................................7
Part 2.............................................................................................................................................9
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Part 1
Introduction
The report is based on the utilization of a sustainable approach that is beneficial for developing
the appropriate business strategy and management for the Company named Sainsbury’s that
conducts their trade activities and services in the retail sector in the country of UK. The different
approaches of planning of CSR strategies by Micro, SME and Corporate businesses are
included within the report to achieve the various targets and aims of the Company. Relevant
models and theories are involved within the report to demonstrate the choice of the business
strategy and management that is beneficial for the operational work to be done smoothly and in
an efficient manner.
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Explanation of a sustainable approach to business strategy and management
Sainsbury’s have been facing a problem with increased production costs that has led to
decreased profitability and therefore, it has been important for the company to take sustainable
approaches towards business strategy and management. The company has taken a strategy in
which it believes that the natural resources available on the earth is finite and therefore, the
overall resources must be used properly, otherwise it will be overused and finished. The
strategy used by the company is to reduce wastage as much as possible in every approach of
the business (Kramar, 2014). The company has developed a mindset in which it is introducing
different innovative ideas so that it can manage resources properly and introduce new products
and services without hampering the environment in anyway.
The company uses and proactive approach towards social responsibility and it feel that making
the society better in more important than earning profits. Sainsbury’s is looking to increase
flexibility in the business approaches and therefore, it wants to adapt rapidly and drive
sustainable growth. The company is trying to use circular business practices so that it can
harness resilience and evaluate the way in which the raw material and resources can be used to
make the commodities (Waas et al., 2014). The company is also introducing practices so that
the product and services created by the company can be delivered to the customers without any
wastage of resources, and the production of the commodities can be done by utmost utilisation
of resources. Sainsbury’s is looking forward to reduce expenses by increasing waste
management and is making the operations full proof by reimagining business processes. The
company is looking forward to use renewable energy and develop sustainable resources using
the same. This is because the company is looking forward to decrease the expenses while
activating the goals of the organization and therefore, it is using clean and carbon free
resources, while reducing usage of fossil fuels slowly (Su et al., 2016).
The use of renewable resources are becoming very beneficial for the company recently and the
company Sainsbury started to use the wind and thermal power by creating some production
plant near those sources. The company has also been able to reduce operational emissions
extensively and had reduced 300,000 tons of carbon dioxide (Collins and Junghans, 2015). It
has been introducing different technologies like the internet of things, cyber physical systems,
cloud computing so that it can make the operations much better and efficient and turn the waste
into sustainable energy. With the utilisation of the internet of things, the company is looking for
better connectivity and automation.
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Sainsbury’s has been developing in the supply chain continuously to make it sustainable, is
focusing on supplies that are eco-friendly, and reducing the carbon footprint within the supply
chain. The company is continuously utilising different sustainable supply chain practices, which
include the use of renewable and eco-friendly transportation, efficient measures and clean
technologies, and digital tools that can help to increase supply chain visibility (Wolf, 2014). The
company has introduced lean production within its approaches and Sainsbury’s is looking
forward to cut down the amount of wastage while ensuring the quality of the product and
services created by the company. Moreover, it will also help the company to become
responsive and efficient to the market needs.
To increase sustainability in the production process, the company has reduced overproduction
as much as possible and has decreased inventory storage. It has also focused on decreasing
waiting time on every production process, and has completed every batch one after the other
using proper equipment and human resources. Sainsbury’s has also focused on reducing the
transport costs and has created an acceptable buffer where stocks can never be excessive
within the business organisational premise (Thompson et al., 2015). The management of the
company is also very much effective and uses different aspects to make the overall processes
much easier and sustainable. Finally, it is focused on increasing transparency within the
business practices and is looking to create sustainable products by communicating
transparently and reducing environmental impact through business operations.
The management of the company also focuses on reducing wastage as much as possible and
therefore, it is continuously introducing different practices that can help in the same. It is one of
the major focuses of the management to have a balanced value approach. It focuses on a
system that can bring a better perspective of business introduction along with the external
environment of the company. Sainsbury has used several theories and framework to maintain
this approach. One of the well-known approaches used by the management of Sainsbury is the
Porter's sustainable competitive advantage model. According to the model, the company uses
for different types of determinants, which include the cost leadership, differentiation, cost focus
and differentiation focus.
The company provides reasonable value at lower prices while making the commodities
sustainable and improving operational efficiency. The company also differentiates the product
and services by making them eco-friendly and beneficial to the customers. The management of
the company focuses on introducing corporate social responsibility practices periodically so that
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this can help the company to increase the knowledge in the market and allow the customers to
buy products and services from them (Gamble et al., 2014). A major trend has been seen within
the United Kingdom where people tend to buy products and services from the company, which
invests a lot of money in corporate social responsibility, and this can easily allow Sainsbury to
increase the sales and have a better competitive advantage in the market.
The management focuses on using lean manufacturing and this is done by introducing a
systematic method to reduce wastage in manufacturing process without hampering the quality
and productivity of the company. The company also takes different factors like excessive
inventory and overburden in account, tries to increase the value of the products and services so
that the company can benefit from it, and improve customer value (Broman and Robèrt, 2017).
The management also tries to reduce faulty products that are not associated with the needs of
the customers and use automation as much as possible to reduce wastage by mechanical
activities of human beings.
The management also uses the Lean Six Sigma model and it focuses on using collaborative
effort so that they can improve the productivity of the company by removing waste as much as
possible and reducing variation. The company focuses on reducing eight kinds of wastes.
Several defects can be noticed during the production process and the company focuses on
reducing the same. It also focuses on reducing overproduction and waiting time as much as
possible. It also considers factors like transportation, inventory, motion, extra processing and
non-utilised talent to reduce wastage as much as possible (Fakhimi et al., 2014).
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Analyze the different approaches to CSR of Micro, SME and Corporate Business
Corporate Social Responsibility
According to Ihlen and Fredriksson (2018), Corporate Social Responsibility is a business
concept that is utilized by the organizations in a suitable and systematic manner by sticking to
the laws and policies of the social sphere. CSR is a specific business concept that originated in
the 1930s as the incident of the Wall Street crash affected the business prospects of the large
organizations in 1929. The concept of CSR is explained in a suitable manner by adhering to the
specific legislations of the workplace. The concept holds significance for the huge organizations
rather than for the small and medium sized enterprises that operate on their own with the help of
adopting the entrepreneurial activities that are relevant to be followed within the organizational
sphere.
Figure 1: Corporate values of Sainsbury’s
Source: About.sainsburys.co.uk. (2019)
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CSR approach practiced in SMEs
According to Boutros and Cardella (2017), the knowledge and information related to the
development of the operational activities and services integrated within the CSR provide the
much-needed help to the different categories of organizations to execute their CSR activities
smoothly. The ways in which the SMEs approach the CSR strategies and activities tend to help
them to develop the business operations in a smooth and efficient manner and achieve the
targets and goals of the organizational activities. According to Gattorna (2016), the business
values and the attitudes of the organization towards developing the activities and services
aligned with CSR tend to establish the different operational activities within the organizations.
The micro, SME and corporate businesses such as Sainsbury’s thrive on the development of
the CSR activities and services that occur within the organizational circuit. According to Aagaard
(2016), having a stark contrast to its feelings and operations associated with CSR approach, the
SMEs tend to give more importance to develop responsible behaviour and attitude as the base
to develop their business operations successfully and smoothly. The approaches being followed
and implemented within the organizational sphere are the obstructive, degenerative,
accommodating and proactive approach that are functional and beneficial for achieving the
targets and goals. The most deceitful approach being involved is the obstructive approach that
symbolizes the fact of blocking the steps that helps in adopting the social responsibilities.
Obstructive approach tends to create negative values for the Company in sharing a good
relationship with the different employees. The degenerative approach towards embracing the
corporate social responsibilities proves to be better than the obstructive approach. A Company
having the defensive approach can perform much better in meeting the demands of the social
responsibility activities.
A company integrating the degenerative approach towards the social responsibility tends to
abide by the legal terms and norms that are suitable to be followed within the organizational
sphere. Sainsbury’s also aligns with the degenerative approach and its practices to develop the
activities and services properly. The accommodating approach towards being socially
responsive tends to adhere to the specific policies and systems that have their relevance within
the organizational systems and circuit. The Companies follow this approach by sticking to the
legal norms and the ethics that are laid down within the company sphere. Proactive approach
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towards developing the CSR practices provides the impetus to integrate the necessary steps
that are beneficial for establishing and executing the CSR activities within the organizations.
The business social responsibility is also given much importance compared to CSR by the
SMEs, as the SMEs tend to benefit from the activities and services of BSR more than that of
CSR. Having listened to the criticisms of the people from the society, the CSR activities are
designed in a specific manner within the organizational sphere to help in implementing the
appropriate activities and services within the organizational sphere. According to Starik et al.,
(2017), the differences between the approach of the larger organizations and the SMEs tend to
be evident as the huge organizations devise the strategies and are more responsive socially by
aligning with the sustainable features and characteristics that help in designing the operational
activities and services in a proper manner. According to Crane et al., (2019), the large
organizations tend to indulge in CSR activities and services more because such organizations
can bear the required investments to frame the respective CSR strategies and policies that are
relevant to executing the operational activities and services of the organizations.
CSR practices in Sainsbury’s
According to Aghazadeh (2017), CSR has been considered as a beneficial tool or method to
design the activities and services in a smooth and efficient manner and stop the misuse of
power within the organizational sphere. The micro-enterprises lack the sufficient funds to
organize their operational activities and services that have their relevance within the
organizational sphere. Therefore, the micro enterprises do not give further attention to
developing the appropriate CSR strategies and activities that possess the much-needed
importance within the society. However, on the other hand, CSR can be developed by the SME
s in a specific and systematic manner to implement the CSR activities based on the models of
sustainability being followed within the organizations. According to Charles et al., (2017), the
activities of CSR tend to improve the business operations and execution of the business
activities of the organizations. Organizations like Sainsbury’s tend to adopt the specific
strategies related to CSR to ensure the development of the CSR activities in an efficient
manner. The stakeholder theory is being discussed about within the report that helps in
identifying the specific traits and features to establish the operational activities involved with the
CSR activities.
The researchers tend to develop links between the theories and their features with the various
practices of CSR. The stakeholder theory ensures that the organizations listen to what the
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stakeholders want in executing their activities and services. According to Hopkins (2016),
Sainsbury’s also devises strategies of CSR, as they tend to spend around 1 billion pound to
develop the certain operational and marketing activities and services within the organization to
enable the smooth functioning of the different activities related to achieving the CSR tasks.
According to Jenkins et al., (2015), Sainsbury’s belonging to the retailing sector tends to align
with the specific practices and activities of CSR and abides by the ethical concepts and services
laid down by the management of Sainsbury’s. Sainsbury’s devises ways to frame the 20*20-
sustainability plan that encompasses the several features and plans helping to execute the
organizational activities aligned with CSR in a perfect manner.
Figure 2: Market shares of UK supermarkets
Source: Mintel (2005)
CSR strategies devised by Sainsbury’s tend to devise the appropriate strategies and policies
that are relevant to the development of the activities planned by the management. The CSR
strategies devised by Sainsbury’s would ensure that the customers availing the facilities and
services of the retail organization would live very well by receiving standardized products and
services aligned with the sustainability practices. According to Lewis et al., (2017), the
sustainable practices of the organization would help in designing the operational activities and
services by considering the impact it will have upon the environmental surroundings. The raw
materials and resources will be designed and manufactured in an environment-friendly manner
by sticking to the consumer laws and features of sustainability that help in implementing the
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operations and services within the organizational circuit. Sainsbury’s tends to adopt the specific
practices to provide the necessary support to the community and the different individuals who
live within the society. Thus, the differences between the CSR strategies adopted by the
different categories of organizations within the society were covered.
Most of the companies, whether it is a corporate company or a small and medium-sized
organisation, the approaches used by these companies is sometimes different as the small or
micro companies cannot invest a lot of money in the corporate social responsibility while the
bigger companies can. Most of the small and medium sized companies use the obstructive
approach of corporate social responsibility, however, it is not confined to small and medium
sized businesses but many large size organizations used this too. Obstructive approach can be
defined as approach towards social responsibility in which the company blocks out attempts
towards the implementation of social responsibility actions (Filatotchev and Stahl, 2015).
Therefore, they do not make an effort to invest on the same while they focus on increasing
profits as much as possible.
Most of these kinds of businesses are seen as immoral and some of the companies also exploit
their employees, deceive their customers and pollute the natural resources. These companies
can even delay actions if there are social demands regarding social responsibility (Cohen and
Simnett, 2014). Defensive approach can normally be seen among several medium and large
sized organisations where the companies have a defensive tactics towards social responsibility
and are not much focused on introducing the same. They are normally neutral and they perform
actions in a very responsible way. They just ensure that they fulfill the law so that no other
people can take legal action against them.
Companies like Pepsico and Nokia uses the accommodating approach of social responsibility,
and these companies believe that social responsibility is more important than making a profit.
They try to create the actions in such a way that all legal responsibilities and ethical standards
are met (Aggerholm and Trapp, 2014). They make their accounts open to the public so that
customers can be attracted easily. Finally, companies like Sainsbury and Tesco uses the
proactive approach towards social responsibility, and they do it on priority basis even if they do
not have enough profits to continue with the same. These companies try to remain ahead of the
curve and they maintain a mission statement that allows every activity to secure the
environment and its employees (Moratis, 2014). They are very much focused on the benefits of
the public rather than their profits.
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