Foundations of Business and Tourism: Sainsbury's Management Report

This report provides a detailed analysis of Sainsbury's, a major UK supermarket chain, focusing on its management strategy and external environment. The report utilizes the McKinsey model to evaluate the company's hard and soft elements, including strategy, structure, systems, shared values, skills, style, and staff. Furthermore, it employs a PESTLE analysis to assess the political, economic, and technological factors influencing Sainsbury's operations, particularly considering the impact of Brexit, fuel costs, rising wages, technological advancements, and online shopping. The analysis aims to provide insights into the company's strengths, weaknesses, and potential challenges, offering a comprehensive understanding of its business environment and strategic approach.

Foundations of Business
and Tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
The utilization of Mckinsey model in the functioning of the management of Sainsbury's........2
The synthesis of PESTLE in consideration towards Sainsbury's................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
The concept of the formulation of a business strategy based upon the assignation and
implementation of the most suitable form of management model for the effective practice of the
trade in the business enterprise is thereby significant for the establishments to consider while
constructing a plan of action for the effectual running of the enterprises. The assignment hereby
deals with the relevant theoretical account to reckon for their venture to flourish and maintain a
sustainable position in the market (Annansingh and Sesay, 2022). The analysis will be based
upon the examination of the chosen company which is Sainsbury's. It is the second largest chain
of supermarkets, with its base established in the United Kingdom. The strategical plan of action
for the effectual management to take place will thereby be scrutinized in this study. Along with
the management model, the analysis of the macro environmental factors that influences the
operations of the business will also be studied. The most significant factors affecting the
management and the administration of Sainsbury's will be highlighted through the consideration
of the PESTLE analysis which will be adopted in the assignment for the accomplishment of the
investigation.
MAIN BODY
The utilization of Mckinsey model in the functioning of the management of Sainsbury's.
The McKinsey model was developed by the prominent consultants in order to curate a
tool for the examination of the design of the organization. In respect to the Sainsbury's, the
considerations towards maintaining the efficiency of the business, the entailment of this
management model is taken into account. The elements affecting the growth of the organization
in the model are all equally important but a bifurcation in respect to its intensity is indeed done
i.e. the soft elements and the hard elements (Buckley, 2022). These elements can thereby be
elucidated in a thorough manner along with the suitable implication of it in the Sainsbury's
organization.
HARD ELEMENTS
Strategy: The most appropriate approach is considered for the business enterprises to enact in
the formulation of a particular strategy for the effective and efficient running of the trade. In
order to reach the determined goals and standards, the company make use of the best fitted
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conceptualization for the long term survival in the market place. The plan of action must imbibe
the most appropriate values and a sheer alignment for a strong causation upon the functioning of
the enterprise. Sainsbury's has adopted a feasible construction of the strategy that is taken into
account and the functioning of the management is thereby done according to the
conceptualization. The adoption of the SMART goals by Sainsbury's indeed an outstanding
strategy to ensure the effective communique in the company (Casado-Aranda and et. al., 2022).
Structure: The organization structure of an enterprise in a significant influence that impacts the
functioning and operations of the management. The hierarchy followed in the management team
in respect to the instructions being followed by the team according to standards and the
determined flow is quite necessary for the smooth functioning of a ventures. The adoption of the
superior subordinate relationship is being followed by the Sainsbury's . The structure is thereby a
mix of Tall, Flat and the Matrix chain. The flow of order is from the very top to the bottom
which is indeed a systematic approach to make use of.
Systems: The number of processes and the procedures that are carried out in an organization
must be in a systematic manner to avoid any sought of mishap or mess. The flow of the work
must be viable and the practical utilization of the most appropriate path must be followed by the
personnel. The distribution of the goods and other resources should be impelling and significant.
Sainsbury's has chosen the befitted plan of action in order to ensure the viability and feasibility
in the approaches for the certainty in the projects that are assigned to the workforce (Flynn and
et. al., 2022).
SOFT ELEMENTS
Shared values: This is the core of the McKinsey model and around this the reaming elements of
the model revolve around. The norms and the key values imbibed by the staff, affects the
functioning. The members must abide by the generalized rules and the basic trait of having an
appropriate attitude towards the mates in the team. The guidelines are ordinarily mentioned in
the layout before the joining of the recipient. Sainsbury's has taken care of this factor to ensure
the efficiency in the management. The decorum has to be maintained in the company by the
personnel in order to retain in the institution for a definite period of time.
Skills: The competencies of the personnel must be in accordance to the responsibilities and the
role it plays in the management of the company. The accurate set of kills must be imbibed by the
workforce for the competition of the task that are assigned to them. Sainsbury's can conduct
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varied training and developmental programs for the staff in order to bring out the best from them.
This can further help the employees to achieve the level of expertise in their respective fields
(Liao and et. al., 2022).
Style: The prevalence of the form of management style that is taken into consideration by the
authorities to ensure the level of satisfaction and the productivity in the respective fields is
another aspect the is highlighted in the model. The inclusion of the informal rules and regulations
in respect to the culture it exhibits in the organization. Sainsbury's has considered the ideology
of gathering customer support in the form of feedback that are obtained through the practical
experiencing of the customers in order to improve the trading operations and the scheme of the
company for the resolution of the conflicts that may arise in the company.
Staff: This constituent not only include the human resource of the company but also the way
they are hire and compensated. The grooming and the improvement of the personnel is indeed a
task that can impact the functionality of the company. The benefits that are provided to the
employees plays an important role in their sustenance in the company. Sainsbury's thus has
achieved the excellence in this stream through its impeccable staffing mechanisms. The
background of the varied group of ethnicity present in the company helps in the cultural
diversification (Mingione and Abratt, 2022).
The synthesis of PESTLE in consideration towards Sainsbury's.
The analysis of the business environment is an imperative task to complete in order to
bring out the components in the limelight that can bear upon the market positioning of the
Sainsbury's. The competition prevailing in the market for the attainment of the top position in the
supermarket chain can affect the present dynamical nature of the Sainsbury's. Thus, to bring
about awareness of such elements, the company must ascertained the PESTLE analysis to
determine the influence of such factors. The most important among st the five crucial segments
are the Political, Economical and the Technological advancements in the market place that can
heavily impact the Sainsbury's placement in the commercial environment.
POLITICAL
The exit from the BREXIT can cause severe uncertainties for the Sainsbury's which can
influentially affect the orientation of the existence of the chain in the marketplace. This can
thereby result in rising up the costs in the procurement of the materials. The importation of the
items from the foreign countries can affect the cost determination of the Sainsbury's financial
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analysis. The consumer will thereby have to face the modification in the prices because of the
rise in the monetary value of the products that will be offered by the company (Ogunyemi, 2022)
(Rendtorff, 2022). In order to bring out the best from the situation, Sainsbury's will have to take
severe steps to make an assurance for the customers in order to continue the purchase form the
supermarket for the attainment of the standardized profits.
ECONOMICAL
The implications of the economical impact upon the Sainsbury's can further be explicated:
Ascending fuel Costs: The continuous increase in the prices of the fuel has extensively impacted
the operations of the businesses. The decrease in the supply of the fossil fuels can significantly
affect the taxes that are apportioned by the government over the ecological concerns. This
thereby can result in the increase in the transportation costs. Sainsbury's, will have to incur more
as compared to the previous transit costs because of this variable. This will ultimately lead to a
loss in the generation of wealth for the company.
Increase in the Remuneration: The dynamical changes that are prevalent in the economy can
raise the expectation of the personnel working in the organizations to have a hike in their
respective pay. This could result in the addition in the expenditure outlay designed by the
finance team. Sainsbury's will then be in a position to achieve comparatively less as compared to
the ascertained level of profits (Shin and Perdue, 2022).
TECHNOLOICAL
The advancements in the technological facets in the business environment can also have a
significant impact over the functioning of the Sainsbury's operations. The aspects can be further
be explained in detail:
Brand-new Analytics: The introduction of the Artificial Intelligence in the form of the
advancements in the technology has enabled the companies to earn distinctive and additional
features about the scope of operations. The utilization of the AI in the accumulation of the data
has proved to be aid for the commercial enterprises to add on to their functionalities. These
improvements can thereby help Sainsbury's to explicate the results in a deterministic manner
which surely will lead to an enhancement of the profitability of the company.
Online Shopping: Th additive feature that has been provided by Sainsbury's has lead to an
increase in the purchasing capacity of the customers. They can now shop for the groceries and
other relevant items from their place and the effort to go out and make an acquisition from the
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market has been relieved (Torosyan and et. al., 2022). Though, the advent of this compass is still
in its nurturing phase and the supermarkets are still at the groundwork area of the stage of
exploiting the most out of this advancement to ensure the success in the commencement of the E-
commerce.
CONCLUSION
An inference can thus be made that the approval and the acquirement of the most suitable
form of the strategy is a mandatory task that has to be completed by the management in order to
accumulate the desired standards. The factors discussed in the chosen model of management
thereby will help in the determination of the epochal elements that are to be reasoned in order to
maintain an alignment in the business organisations. The relevant information regarding the
constituents must be ascertained by the team to ensure the efficacy of the process and the
procedures. The identification of the crucial factors of the external environment is also necessary
to form certain measures for the prevention of the scope of misfortune in the coming future. The
analysis of the constituents that can affect the market positioning of the organisations, must
therefore be discovered by the organisations to prevent the arrival of shortcomings in the
operation of the commercial enterprises.
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REFERENCES
Books and Journals
Annansingh, F. and Sesay, J.B., 2022. Data Analytics for Business: Foundations and Industry
Applications. Routledge.
Buckley, R., 2022. Tourism and Mental Health: Foundations, Frameworks, and Futures. Journal
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Casado-Aranda, L.A., and et. al., 2022. How to Design a Smart Tourism Destination: The Case
of Granada. In Case Based Research in Tourism, Travel, Hospitality and Events (pp. 201-
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Flynn, B.B., and et. al., 2022. Foundations of theory. In Handbook of Theories for Purchasing,
Supply Chain and Management Research (pp. 12-28). Edward Elgar Publishing.
Liao, W.J., and et. al., 2022. The Effects of Behavioral Foundations and Business Strategy on
Corporate Dividend Policy. Frontiers in Psychology, 13, pp.849238-849238.
Mingione, M. and Abratt, R., 2022. In Search of Corporate Brand Alignment: Philosophical
foundations and emerging trends. The Routledge Companion to Corporate Branding,
pp.149-168.
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293-312). Palgrave Macmillan, Cham.
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Shin, H. and Perdue, R.R., 2022. Hospitality and tourism service innovation: A bibliometric
review and future research agenda. International Journal of Hospitality Management, 102,
p.103176.
Torosyan, E., and et. al., 2022. Methodological Foundations for the Development of IT Strategy
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