Dynamic Forces and Sainsbury's Strategy: Management Report

This report examines contemporary management issues impacting businesses, focusing on Sainsbury's as a case study. It analyses key dynamic forces using PESTLE and Porter's Five Forces models, evaluating their impact on business and society. The report also discusses corporate social responsibility, sustainability, business ethics, effective communication, cross-cultural barriers, and stakeholder interests. Current dynamic forces like innovation and globalization are explored in relation to Sainsbury's strategies. The report further investigates decision-making tools and the organization's response to changing environments, ultimately providing recommendations for Sainsbury's to navigate these challenges effectively. Desklib provides access to similar solved assignments and study tools for students.

Contemporary management issue

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Key dynamic forces impacting business and society..................................................................3
Evaluation of dynamic forces......................................................................................................5
Current dynamic forces................................................................................................................7
Decision making tools.................................................................................................................8
Response of organisation to contemporary management issues..................................................9
Recommendations......................................................................................................................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12

INTRODUCTION
Contemporary management issue refers to issues which is faced by an organisation and they
have to find creative solution to gain competitive advantage. Managers are responsible for
solving issues at the workplace and make better plans for achieving targets (Kauffman and et.al.,
2017). Sainsbury is a public limited company founded in the year 1869. Its headquarter is
situated in London, England, UK. It provides good quality products and innovative items to
customers to satisfy their needs. The report examines, key dynamic forces impacting business
and society. Current dynamic forces and evaluation of forces to achieve goals and objectives of
company. Decision making tools and response of organisation to changing environment is
discussed.
MAIN BODY
Key dynamic forces impacting business and society
PESTLE ANALYSIS
Pestle analysis refers to political, economic, social, technological, legal and environmental
analysis. These forces impact business and society, managers of company should identify these
factors and make plans accordingly.
Political factor- it includes, tax policy, trade restrictions, tariff barriers, restriction of government
on trade policies. These affect business and society because managers make plan after analysing
market situation and if government make changes then it affects performance of company
(Perera, 2017). Managers should make plans after determining these factors and focus on
achieving goals of organisation.
Economic factor- it includes, interest rate, growth rate, economic rate of country etc. This affect
performance of company because if managers make plan for expansion then they have to identify
market situation. Argos takeover Sainsbury trading so they have to make plans accordingly. It is
essential to focus on achieving targets of company.
Social factor- social factor means to determine culture of country. In different countries culture
and trends are different. Argos company want to expand their business in other country. So, it is
important for managers to make plans as per the choice of customers and culture follow in
country.

Technological factor- technology is changing rapidly and it is difficult for managers to make
plans to satisfy need of customer. Argos company want to expand their business so they should
use new technology to make good quality products and this helps in satisfying needs of
employees. It is important to implement new technology at the workplace to achieve targets
(Shtal and et.al., 2018).
Legal factor- in an organisation, rules and regulations should be applied so that employees can
work efficiently. In different countries rules and laws are different, so managers of Argos
company should identify laws and make plans accordingly. This affect performance of
organisation because when laws are applied at the workplace then employees work efficiently.
Environmental factor- it includes factors like, climate, weather, temperature etc. It is important
to identify this factor because it affects business. In different country, climate and weather is
different so managers should make plans accordingly. Product should be made after analysing
market situation so that needs of customers can be satisfied (Nandonde, 2019).
PORTER’S FIVE FORCES
Porter’s five forces model involves different forces which help in identifying market
situation and make plans accordingly. Porter’s forces help in achieving goals and objectives of
company. This helps in making better plans or strategies as compare to competitors and helps in
generating more revenue. Managers should identify Porter’s five forces to gain competitive
advantage and perform better than competitors.
Competitive rivalry – this force helps in identifying competition in market and strategy used by
competitors. Manages of Argos company before making plan, identify competitor’s strategy so
that better plans can be made for achieving goals and objectives (Bruijl, 2018).
Buying power of buyer – according to porter, this means to determine buying power of buyer
because choice of customer is changing. So, managers of Argos company should identify what
type of product customer want and make plans accordingly. this helps in achieving targets of
organisation and creates positive image in minds of customers.
Buying power of supplier – it means to identify buying power of supplier. For making product,
managers have to contact supplier for supplying raw material on time and products can be
delivered to customers on time. It is important to make plans or strategies in advance so that
goals and objectives of organisation can be accomplished.

Threat of new entrant- there are many companies providing similar type of product as Argos.
Managers of company has to identify plans or strategies which is applied by competitor. Argos
company should make good quality products so that, new entrants cannot affect performance of
Argos company. Threat of new entrant means, new organisation can enter into market and
provide good quality products than Argos firm. New company can attract people and gain
competitive advantage (Chesula and Kiriinya, 2018).
Threat of close substitute goods – according to Porter, this means there are close substitute goods
available in market. This affects performance of Argos company because there are many
organisations which are providing similar products. For achieving goals and objectives of
company, it is essential to provide good quality products to customers and satisfy their needs.
Evaluation of dynamic forces
CSR
Corporate social responsibility is a concept which is used by companies to attract people.
Organisations are taking resources from society so it is their responsibility to give them back.
Companies are giving some amount of their profit for development of society. Managers of
Argos company should make plans and give some amount form profit to society for
development. this helps in creating good image in market and attract more people (Agudelo and
et.al., 2019). It helps in increasing brand awareness, more revenue can be generated, enhances
positive relationship, builds public trust, encourages professional and personal growth. Corporate
social responsibility helps in achieving goals and objectives of organisation. CSR creates
positive image at the workplace and boost confidence of employees.
Sustainability
Sustainability means to do business without damaging environment. It means to do
business without any negative impact on society or community. Sustainability focuses on two
categories i.e., effect business on the environment and on society. Organisations should make
products without harming environment because resources are being taken from society and it is
not correct to damage environment. It is the responsibility of managers of an organisation to take
some necessary steps regarding sustainability and did not harm environment like, do not use
plastic, use reduce, reuse and recycle approach, organise environment awareness programs,
proper utilisation of resources. These are some ways for sustainable development which can be

applied by Argos company so that they can create image in market. Sustainability helps in
increasing productivity and reduce cost of company. It increases business ability to comply with
regulation (Moore and et.al., 2017). Proper training should be provided to employees of Argos
company so that resources can be utilised properly.
Ethics
Ethics in business means to implement appropriate policies and practices. Apply proper
rules and regulations at the workplace so that employees can work efficiently and goals of
company can be accomplished. Ethics include, insider trading, discrimination, fiduciary
responsibility and teach what is correct for an organisation and what is incorrect. Ethics is
important because it creates positive image in minds of customers and attract more investors.
Ethics helps in gaining competitive advantage and better for society. It is essential to give equal
rights and opportunities to employees and provide safe & healthy environment to workers so that
they can work efficiently (Kačerauskas, 2019). In Argos company, rules and regulations are
followed by everyone and it helps in creating good environment within the organisation.
Effective communication
In an organisation to accomplish goals and objectives, there must be effective
communication. It is essential to make structure properly so that employees can interact with
each other and focus on accomplishing goals. In Argos company, managers make proper
structure so that workers can communicate with each other and complete work on time. effective
communication helps in building trust, providing clarity or direction, creates better relationship
among employees. It increases employee engagement and improves productivity. Effective
communication helps in team building and avoid chances of misunderstanding and confusion
among employees (Lasater, 2019). If there is improper communication between employees, then
confusion can be created among workers and work will not be completed on time. for achieving
goals and objectives of company, effective communication is necessary and creates good image
in market.
Cross cultural barriers
Cross cultural barriers includes, anxiety, uncertainty, stereotyping etc. are caused because
of lack of knowledge and lack of communicative skills. In an organisation, people are recruited
from different areas and there is difference in language and culture, different way of working,

perspective and value. In Argos company, managers are giving task in groups so that employees
can interact with each other and work can be completed on time.
Stakeholder interest
Stakeholder is the person who is interested in success of business. Stakeholders of company
are interested in result or outcome of firm because they are investing money in business.
Managers are discussing all the issues and ideas with stakeholders because they are having
experience and suggest better ideas which is beneficial for growth and development of
organisation. Argos company takeover Sainsbury’s trading so, they have to discuss all the issues
with stakeholders and take decision accordingly. This helps in accomplishing goals and
objectives of company and run business smoothly. Stakeholder’s are having experience and
knowledge of market and suggest ideas to earn more revenue.
Current dynamic forces
Innovation
Innovation means to make new products to satisfy needs of customers. Innovation is the
creation of new product, improvements in existing product or implementation of new product so
that more revenue can be generated by satisfying need of customers. Nowadays, technology is
changing rapidly and choice of customer is also changing. Customer want new and innovative
product at reasonable price. So, to satisfy needs of customers, managers should identify need of
customers and make products accordingly. This helps in achieving goals and objectives of
company and more people are attracted. Innovation is the key element of success and beneficial
in accomplishing targets. It is essential to make innovative and new product to earn more
revenue and better products can be made (Kahn, 2018). Innovation helps in improving
productivity, reduced cost, increased competitiveness. Innovation improves brand recognition,
increased turnover and profitability of company. Managers of Argos company should identify
need of customers and make products accordingly so that more revenue can be generated. It is
essential for an organisation to make innovative products to attract customers and creates
positive image in market. Innovation plays a crucial role in improving productivity and
efficiency of company.
Globalisation
Globalisation refers to the process which helps in understanding about the digital world
and as a result increased trade and cultural exchange. There are three types of globalisation i.e.,

economic, political and cultural globalisation. With the help of globalisation production of goods
and services has increased. Nowadays, technology is changing and in this digital world, people
want good quality products at reasonable price. To satisfy need of customers, company make
different type of products which help in achieving goals and objectives of firm. Globalisation
increased production of goods and services, products are traded from one country to another.
Products of Argos company are delivered all over the world and quality of products is good
(Burlacu and et.al., 2018).
Globalisation helps in spreading technology and innovation, lower cost of production,
access to new cultures, access to new markets, international recruiting. With the help of
globalisation company get knowledge about different market and helps in managing employee
immigration. Globalisation provides higher standards of living across the globe. It is essential to
make products as per need of customers so that more revenue can be generated. For
accomplishing goals and objectives of organisation, it is essential to satisfy need of customer and
provide them good quality products at reasonable price. Sainsbury is providing good quality
products to customers and people like products which is made by the company. Managers of
Argos company should make plans for making good quality products and attract more people.
This helps in earning more profit and creates good image in market.
Decision making tools
Swot analysis – it means to identify strengths, weakness, opportunity and threat. It is essential to
determine these points so that good decision can be taken. Swot analysis helps in improving
weak points of company and better plans can be made for achieving goals and objectives.
Managers of Argos company should identify strength, weakness, opportunity and threat of firm
so that they can perform better than others. Strength of company is it provides good quality
products to customers at reasonable price (GURL, 2017). The company is providing new and
innovative products to attract customers. Weakness of company is they should focus on
identifying market situation and competitor’s plans or strategies. Managers should improve their
working pattern and make proper structure so that goals can be accomplished.
Opportunity for Argos company is they can expand their business in international market.
It helps in increasing profit of firm and targets of organisation can be accomplished. It is the
responsibility of managers to identify opportunities in market and make plans accordingly so that
goals can be accomplished. Managers should grab the opportunity and make good quality

products to attract customers. Threats means to determine competitor’s in the market and make
better plans to gain competitive advantage. It is essential to do swot analysis so that strength,
weakness, opportunity and threat. This helps in taking decision because after analysing market
situation, managers can take decisions. In Argos company, decision is taken by managers for
growth and development of organisation. Decision should be taken after analysing all the
situation (Teoli, Sanvictores and An, 2019).
Decision making diagram – another tool which can be used by company for taking decision
which is beneficial for growth and development. It is important to take correct decision and make
improvements in plans so that goals and objectives can be accomplished. Decision making
diagram includes six stages which helps in taking decision and more revenue can be generated.
The first stage of decision making diagram is to follow which means what is the problem or topic
regarding which decision is to be taken (Agyemang and et.al., 2020). Next step is define means
to give proper explanation related to topic. After defining, next stage is to gather facts, it means
to collect relevant information so that there will be no problem while taking decision. After
gathering facts, brainstorming is the next step. It means to generate ideas and share knowledge to
solve problem and encourage participants to suggest ideas which is beneficial for growth of
company. After brainstorming, pros and cons of ideas selected should be identified so that good
decision can be taken. After completing all the stages, last step is to decide and select best option
which helps in growth and development of firm.
These are some tools for decision making which can be applied by managers of Argos
company so that they can take better decision. It helps in growth of organisation and save time.
When good decision is taken then it helps in motivating employees and increase their efficiency
so that work can be completed on time. It is the responsibility of managers to take correct
decision for firm and make improvements if required so that goals and objectives of firm can be
accomplished. It is essential to take decision after analysing market situation to accomplish
targets (Devi and Devaki, 2019).
Response of organisation to contemporary management issues
Contemporary management issue means there are some issues which is faced by an
organisation and that is affecting people at the workplace. Managers of an organisation are
responsible for solving problems and handle all the activities. Nowadays, technology is changing
and there are many problems which is faced by managers and take necessary steps to solve this.

Some contemporary issue are, uncertainty about the future, wellbeing of employees, measuring
team productivity, shaping culture of company, proper communication between employees,
diversity at the workplace. Rules and regulations should be applied so that employees can work
efficiently. Employer want candidate who has essential skills and knowledge to work in the
organisation. Competition is increasing day by day and it is difficult for managers to make plans
or strategies to gain competitive advantage.
These are some contemporary issues which an organisation faces and they have to face
these issues and make plans for generating revenue. For facing these issues, managers have find
solution like, for wellbeing of employees good and safe working environment is provided. Plans
or strategies for future are made in advance so that business can run smoothly and there will be
no issue. For measuring performance of employees, tools and techniques are used and make
improvements so that goals and objectives can be accomplished (Schaltegger and Burritt, 2017).
Rules and regulations are made by managers which is to be followed by everyone and law are
applied which helps in boosting confidence of employees. For supporting diversity at the
workplace, equality act is applied in companies. There should be no discrimination among
employees on the basis of gender, caste, religion, age, income etc. While recruiting employees,
HR department should give equal opportunity to all. Effective communication plays a crucial
role in an organisation in accomplishing targets. In Argos company, managers make
organisational structure and responsibility of every person is mentioned. This helps in effective
communication and reduce chances of misunderstanding or confusion. It is essential to find
solution of problem so that goals and objectives of company can be accomplished. Managers
provide safe and healthy environment to employees so that they can work efficiently.
Performance of employees is evaluated and improvements can be made by providing training
and development programs.
Nowadays, managers want candidates who have knowledge and skills which is required at
the workplace and work efficiently. Training and development programs are provided to
employees so that they can work efficiently and goals of company can be accomplished. It is
essential to solve issues at the workplace because it creates negative impact on others. To boost
confidence of employees, benefits are given to workers (Henryk, 2020). In Argos company,
managers are evaluating performance of employees by using key performance indicator and set

targets for every employee. This helps in determining performance of every worker and
improvements can be done if required.
Recommendations
There are some recommendation which managers of Argos can apply for achieving goals of
company. They should analyse strength, weakness, opportunity and threat before making any
plan because it helps in identifying weak points and better plans can be made. For earning more
profit company should identify choice of customer and make products accordingly. This helps in
increasing sales of company and more revenue can be generated. Managers of Argos company
should take 360- degree feedback for measuring performance of workers. After evaluating
performance, training and development programs should be arranged so that goals and objectives
can be accomplished. Managers should conduct market survey to determine choice of customers.
New technology should be used to reduce cost and provide good quality product to customers so
that their needs can be satisfied.
CONCLUSION
From the above discussion it can be concluded that, contemporary management issue affects
performance of an organisation. There are some key dynamic forces which affects business and
society like, Pestle analysis (political, economic, social, technological, legal and environmental)
and porter’s five forces i.e., competitive rivalry, buying power of buyer, buying power of
supplier, threat of new entrant, threat of close substitute goods has been described. Further,
corporate social responsibility, sustainability, ethics, effective communication, cross cultural
barriers, stakeholder interest has been discussed. Current dynamic forces like, innovation and
globalisation has been described. Decision making tool such as, Swot analysis and decision
making diagram has been discussed. Some recommendations are provided which can be applied
by Argos company for improving performance of employees and contemporary management
issue has been described.

REFRENCES
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