Business Information and Management of the Organisation - Case Study Example

Business Information and Management of the Organisation Table of Contents Sainsbury’s 3 Importance of Information & Management 3 Information Management Strategy 4 Business Information about Consumers & Management 5 Business Information Regarding Logistics & Management 6 Information & Management of SCM (Supply Chain Management) 7 Information & Human Resource Management 9 Business Information towards Management of Sainsbury’s 10 References 11 Bibliography 13 Sainsbury’s Sainsbury’s is one of the leading retail chains operating in the world. This UK based retail giant was established in 1869 by J. Sainsbury’s. Sainsbury’s has been operating for more than 140 years in the UK market and is known to be one of the oldest retailers in the world. Sainsbury’s has 547 supermarkets that include 343 convenience stores and run around 890 stores. The brand of Sainsbury’s focuses on delivering healthy, safe, tasty and fresh food to consumers. The business model of the company is based upon quality and fair pricing (Sainsbury’s, 2010). From the perspective of the marketers, the retailers are closer to the consumers compared to the suppliers. In the recent times because of intense competitive environment, the importance of business information has grown. The role of business intelligence is very significant not only for the survival of the business but also for the everyday business negotiations and transactions. Importance of Information & Management Lack of significant information or misleading information increases the probability of misjudgement which invariably hinders the profitability of the company. Such wrong or lack of information will increase the cost to the business. Being a retail player, Sainsbury’s is closely connected with consumers and such information will have a negative impact and might lead to loss of consumers (Institute of Management Technology, 2010). Sainsbury’s operation as a retail chain has to manage the customers, logistics, human resource, performances and the supply chain. The level of management with various areas become tough to administer and the organisation needs to be well managed and organised. For this purpose Sainsbury’s organise their organisation in a corporate structure that leads to efficiency and growth. Sainsbury’s is operating in varied locations to serve huge clients and for this purpose the business information and management of the organisation is vital to be managed in a well structured manner with well developed communication system process that will make information flow much easier. Information Management Strategy In order to successfully operate in the retail sector, it is very important for Sainsbury’s to have adequate information management as the sector is heavily driven by information even in its day to day activities. The price pressure, lower entry barriers, globalization are few among other factors that force Sainsbury’s to take quick and better decision across the business. Information management strategy will aid Sainsbury’s to deal with the rapidly changing marketing conditions. It is expected that through this process, the corporate will create a consistent framework that would help Sainsbury’s immensely. Business Information about Consumers & Management Being close to the consumers, it becomes important for the retailer to understand the consumers through information and then manage the data properly in order to gain maximum advantage. For the purpose of information the data are collected regarding the consumers and then it gets filtered and processed. After getting the processed data new strategies are developed and applied in the organisation towards consumers to delight them and retain them. This is possible through CRM (Customer Relationship Management). The below illustration 1 will demonstrate it better: Illustration 1: CRM & Information Management (Siddiqi & Et. Al., n.d.). The objective of CRM is to provide one-to-one service through point of sales. This is possible when the information about individual consumers is available and can be compared with each other. The comparison information will provide an inner view about the consumers. Consequently Sainsbury’s will be more aware about the needs of the consumers and be able to alter their marketing strategies and management policies. This modification will help Sainsbury’s to provide more satisfaction by creating loyal consumers. This is an initiative moving towards database marketing rather than mass marketing. Business Information Regarding Logistics & Management In order to maintain the inventory and make the merchandizes available on time, Sainsbury’s needs to manage their logistics efficiently. For the purpose of making the merchandize available on time in the stores with the aim that there is no out of stock situation and consumers can access to all the available assortments, Sainsbury’s needs to manage and control all the information regarding logistics to ensure effective business practice (Fernie & Sparks, n.d.). Sainsbury’s has many stores and it is essential to control the logistics as the competition is high in the market. The logistics can be managed effectively through the application of information knowledge based approach. The application of Information technology integrated with the logistics department and management will allow Sainsbury’s to manage the logistics accurately through information by using technical appliances. With the information gathering and acting according to the needs, business strategies can be formulated and the business activities can be managed effectively. Information & Management of SCM (Supply Chain Management) The SCM (Supply Chain Management) can be managed effectively with the flow of information that is necessary for business activities. Illustration 2: SCM & Integration of the System (Haibo, n.d.). The procurement management, sales management and warehouse management are the supporting activity of the Sainsbury’s. The vendor management is very crucial to Sainsbury’s. Certain FMCG (Fast Moving Consumable Goods) products are branded under the name of Sainsbury’s. They purchase the raw materials, process and pack them under their brand name. It is important for Sainsbury’s to acquire the information about each vendor and their operational activities regarding the supply. This information will serve the motive of the business. The image of the brand might be hampered if certain inferior material is provided. The information regarding the material delivery and the ways of procuring them and storing them till it is available to the point of sales should be known by Sainsbury’s in order to ensure better quality of merchandises. The procurement process information will make aware of the products and the conditions that will help in evaluating the business strategy. The material quality and quantity is necessary in procurement as inferior quality needs to be returned and it is a cost to the company. In the warehouse management information regarding the inventory is necessary, especially in terms of the quality and expiry date. Certain items need to be bought in the point of sales before it reaches the expiry date. The highly perishable merchandises need to be exhausted earlier. The information management system will provide the systematic approach to the solutions of the business activities of Sainsbury’s. This is possible through the management of integrated information support system that integrates vendors, merchandises and warehouse information. Through the effective application of the information the merchandises can be efficiently managed and the vendors can be handled properly. The warehouse information will provide the systematic approach in managing the inventory that will help in reducing the burden in capital blockage and manage the cost properly. The sales management information will lead to generate valuable data that will decide the business strategy development towards the sales. Sainsbury’s large number of stores that operates in various places should manage the sales procedure efficiently that is possible through the information system. The change in the sales management will lead to affect the consumers and the business. To affect it in a positive manner it is the information network that will help the business to go in the right direction. Information & Human Resource Management The information regarding the HRM is essential to develop the HRM policies and develop certain strategies for the human resource. The needs and wants of the employees cannot be identified if the flow of information is not there. The information management will allow Sainsbury’s to rectify the needs and wants of employees and develop strategies accordingly (Kochan, 2004). The information plays an important role in rectifying their staffs’ strengths and weaknesses. This will help the HRM department to develop the training and development program. The easy identification of strengths and weaknesses will be possible through the employee information. The information will provide the requirement of training for certain employees and the development requirement for others. The information will help in developing the entire human resource structure that will be required to maintain and operate Sainsbury’s. To operate large retail company like Sainsbury’s huge employee force is required and allocating them in the right department is a challenge. For this the company needs to gather the information about the capabilities of individuals and after analysing them, Sainsbury’s can use the human capital in an effective and efficient way. Business Information towards Management of Sainsbury’s Changes are inevitable and the company must be always ready to alter the business strategies according to the changing environment. The development of the business strategy will be possible only through the proper management of information. The management can efficiently manage the information and use this information in implanting various development plans for the business and succeed through the information management. In recent times, the increasing number of competition leads to affect the market share of the company. The information regarding the competitors, market trends and market situations will provide a competitive advantage over other retail company in the market. References Fernie, J. & Sparks. L., No Date. Retail Logistics: Changes and Challenges. Supply Chain & Logistics Group. [Online] Available at: http://www.sclgme.org/shopcart/Documents/Retail%20Logistics%20-%20Change%20and%20Challenges.pdf [Accessed December 15, 2010]. Haibo, Z., No Date. A Unified Modelling Language for Describing Supply Chain Management in Retail Sector. Harbin University of Commerce. [Online] Available at: http://www.seiofbluemountain.com/upload/product/201002/1265261580ibwql255.pdf [Accessed December 15, 2010]. Institute of Management Technology, 2010. Centre for Strategic Information Management. Centre of Excellence. [Online] Available at: http://www.imt.edu/CentersofExcellence/StrategicInformationManagement.aspx [Accessed December 15, 2010]. Kochan, T. A., 2004. Restoring Trust in the Human Resource Management Profession. MIT Institute for Work & Employment Research. [Online] Available at: http://web.mit.edu/workplacecenter/docs/WPC%230013.pdf [Accessed December 15, 2010]. Sainsbury’s, 2010. Company Overview. About Us. [Online] Available at: http://www.jSainsbury’ss.co.uk/index.asp?pageid=12 [Accessed December 15, 2010]. Siddiqi, J. & Et. Al., No Date. A Framework for the Implementation of a Customer Relationship Management Strategy in Retail Sector. Customer Relationship Management. [Online] Available at: http://docs.google.com/viewer?a=v&q=cache:vxiOK3IuFXsJ:citeseerx.ist.psu.edu/viewdoc/download%3Fdoi%3D10.1.1.84.2927%26rep%3Drep1%26type%3Dpdf+management+of+retail+sector+site:edu&hl=en&gl=in&pid=bl&srcid=ADGEEShgNF1KPLRpubD3wkz8kOwwG3sKZwLOwe1OTC4UMLADe1DJztHHUmdMTqrFIqtM30J9t8iqMw8YFCA3H56LUV64V5o-z8iKV5RzZut9-b-1R5Q-q6MGA0cVPXCO2_-_iFxZpzL1&sig=AHIEtbR23duTn2lfohXbLdXtt4z80nUIRQ [Accessed December 15, 2010]. Bibliography Fernie, J. & Sparks, L., 2004. Logistics and Retail Management: Insights into Current Practice and Trends from Leading Experts. Kogan Page Publishers. Joia, A. L., 2003. IT-Based Management: Challenges And Solutions. Idea Group Inc (IGI). Reynolds, J. & Et. Al., 2004. Retail Strategy: The View from the Bridge. Butterworth-Heinemann. Varley, R., 2006. Retail Product Management: Buying and Merchandising. Routledge. Read More