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This is a detailed business report on Sainbsurys.

Extracts from this document...

Introduction

Introduction This is a detailed business report on Sainbsurys. The report will cover and consider the following aspects at Sainsburys: * Objectives * Functional areas * Organisational structure * Management styles * Culture * Communication channels * Production and quality The key features of an organisation are its: - unique name - (e.g. J Sainsburys plc) - objectives - (mission statement, gives any business direction) - legislation's- (rules and laws) - patterns and structures- (culture, tradition, values) - chain of command- (orders pass down while information passes up hierarchy) - power - reward I have chosen to use Sainsburys for my report as they are a very large company and cover all areas of the report. Let us find out a bit more information on Sainsburys. Sainsbury's Supermarkets was established in 1869 by John James and Mary Ann and is Britain's longest-standing major food retailing chain. Sainsbury's Supermarkets was established in 1869 by John James and Mary Ann Sainsbury and is Britain's longest-standing major food retailing chain. The founders' principles and values guide us as strongly today as they did at the outset - to be the customer's first choice for food shopping by providing high-quality products, value for money, excellent service and attention to detail. It now operates over 500 stores and recruits 145,000 people a year. Sainsburys is now one of the UK's leading supermarkets alongside its competitors Tesco. The typical Sainsburys store has around 50 - 100 people working for them. In most stores then can be up to 25 - 50 full time workers and around 50 part time workers. Sainsburys operates a very centralised policy in which top management at Head office sets all major decisions with locally based managers carrying them out. Sainsburys' head office can be found in Holborn and it is there where most decisions are made and are passed on via area messages, with locally based Sainsburys stores receiving them either through weekly newsletters, telephone calls or e-mail.

Middle

* Developing staff skills- by doing this Sainsburys can avoid having to recruit new staff thus saving money and benefiting the company over a period of time The next step in setting the objectives is for Sainsburys to be clear in what it wants each department toachieve. The objectives we set above is for the organisation of Sainsburys as a whole. Each department is set objectives which combine together to achieve the overall objectives. The objectives set must be reached within a time limit. The next step to bring in information on whether each department was able to reach targets set and whtheer Sainsburys as a whole was able to reach the objectives. All the objectives here will be reviewed to see the progress of each. Let us look at what Sainsburys was able to achieve: . In the UK Sainsburys has driven a step change in sales performance resulting in five consecutive quarters of strong like-for-like sales growth. Quality food is a priority for customers and a key component of the Sainsbury's brand. Sainsburys has invested in food ranges and, during the year, have improved or developed over 3,200 products. Their own-label subbrands are again amongst the best in the UK. Sainsburys has also been 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. They are working on developing their own health and beauty offer through up-grading the in-house capability. They have also been trialling 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 Sainsburys rigorously monitor 10,000 lines weekly to ensure that they remain competitive. They have reinvested some cost savings in price adjustments. Alongside this they continue to run a highly attractive, sustainable promotional programme. Delivering great service is a key objective of Sainsburys' business transformation programme and during the year they have made great strides in retraining colleagues to serve customers better.

Conclusion

For services it is sometimes more difficult to see how value is added. Sainsburys will buy in a product from a producer or wholesaler. It will sell the product for a higher price to customers than it has paid for it. the difference in price is added value. Sainsburys is adding value because it is providing a service (making the products available in a convenient location) to the cutomer. Quality in production The next factor involved on production is QUALITY. This is because consumers face many goods that supermarkets supply at similar prices, and are likey to consider the quality when deciding where to shop. The importance of quality has grown in recent years and consumers are becoming more aware of this.legislations and cometition with Tesco has forced Sainsburys to improve the quality of their products. There are three satges in development of quality: 1. Quality control - this is concerned with detecting and cutting out components or products that fall below standards. In the past the final product was checked for quality. However the times have changes and the quality is checked in different stages of developpment. This helps find any products below the standard and make sure no customers buy a product which is useless. 2. Quality assurance - this is a method of ensuring quality that takes into account customer's views. Customers may be consulted about their views through marketing research before a product is manufactured or a service provided quality assuracne attempts to guarantee that quality has been maintained at all stages of production 3. Total quality management - this is a method designed to prevent errors, such as poor quality products, from happening. the business is organised so that the manufacturing process is investgated at every stage. Every department, activity and individual is organised to take into account quality at all times. Yhe features of total quality management are as follwows: * Quality chains * Company policy and accountability * Control * Monitoring the process * Team work * Consumer views * Zero defects Anthony Georgiou Page 1

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