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How can Sainsbury's organisation skills and management skills increase its market share?

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Introduction

How can Sainsbury's organisation skills and management skills increase its market share? Background information on Sainsbury's: J Sainsbury's plc is a leading UK and US food retailer with interests in financial services and property. The Group comprises Sainsbury's Supermarkets and Sainsbury's Bank in the UK and Shaw's Supermarkets in the US. The Group employed 172,900 people at the end of the year. J Sainsbury's plc objective is to meet its customers' needs effectively and also provide shareholders with good, sustainable financial returns. Sainsbury's aims to ensure all colleagues have opportunities to develop their abilities and are well rewarded for their contribution to the success of the business. Its policy is to work with all of its suppliers fairly, recognising the mutual benefit of satisfying customers' needs. It also aims to fulfil its responsibilities to the communities and environments in which it operates. J Sainsbury's plc Mission Statement: Our mission is to be the consumer's first choice for food, delivering products of outstanding quality and great service at a competitive cost through working 'faster, simpler and together'. Quality food is a priority for our customers and a key component of the Sainsbury's brand. We have invested in our food ranges and, during the year, have improved or developed over 3,200 products. Our own-label sub brands are again amongst the best in the UK. We are working to develop a stronger complementary non-food offer through Adam's children's clothes, Jeff & Co and a trial of a home enhancements range. We are working on developing our own health and beauty offer through up-grading our in-house capability. We have also been trailing Boots health and beauty and pharmacy shops in six of our out-of-town stores and are now extending these by a further three stores. We rigorously monitor 10,000 lines weekly to ensure that we remain competitive. We have reinvested some of our cost savings in price adjustments. ...read more.

Middle

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. ...read more.

Conclusion

In post-campaign analysis, SAS models scrutinise the results, quantify the size of the 'prize' and show how both profitability and incremental sales may vary with the size of the mailing. "This forms a management decision tool," says Zanetti. "Analysts can improve targeting, there's an informed debate with campaign managers, and we can reduce effort and costs." In campaign planning and relationship building, Sainsbury's can measure all programs and compare results, determine gaps and clashes, and personalise communications. "We collect data on who was mailed what and when," says Zanetti. "We then build business rules that can include the payback period for a campaign, the profitability of response for groups or individuals, the time of year and so on. We use these as constraints to optimise the dataset. For a given budget you can calculate the direct marketing value in terms of sales and profit, run 'what if?' scenarios and generate a mailing program." The result is tailored communications based on demonstrated behaviours, with all responses captured and used to drive future activities. Once a campaign is closed, SAS profiles respondents and provides predictive models for later campaigns. Zanetti concludes, "SAS helps us achieve faster turnaround times in our campaigns. It's an integral part of what we do. If we didn't have SAS we would struggle to do our direct marketing campaigns at their current levels - and we wouldn't have seen a five-fold increase in sales. It's also easy to recruit staff able to use SAS, which means lower training costs. SAS is a universal tool." About Sainsbury's Supermarkets Established in 1869 and part of J Sainsbury's plc, Sainsbury's Supermarkets Ltd is the UK's second largest food retail chain, with 535 stores and annual sales of over �12 billion. J Sainsbury's plc is a leading UK and US food retailer group with interests in financial services and property. Comprising Sainsbury's Supermarkets and Sainsbury's Bank in the UK and Shaw's Supermarkets in the US, the group employs over 170,000 people. ...read more.

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