The threat for Sainsbury was that the removal of physical barriers to trade and the new-found freedom of movement around the European market have served to catalyse European expansion and in so doing raise the degree of European trade. To respond to new environment, the company introduced changes in management style which was brought by new executive. The new style of leadership was “more consensual, less hierarchical – but not in strategy or in corporate beliefs about the company’s place in the market” (Owen, 2003). Another innovation made by Sainsbury was reorganization and restructuring aiming “to feature only supermarkets and convenience stores, with Central and Savacentre outlets joining the main estate” (Sainsbury's makes first ever loss, 2004).
In spite of planned actions, these changes failed because of inability of staff to manage change and lack of resources to adapt organization to the changes. It is possible to say that the strategy was ineffective for world’s integration and for this reason it failed at the stage of implementation. Specification in Sainsbury was determined as a result of an organization's pol¬icy, which in turn resulted from decisions on its market policy, which in turn resulted from its consideration of the market or customer needs, requirements, and the activ-ities of competitors.
The main mistake was an attempt to reorganize and restructure several organizational levels at the same time. ...Show more