The management function within Boots and Sainsburys Essay
The management function within Boots and Sainsburys
Forecasting and planning
Forecasting and planning is an important part of everyday business to stay ahead of its competition or just to keep the organisation profitable. Both Boots and Sainsburys must define its objectives and establish procedures to achieve them.
These are long-term plans that are set and carried out by senior management. The board of directors will set aims for the company as a whole
* Planning for the future Sainsburys have set a renewal programme to create a world-class grocery distribution network. Sainsburys has already secured sites for new depots and begun construction by 2005 they should be in operation.
* Sainsburys IT system is old and inefficient and costly for future development the system will have to be updated and staff retrained, with the new systems it should save the company ï¿½600milion per annum.
* Sainsburys hopes to expand its e-commerce business to cover the whole nation at the moment it only covers 50% and to increase the number of people shopping on the net.
* Sainsburys needs to plan the marketing that the company will take as a whole also within each store.
* Increase market share and profit by 3% by selling a wider range of products and services
This is when the aims from senior management are put into short-term decisions for department managers and store managers.
* Make sure deliveries are on time and that stock is placed on shop floor
* Customer satisfaction is increased and customer service is improved
* Marketing information is displayed on the correct date and in the correct location
* Sales in the store increase by 2% within the next Year
The chief executives of Boots John McGrath and Steve Russell set these aims.
* Boots wants to be market leaders in the health and beauty in the UK.
* Develop the portfolio of brands as well as offering more services
* Clarify departments as well as reduce costs
* Develop a clear trading format to respond to the specific needs of customers
Carried out by regional managers and team leaders
* Make sure that Boots others a wide range of products
* Offer products that competitors don’t
* Bring both departments into one clear team
* Deliver on alternate days
Organising and commanding
The next task that both Boots and Sainsburys must do is put plans into action by allocating the best use of resources to achieve the plan. To make sure that plans are achieved managers must use their delegation skills.
The Warehouse staff at Sainsburys monitor the delivers that comes into store and their supervisor make sure that it is done to the standard set. Customer satisfaction is achieved by the product that has been sold so is down to the design team and to the employees that sell it the sales team. Marketing information been displayed correctly is down to the store employees and to make sure it is displayed correctly the supervisors. To make sure that sales is down to the whole store but is down to the Store manager to achieve it.
Offering a wide range of products is down to the development team at head office making sure they are displayed is down to operations staff. An offering product that competition doesn’t is down to the development and buyers at Boots. It is the managing directors job to make sure that store are sent information on the new store structure but supervisors to implement the structure. A delivery on alternate days is down to the warehouse to send it alternate days.
Leading and motivation and development of staff
Within each company someone must lead the employees with the delegated job. This is important to make sure that the employee’s do their jobs and that they are successful.
Within each department the objectives are implemented and monitored by supervisors who set the task down to employees. The assistant manager will make sure that the objectives are been achieved and monitor the supervisors. The store manager will oversee all objectives set
The team leader for each department is responsible for making sure that their employees achieve the objectives set. The store manager Mr Griffin is overall accountable for the objectives been achieved.
Innovation and enterprise
This function is the development of an idea into a product
The marketing and development departments are joined together so it the manager of the department to make sure new products are designed and marketed correctly. The manger relies on development department to come up with new ideas and the marketing department to advertise them.
Boots has a development department to find or produce new products Dr John Buchan is in control of this department. The marketing and the development department dovetail so that the product can be marketed to the correct people at the right time.
Control is the monitoring of events and progress within each department
Sainsburys & Boots
Within both store each department will monitor their budget and performance
The marketing department is in control of marketing the products as well as the store they have employees to do this and a budget is set.
Control the development of old and new products also the purchase of new products within the Boot structure.
Finance control of the company’s money the out going as well as the incoming. This department will monitor the company’s expenditure on products and wages and the income from sales revenue. The finance department will have to calculate the figures for the annual report.
Personnel controls all aspect of employment within the company the disciplinary procedure as well as the recruitment of all employees.
This is the department that is in control of all on goings within each store it is important that this department has a clear idea of what the stores are trying to achieve.
Task Two (C1)
In this section I review how management functions in each company, contribute to the achievement of business objectives.
Sainsburys and Boots
* Make a profit
Forecasting and planning will help both to plan how they are going to make a larger income. Organising and Commanding is making sure employees have the drive to increase the income and that customer service is improved to increase the chance of a sale. It is important that supervisors and senior members of staff lead other employees and that the whole store is meeting objectives to increase profit. By selling more products that customer requires or that are in fashion Sainsburys sold mobile phones to increase its profits. Controlling the expenditure on store activity as well as products purchased is important so that Sainsburys can make a larger income. Boots has stared to sell detox products as it has become fashionable with celebrities and customers want to be like celebrities, this is an example of innovation and enterprise.
As you can see forecasting and planning have paid off as Boots turnover has increased from 1997 ï¿½4,578 000 to ï¿½5,226, 000 in 2001, if Boots carries on forecasting and planning for the future then they will stay ahead of competition and increase their income
SALES (incl. taxes) 52 weeks ï¿½m
As you can see Sainsburys sales have increased in 2000 to ï¿½17,414,000 that a change of 6.3%.
* Increase market share
Planning how the are going to increase marketing share in terms of marketing and price strategies. Organising the employees that play a role in increasing the market share is important so that each employee knows what they are trying to achieve.
Leading and motivation is an important in making sure that employees are heading in the right direction and the objective is been achieved. Innovation and enterprise is important to attract new customers new ideas and new products must be displayed. Both companies must control their marketing budget to make sure they are not spending too much on trying to increase the market.
Sainsbury’s Supermarkets is the number two UK supermarket with a market share of 11.9%
Unaudited Quarter Four sales
Total sales growth
Net new space added
Like for like sales growth
Total sales growth
Like for like sales growth
Sainsburys sales have started to increase on last years so their market share will have started to increase.
Marks & Spencer
Tescos share price is dramatically higher than any other of its competitors, which could suggest that it has a higher market share. Boots share price is higher than Sainsburys by 12.7%.
* Increase retailing services
Planning new services that Sainsburys can offer is important if they are to attract new customers or get customer loyalty from existing customers. Sainsburys must use innovation and enterprise to get new ideas for products and service that meets the needs of the customer today. Organising departments into offering more services is important each department and employee must understand where the company is heading and what the company offers. Senior managers must lead staff and motivate them into offering more services and better customer service. There will be a budget that the development department must control and think about when offering more services.
Sainsburys offers a wide range of services such as:
This is a website were customers can order food and then have it delivered to their door.
This website sells a wide range of property to customers on the Internet.
Sainsburys even has its own bank that customers can get a credit card and financial advise.
* Developing a skilled work
To develop staff skills Sainsburys must plan what they want to achieve on a long-term basis and then set short-term task that can be achieved at store level. Sainsburys must organise which staff they want to develop skills and in which areas. They must also look at the time span in which they have to do this training and when it must be achieved by. Employees will need to be trained by somebody who has past experience in that field. Sainsburys must develop new ways in which employees can learn and develop their skills and put them into practice within their job. Each store will have a training budget that they can use to send staff on training courses.
Here are some key ways in which Sainsburys develop staff skills which were shown on their website:
We want everyone who works for us to have the opportunity to develop his or her careers. We have a company-wide development programme based on a personal management agenda (PMA) where each manager has an individual training and career development programme. Senior managers meet twice a year to discuss their own teams and succession planning. Colleagues in store have a ‘how well am I doing?’ meeting with their manager to assess their progress and training needs.
This training will improve manager’s skills and they will be able to find out where they are going wrong, managers will also be able to look at other manager’s performance and see how they can improve their performance.
Investors in People (IIP)
In February 2001 we became the first major food retailer to achieve corporate Investors in People recognition. This followed a three-year programme involving 450 assessments by 45 assessors covering 13,500 Sainsbury’s colleagues. It is a unique achievement in that we gained Investors in People recognition from the bottom up rather than the top down. Almost every unit that makes up Sainsbury’s Supermarkets Ltd. went through the process individually and was recognised in its own right.
Companies that have been recognised by IIP have been successful in adopting and maintaining its four fundamental principles:
Commitment to develop all employees to achieve business goals and targets;
Regularly reviewing training and development needs in the context of the business;
Taking relevant action to meet training and development needs throughout people’s employment;
Evaluating outcomes of training and development for individuals and the organisation as a basis for continuous improvement.
Senior management training
Senior management training is very focused, meeting both the individual’s needs and those of the business. We develop the capabilities of our senior management team through promotion, through external recruitment and through training.
Been awarded the investor in people shows that Sainsburys is geared towards developing a skilled work force by giving employees the opportunity to be trained and developed.
[email protected]’s – retail skills training
Retail colleagues have access to [email protected]’s, via the Sainsbury’s Intranet, which is helping to grow talent within the business, providing help and training when needed. It covers four faculties:
Customer service and selling skills;
Finance and business planning
Sainsburys set up this system so that each member of staff could receive the same training in each store using the same free network.
* Development of staff skills
Boots will have to decide which area they want staff to gain skills in and forecast the cost of training these staff to level at which the company wants. Boots will have to plan when the staff can be trained and which staff they want to be trained. Leading and development should be done by persons already trained and by senior management. Boots must find new way to train staff that will interest they and easy to understand. Boots has set up a computer net so all stores can do training in different departments.
Information from the Boots Website suggests:
To develop staff skills Boots has set a staff council to find out what employees think of training and how they think it could be improved. This council meets regularly during the year. A company-wide, Combined Central Staff Council, comprising representatives from each Staff Council, meets twice yearly, in June and November.
There are currently three 2-day Staff Council meetings a year in Nottingham, and Steve Russell (BTC Managing Director) is the official Chairperson for each Council days.
The new BTC Staff Council’s mission statement is: –
“To act as a two-way communication tool to support and listen to all staff and develop ownership and pride in the business.”
The staff councils overall objectives are:
* Have more involvement in the long-term strategy of the business, rather than as a forum to discuss specific local issues
* Utilise a greater breadth of knowledge in the Company to provide feedback, generate ideas to improve the efficiency and effectiveness, and help to solve problems
* Use Staff Councillors as a sounding board to influence Company initiatives at the planning stage
* Ensure every single member of staff can have their say via their staff Councillor
* Produce high quality products and services
Boots must look at trends and produce products that will attract customers. Planning and development for future products is important if Boots wants to increase the number of customers. Staff must be trained to offer excellent customer service. The development manager and the store manager must control the development of products and customer service.
To maintain the high quality of Boots products they set up the following Boots Contract Manufacturing (BCM)
From the Bized website I have found that theses are the following functions that Boots Contract Manufactures play in quality control:
Analytical method development
BCM Quality Control has established expertise in developing and validating methods for use in QC laboratories using a wide range of instrumental methods, such as high-pressure liquid chromatography, gas chromatography, infrared and ultra-violet spectroscopy.
New products developed by BCM’s unique development function are stored under different temperature and humidity regimens, in order to specify shelf life and identify other restrictions as necessary. Stability packages tailored for customers’ regulatory requirements can be developed.
Factory Quality Control
The full range of activities to ensure products are of the required standard is carried out.
The dedicated facility checks incoming materials to ensure that they meet our very high quality standards and checks finished products to establish their safety in use as well as monitoring and advising production on factory hygiene. There is a wealth of experience to draw on to support customer development work or bespoke product claims.
Assuring product quality
The Quality Control function has responsibility for many activities that ensure the high quality of BCM’s products. These include:
* Approval of suppliers and service providers through audit and assessment of their standards, controls and quality systems
* Review and approval of suppliers’ data supporting consignments of materials and components
* Testing and approval of raw materials and packaging components to ensure they comply with specifications
* Approval of manufacturing procedures
* Testing and approval of intermediates and finished products to meet in house or customer specifications
* Training, review and auditing of in-process testing
* Production batch documentation and approval
* Formal release of finished product
* Quality and Good Manufacturing Practice audits of process and factory
* Process and computer validation
* Maintenance of analytical reference standards
* Documentation management
All theses factors have lead to Boots producing a wide range of quality products that meet customer’s expectations and needs.