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Operational And Project Management Of Sainsbury Case Study
Introduction of Operational And Project Management Of Sainsbury Case Study
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Operational management of a business organization refers to a short-term management policy that mainly looks after the different types of business operations that include the day-to-day activities of the organisation. The project management deals with proper planning, making of organisational policy as well as maintaining the resource of a particular project. Operational management also refers to strategic management that consists of different strategies like promotional, product, and pricing strategies taken by the organisation. Relevant operational and project management can guide the organisation to sustain the competitive business problem as well as increase the business or financial performance.
In this particular study, the operational and project management style of Sainsbury is going to be discussed in the context of supply chain management as well as the quality management policy of the organisation. The operational strategy of the chosen organisation includes “more food for less money” and various types of product that differs the taste of the customers. Variation of service system and high visibility of product makes the organisation successful as well as provide a high sustainability rate in the competitive business market.
In the context of project management assignment, the organisation has set its objectives for prodigy good quality of product, integrity resources as well as using eco-friendly material for the production as well as the packaging of its product that do not harm the surrounding environment at all. Apart from that, the chosen organisation tries to make a great atmosphere in terms of organisational culture that guides to build a friendly atmosphere within the workplace that is also very helpful for improving business productivity as well as self-performances of the employees. As per the operational and project management strategy, the management of Sainsbury a satisfied employee is more capable of providing the best performance as well as contributing more to the organisational productivity.
TASK 1
Sainsbury’s: Company Background
In the year 1869, Sainsbury's was established in a partnership between John James Sainsbury and Mary Ann, his wife. The company had opened its first shop in London, at 173, Drury Lane, Holborn. Sainsbury’s is famous as one of the biggest retailers selling fresh and best quality food products. In this twentieth century, Sainsbury’s is involved highly in competition with other largest retailers like Tesco, Amazon, and Wall-Mart. the revenue rate of Sainsbury’s was about £29.048 billion, in the year 2021 (Sainsburys, 2022). Presently, the company has expanded its business operation over the UK as well as the world into grocery products like sugar, tea, and many more. Sainsbury’s headquarters are in the United Kingdom, London, and England.
The company’s income from business operations has increased to around, £709 million, in recent years. Sainsbury’s generates total revenue of more or less £280 million per year from both its traditional and online stores (Sainsburys, 2022). Presently, the company is successfully across, the UK, England, and London with nearly 180,000 employees. In the year 2021, the company holds about 14.99% of the total shares of Qatar’s “Sovereign wealth Fund”. Sainsbury’s is also listed on the “London Stock Exchange” as one of the largest retailers in the UK as well as the globe. The company is also the major constituent of “The FTSE 100 Index”.
Sainsbury’s: Business operation and project management
In context to the management of business operation of Sainsbury’s, it can be stated that the company business operational routine plays an essential role in order to achieve certain objectives. Sainsbury’s main objectives are to enhance its performance and customer services. Its goals are to provide its customers with full services and products satisfaction, achieve flexibility for the needs of its consumers, fast operational services, and retain customers who are loyal to the company’s brand. Sainsbury’s is the “Public Limited Company”, famous for its retail and grocery stores. The company currently is trading as an “LSE: SBRY FTSE 100” Component and is determined as the 2nd largest supermarket chain in the UK. The company, Sainsbury's has a share of about 16.0% in the sectors of the supermarket chains. The company’s main functions are in the distribution of fresh food products and grocery goods, in right place, in good condition and on time. Sainsbury's business operation remains active seven days a week. It delivers clothing and general merchandise along with groceries from suppliers across the UK, and the world. Sainsbury’s has about 33 distribution channels, delivering products or goods to traditional stores, and online customers and providing their customers with convenient and flexible shopping.
Sainsbury's key Values
(Source: Sochacka et al. 2021)
The project management team of the company generally follows various key values such as making positive differences in the community and creating a better workplace. Other values include providing the customers with healthier lives, enhancing environmental sustainability, and proper integration of resources. According to the view of Sochacka et al. (2021), the business strategy that Sainsbury's follows is its vision to grow as one of the trusted retailers where people can shop and work freely and comfortably. The goal of the company is to make its customer's everyday life easier by offering prime services and products at affordable prices. The major priorities of Sainsbury’s project management team are growth in clothes and general merchandising, and maintaining variation in groceries and food products through value, services, and quality. As per the perceptions of Sainsbury (2019), other priorities include generating efficiencies so that it can invest more in digital marketing in the upcoming days, and strengthening the company’s balance sheet.
Sainsbury’s sources their products or goods from over nearly 70 countries across the world, based on suppliers’ abilities in order to meet ethical standards, quality, and safety of goods and services. The company also invests in British farming where about 1,300 members are involved including farmers and development group’s marketers. In order to improve agricultural productivity, the company has also participated in about twelve research projects. These projects also contribute to enhancing environmental sustainability and reducing natural impacts on British farming. In context to the logistic channels of Sainsbury’s, it can be stated that the company has around 2,300 supermarkets across the UK. As per Musolino and Baum (2020), the company’s online business growth is determined by the revenue collected from the Agros stores across Ireland and the United Kingdom. About 20% of food orders are being delivered from the online grocery stores of Sainsbury's and the prime quality of their foods products enhances the value of the company's supply chain management. Sainsbury’s traditional and online stores grew in markets more on volume and value than other competitors like Tesco.plc, Amazon, and Walmart. As opined by Habibi (2019), the company has a strong supply chain management system across the globe and it provides the customers with “multi-product propositions” which means that people can shop from the company’s stores at their flexible time and in their preferred place. The company mainly followers the guidelines of the TCA means the “Transactional Cost Analysis”theory, which deals with the transactional costs generated during distribution or supplies.
Data and insights of Sainsbury’s Supply chain management
(Source: Sochacka et al. 2021)
The marketer of Sainsbury’s determines the trade pricing with the help of this model as it helps them to determine if past trades were organized at the standard price. The trades’ revenue is maintained by keeping the pricing strategy low for purchase and for sales the price is kept high. As per the view of Hornborg et al. (2019), the Theory of TCA helps the marketers of the company to determine their transactional costs like market size, ideological perceptions and attitudes, and measurement enforcement. In the supply chain management system the company’s marketers used to calculate the values of goods, services, or products that are incorporated in transactions. Presently, Sainsbury’s has thought of saving about £150 million in its logistics and supply chain by the year 2023.
Sainsbury’s operation management in recent years
(Source: Kritzer et al. 2020)
The company is involved in immense competition with the supermarket Tesco which is leading retail market presently. According to the record of the share market, Sainsbury’s holds nearly 31.5% of market shares in total (Sainsburys, 2022). By implementing cost-saving strategies the company is gradually enhancing the effectiveness and efficiency of its supply chain management and aims to create opportunities for streamlining the company’s operation.
Sainsbury's is determined as one of the largest supermarket chains operating its retail business across the UK, London, and England. The company has an increased value in the retail industry, as it provides its customers with the best quality fresh foods or goods and services. In order to maintain the quality of their goods and fresh food products, Sainsbury’s follows TQM means “Total Quality Management”theory, as its main agenda in offering and producing quality services in its business enterprises. The quality of fresh foods is also maintained in both its traditional and online stores. As per the perception of Kritzer et al. (2020), the major reason for the incorporation of the TQM theory is to create a quality weapon that establishes its retail business with values with respect to competition within international and local market segments. The company also aim to fill its inventory with quality foods and non-food products to convince its stakeholders including consumers to prefer their services and goods more than its competitors like Tesco, ASDA, and Walmart.
Principle of Sainsbury's operation
(Source: Pizarro et al. 2018)
Sainsbury’s has adopted and well maintained this TQM theory since 1869, which has contributed to building it as one of the leading supermarket chains in the World. Apart from its growth the company also faced a huge loss in sales in the 2011, and suffered from employee turnovers, job insecurity, and increased inflammation. Overall sales drops were noticed nearly from 3.6% to 1% within ten weeks, and there was a 6% drop in the company’s shares. With the help of TQM theory, Sainsbury’s generally follows the principle of quality management in order to enhance business profitability and productivity. As stated by Pizarro et al. (2018), the major principles of TQM theory like quality improvement, quality planning and quality control help the company to strengthen its customers base and enhance value in its target market segments. The key objective of Sainsbury’s is to maintain their products’ quality as quality is the main differentiator for the company and its consumers’ rate of consistency. Another objective of the company is to keep their food q quality high so that they can become the market leader in the upcoming days. The company has also worked collaboratively with the suppliers in order to grow in Ready and Riped ranges of fresh food products. Hence, as an outcome, it has been observed the company has grown with higher value and in large volume by around 72% within last 5 years. Sainsbury’s has kept its pricing strategy to 13% less than Tesco.plc, determined as the present market leader in the retail industry.
Task 2:
Communication and interaction processes of operational management in Sainsbury’s: Discussion
Sainsbury is the third-largest retail organisation in the UK retail industry that consists of more than 550 supermarkets along with 343 numbers of retail stores all over the world. In the present day, the chosen organisation is dealing with more than 160000 employees as well as around 20 million consumers across the world, and building an effective communication system is very important for Sainsbury that guides them to run the business successfully and serve a better service quality (Stateofflux 2022). The principal stakeholders of this organisation are consumers, organisational staff, resource suppliers, government, and other financial institutions. As per the new communication strategy, inclusive organisational practice implementation guides to mitigate the cultural differences among the organisational employees. Apart from that, devising marketing strategy also affect the project management operations of the company (Stateofflux 2022). The chosen organization mainly communicates with its stakeholders during “Annual General Meetings” and “financial performance presentations”. The HRM of this organisation is also involved in the communication and interaction strategy and they are mainly responsible for improving the organisational communication level. The “training and development” strategy is the most important communication strategy that has been taken by the HRM of Sainsbury for improving the communication level among the employees as well as between the management team and its subordinates.
Communication and interaction processes of operational management in Sainsbury
(Source: paperap 2022)
In the development of internal communication among the employees, the HRM plays an important role in terms of management and operational functions like planning, directing as well as controlling the management process of a particular project or in the case of an internal communication system. The HRM of Sainsbury is responsible for looking after the procurement, communication level development, compensation policy as well as integration or maintenance of the internal communication system. For a real example, in 2019, Sainsbury arranged Annual General Meetings for face-to-face communication with their stakeholders. The core component of communication tools like financial rewards as well as improvement of job structure motivate the employees that also affect the communication level. Verbal communication is very important for the interaction so the chosen organization has implemented different strategies for improving the communication system rather than non-verbal or written strategies (paperap, 2022). Different important factors affect the communication level such as higher employee and customer retention rate, lower training costs, as well as awareness of organisation policies, and an increase in the communication level among the employees. On the other hand, being unaware of organizational objectives and ideas bias among employees can integrate some issues in terms of the communication system. Apart from that, higher job opportunities and good organizational behaviour attract the customer as well as employees, which also affect the communication or interaction process of the organization (cips, 2022). For example, in very recent times, Sainsbury incorporate the email and telecommunication strategy into their business process that guides develop the interaction process with the customer and other stakeholders of the concerned organization.
Conclusion
Taking into consideration the above text it can be said operational and project management of Sainsbury is the core component of the success of the organization. In this report, supply chain management, as well as quality management theory, are thoroughly discussed. The communication and interaction process of the chosen organization along with their new communication strategy is also mentioned in this report. Apart from that, the organizational behaviour and business performance are greatly influenced by the interaction process with the management team as well as other stakeholders of the organization.
The communication process of the chosen organization is directly interlinked with the higher management team and the strategic instructions are conveyed from the business leaders to the lower-level staff so that there is no confusion among the staff in terms of organizational strategy and new policy implementation. The organization is closely connected with the customer's thorough telecommunication as well as email process. Close interaction with the customer as well as other stakeholders of the organization guides to maintaining a good relationship among them that affect their business performance and effective collaboration of the organization makes the supply chain management policy successful.
Reference
Journal
al Habibi, B., 2019. HR practices of Marks & Spencer, Selfridges, Primark, and Sainsbury’s (Doctoral dissertation, University of Science & Technology).
Hornborg, S., van Putten, I., Novaglio, C., Fulton, E.A., Blanchard, J.L., Plagányi, É., Bulman, C. and Sainsbury, K., 2019. Ecosystem-based fisheries management requires broader performance indicators for the human dimension. Marine Policy, 108, p.103639.
Kritzer, J.P., Tang, Y., Chen, Y., Costello, C., Gaichas, S., Nies, T., Peñas, E., Sainsbury, K., Shen, C., Szuwalski, C. and Zhu, W., 2022. Advancing multispecies fishery management in China: Lessons from international experience. Aquaculture and Fisheries.
Pizarro, J., Sainsbury, B., Hodgkinson, J.H. and Loechel, B., 2018. Climate change vulnerability assessment for the uranium supply chain in Australia. Progress in Nuclear Energy, 109, pp.53-65.
Sainsbury, J., 2019. EPM 18093.
Sochacka, B., Kenway, S., Bertram, N., London, G., Renouf, M., Sainsbury, O., Surendran, S., Moravej, M., Nice, K., Todorovic, T. and Tarakemehzadeh, N., 2021. Water Sensitive Outcomes for Infill Development.
van Eyk, H., Friel, S., Sainsbury, P., Boyd-Caine, T., Harris, P., MacDougall, C., Delany-Crowe, T., Musolino, C. and Baum, F., 2020. How do advisory groups contribute to healthy public policy research?. International Journal of Public Health, 65(9), pp.1581-1591.
Websites
(cips 2022). Supply-management, Available at: https://www.cips.org/supply-management/news/2021/april/sainsburys-creating-new-supply-chain-model/#:~:text=Sainsbury's%20is%20creating%20a%20new,%2F20%20and%202022%2F23. [Accessed on 19th April 2022]
(paperap 2022). Sainsburys-communication-methods,Available at: https://paperap.com/paper-on-sainsburys-communication-methods/ [Accessed on 19th April 2022]
(Stateofflux 2022). Sainsburys-communication-methods,Available at: https://www.stateofflux.co.uk/ideas-insights/case-studies/sainsbury-s [Accessed on 19th April 2022]
Sainsburys, 2022, About Sainsburys, Available from: https://www.sainsburys.co.uk/ [Accessed on 19th April 2022]
