business practices

Business practices

Business practices

About Sainsbury

The Sainsbury was founded in the year, 1869. It owns over 1000 stores today that include, around 440 convenience stores. It is a successful chain of stores, with higher profit margins and employment of over 150,000 people. It deals in the areas of grocery, energy, recycling, clothing, gifts and sentiments, broadband and digital TV, as well as, business gifts through the stores. The organization shows sustainable profit figures, as well as, high employee satisfaction. It stands third in the United Kingdom chain of stores and has a share of 16.5% in respective sector.

Organizational structure & business functions

The organization structure of Sainsbury's is a tall hierarchical structure with flow of information from higher level to lower level. Task allocation and organizational goals are clear at each level, and the organization has a strong coordination between supervisor and sub-ordinate. The structure is democratic and independent. The business function coordination is well-aligned and result-oriented. Most effective marketing strategies and sales campaigns are undertaken, whereas production and procurement assure the availability and quality concerns. Finance department depends on financing through bank, share capital, as well as, retained profits. The human resource department ensures hiring of competent and dedicated personnel to meet the goals (Vane & Mulheam, 2011, pp.12-43).

Organizational structure

A well integrated business structure has following advantages;

Entire organization works for one unified purpose.

The team and departmental structure enables organizations to specify job description, job specification, and task allocation processes.

It enhances co-ordination and communication at all levels.

It's easier with a well-integrated hierarchy to achieve economies of scope.

Spam of control

The term has to do with human resource management. It is defined as “the number of people supervised by one supervisor”. The span of control is the extent to which a supervisor in context of organizational structure. It has a great impact on communication flow numerous ways. Technological advancement has made it easier to have a greater span of control for each supervisor. The lines of communications in any organization are affected by the span of control, since they, carry the communication of expectation to sub-ordinates, as well as, the results achieved to the higher and concerned authorities.

Legislative constraints

In the culture of England, organizations face numerous legislative constraints to grow and compete in the business environment. The legislative constraints are given as under;

environmental laws: they pertain to environmental protection

consumer laws: they pertain to the safeguard of consumer rights

patent and copyright laws: they pertain to the introduction and registration of new products and processes

packaging laws: the laws which pertain to packaging of a product

Competition laws: the laws that pertain to make use of fair means in order to compete and win over competition (Vane & Mulheam, 2011, pp.12-43).

Competing for the future

How to maintain competitiveness and beat the competition

The corporate environment of today is the most dynamic phenomenon, and yet, firms are bound to sustain competitiveness on perpetual basis, as well as, they need to develop a permanent future outlook, as well as, beat the ...