Key Management Concepts: A Report on Sainsbury's Performance

This report critically evaluates Sainsbury's key management concepts, focusing on its business model, SWOT analysis, and strategic alliances. The analysis begins with an introduction to key management's role in defining business goals and objectives, then examines Sainsbury's operations as a maj...Read More

KEY MANAGEMENT
CONCEPT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1. Critically evaluation of the company model...........................................................................3
2. Evaluation of SWOT analysis of company.............................................................................4
3. Critically analysis advantages and disadvantages of the company strategy to pursue
strategic alliance..........................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCE ..................................................................................................................................9

INTRODUCTION
Key management concept consist very important role in the business which help to
design the goals and objectives of the enterprises (Barkema, Chen and Tsui, 2015). In respect to
this, it assists to develop and implement plan through organization able to achieve their desired
outcomes. Here, report is based on Sainsbury which is the largest supermarket of food products.
In respect to this, the business offer convenience stores and online stores through they can
deliver quality products and services to customers (J Sainsbury plc, 2016). In respect to this,
present study covers SWOT analysis for company to identify organization performance.
Furthermore, report analysis advantages and disadvantages of the enterprise strategy. Moreover,
it includes depth analysis and critical evaluation of the issues which support to businesses.
TASK
1. Critically evaluation of the company model
Business model is a method through enterprise make a plan to make successful
operations of the organization. In respect to this, it helps to identifying sources of revenues
through company can enhance their profits (Byers, Slack and Parent, 2012). Sainsbury is the
retail chain kind of business which provide their products through consumable goods, retail trade
business and branded organization. Mainly cited firm operate their functions by activity, in the
tertiary sector and structure. This is because, in term of supermarket chain business operate their
functions in a chain system of retail outlets and sell their food and other items. However,
organization need to complete their functions in term of systematic actions (Davis, Pavlova and
Sunnucks, 2013). In addition to this, organization generate profits through selling goods that are
expected in a short life process.

In order to attract customers, cited firm make their operations in term of direct marketing
response. In this context, they use tactics through company will able to encourage completing
specific actions (Dunlop, Girma and Irvine, 2013). In respect to this, Sainbury create message
through direct marketing. In this term, business attract their direct client to create value for the
products and services. In addition to this, enterprise can easily learn about direct marketing
practices which help ton achieve targets of the enterprise. In respect to this, the company create
compelling message that determine to make effective information regarding products deliver to
customers (Davis, 2016).
Sainsbury has mission to be the most trusted retailer at place where people want to work
and shop. In this context, company will make customers lives easier and offering great quality of
the products and services at fair price (Fabozzi, Focardi and Arshanapalli, 2014). In addition to
this, cited firm serve their products and services whenever and wherever customers want to
access. In this context, they use strategy in which they determine easily know to customers better
than the others. In these regards, they always take place to customers where they want to access.
In this term, company offer great products and services at fair price (Business strategy and
objectives, 2016).
2. Evaluation of SWOT analysis of company
Sainsbury is a UK based retail business who dealing in food and non-food products and
services. In respect to this, following SWOT analysis conducted by the cited firm:
Strength
In order to evaluate the business performance Sainsbury has many strengths. In respect to
this, company has the biggest supermarket chains in UK. In addition to this, there are more than
1,50,000 people are working to serve to customers (Flin and Maran, 2015). Further, company has
super experienced leadership team who are running within the business. Cited firm has excellent
branding position and their advertisement is a very effective manner which they adapt to make
effective work within the enterprise. For instance in this manner, company uses social sites and
newspapers, etc. (Hartley, 2012).
Weaknesses
Sainsbury face stiff competition at the marketplace in every segment of the retail
enterprise. In addition to this, rising in food prices all over the world have directly impact on the
cited firm operations because they have to sell products at very high prices. Further, inventory

management is not good and accurate which company follow in their enterprise. However,
company face loss due to change in management in recent years (Ho, 2015). Along with this,
company has many competitors all over the world such as Tesco, Asda and many more business.
In addition to this, less advance technology create weaknesses for the chosen enterprise.
Opportunities
In respect to make effective transactions, cited firm can enter the markets of emerging
company in term of joint ventures and partnerships. In this context, Sainsbury can operate their
functions in new areas of the enterprise. Thus, they have opportunity to explore their market in
different areas of the world (Indelicato, 2014). In addition to this, company can expand their
business into growing economies areas such as Africa, China and Asia, etc. In China
organization has wide opportunity because this nation is fast growing economy and has huge
population. Thus, organization have opportunities to expand their market in different markets.
Threats
The company has high competition with the other business such as Tesco and Asda, etc.
Further, increasing in globalization is make challenges as an opportunity to Sainsbury. In respect
to this, they need to provide qualitative products and services to the customers as other business
offers (Kalra, Sodickson and Mayo-Smith, 2015). This is because, if the organization not provide
them effective products and services customers move towards the other organization. Online
strategy can be create significance loss for the company because it can be create loss in the
infrastructure as a means of reaching a wide client base. This is because, it affects to the
operational efficiency on the online outlets stores.
3. Critically analysis advantages and disadvantages of the company strategy to pursue strategic
alliance
Strategic alliance in the Sainsbury consist relationship among two or more enterprise that
help to achieve strategic objectives. In respect to this, strategic partners keep their status as self-
directed and separate enterprise (Pilgrim, 2014). Further, it continues share benefits and control
over the partnership. It will assist to make continue contribution with the alliance until it is
complete. It will often to form in the global marketplace among businesses that are based in
different regions of the world. In this context following are the advantages and disadvantages of
strategic alliance of the chosen enterprise;
Advantages

 Organizational advantage: Strategic alliance usually form to provide an advantage to all
parties who are link in the alliance (Sawyer, Berry and Rohde, 2015). In this context, it's
make advantage which are classified in the four categories. In the first category, it is
make advantage to Sainsbury in the organization. In this context, business will learn
many skills and capabilities from the other partner. Strategic partner help to enhance
productivity through provide a distribution system. In addition to this, company can
expand their supply chain (Wen, Cui and Sheng, 2013). This is because strategic partners
can be offer goods and services that are complements. Beside this, if any business offer
their productivity in new market or industry, they need to have a strategic partner who is
well-known and respected to help add legitimacy and creditability to the venture
(Xenakis, Passas and Verikoukis, 2014). Economic advantages: In this term, Sainsbury can reduce costs and risks through
distributing them across the members of the alliance. In respect to this, they can obtain
greater economies of scale in an alliance. For example, in production volume they can
increase causing the cost per unit to decline. In respect to this, business achieve more
knowledge regarding operations so that it will assist to maintain economy of the nation. Strategic advantages: In order to join with new rivals, Sainsbury can cooperate and
instead to compete (Barkema, Chen and Tsui, 2015). In addition to this, the business can
create alliance in vertical integration where partners can take part in the supply chain. It is
also helpful to create competitive advantages through pooling the resources and skills. It
will assist to make future opportunities and development of new products and
technologies. For instance, it is used to get access of new technologies to pursue research
and development (Byers, Slack and Parent, 2012).
 Political advantages: Sainsbury operate their business with a local foreign business to
gain entry in the foreign marketplace. In respect to this, they have local prejudices or
legal barriers to get entry in the other marketplace. For example, forming strategic
alliance may help to improve own influences and position.
Disadvantages Inherent difficulties: Strategic alliance come up with inherent difficulties so that it create
disadvantage for the one party which handle all the situations within the enterprise
(Davis, Pavlova and Sunnucks, 2013). Sainsbury always rely on the second party so that

they are unable to demonstrate hidden agendas and less enthusiasm for the project. In
addition to this, it creates negative impact on performance and potential career who are
working on the project. Loss of control: Sainsbury has also difficulty in their strategic alliance venture is loss of
control. This is because, it can be bit of a shock to a company when they are entering into
decision-making process (Dunlop, Girma and Irvine, 2013). Hence, it can be create
impact to modify from one party to two party in term of foundation. Diligence review of the individual: In order to evaluate performance of the organization,
well-planned strategic alliance negotiating due to diligence review of the individual in
Sainsbury. In respect to this, company operate to allocate day to day operations in term of
alliance. However, brings of individual together can create parameter to the potential
projects. In this term, open discussion will be able to solve conflicts in term of imperil the
alliance with appropriate staff changes being made after (Flin and Maran, 2015). Sharing: Another disadvantage of strategic alliance is sharing because it requires sharing
resources and profits with another business. Therefore, when Sainsbury share their
knowledge and skills can be create problems to involve trade secrets. In this term,
agreements can be executed to protect trade secrets when business are willingly of parties
to stay by the agreements or courts. For example, cited firm share their responsibilities
with other members of the company and it is creates negative impact on the business
performance (Wen, Cui and Sheng, 2013). This is because, sometimes many people miss
use of their responsibilities so that it is disadvantage for the organization.
 Create a potential competitor: Strategic alliance also create problem in term of potential
competitor. In respect to this, organization has many problems in term of respective
operations. In addition to this, it will generate difficulties to maintain profits of
Sainsbury. This is because, competitors offer same products and services as other operate
(Byers, Slack and Parent, 2012). In this context, different parameters can be adopted by
the firm so that it create problem to the organization. For example, Tesco provide same or
substitute products at lower prices than the organization. Hence, customers move towards
them and it creates loss to cited firm.

CONCLUSION
From the above report it can be concluded that organization can use different types of
business model through they can generate more profits for their company. In respect to this, in
the cited firm use retail chain through they can attract more customers and serve products in
systematic manner. Furthermore, cited firm belongs to tertiary sector in which they operate their
functions and compete with different organization to make satisfaction in customers choice.
Moreover, it can be summarize that chosen business has many strengths through they can attract
customers easily such as effective advertisement, super expanding leadership team and more
than 1,50,000 workers. In addition to this, company has some weaknesses which create negative
impact on the business operations. In this context, cited firm has stiff competition and less
investment knowledge in the company. Thus, firm need to overcome these weaknesses so that
they will able to create effective operations in the organization. At last, it explains strategic
alliance and their advantages and disadvantage within the organization. In term of advantages,
organization has advantages such as strategic, political, economical and strategic. With the help
of these advantages, cited firm can achieve their goals easily.

REFERENCE
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Online
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