Unit 25 Principles of Operations Management Assignment

Introduction

Sainsbury is the second largest chain of supermarkets which is based on London, United Kingdom. Sainsbury was founded by John James Sainsbury in 1869 that was located in the Drury lane’s small shop, London which is now has become the largest retailer of groceries in the year 1922 in London. Sainsbury provides different kinds of services and products to their customers and makes earnings all over the United Kingdom which is popular for the products and services of Sainsbury (vom Brocke, et. al., 2016). It provides services related to groceries, electrical equipment and products, clothing facilities and home wares and many more. It is a range of supermarket which fulfills the expectation and demands of consumers from a great range. All the products related to the daily lifestyle to the kitchen appliances and different variety of other products is being available in Sainsbury supermarkets for their customers. They have a great share in the market place. The annual income or annual revenue of Sainsbury in the last year 2019 was $4 billion. Sainsbury has different subsidiaries which are Argos, Sainsbury’s bank, home retail group and many more.

There are different quantitative techniques like project management and quality supervision. In project management, project planning, scheduling and controlling the projects of Sainsbury as per quantitative analysis is done. In quality management, the expected features of product need to be completed according to the collected data. Different kinds of operational management issues or challenges are being faced by Sainsbury. Some of them are globalization, unsuccessful statement, sustainability, structure strategy and principled behaviour (Taticchi, et. al., 2015). Operating administration is procedure of organizing, preparation, managing, managing and governing the industrial and manufacture processes of company. It is important for improving the productivity of the overall company. The Sainsbury face issues related to the globalization of the company in which Sainsbury’s chain branches will be opened in other countries. The ineffective communication between the management and the employees is a major issue for Sainsbury, which creates challenges in the daily functioning of the company. The system designing and ethical conducts are also important issues in the operational management of the Sainsbury.

Methodology

The research methodology is that process which is mainly used to identify, process, select, and examine the accurate data and information about a topic. In this investigation of the Sainsbury annual report, the methodology allows the clients to critically determine and evaluate the overall study reliability and validity in a proper manner (Maylor, et. al., 2016). There are various types of methodologies that help the researcher to find out the accurate results and findings of the company effectively. For this research, the quantitative method has been used which helps in providing valid and accurate results related to the Sainsbury.

Sources of data:

Data can be obtained through Sainsbury websites, reports, newspapers, journals, case studies, and databases. In this, primary sources of data are best suitable as it is used for collecting and gathering correct results and information associated to the Sainsbury such as company annual report in which their financial statement is properly evaluated.

Data collection method:

It is that procedure that helps in collecting and gathering all the required data and information that are effectively dealing with major issues of the company. There are various techniques of data collection which include an interview, questionnaire, survey, focus groups, documents, and observations Harmon, 2019). This is important for Sainsbury is to focus on selecting such a method which assists them in collecting necessary results that show the actual status of the company in the current time in a large market. The quantitative method is appropriate and it helps in collecting numerical facts and figures of the company that described the actual results in a better manner.

Data analysis:

This is the method of converting, cleaning, and demonstrating data to explore the useful data for the business decision making process (Mendling, et. al., 2018). The main motive of data analysis is to extract the useful data and information from the records and annual statement. As per this, the company has taken an effective decision which is based upon this analysis.

Results

In Sainsbury, there are around 185,000 employees are employed to reach organizational goals and targets. They are work to make their customers satisfied and happy with their services and products offered. There are 608 supermarkets and 102 stores of the company which offers the same day delivery to about 40% of UK people (Sainsbury.co, 2018). There are approximately 3.9 million active customers of the Sainsbury Bank and Argo’s financial facilities and around £69m Sainsbury’s bank profits and income delivered.

Figure 1- Sainsbury sales growth, 2020

Figure 1: Sainsbury sales growth, 2020

(Source: Sainsbury Sales Growth, 2020)

As per the above-described table, it has been analyzed that Sainsbury serves a variety of products and services to the customers and properly satisfied their needs or requirements. The graph shows that Sainsbury sales growth by their grocery, online grocery, and convenience. There are around 2.3% of sales are gained by a company from grocery stores, 7.5% sales growth acquired from the convenience and only 6.8% of sales are gained from the online grocery stores. It has been examined that the company has obtained a large number of sales with the help of convenience services.

In the year 2019, the total employment ratio in Sainsbury is around 178,000 who effort solid to create their clients live easily and also deliver them excessive services, goods along with the best quality. In this annual report of Sainsbury, it has been found out that there are approx. 57% of United Kingdom households gain benefits from the Same Day delivery. 281 stores in the Sainsbury supermarkets and every year around 1 billion people visit the Argos website and sales generated with the moveable procedures approved £2 billion for the initial period. In the Sainsbury, monetary facilities are playing a vital portion in corporate operations. Sainsbury bank provides available goods and services such as credit cards, insurance, and personal loans, travel money which rewards the commitment and faithfulness to the individual. Along with this, Sainsbury Bank and Argo’s economic amenities have over 2 million energetic clients.

Figure 2: Sainsbury channel performance, 2019

Figure 2: Sainsbury channel performance, 2019

(Source: Sainsbury channel performance, 2019)

According to the above-described graph, it has been analyzed that Sainsbury is a very popular company in which they are delivered a variety of products and services to their potential customers. The company mainly concentrates on providing the best quality based services to the final users at a limited time. There is a different channel of distribution through which the company is delivering the desired good and facilities to its clients. Based on this graph, it has been concluded that the supermarket provides 1.0% growth to the firm, around 3.7% growth gained by the convenience and online grocery stores helps in attaining a 6.9% performance level. This showed that online channel is most effective where a large number of people purchase their potential products from the Sainsbury.

Figure 3: Argos fast track collection, 2019

Figure 3: Argos fast track collection, 2019

(Source: Argos fast track collection, 2019)

From the above-mentioned graph, it has been examined that Argos is the part of the Sainsbury supermarket which is operated and regulated by the company. They are offering diverse kinds of goods and facilities to their desired consumers and satisfied their demands and needs. In the year 2017-2018, the fast track collection is increasing and in middle, it is continuously down and top whereas in 2018-2019, fast track delivery decrease continuously and cannot provide growth to the company effectively (Sainsbury.co, 2019). It is required for the firm is to concentrate on maintaining both the system which helps them in gaining the attention of a large number of users towards their products and facilities in a better manner.

Conclusion

The above report concludes about the various operational management issues and challenges in the Sainsbury Company which is a chain of supermarkets in London, United Kingdom. These issues can help in the improvement of operational management functions in the Sainsbury. The report concludes the collection of data by using different methods. The collected in the report is being used for analyzing the data collection methods. The analysis is done by the quantitative analysis method which is being shown in the report for the Sainsbury Company. Different aspects of Sainsbury functioning and operational methodology are being analyses with the help of a statistical approach.

  • The financial, economic and other factors are being analyses in the report. The quantitative analysis helped in determining various directions of results for the improvement and development of the Sainsbury supermarket chain. These results are being obtained by the analysis of statistics of the data collected for the information management process and developing the organization. These results will be immensely helpful for the enhancement in the business processes being used and improvement in the strategies, scheduling and planning for better performance and attaining higher value in the market place.
  • The report also concludes about the implications, limitations and recommendations regarding the results of the quantitative analysis performed for improving and enhancing the business on a higher range than previously. These limitations are found as per the quantitative analysis which is limiting the analysis. The recommendations are the suggestions for improving the processes of business techniques that can be acquired for better results and improvement in the growth and development of the Sainsbury supermarket chain of London, United Kingdom.

Implications and Limitations

  • Quantitative analysis of Sainsbury consists of various limitations in the final results. The secondary data related to analysis is sometimes not available or the accessing of that available data is difficult or impossible for the quantitative analysis for Sainsbury which will not provide the final result of the analysis. There is a limitation in the understanding of the context of any phenomenon used in the qualitative analysis of Sainsbury. The robustness of data collected from different means is not as expected in the quantitative analysis which makes the analysis complex in understanding for Sainsbury. The limitations in the quantitative analysis of Sainsbury suppress the result of the outcome. These limitations make it difficult for using this technique to analyze the working, functioning and operational activities in the company (Geissdoerfer, et. al., 2018).
  • Implications are also available for the process of quantitative analysis of the Sainsbury chain of supermarkets in London, United Kingdom. The data used in the quantitative analysis of the Sainsbury supermarket will be easy for analyzing the different aspects of the functioning and operational management in the company. These data figures can be collected from different sources which will be consistent, precise and reliable for the quantitative analysis process. These implications can be followed for better results in the financial data form of the Sainsbury Company. The data analysis done for the Sainsbury will help in the growth and development of the company with the help of the result appeared in the analysis done with methodologies in the report.

Recommendation

The results of the quantitative analysis showed about the products and services of the Sainsbury are well distributed among the consumers. The product and services need to be organized in such a manner to improve the results for further analysis. The project management technique can be proved helpful in managing, controlling, scheduling and planning the projects of operations in Sainsbury to improve the organizing and scheduling culture in the Sainsbury supermarket chains. The qualitative analysis showed some downfall in the projects handling process which can be resolved by using the technique of project management. This will help in improving and enhancing the control over the projects of Sainsbury for growing.

  • Quality is the factor which influences a range of consumers towards Sainsbury. The quantitative analysis results showed the loss of consumers because of the quality of products and services. As per this concern, the quality management techniquecan be used. The quality management focused on the desired expectation from the products and services which will attract the consumers and also consumers will vocally advertise the quality services and products of Sainsbury which can be proved to be beneficial for the growth and development of the supermarket chain of Sainsbury in London. The quantitative analysis will improve its efficiency with the use of a quality management technique for further better results (Chin, et. al., 2015).
  • The results of the quantitative analysis can be improved for the supermarket chain of Sainsbury by adopting the latest technologies. The latest technologies can be helpful in different ways like advertising the products and services of Sainsbury on a digital platform which is cost-effective and highly influential on the great range of consumers. The technology is also advancing the quality checking of the products and services offered by the Sainsbury for consumers as per the results of the quantitative analysis of the data collected from various sources for analysis. Thus the latest technology can be adopted for the growth and development of the company.
  • Another recommendation for the improvement of the analysis results can be an improvement in customer servicesin Sainsbury. The customer service quality directly influences the data of different range in the quantitative analysis of the Sainsbury. The consumer’s happiness with the products and services is very important for the company (de Sousa Jabbour, et. al., 2018). The satisfaction of the consumers directly affects the revenue, market value and market share of the company which influences the growth and development of the company. The improvement in the customer service quality can help in the better results for the quantitative analysis of the supermarket chain of Sainsbury in London, United Kingdom. These recommendations can be proved to be helpful in the quality improvement for consumer’s services.
References

Chin, T.A., Tat, H.H. and Sulaiman, Z., 2015. Green supply chain management, environmental collaboration and sustainability performance. Procedia Cirp26, pp.695-699.

de Sousa Jabbour, A.B.L., Jabbour, C.J.C., Godinho Filho, M. and Roubaud, D., 2018. Industry 4.0 and the circular economy: a proposed research agenda and original roadmap for sustainable operations. Annals of Operations Research270(1-2), pp.273-286.

Geissdoerfer, M., Morioka, S.N., de Carvalho, M.M. and Evans, S., 2018. Business models and supply chains for the circular economy. Journal of Cleaner Production190, pp.712-721.

Harmon, P., 2019. Business process change: a business process management guide for managers and process professionals. Morgan Kaufmann.

Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management. Macmillan International Higher Education.

Mendling, J., Weber, I., Aalst, W.V.D., Brocke, J.V., Cabanillas, C., Daniel, F., Debois, S., Ciccio, C.D., Dumas, M., Dustdar, S. and Gal, A., 2018. Blockchains for business process management-challenges and opportunities. ACM Transactions on Management Information Systems (TMIS)9(1), pp.1-16.

Sainsbury.co, 2018. Annual Report and Financial Statements. Sainsbury.co [Online] Available at: https://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/documents/reports-and-presentations/annual-reports/sainsburys-ar-2018-full-report.pdf [Accessed: 19th may 2020]

Sainsbury.co, 2019. Annual Report and Financial Statements. Sainsbury.co [Online] Available at: https://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/documents/reports-and-presentations/annual-reports/sainsburys-ar2019.pdf [Accessed: 19th may 2020]

Taticchi, P., Garengo, P., Nudurupati, S.S., Tonelli, F. and Pasqualino, R., 2015. A review of decision-support tools and performance measurement and sustainable supply chain management. International Journal of Production Research53(21), pp.6473-6494.

vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process management. International Journal of Information Management36(3), pp.486-495.

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