The Classification of Sainsburys
The Classification of Sainsburys
Sainsburys is a plc, a public limited company and has limited liability, which is the idea that the owners (shareholders) are financially only responsible for the amount that they have invested in the company rather than their personal wealth. So if a firm becomes insolvent, the maximum the creditors can receive is the shareholders original investment. In order to both protect and inform creditors the word Ltd or Plc appears after the company name. By limiting the shareholders liability it encourages people to invest in the company, as it is possible for them to invest with little risk. Public limited companies are the only type of company to be quoted on the stock exchange. Plc's are part of the Private Sector, which is the part of the economy owned by either private individuals or the shareholders. The Public Sector is the organisations that are either owned or funded by the local or national government.
However there is some concern with plc's that even though the shareholders own the company the management team run them and this can lead problems with conflicting loyalties where managers may pursue objectives that can improve their job satisfaction or benefit their careers instead of looking after the shareholders best interests. Divorce of ownership and control is a common phrase used to convey the concern for this.
Advantages
Disadvantages
Owners have limited liability
Going public can be expensive
Shares can be advertised
Some plc's can grow so large that there may be come difficult to manage
Shares can be sold through the stock exchange
Risk of takeover by rival companies who have bought shares in the company
Large plc's may find it easier to borrow from banks
Objectives
Sainsbury's strive to meet their objectives, these are:
* Understand customers better than anyone
* Be energetic, be innovative and be first for customers
* Use our strengths to deliver unbeatable value to our customers
* Look after our people so they can look after our customers
They are using and improving customers services all the time, throughout the country right now they are implanting the following things:
* Sainsbury's aim to provide shareholders with good financial returns by focusing on customer needs adding value through their expertise and innovation, and investing for future growth.
* Reducing checkout times: at Sainsburys stores, checkouts will continue to be opened if customers have more than one person queuing in front of them, until all checkouts are open.
* Staff training: Sainsburys is running a staff-training scheme called First Class Service. The aim is to encourage all staff to see themselves as company ambassadors and to use their own ideas when serving customers, based on how they themselves would like to be served.
* Sainsbury's are able to give customers the service and products that they want in theory insuring that people continue to shop at Sainsbury's and enjoy good customer service while the shareholders will be happy as they will be getting a reasonable return on their money.
* Opening a customer service centre: a 400-strong team handles over 100,000 phone calls a week, as well as letters, e-mail and faxes all relating to customer queries, questions and comments on Customer Service and other internal aspects of the Sainsburys stores.
* In providing outstanding value for money and a wide range of products Sainsbury's compete strongly with competitors in the market.
* Introducing customer assistants: 5,000 new staff dedicated solely to helping customers at every point in their shopping trip
* Opening a customer service centre: a 400-strong team handles over 100,000 phone calls a week, as well as letters, e-mail and faxes all relating to customer queries, questions and comments on Customer Service and other internal aspects of the Sainsburys stores.
* Pioneering home shopping so that customers can use the Internet to select and order goods from their local store for home delivery.
* Opening new types of store to meet the changing needs of more groups of people as well as existing customers, and indeed piloting 24-hour shopping in some areas.
Sainsbury's serve on average over 9.5 million customers a week and currently has 432 stores in the U.K., mostly situated in town centres or on the edge of town. A large percentage of these stores were built on previously derelict sites. Sainsbury's has in the last year opened many new stores and has extended 27 older stores. In the next year Sainsbury's plan to open another 13 stores and to extend another 22 stores.
Being a firm believer in playing an active part of community Sainsbury's donated £5 million to charity groups, community projects and sponsorship. Annually Sainsbury's run a reward scheme for schools and so far has donated approximately £24 million in equipment to schools.
Sainsbury's launched a new Low price guarantee in October 1999 on 1,600 of its most regularly purchased items including its own brand label as well as some top brands.
Is Sainsburys being successful in meeting its objectives?
To try and measure whether or not Sainsburys has been successful in meeting its objectives I have gathered information from the company.
I have gathered information referring to the company's recent financial turnovers:
Financial results
(£ million)
996(b)
997(c)
998(d)
999(e)
2000(f)
Group turnover (including VAT and sales taxes)
3,499
4,312
5,496
6,378
7,414
Increase on previous year
1.9%
6.0%
8.3%
5.7%
6.3%
Group operating profit (before Year 2000 costs and profit sharing)
Sainsbury's Supermarkets
778
692
766
732
522
Home base
26
6
55
75
57
Shaw's
-
41
38
53
80
Sainsbury's Bank
-
(6)
(15)
(5)
3
Sainsbury's Egypt
-
-
-
-
(11)
Other operating activities
(1)
2
0
2
6
803
745
854
867
667
Year 2000 costs
-
-
(20)
(28)
(6)
Profit sharing
(50)
(37)
(44)
(45)
(10)
Associated undertakings
9
9
6
1
Interest receivable/(payable)
(59)
(76)
(78)
(50)
(72)
Group profit before tax, amortisation of goodwill, exceptional costs and non-operating items
764
651
728
755
580
(Decrease)/increase on previous year
(5.4)%
(14.8)%
1.8%
3.7%
(23.2)%
Earnings per share
Basic
26.8p
22.0p
25.1p
29.2p
8.3p
(Decrease)/increase on previous year
(10.1)%
(17.9)%
4.1%
6.3%
(37.3)%
Diluted (before amortisation of goodwill, exceptional costs and non-operating items)
27.8p
23.1p
26.6p
26.8p
20.5p
(Decrease)/increase on previous year
(4.1)%
(16.9)%
5.2%
0.8%
(23.5)%
Dividend per share
2.1p
2.3p
3.9p
4.32p(a)
4.32p
A Sainsburys aim was to provide shareholders with good financial returns by focusing on customer needs adding value through their expertise and innovation, and investing for future growth.
Using the table above taken from the Sainsbury's annual report of year 2000 I have concluded that Sainsbury's is not meeting the above objective. The underlying profit of the company (before tax) has decreased from 755 million pounds to 580 million pounds. A total lost of 175 million. The underlying earnings per share have also decreased from 27p to 20.5p however shareholders are still receiving a dividend of 14.32p per share, a stick from 1999. Judging by these figures Sainsbury's had a very slow year, probably behind its main competitors in innovation and sales thus not meeting its objectives in the year 2000. However In the year to 31 May 2001, J Sainsburys plc reported total sales up 5.9% to £18.4 billion and underlying group profit before tax, amortisation of goodwill and exceptional items of £549 million. The fact that they were not as profitable the year before leads me to believe that this year could have been spent improving their company's systems perhaps. They piloted a new stock control system, which is talked about later on, as well as dabbling in the internet (on-line shopping market). So infect I believe Sainsburys have met this objective.
To achieve efficiency of operation, convenience and customer service in their stores, thereby creating as attractive and friendly shopping environment as possible. To reduce checkout times.
Obviously since I have not been in the facilities of every Sainsburys and every customer in the UK, I cannot strictly answer this. Although there is evidence pointing towards its truth, such as the integration of the scanners whilst shopping. There was also a survey that stated customers were happy with check times within the supermarket. (These polls can be found at http://www.j-sainsbury.co.uk) So it is my belief that they successfully ...
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To achieve efficiency of operation, convenience and customer service in their stores, thereby creating as attractive and friendly shopping environment as possible. To reduce checkout times.
Obviously since I have not been in the facilities of every Sainsburys and every customer in the UK, I cannot strictly answer this. Although there is evidence pointing towards its truth, such as the integration of the scanners whilst shopping. There was also a survey that stated customers were happy with check times within the supermarket. (These polls can be found at http://www.j-sainsbury.co.uk) So it is my belief that they successfully achieved this goal
To fulfil our responsibilities by acting with integrity, maintaining high environmental standards, and contributing to the quality of life of the community.
The building of the new stores shows dedication to the community even though the main goal is still profit based. 3000 more jobs will be created as a result of the spending spree and a total of 27 new stores will be built providing a closer service to many Londoners (including suburbs) So, in my opinion Sainsbury's have fulfilled the objective of contributing to the quality of life however it was indirect. The building of the new stores will mean that other structures will have to be moved or knocked down. Employment will be increased as a result therefore I would acknowledge this as a clear contribution to the community.
Communication Channels
Communication is always a problem with large businesses because information needs to be accessed by the recipient as soon as possible and put across to them in a clear, engaging and impacting way so that it has the effect it should have. Because of the sheer size of Sainsbury's, currently at 432 locations and employing over 160,000 staff the task of communicating with the staff is a formidable one. Certain forms of communication are not adequate in a company of this size simply because it is unlikely that the information will reach all its targets and there is always the possibility that it can become distorted.
There is also a problem with the continuing growth of Sainsbury's as some forms of communication can become outdated.
Communications at Sainsbury's are normally cascading, where information is sent down vertically through the hierarchy and chain of command. The information can sent and received both in the form of verbal communication and non-verbal communication.
The main objectives of communication are to provide information, give people instructions and to confirm arrangements, but this has to be achieved at the right time at the right place and to the right recipient(s). To be effective and worthwhile this all needs to be done at value for money. All these restrictions make this an almost impossible task but to manage this task Sainsbury's use the following channels of communication:
One Way Channel
This is to provide people with information or instructions and requires no feedback from the recipient(s). Examples of the use of a one-way channel of communication at Sainsbury's are:
* Tannoy- where by information is read out to the shop floor informing both staff and customers requiring no feedback.
* Intercom.
* E-mail this can require feedback but not in all situations as it is often used to inform people of information.
* Bulletins, which are often used to let people know of information or to praise employees for reaching there intended sales targets.
* Minutes, to inform people of the content of meetings.
* Memos that inform people of meetings or situations.
* Reports, these are often intended to inform people of information but are not always one-way communications because they sometimes need to be discussed.
* Newsletters that are published to let employees know of resent developments and information that are available to all staff free of charge.
* Televisions and videos are often used to both train staff and inform them of information.
* Pagers
Two-Way Channels
This is where information or instructions are passed back and forth between individuals. Examples of this are:
* Telephones
* Mobile Telephones
* Interviews
* Face to Face
* Videophones
* Memorandums
* E-mail
* Pagers
Multi-Track Channels
This is where information is passed between several individuals, examples of the use of Multi-Track channels of communication at Sainsbury's are:
* Meetings
* Reports
* Face to Face
* Telephones with loudspeakers
* E-mail
* Videoconferencing
* Videophones
* Switchboard
All these channels and types of communication can be used to express both confidential and open communication.
Sainsbury's also conduct monthly meetings with senior managers within the technical division, where social responsible sourcing is a formal agenda item. Sainsbury's have a magazine that is distributed to all members of staff that is issued quarterly and also a quarterly review of the progress of Sainsbury's that includes the Chief Executive and Commercial Director
Internal Communication
In a store of Sainsbury's the most often used forms of non-verbal communication are reports, memorandums, minutes and newsletters. The advantage of using mainly written communication is that there is always a record of the message and normally a back up copy.
Verbal communication is normally used to let people know of instructions and developments, such as telephones and face-to-face communication.
External Communication
The postal service used to be used heavily by Sainsbury's but this is somewhat unreliable compared to what technology now has to offer. Now E-mail and the Internet are used a lot as well as the postal service occasionally. Telephones and mobile telephones are also used a lot but these have their restrictions as no copy is made of the conversation and it relies on the recipient to understand all the information and to remember.
Role of ICT
Information technology is a key factor in the success of any business. In Sainsbury's ICT is a tool to make ready existing services or transactions as fast as possible.
The telephone system - Before ICT was introduced to Sainsbury's the Sainsbury's telephone system was very small a compact with a very little range (not many links with other places and other companies). Now due to the introduction of ICT phone lines have gone digital enabling higher speeds of data transfer and opening paths for other methods of carrying information. This led to the introduction of permanent hard lines with other companies (such as trade dealers) thus opening the field to other technology's such as video conferencing, conference calling with many lines, e-mail, internet networks, web-sites (cheap advertising), etc
This expansion in the main communication systems widened the field for Sainsbury's so parts of the countries that where not easily reachable where now in range.
New telephone exchanges can handle up to 20,000 calls a minute enabling Sainsbury's to deal with most of its customer's queries and complaints. Previously just telephone operators have been trained to deal with e-mail and fax providing even further transfer media in which Sainsbury's can be reached.
Links with product suppliers - Possibly the biggest impact ICT has had was in the field of effective trade communications.
Extract from a Microsoft.com promotional bulletin.
Sainsbury's Supermarkets, a leading United Kingdom grocery chain, recently launched a new supply-chain initiative to provide tighter collaboration with suppliers, higher profits, and better customer service. The new Internet-based information-sharing and collaboration system, created with the help of Microsoft Certified Solution Provider EQOS Systems, Ltd., will eventually allow all 4,000 of Sainsbury's suppliers to work with buyers in planning, executing, and managing successful product promotions. The solution, the first retail system of its kind in the U.K. to be based on the Microsoft Value Chain Initiative, was created in a matter of weeks using Microsoft electronic commerce technologies, such as Microsoft Site Server 3.0 Commerce Edition, Microsoft Windows NT(r) Server 4.0, and Microsoft SQL Server(tm) 6.5. The solution also has future potential for management and tracking of new product introductions, product returns, and product lifecycles.
As you can see the introduction of this new software system allows Sainsbury's to do effective trade with suppliers by enabling very fast methods of communication. The new network will allow Sainsbury's to order and trade with suppliers nearly 5 times the speed of the normal method of phone or mail order. Faster communication will allow for faster reaction speed to changes in the market and a better service to its costumers.
Improved management - As you may expect ICT has improved management. Mundane tasks done by hand have been replaced by computer processes. All files are stored mainly on networked computer systems available for querying at the click of a button. Networks connect Sainsbury's stores world-wide meaning files and data can transferred from any where to any where in seconds.
Here is a typical example of ICT in management:
Chief executive manager can sit in his/her office in front of his computer and receive reports, files and other documents from for example the secretary. Then he may then wish to send the documents to his non-executive managing directors in other parts of the world (or locally) using e-mail software. They then could read the report and a video conference (video visual meeting) could be set-up.
Improved methods - Due to the use of ICT many tasks have been replaced by computer processes. For example in the old system a worker would have to be employed to address, write and send mail to all customers concerned (which may be thousands if it is advertising) in the new system thousands of letters can be written, uniquely named and addressed and sent to a remote queuing system where all letters will be printed and dispatched.
Many other tasks such as improved printing speed, more economical machinery, networks; work sharing, etc have all been massively improved to boost efficiency. This change can be clearly seen in the Sainsbury's annual reports. Every year the efficiency and profit increases as technology levels increase.
Management Styles
In a big company such as Sainsburys there are many different styles of management that could be used but there are three basic categories of leadership styles. These are:
* Autocratic or authoritarian leadership.
* Paternalistic leadership.
* Democratic leadership.
Features
Authoritarian
Paternalistic
Democratic
Description
Senior managers take the decisions with little involvement of Junior employees
Dictatorial, but decisions are taken in the best interests of the employees.
Running a business on the basis of majority decisions.
Key Features
* Set objectives
* Allocates tasks
* Leader retains control thoughout
* Explains decisions
* Ensures employees' social and leisure needs are met
* Encourages employees to take part in decision making.
* Uses delegation
Communication used
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 Sainsburys 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, both 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 Sainsburys 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. Same high-class hotels may fall into this category.
The Management Style Sainsburys Implements - Since Sainsburys touches on every management style within their company it gives them a great advantage. Sainsburys uses aspects from Authoritarian, Paternalistic and Democratic styles of management this means that they our able to able to adapt in most situations, they can adapt to Employee changes as in if they demand higher wages. They can adapt to what their competitors are doing because of their flexible Matrix Structure and they can also limit the damage done by any natural occurrence that should happen. This aids Sainsburys in nearly all of their objectives.
External Factors
The environment in which the business is operating is important. Fierce competitive pressure may encourage delayering in an effort to reduce costs, whilst rapid change may require a matrix structure (which Sainsburys uses) to ensure that the organisation can remain competitive. The matrix structure would also eliminate the possibility of inflexible hierarchies getting in the way of rapid decision-making.
The Hierarchal form Sainsburys uses
Sainsburys uses a typical Matrix form of hierarchy. The advantages of using this system is:
* Authority and responsibility are cleverly established.
* Focuses on task necessary for business success.
* Encourages organisations to be flexible and responsive to customers' needs.
* Motivates and develops employees by providing varied and challenging.
Matrix structures focus on the task in hand. Launching a new product, opening a new retail outlets, closing down factories or entering overseas markets are examples of projects. Project groups often have strong senses of identity, despite being drawn from various areas in the business. This is because they are pursuing a clearly defined objective, which provides team members with a sense of purpose and security.
This structure helps Sainsburys meet its objectives because it motivates and develops employees as well as giving then a sense of purpose and security. It also encourages the company to be more flexible which helps in the ever-changing business world. It also helps to focus on tasks necessary for business success.
Supply
Before supply for Sainsbury's was a real problem. Supply and demand is a very demanding idea. What the customer demand must be supplied if a profit is to be made. Locating suppliers and contacting them is usually not a problem as there is a market of suppliers to choose from. However, dealing with your supplier can be a huge amount of trouble. As a supermarket you must respond quickly, before Sainsbury's had to use old systems of dealer ship which would be to order by mail, by phone or even fact to face. These are all awfully slow. For example, a new product is in demand and you haven't got any in stock. What do you do? First you must find a supplier, again not a problem but very time consuming. Agree on a price per amount of stock and begin transaction. This can take weeks if not months to finalise sometimes. Overall a bad response time.
So, Sainsbury's decided to put a more effective solution into action. Once again they utilised ICT to do the hard work for them. By setting up a nation wide network of computer systems devoted to only to the business of demand and supply a new channel of dealer ship was open to Sainsbury's. They could now search huge databases of suppliers by for example, price per stock or even distance from store. Once the supplier is found one time deals or even long term propositions could be set-up with direct accounts in hours.
Supplier rationalisation
Many organisations, as they grow, take on more and more suppliers. Any organisation that does a thorough check on the number of, and nature of, its suppliers will find that there has been little attempt to rationalise. Taking a critical look at suppliers pays dividends. Maintaining large numbers of suppliers for a wide variety of goods and components prevents strategic use of the supplier relationship. Working with a small number of suppliers over a long period of time allows a partnership of supply to be developed in which suppliers, with a degree of security in the relationship, can be persuaded to focus attention on aspects of supply other than price - on quality and delivery, for example. Organisations, for whom buying wisely is important, tend to use professional and experienced purchasing officers and buyers to manage sources of supply. Another reason for limiting the number of suppliers is that there is a natural limit to the number of supplying organisations that such professionals can effectively manage. The organisation can work with the limited number of key strategic suppliers to change the methods of supply. For example, it is much easier to establish effective and compatible electronic communication processes (email and electronic document interchange) with a small number of suppliers. Of course care must be taken to avoid a "cosy" relationship in which suppliers become complacent. Confident organisations, however, know that if internal complacency can be avoided through good management and effective performance monitoring - then so it can with external suppliers.
Reducing the number of suppliers reduces the administrative burden that is associated with maintaining records of, and the history of the relationship with, suppliers. Reducing wasteful and inefficient activity is a profitable source of improved productivity and the momentum of this review should be maintained to examine the set of detailed processes and activities relating to the supply chain.
Outsourcing
An obvious consideration is the outsourcing of elements of supply and/or distribution. Distribution, in particular, has been a particular area in which outsourcing has proved popular. The costs associated with managing (relatively) small warehousing operations, transport fleets, and maintenance workshops, etc. can be reduced by taking advantage of the economies of scale of a specialist supplier. In terms of the supply end of the chain, moves towards just-in-time manufacturing - built around key supplier partnerships - can significantly reduce component stocks and stockholding costs.
Culture
Culture at Sainsburys is fairly relaxed at lower levels from people working on the shop floor to managers who control them and employ person culture where staff are genuinely supportive of each others personal developments and progress this is also a positive culture where managers and workers alike are cooperative and supportive of each others contributions and efforts and consider many issues as opportunities rather than threats. Employees lower down the hierarchy tend to be relaxed and supportive of each other's problems and needs, where there is no competition as people tend to be at the same level or there abouts. As you move up the hierarchy to managers there is still a fairly relaxed view even though they have a lot more to deal with and more stress put upon them. This changes drastically as you look further up the hierarchy and move towards store managers where there is more competition and more scope for promotion as lower down the hierarchy people tend to be working there as a part time job while they are studying and as you move up the hierarchy people tend to be there full time and is a job for life, so they want to make the most out of it. Positions tend to be a lot more defined and people know their position on the hierarchy and this is normally obvious as power becomes more obvious.
Sainsburys Production Process
Quality assurance/Control System
Sainsburys success has been based on providing good quality food. Even their catchphrase shows this "making life taste better". So obviously they must go to great lengths to ensure that their food is of a good quality. They have introduced such schemes as 'fair-trade products' and 'Sainsburys 1st Class range'. This is effectively sealing the approval of Sainsburys on the products that bear these seals. Of course they also work under the system of which you can return your products within 18 days if you are not completely satisfied.
Sainsburys are taking big measures to attempt to modernise Stock Control methods. Sainsburys have recently brought in a system using a smart label technique. This technique is so advanced that soon they will be able to follow every individual item through the distribution chain, completely automatically.
This means that stock control becomes an exact science with every item individually recognised and with no possibility of operatives entering inaccurate information. This will pull out massive costs from the distribution process and improve efficiency by an order of magnitude. It also means that if substandard or contaminated product enters the supply chain, every single item can be traced instantly as soon as the problem becomes apparent.
'Smart labels' are based on radio frequency identification (RFID) technology. Each contains a tiny silicon chip and an antenna, so can send and receive information to and from base stations or 'portals' located at key points throughout the supply chain. The portals forward the information to a central computer controlling the whole distribution process, which is thus automatically updated as items progress through the chain. With this 'perfect' information available to the logistics managers from the smart labels, no stock need ever go astray nor exceed its sell by date.
"This is a level of control that is simply impossible to achieve with bar codes, manual data entry or any other system. And even better is the fact that it is totally automatic, reducing our labour input considerably."
(Mark Gilliot - Project Manager for Sainsburys)
How the organisational structure, culture and management style inter-relate in the business and evaluate their impact and that of ICT on the performance of the business.
Many of the internal styles and choices of management interlink with one another. The strategy Sainsburys chooses in each is essential to the overall profit and general running of the Sainsburys system. Without the other aspects the other one would not function as well.
Sainsburys use a Matrix hierarchal system. This structure helps Sainsburys meet its objectives because it motivates and develops employees as well as giving then a sense of purpose and security. It also encourages the company to be more flexible which helps in the ever-changing business world. It also helps to focus on tasks necessary for business success. It interlinks with the management style Sainsburys use. Since Sainsburys use a management style that means they can adapt to consumer, employee and company needs they need a management structure that allows them to back this up. This also interlinks with Sainsburys relaxed culture, as they tend to have a relaxed style. Obviously more pressure builds up as you progress through the hierarchical structure but by adapting to the problems they face this eases pressure and strain.
As Sainsburys is modernising ICT becomes increasingly a bigger and bigger part of the Sainsburys cog. It is not just the points above that interlink; there is also ICT, which interlinks with all three. An example of ICT in management:
Chief executive manager can sit in his/her office in front of his computer and receive reports, files and other documents from for example the secretary. Then he may then wish to send the documents to his non-executive managing directors in other parts of the world (or locally) using e-mail software. They then could read the report and a video conference (video visual meeting) could be set-up. It also has links with product suppliers - Possibly the biggest impact ICT has had was in the field of effective trade communications. It enables Sainsburys to sell more goods through online shopping.
ICT is also used all up and down the hierarchal structure, from the till (which automatically tells another computer what has been sold, to ease stock count) to the managers who use ICT for reports, memos and a variety of other things. It eases pressure and makes life generally easier for many aspects of Sainsburys. Another example of how ICT is used is in stock control.
ICT enables memos, emails and generally all information to be sent around the company/companies of Sainsburys. It interlinks with now nearly every aspect of Sainsburys life. ICT definitely has a positive affect of how Sainsburys achieves its objectives.
Another method of quality control:
To cope with the pace of development, Sainsbury's Research and Development team may employ a product review methodology. All software is peering reviewed and version-controlled using the latest revision control systems.
For example, if I were to suggest another method of quality control for Sainsburys I would suggest they use something along the lines of what I have described below.
Using the latest in Surface Mount Technology, SMT, each product could be manufactured on site and would then be able to undergo a series of manual and automated tests and checks. All products could then be logged electronically using bar-coded serial numbers before packaging for shipping.
The advantages of this are that:
. Any information relevant to user documentation, software, hardware, faultfinding reports and customer enquiries could be entered into a specialised software package.
2. Once this information is entered into the system, it could then be collated to form a comprehensive file of data for one project or topic.
3. From this file email messages are compiled and sent to relevant parties, keeping them informed and up to date about any actions they may be required to take.
4. These procedures ensure the consistency and quality of production while enhancing the speed with which new products are brought to market.