What market share does each of the businesses have? Sainsbury’s Supermarkets is the number two UK supermarket with a market share of 11.9%. Similarly, Shaw’s is the number two players in its respective market. Based on data published by the Office for National Statistics and Sainsbury’s Supermarkets, excluding petrol What are the strengths of the J Sainsbury’s plc brands? J Sainsbury’s plc has built up a reputation for quality food at affordable prices over many years, developed from the early Sainsbury’s stores that offered customers highest quality at keenest prices. J Sainsbury’s plc has built on its high level of customer trust to transfer good value, without compromising quality, into new markets.
How does J Sainsbury’s plc seek to build shareholder value? J Sainsbury’s plc seeks to generate value for shareholders and customers on a sustainable basis and we are now aligning our strategy, management processes and performance measures for this purpose. J Sainsbury’s plc’s present focus is to improve the performance of the core UK supermarket chain. Whilst doing so we will continue to explore and develop growth opportunities in other markets. Through implementing ‘Managing For Value’ we will stretch our ambitions and challenge the conventional wisdom within the Company, thereby unlocking our potential and delivering value. No part of our current business plan is exempt from review and over time we will increasingly see the impact of these disciplines taking effect on the business.
What is the relationship between the operating businesses? Each of J Sainsbury’s plc’s operating companies share similar brand values: excellent quality, range, service and value. Competencies, knowledge and experience can be shared between the operating companies. A recent example where J Sainsbury’s plc has been able to leverage Sainsbury’s brand is in Sainsbury’s Bank. By using the trusted quality of J Sainsbury’s plc, coupled with Bank of Scotland’s experience and infrastructure, Sainsbury’s Bank has expanded its financial services to establish an extensive range of products and services under the Sainsbury’s banner. On a smaller scale, J Sainsbury’s plc utilises the experiences of colleagues on both sides of the Atlantic through a seconded scheme.
Concisely outline each area of the business We have a loyal customer base, which trusts the Sainsbury’s brand and values the range of services we offer. Using the strength of the Sainsbury’s brand we aim to serve customers in new markets and grow our business for shareholders. By applying skills and competencies learnt in one market we could improve our businesses in others.One-way communication downwards from leader to subordinate Generally from leader downwards, though some feedback takes place Extensive two way communication between senior and junior employees Circumstances in which style may be appropriate Useful when quick decisions are required or when large numbers of unskilled employees are involved Can appear democratic, but is really autocratic leadership with a human face Useful when complex decisions are made requiring a range of specialist skills.
The style Sainsbury’s would most fall under is Autocratic or authoritarian leadership, it cannot be solely categorised in this niche as it has influences from the Paternalistic leadership and probably even some from the democratic side. They are mainly authoritarian because they tend to use one-way communication more than two ways. The senior managers will have little or no involvement with junior employees and it is highly likely that each store has its own set of targets and objectives to work towards.
How does the Organisational structure, culture and management style of the business affect its performance? Organisational Structures Business can adopt a number of structures according to the size of the organisation, the environment in which it operates and the personal preferences of the owners and senior managers. There are many ways in which the Organisational structure of a company can affect its performance, good and bad, internal and external.
Internal Factors The size of the business – As the scale of the business increases, an entrepreneurial structure, for example, becomes unsuitable. As the business grows further, the chain of command is likely to be length, encouraging the removal of some layers of hierarchy and broader spans of control. The Nature of the Product – If the firm supplies a diverse range of products, it may organise itself traditionally – perhaps in the form of divisions reporting to the board of directors. The Rank Organisation operates in this way with key areas of the business, such as film services and leisure activities such as the Hard Rock Cafes, having some degree of independence
The Culture of the organisation This is a major influence on the structure the firm adopts. If a business has a highly innovative culture whereby it wishes to be a market leader selling advanced products (as Sainsbury’s does), it may adopt a matrix structure to minimize bureaucracy and to allow teams to carry out the necessary research and development, and market research. On the other hand, an organisation which places importance on tradition (and would wish to appear conventional) may be best suited to a formal, hierarchical structure. This structure places emphasis on positions rather than people and this factor encourages the continuance of existing policies and practices