KMIS Analysis: Strengths, Weaknesses, Sainsbury's Challenges

This report provides a comprehensive analysis of Sainsbury's, a major UK supermarket chain, focusing on its knowledge management and information systems (KMIS). The report begins with an introduction to KMIS and its importance in the current business environment, followed by an overview of Sainsbury's corporate objectives, business overview, corporate structure, and business model. The main body of the report then delves into the application of relevant theories, such as PESTLE and SWOT analysis, to examine Sainsbury's strengths, weaknesses, opportunities, and challenges. It also recommends suitable KMIS for the business, addressing the challenges the company faces. The report concludes with a summary of the findings and recommendations. The analysis covers supply chain management, logistics, and distribution channels, highlighting the importance of innovation and adaptation in the competitive marketplace. The report emphasizes the significance of KMIS in managing managerial and operational data securely, and offers insights into how Sainsbury's can leverage KMIS to achieve its goals and maintain a competitive edge.

Knowledge Management
and Information Systems
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INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Definition............................................................................................................................1
Corporate Objectives..............................................................................................................1
Business Overview.................................................................................................................2
Corporate Structure................................................................................................................2
Business Model of Sainsbury’s..............................................................................................3
2. Application of relevant theories to examine strength, weakness, opportunities and
challenges of an organisation.................................................................................................5
3. Recommend suitable knowledge management information system for business..............9
4. Challenges faces by company..........................................................................................11
5. Overview of report...........................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
In present era of marketplace, the term innovation and advancement being very familiar
in majority of organisation. This is because there is an intense level of competition or opposition
between companies in regard of placing the brand in a better position within a prescribed time
duration. However, the concept of knowledge and management information system plays a
significant role inside the current business scenario of firms because it help them to manage their
all sort of managerial as well as operational data in a secure manner without getting copied or
destroyed. KMIS refer to those process which is concern with storing, recovering information,
improves coordination, finds data sources, updated info regarding changing environment of
business with an aim of accomplishing the desired objective in an effective manner (Sowa, ed.,
2014). IN relation to this report, Sainsbury Company has been considered which is one of the
reputed or well established supermarket chain within UK. It is founded in the year of 1869 and
serve the service across the globe. For acquiring the deeper understanding about KMIS, it covers
definitions of different concepts i.e. corporate objective, business overview, corporate structure,
business model. Moreover, implication of various models to determine the internal and external
factors of organisation. Finally, recommending the most suitable KMIS system for company for
coping up with all challenges in a better way.
MAIN BODY
1. Definition
Corporate Objectives
These are the objectives which a company set in order to appropriately and effectively
ensure accomplishment of the goals set by the business to thrive within the market. Sainsbury’s
is one of the biggest organisations in the UK and hence, its corporate objectives are stated below:
Differentiations: One of the most appropriate and effective objectives for Sainsbury’s is that it
aims at differentiating its offerings from that of its competitors. This goal requires the firm to
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ensure high end knowledge management along with market research so that it could understand
the market gap and develop its product portfolio accordingly (Ghobadi and Mathiassen, 2016).
 Online Expansion: Another prominent objective for the company is online expansion.
The firm plans to enhance its online sales and delivery operations as per the need of the
marketplace. This requires the firm to build a strong and updated infrastructure which
provides a user friendly interface to individuals who are willing to shop from
Sainsbury’s.
Business Overview
Sainsbury’s is one of the largest and most trusted supermarket companies within the United
Kingdom with a prominent market share within the country and effective presence in different
cities. Established in 1869, the firm deals in supermarkets as well as convenience shops, which
have a wide variety of grocery and home utility items for the customers of the UK. The firm has
undergone major restructuring recently, in order to expand its presence and diversify its
operations. Thus, currently Sainsbury’s has several new divisions such as its bank, its catalogue
chain Argos, along with furnishing retailer by the name of Habitat. Hence, the firm is stressing
upon improvising and facilitating the grocery operations, along with financial services and
delivery network (Soto, Popa and Palacios, 2017).
Corporate Structure
It is highly necessary that the corporate structure of an organisation is determined in order
to identify the pattern in which the tasks are performed by the company to achieve its business
objectives. Therefore, in this context, the corporate structure of Sainsbury’s is mentioned below:
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Illustration 1: Sainsbury's Organisational Structure
As per the structure above, Sainsbury’s adopt hierarchical structure for facilitation of flexibility
and communication within different levels of individuals on a daily and effective basis. Hence, in
this perspective, each upper level is responsible for their immediate lower ones, which addresses
issues like accountability, authority and distribution of power. Such structure contributes in
context of facilitation of quick decision making, communication and flow of information (Girard,
2015).
Business Model of Sainsbury’s
In order to understand how a business operates, it is very much required that the business
model is evaluated in order to analyse the working of the firm. In relation with Sainsbury’s, its
business model is quite vast and segregates each and every function performed by the company
as per the demands of the market as well as the business objectives. Hence, below is the business
model of Sainsbury’s which appropriately and effectively highlights several prominent functions
of the company that are mentioned below:
 Supply Chain Management
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 Logistics
 Distribution Channels
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2. Application of relevant theories to examine strength, weakness, opportunities and challenges
of an organisation
The term business environment is a combination of macro and micro factors that directly
influence over decision making of establishment for achieving the pre determined objective in an
improved manner. However, due to huge level of rivalry among firms, it impact negatively over
organisation potentiality in attainable sustainable growth or development in an efficient manner.
Hence, there are different types of theories and models which aid company to implement better
decision making in terms of enlarging the profitability ratio among competitors in an impressive
style (Ruzic, 2014). In regard of Sainsbury, it undergoes through an intense level of competition
that effect its capability in accomplishing the pre defined goal in an effective mode without any
hindrances. In order to overcome such issues, Sainsbury make an initiative to apply different
models which enable them to understand as well as analyse the potentiality of competitors for
improving the overall productivity ratio. Some of the theories and its implication within
Sainsbury's business function are discussed below:
PESTLE Analysis
This tool is define as a most important strategic management technique which empower
an organisation to evaluate and analyse its external factors or threats in order to acquire best
position among rivalries in a stipulated time duration.
Political: This factor encompasses government rules, regulation, policies and procedures
for enhancing the brand reputation in an improved mode. IN context of Sainsbury, the most
political threat that Sainsbury face is that introduction of Brexit which demands UK to leave
European Union that impose huge pressure on Sainsbury in regard of modifying the existing
business process as per Brexit policies. Henceforth, company make an effort to adopt all kind of
changes or alteration into its functional unit that help them to maintain its brand image among
targeted customers and competitors. Due to such initiation, it aid Sainsbury to explore its
profitability ratio in an amended manner.
Economical: In this, it comprises economic growth, interest rate, GDP, inflation,
deflation, interest or tax rate and so on which effect firm's profit margin ratio. In relation to
Sainsbury, as per the current evaluation of UK marketplace every consumers are very much
conscious about price of the product that influence Sainsbury decision making capability. Due to
the application of Brexit, cost of fuels has been increased which raised Sainsbury transportation
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cost of products or service that negatively impact over end users of company in consumption of
products. Henceforth, for coping up with such challenge, enterprise take an attempt to maintain
its customer base by imposing various types of discounts or offers on its commodities which
drive Sainsbury to manage its profitability rate in a better mode.
Social: This determinant is relate with customer taste or preference, population income,
demographic factors and many more. To this context, one of the main sociocultural trend among
the population of UK is consuming healthy food which challenge Sainsbury's decision making
activity in delivering hygienic food. However, for tackling over such threat, enterprise take an
effort in adopting fair-trade movement that encompasses the detailed information about food
process, packaging and so on. Due to such action, Sainsbury is able to enlarge its market division
and also to improve its overall productivity rate without any obstacles (Valio Dominguez
Gonzalez and Fernando Martins, 2014).
Technological: Under this component, it involves latest or novel ideas, advancement in
technologies for enriching the proficiency ratio inn an efficacious mode. Recently, there is an
increased level of demand among UK consumers regarding online shopping which negatively
impact within Sainsbury productivity rate. Hence, organisation make an attempt to introduce
innovative technologies which offer online shopping option as well as deliver them home
delivery service. Moreover, for enriching the company's operational activities Sainsbury also
take an attempt to utilise the Artificial Intelligence principle which drive firm to maintain its data
secure and also to obtain deep understanding about dynamic nature of business environment.
With the implication of such action, it lead Sainsbury to place its brand in an aggressive or
competent position (PESTLE Analysis of Sainsbury’s, 2019).
Legal: Under this component, Sainsbury take an initiative to comply with all government
legislation or policies that drive them to reduce the interference of government within its
functional unit. Due to such initiation, it motive them to improve its overall productivity ratio
and also help them to acquire positive response from targeted consumers in an efficient mode.
Environmental: Under this determinant, Sainsbury make an effort to decrease the carbon
footprint and also the usage of plastic by introducing the impressive offerings i.e. who buy
foodstuffs loose and brings their own container or carry bag will be benefited with reduction in
overall purchasing. Due to such initiation, it motive Sainsbury to attain sustainable enhancement
and also help them to gain competitive advantage among competitors.
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SWOT Analysis
It is an effectual technique that is concern with analysing the internal strength and
capability of organisation and also lead them to determine its opportunity or threat for obtaining
improved level of profit maximisation.
Strength
 The foremost strength of Sainsbury is that its business philosophy which they applies into
its functional units. However, it follows low cost strategy for its all types of product
categorises that lead them to increase its customer base and also to improve its sales
performance among competitors in desired time duration.
Moreover, another benefit of Sainsbury is that it always take an initiative to adopt advanced or
innovative promotion strategy to promote its brand as per the market trend or demand. One of
the example is Brand Match promotion in which each commodity that is sold by the brand is
compared with its competitors and indicates that they are the cheapest. With the adoption of
such novel promotional idea assist Sainsbury to gain competitive advantage and also help them
to increase its sales volume (Aksoy and Algawiaz, 2014).
Weakness The major weakness that impact negatively over Sainsbury is that it face huge risk in
retaining its existing customers because of brand switching. Along with this, many
analytics argue that organisation deliver its product in higher price compare to its
competitors. Due to such criticism, Sainsbury undergoes with a difficulty in maintaining
its sale growth and also to exploring its customer base in a prescribed time duration.
Opportunity As per the evaluation of Sainsbury's sales performance. It has been signified that it is one
of the third largest supermarket chain within UK industry. However, establishment has an
opportunity to enlarge its market division to various new geographical regions with the
implication of joint ventures and partnerships (SWOT analysis of Sainsbury’s, 2017).
Henceforth, by making such decision Sainsbury can enrich its potentiality in acquiring
competent position in an impressive or productive style.
Threat
 The primal opposition which Sainsbury face is that increased level of competition from
various rivalries such as Resco, Aldi, Lidl, Asda and so on. Along with this, growing
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demand of globalization impose fierce competition among companies in terms of
acquiring innovative technologies, novel business strategies in order to gain high level of
profit margin ratio.
Porter Five Force
This component is an integral strategy framework which drive an establishment to
identify competitors potentiality and also empower them to take corrective course of action with
an aim of accomplishing the pre determined objective in an expeditious way.
Threat of new entrants
This factor is concern with the ability of new companies to make best decisions in terms
of placing the brand in a better position. In regard of Sainsbury, retailing industry contains huge
policies or procedures which effect new entrants in terms of attaining sustainable enhancement.
However ,due to high barriers in UK food retail market it drive Sainsbury to obtain less threat
from new entrants. With the help of this, Sainsbury can easily function its managerial or
operation activities in a smooth manner and also can enrich its overall sales volume without any
hindrances (Grant, 2016).
Threat of substitutes
In relation to UK retail food industry, the threat of substitutes is less because of the
perception of consumers as they thinks that its is necessity of their survival especially inside
developed market and increasingly in emerging market. Hence, to overcome such threat in a
better manner, Sainsbury make an attempt to put its most concentration over quality of product
rather than price. Along with this, they also take an initiative in applying advancement in its
functional unit which motive them to retain its current consumers and also help them to attract
the attention of large number of customers towards the brand in an improved mode.
Bargaining power of suppliers
ON the basis of performance of supermarket suppliers, it has identified that it has low
bargaining power due to the existence of many suppliers within the same industry that directly
impact over Sainsbury's proficiency ratio. Henceforth, to tackle with such competition,
Sainsbury takes an effort to build or create a long term relationship with multiple suppliers and
also experiment the novel or attractive product designs with the utilisation of available resources
at optimal level. Due to such contribution by Sainsbury, it aid them to make best decisions in
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regard of shifting to another suppliers at time of increase in raw materials price without any
obstacles.
Bargaining power of buyers
According the present condition of retailing industry, the bargaining power of buyers is
high due to the presence of intense level of competitors who are selling similar products.
However, Sainsbury make an attempt to deliver its product by implementing attractive offers or
discounts over commodity that lead them to acquire positive response regarding brand and also
help firm to enrich its customer loyalty.
Rivalries among competitors
The industry where Sainsbury manage and operates its business activities is highly
competitive or challenging which negatively influence organisation sales volume. Some of the
competitors of Sainsbury are Tesco, Asda, Morrisons, who are also deals in offering same kind
of products like food, clothing, electronics and many more. However, as per this evaluation, it
has been examined that Sainsbury has high rate of opposition which impact over its decision
making capability (Vij and Farooq, 2014). Henceforth, in order to place the better position,
establishment introduce innovative or novel marketing strategies that help them to cope up with
all sort of current or emerging market trends in an improved way.
From the above explained theories, it has been signified that application of various
concepts or models help Sainsbury to identify its strength and weakness in order to take
corrective course of action for coping with opportunity or threat in an impressive manner.
3. Recommend suitable knowledge management information system for business
In this globalized world, it is necessary for an organization to be more competent and
challenging as it help them to take better decision in terms of enhancing the brand image in an
improved manner. Hence, for tackling over such situation the impaction or introduction of
knowledge and information system plays a significant role. This is because, it help an
establishment to utilize the available resources at optimal and proper manner as well as lead
them to obtain maximization of profit in a stipulated time duration (Whisnant and Khasawneh
2014). In context of this report, Sainsbury operates its managerial and operational function
across the globe for which it require best technologies or novel idea that aid them to create,
refine and transmit effective information to targeted customers as well as stakeholders. Here,
some of the knowledge information system has been identified that Sainsbury can implement
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within its business function and can accomplish the goal in a desired manner. Some of them are
explained below:
Group ware: In the current worldwide situation, manpower are spread across the geographical
boundaries for accomplishing the common goal of organisation. In any case, it is significant for
them to work together on different activities. Groupware is an information the board framework
which helps in sharing schedule, venture exercises and texting. In regard of Sainsbury, the
implication of groupware benefits them to incorporate the capacity to begin and enable
transparency in communication to occur, decrease of expenses with working from home and
eliminating travel time. Groupware likewise makes critical thinking simpler in light of the fact
that anybody in the group can put their contribution in an improved manner which enrich the
overall performance of team in a positive way (Bamel and et.al., 2014).
SharePoint: It is significant for group to store different records at a particular area. SharePoint
empowers a client to store numerous variant of a similar archive or document, enables a
client to scan through organizers for report, and so forth. In relation to Sainsbury,
application of share point assist them to decrease costs and minimise the unpredictable risks.
Additionally, internally it helps the workers and project teams of a similar establishments to
team up with one another and can process the work in an increased level of collaboration or
cooperativeness.
Decision Support System: This technique mainly benefit floor managers, sales manager, CEO
in terms of taking corrective course of action or decisions regarding improving the overall
proficiency ratio of operational function. Additionally, decision support system is a combination
of primary and secondary data which empowers business in altering the information and changes
over it data in a desired format. In regard of Sainsbury, with the adoption of DSS process, it lead
them to make better decisions at right time (Ali, Tretiakov and Whiddett 2014). This is because,
modernized method of decision support gives supervisors more autonomy to recover and
investigate information and records to get certainties and results, as they need them.
Henceforth, these different types of knowledge and information system enables Sainsbury to
manage as well as coordinate all its managerial and operational activities in a better style by
allocating the resources in a proper manner. Due to this, it enhance its sales performance and
also empower company to make effective decision without any hindrances.
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