Sainsbury Organisational Structure and Culture.

Topics: Organizational structure, Sainsbury, Economy Pages: 6 (1188 words) Published: October 30, 2012
Sainsbury Organisational Structure and Culture
An Organisation’s structure is a network of interdependencies among the people and the tasks that make up the Organisation. It is created and sustained by the basic coordination mechanisms of mutual adjustment, direct supervision and standardization, all of which coordinate inter-dependent relationships among people and groups (Wagner and Hollenbeck 2009). Pugh (1990) simplifies this by defining an organizational structure as consisting of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.

Different types of organisational structures have been proposed (Salaman, 2001; Bamford& West 2010).Wikipedia however, identifies six main categories of an organisation structure as:

1. Pre-bureaucratic structure
2. Bureaucratic structure
3. Post-bureaucratic structure
4. Functional structure
5. Divisional structure
6. Matrix structure
Every organisation has a culture; they are structured according to the way they operate and according to their culture. The structure of an organisation and its culture can affect the way it works and performs. Deal and Kennedy (1982) argue that culture is the single most important factor accounting for success or failure in organizations. They identified four keydimensions of culture: • Values – the beliefs that lie at the heart of the corporate culture. • Heroes – the people who embody values.

• Rites and rituals – routines of interaction that have strong symbolic qualities. • The culture network – the informal communication system or hidden hierarchy of power in the organization.

Information gathered from Sainsbury website indicates that they employ the divisional structure of organisation. 6 Operational divisions are listed on their corporate website:

• Sainsbury's stores

Sainsbury's online

Sainsbury's property

Sainsbury's Finance

Sainsbury's Energy

Sainsbury's Entertainment

Sainsbury’s Mission Statement and Purpose

According to Hill and Gareth (xxxx), a company’s mission statement describes what the company does. Essentially, the mission statement answers these questions:

What is our business?

What will it be?

What should it be?

The responses to the questions above guides the formulation of the mission statements Sainsbury’s mission statement states that:

"Our mission is to be the consumer's first choice for food, delivering products of outstanding quality and great service at a competitive cost through working 'faster, simpler and together."

This mission statement underpins .and drives their corporate values and business strategy.

PESTLE Analysis of Sainsbury
PESTLE offers a view of the factors that helps companies appraise their current situations and shows potential opportunities and threats on a macro-environmental level (Bandt, 2010). PESTLE analysis is in effect an audit of an organisation's environmental influences with the purpose of using this information to guide strategic decision-making. The assumption is that if the organisation is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes. So a PESTLE analysis is a useful tool for understanding the ‘big picture’ of the environment in which an organisation is operating. The term PESTLE is an acronym for:

P- Political






The diagram below illustrates the PETLE framework

Fig 1: PESTLE illustration diagram

Political factors represent the way and the extent to which a government influences the economy and a certain business. Political factors are represented by specific areas, such as labour...
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