Sainsbury’s Change and Innovation Strategy

Introduction

Organisational change and innovation is mandatory for the corporate firms in order to enhance creativity in running the business operations efficiently in the market. Through innovation and business creativity, it is possible for the organisation to manage their productivity and efficacy to satisfy the stakeholder and fulfil the organisational aim and objectives (Kim, Takashima and Newell, 2018). In this regard, the organisational activities of Sainsbury’s will be analysed for better strategic planning and developing creative solutions. Through this study, it is possible to discuss the organisational current situation as well as create innovative solution for the business to achieve the future success.

Organisational situation

The organisation Sainsbury’s is the second largest chain of supermarket in the UK. It is efficient to gain more than 16% market share in the UK retail sector and the organisational operational activities are successful to create values for the consumers (Sainsbury’s, 2021a). The aim of the business is to deliver highest quality retail products and services to all the customers at affordable price. The vision statement of the organisation is to become the best retailer in the UK by serving the consumers with quality products in affordable price. The organisation has generated £29 billion revenue and it has strong employee base with more than 117400 employees (Sainsbury’s, 2021b). As per the current situation at the business, there are some major challenges for which Sainsbury’s is not able to expand their business activities across the global retail industry. The major issues at Sainsbury’s are such as,

Poor communication among the employees

Lack of cooperation in the workplace

Lack of market expansion strategy of Sainsbury’s

Lack of efficacy of the unskilled workforce

Poor marketing strategic planning

Lack of market research and development activities

Absence of market penetration

Poor internal management

Creative solutions

It is essential for the organisation to mitigate the above mentioned issues by developing effective strategic planning (Ferreira, Coelho and Moutinho, 2020). The major creative solutions for the organisation will be discussed further, so that the corporate leader of Sainsbury’s can implement the tactics and fulfil the above mentioned vision of the firm. The organisation Sainsbury’s must focus on expanding their operations in the international markets through ecommerce activities as in the recent era of globalisation, there is high demand for online sale and the consumers prefer to purchase the quality products through online website and mobile application (Sainsbury’s, 2021c). For enhancing technological innovation at Sainsbury’s, it would be beneficial for the organisation to launch the smartphone application through which the customers can review their retail products and place their orders online (Ferreira, Coelho and Moutinho, 2020). The organisation also needs to develop a simple organisational website with clear content, so that the customers may also purchase from the website. These are the major online selling activities, through which Sainsbury’s can expand their business and enhance the customer’s retention. Sainsbury’s must develop the distribution network and green supply chain for international operations. For new market penetrations and international market expansion, it is required for the organisation to implement ERP or Enterprise Resource planning for developing integrated system to manage global suppliers and distributors through the computerised system. Sainsbury’s must manage the global supply chain and expand the business across the UK markets and other international markets. Through GPS and ERP system, it would be possible for the organisation to handle their customers innovatively and provide high quality services to maximise the consumer’s satisfaction in long run. In order to mitigate the issue of low market share and lack of new consumer’s retention, Sainsbury’s must utilise the social media platform for promoting their products and services. In this regard the social media like Facebook, YouTube and Twitter as well as Instagram campaign are beneficial for the brand to expand the business and promote their products in the retail industry (Hallak et al., 2018). The organisation must arrange social media campaign and attract more audiences for their quality products and services at affordable price (Kim, Takashima and Newell, 2018). Through the marketing management principles, Sainsbury’s would be able to strengthen their consumer base and improve positive branding in the market. It is also another creative solution for enhancing market communication and secure future sustainable development in the retail industry (Malhotra et al., 2017). Through marketing activities, it is possible for Sainsbury’s to engage with the consumers and retain more long run buyers for their quality products and services, and it is also possible for the organisation to satisfy the consumers and strengthen their customer’s base for achieving future success.

Developing framework

It is essential for the organisational leader at Sainsbury’s to develop suitable framework in order to run their business operations and achieve the future success. For developing the suitable framework in the workplace, it is essential to focus on leadership and management, in this regard the organisational leader must follow the transformational leadership style where continuous motivation, inspiring the employees, developing individualised skill set and knowledge and support from the leaders for managing the performance and productivity are the major practice (Malhotra et al., 2017). Through transformational leadership, it is hereby to develop good workplace culture where the leaders can lead the employees, encourage their creativity in the workplace as well as motivate them to perform better with their skill set and utilising the organisational resources. The organisational leader must develop partnership working practice with equality and diversity management as well as maintaining transparency and accountability at the workplace. In this regard, Sainsbury’s must develop integrated computerised system for enhancing internal communication. In this regard, the organisation needs to allocate fund for implementing ICT or Information and Communication Technology for improving workplace interaction among the staff members (Naseer et al., 2021). In this regard the leaders must provide technological assistance to all the employees and arrange training for improving their knowledge and expertise to handle the latest technology to work with others. For developing workplace framework, it is essential for the corporate leader of Sainsbury’s to develop hierarchical structure where there would be different departments in the workplace. The major departments are marketing and sales, research and development, finance, production and operations (Sainsbury’s, 2021c). These are the major departments and the leader must enhance partnership working practice, so that the management team of different departments can interact with others and work as team for maximising the organisational aim (Kim, Takashima and Newell, 2018). High cooperation and communication among the departments are helpful for Sainsbury’s to manage reduction of the retail products, maintaining the stock of the products and handle the consumers efficiently.

Recommendations and conclusion

The organisation Sainsbury’s is able to stabilise their financial position and gain market share by delivering high quality products and services at competitive price. The organisation faces the issue of gaining high competitive advantage due to intense competition in the global retail industry and the firm is not able to expand their business operations across the international retail markets. For enhancing internal creativity in business process and technological innovation, it is necessary for the organisation to develop strong corporate framework with high communication and partnership working practical. Additionally, the transformational leadership style and corporate governance must be developed at Sainsbury’s. For enhancing business creativity, the organisation must develop website and mobile application so that it is possible to engage with the consumers and help them to place their orders for the quality products of Sainsbury’s. In this regard, the leader and management team of Sainsbury’s must focus on employee management through equality and cultural diversity management for such creative changes in the organisation. Technological innovation through implementation of ICT and ERP would also be effective for the organisation to manage their operations efficiently and it would also be possible for Sainsbury’s to expand the business in the international market and secure future sustainable development. For achieving the organisational vision of delivering quality products and services to all the consumers at affordable price, it is essential for the corporate leader of Sainsbury’s to manage the employees, creative good corporate governance as well as enhance technological innovation, where it would be possible for the organisation to manage the production and operations creatively.

Reference List

Ferreira, J., Coelho, A. and Moutinho, L., 2020. Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92, p.102061.

Hallak, R., Assaker, G., O’Connor, P. and Lee, C., 2018. Firm performance in the upscale restaurant sector: The effects of resilience, creative self-efficacy, innovation and industry experience. Journal of Retailing and Consumer Services, 40, pp.229-240.

Naseer, S., Khawaja, K.F., Qazi, S., Syed, F. and Shamim, F., 2021. How and when information proactiveness leads to operational firm performance in the banking sector of Pakistan? The roles of open innovation, creative cognitive style, and climate for innovation. International Journal of Information Management, 56, p.102260.