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Gcse business studies


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GCSE Business studies

Unit Two: People and business

The role and importance of stakeholders

The Company I have chosen to investigate is Sainsbury's. Sainsbury's was founded by a man called John James Sainsbury and his wife Mary Ann in 1969 In London. The business started to grow and expand until it became the largest grocery retailer in 1922.

Sainsbury's store is known as the third largest chain of supermarkets in the UK. Sainsbury's is in the Retail industry, the tertiary sector. Sainsbury employ up to 150,000 people and have 792 stores. These stores include 502 Sainsbury's supermarkets and 290 Sainsbury's convenience stores.

Sainsbury's headquarters is in Holborn Circus, London, England.

The reason I picked Sainsbury's as the business I want to investigate is because it's one of the fastest growing retailers and has many stores within the Uk. It's also one of the most commercialized retailers.

My Local Sainsbury's is Sainsbury's Superstore Dalston Cross Shopping Centre London

The role and importance of stakeholders

A stakeholder is any group or individual which is affected by the activities of the business.

  • Internal stakeholders: are inside the business.
  • External stakeholders: are outside the business.

Shareholders also known as stockholder own parts of the business.

Stakeholders have an interest in the business but do not own it.

Interest of different stakeholders

  • Good return on investment.

  • High pay. Safe and healthy working conditions.

  • Fair price for good quality products.

  • Regular business and on time payment.

  • Jobs and minimum disruption.

  • Employment for the local community and taxes.

  • Care for environment and no pollutions.

  • Loans back on time.

Owners and Shareholders

Shareholder: is a person or organization owning shares in the company.

Owner: is someone who owns (is legal possessor of) a business.

Shareholders and Owners are stakeholders with a financial interest in the business. They also want to receive a large proportion of the company's profits. This is also known as a dividend. Shareholders hope that share prices will rise.

There are four different types of shares there's the:

  • Ordinary shares, they have no specific rights or restrictions. If the business wound up these types of shareholders are the last to get paid.
  • Preference shares. In this category the shares have a fixed value. This means that the shareholders will not benefit from an increase in profits. If the business is in trouble they have the rights to their dividends ahead of the Ordinary shares.
  • Cumulative preference shares give holders the right that, if a dividend cannot be paid one year, it will be carried forward to successful years. Dividends on cumulative preference shares must be paid, despite the earning levels of the business.
  • Redeemable share. This is when the shareholder gets back the money he has paid for his redeemable shares.

Owners and Shareholders of Sainsbury's

Sainsbury's supermarket is a private limited company, which is also known as an Ltd. Although the parent of Sainsbury's supermarkets is J Sainsbury's a public limited company which is also known as a PLC. The chairman of J Sainsbury's PLC is Phillip Hampton as Justin King is the chief executive officer. Public limited companies are often much larger than private limited companies. They are able to advertise their shares and their shares could be sold on stock exchange. They have to publish financial information each year.




Is a person who works for another person or Business.

They will want to see how much profit the business has made. If the business has made high levels of profits, employees may look for wage increases. Also high profits may also mean that he employee's job is secure.


A person appointed by the shareholders of a company to take part in day to day management of the business.


Someone who plans and co-ordinates activities within a business and has authority over more junior employees.


Someone who has day to day responsibilities for operatives, ensuring that they work effectively and dealing with problems as and when they arise.


Is someone who carries out the basic functions of the business.

All employees whether part time or full time are very important stakeholders. They are closely involved in a business and they are strong influences on the way the way the business is run. Employees want to be able to see how much profit the business has made. If the business has made high levels of profits, employees may ask for wage increases. High profits may lead to also meaning that the employee's job is secure. An employee will want to work in a clean and healthy environment and flexible working. They want to be treated fairly and want their work to be recognized by their supervisors.

Employees of Sainsbury's


  • They have responsibilities for aspects of the business. They are under the guidance of a director.
  • They plan activities and look after employees.
  • Manage finance and attempt to meet targets set by directors.
  • Their jobs are usually secure due to a permanent full time contract.
  • Making decisions and solving problems is central to them.

Managers often have a professional qualification in accountancy or marketing. Managers need to have good communicational skills, good IT skills and able to control finance. Managers pay varies.


  • Also known as team leaders.
  • Monitor work of junior employees.
  • They ensure that production and quality targets set by managers are met as soon as possible.
  • They advise managers of any difficulties as they arise.


  • They are the most junior employees.
  • Responsible for their work only.
  • Usually carry out routine tasks.
  • They have little job security. When their contact runs out they may end up unemployed.

Operatives are usually unskilled. This leads to low pay.


Customers: are individuals or organizations that buy products from businesses.

Businesses are mainly customer focused. They play in big part in fulfilling the customer's needs and expectations. These include good quality products for fair prices. Customers want to get products that are worth. They don't want to be paying for products which are no use for high prices. After sales service and support. Customers also want to know if a business is financially sound. They will not want to place orders, or pay deposits, to a business that might not be able to continue trading.

Sainsbury's customers

In order for Sainsbury's to gain more customers and please the ones they have they need to consider Value for money. If Sainsbury's does not offer this there is a high risk that they will lose customers. This is a reason why supermarkets such as Sainsbury's and Tesco like to keep an eye on competitor's prices. To make their prices more competitive. Sainsbury's are very popular for the stating clear information that is needed on the label. This information consists of the price and other relevant information such as the ingredients.

By Sainsbury's offering specialist advice about their products is a way they are able to win new customers. Many people prefer to shop online rather than going to a store. Sainsbury's have provided their customers with an online shopping website, where customers can order what they want through the computer and get it delivered to their house. By queues being very long in supermarkets, many customers may get put off, leading to Sainsbury's losing customer. So Sainsbury's put in place a self check out when customer with a basket are able to do a self check up instead of queuing up. This is a fast and easy way for customers to purchase products. This is something else that attracts customers.

Sainsbury's are encouraging customers to make healthier choices and provide a broad range of products.

Sainsbury's aim

”To deliver an ever improving quality shopping experience for our customers with great products at fair prices. We will exceed customer expectations for healthy, safe, fresh and tasty food, making their lives easier every day.“


Suppliers expect to be paid on time and receive regular orders from customers. They are interested in any developments that might affect the number and size of orders being placed.

Sainsbury's suppliers

Sainsbury's want to deliver their greatest all the time. In order for Sainsbury's to achieve this they need to work closely with their suppliers. Sainsbury's have roughly around 1,400 direct suppliers. Supplier need to make sure the products are in good conditions and correct. If this is not the case Sainsbury will end up with many customer complaints. The tension that can be present between Sainsbury's and their suppliers may include prices. How much the products are going to go for. Sainsbury's make sure all payments are paid on time unless any errors occur in order to keep the relationship with their suppliers.

The local community

Many businesses are very involved with the local communities. The local community will want Companies to provide employment for the people within that community. They don't expect any business in their local community to cause disruption and, environmental issues or any other problems which may cause damage or disruption to the local community.

Sainsbury's local community

Sainsbury's play an important role in their community. Sainsbury's does not only provide items from their store they also provide different activities for their community. Sainsbury's is the only retail partner of comic relief, where they helped raise 7 million for comic relief. Active kids are a programme which proves their aim which is to be the number one supermarket for health. Active kid is an activity run to increase fitness levels, to keep you children fit, active and healthy. Sainsbury's has proven to be environmentally friendly and that the local community has a say. This is due to the local community being the main customers of Sainsbury's and without them Sainsbury's will not be profitable. Sainsbury's take into account the customers need and wants in order to keep them happy.

The government

The government is interested in every business for a variety of reasons which include the collection of taxes by the Inland Revenue. They are very interested in the finance of the business. Also customs and excise which is another tax collector (VAT) value added tax. Businesses are obliged to respond to any of the government's request and have to pay taxes to Inland Revenue and customs and excise.

Pressure groups

These are organization to promote causes. An example of this group is Green peace and friends of the earth which look to protect the environment. They campaign against the export of live animals. Preesure groups tend to influence many businesses by campaigning against firms which behave in unacceptable ways. Pressure groups also take direct action against some firms. Businesses tend to respond to pressure groups for them to gain a good public image.

Customer Service

Gain and retain customers / Gain customers satisfaction and loyalty

In order for a business to gain and retain customers they need to do the following:

  • Good value products:
  • A customer finds value for money very important. In order for customers to gain and retain customers they need to provide good value product, otherwise they will lose customers. This is why Sainsbury's keep prices very competitive.

    In Sainsbury's every product is worth it. They try their best to please their customers with their products. However If a product does not meet customer's expectations Sainsbury's does their best to solve it, whether by a refund or exchange depending on the circumstances.

  • Clear and honest information:
  • Make sure the customer have a clear sight of the amount they need to pay. This may be stated on the label. If a customer is told they need to pay more than what is stated on the label may lead to loss of customers.

    In Sainsbury's all products have labeling with clear and simple information. The ingredients are all stated at the back of the label and if any important information needs to be stated they put it at the front i.e. contains nuts. Every product has the price either on their label or on the shelf under the product. The price it states on the label is the price you pay at the counter. Sainsbury's make sure no hidden charges are made. This attracts many customers to Sainsbury's.

  • Information about products:
  • Offering specialist advice on any products attracts customers as well as retains current customers. This allows individual customers to receive individual help and advice on any products. Customers like to get attention.

    In Sainsbury's the employees are very kind and helpful. Around the store you get the employees asking you if they may help with anything and also help with any misunderstanding the customers has from reading the label. In Sainsbury's you get told extra information on products that tend to be very helpful.

  • Having efficient ordering systems:
  • Customers like to receive products, not long after they order. Online tracking systems are available in most Businesses. These state when products are due to receive the customer. In order to keep customers a business needs to make sure that products are receive on the Receive by date otherwise it can be a disadvantage to the company.

    In Sainsbury's there is an

    Online shopping website which allows the customer to order products online. Sainsbury's also provides the customer with any information of when the products will be dispatched and at what time roughly the customer should receive the products. If Sainsbury's fails to deliver on time, it will be a great disadvantage as customers will lose trust in the business.

  • After sales Service:
  • Having a after sales service allows customers which buy guaranteed products to get any feedback on the product, to make any repairs or replacements on damaged products.

    Sainsbury's has an after sales service which allows any customers with any enquiries to contact the store and sort it out.

  • Dealing quickly with any inquiries:
  • Business should be very quick when it comes to handling complaints. Telephone numbers and addresses are available for customer for when necessary.

    Sainsbury's has an in store customer service desk where any customer inquiries may be handled and dealt with on the spot. If customers are not happy with any products or the way they have been treated they can solve it at the customer service desk.

  • Help with specific products:
  • Nowadays products can be bought in different ways. Many customers will want to receive information on a loan and the customer's service will provide this. Or even provide the customer with the loan themselves.

  • Personal attention:
  • Customers feel more satisfied if they can speak to a member of staff individually, to help sort out any problems.

As I stated before Sainsbury's is very good at this and staff at Sainsbury's tries their best to get around to all their customers.

Customer loyalty is created by a strong relationship between the customer and business. This involves the customer's feelings, where customers feel important and tend to buy products based on their feeling toward the business.

Improve the image and reputation of the business

The logo of a business plays and important part in the business so the logo should be used to demonstrate a business. Within the store it's very professional and attracted if the business has their own company uniform. It's a way of advertising their businesses to all customers. A business should also keep up to date advertisement through the media in order for the public to know about the business and any new things that may affect the business or businesses customers. This makes customers feel the business is very professional and makes the business gain a good image.

By a business providing customers with good products and supplies may lead to satisfied customers spreading the word to any friend and family which will not only lead to good reputation for the business but also gains new customers and keeps old customers.

Help business to keep market shares:

Customers which remain loyal to the business and new customers who are won by the business help the business retain their market share.

Increasing sales revenue and profits: satisfied customers which repeatedly buy from a business can also encourage others to do so as well. By a company gaining new customer will also increase a company's sales revenue which May also lead to increase a business profits.

Different types of customers within a business

There are two types of customers in businesses these include external and internal customers.

  • External customers:
  • These are people outside the business. These are normal, common everyday customers who purchase products and service from a business.

  • Internal customers:
  • These are people within the organization who need information for an external customer.

    Internal customers within Sainsbury's may be Employees which are having a hard time at work and which are being treated disrespectfully and have had enough of it. These people will visit the human resources department to ask for help.

Customer survey

In order for me to carry out important information about Sainsbury's and their products and services I conducted some surveys. I went to shepherdess bush and handed my survey out to 12 different people. This number is very small to get a reliable conclusion from it. The problems we had with the surveys are that many people did not want to fill them in and wanted to know what they were for. Also Westfield shopping centre also didn't grant us permission to hand out our surveys.

Good value products

Many people stated that the prices of their supermarket are something that attracted them to go to that supermarket. Some people also stated the customer service is really good and there for they repeatedly visit the store. They said the quality of their products is excellent and they rated the customer service very high. This suggests that good customer service and valued priced products are strong factors to a customer and their feeling towards the store.

Clear and honest information

Customers said that the customer service was excellent which will lead to us saying that they get a lot of information about products and that customers have a clear understanding of the product and the use of it. The customers get individual attention and information on products.

Information about suitable products

Customers feel they get attention within the store they get any help and information need for different products. The customers are ensured a clear understand of the product and the terms and conditions when bought. They are told important information and also warned for dangerous products.

Help with individual or general issues

If a customer has any inquiries or complaints that need dealing with. Sainsbury's is quick to handle. They try and sort it out on the spot and make sure that everything is cleared and that the customers end up happy. Each individual received individual help and attention which makes the customer feel valued.

Following the surveys, the things that Sainsbury's can improve are little. Price need to be clearly labeled to the right product as prices may sometimes be misleading to different products. People want bigger aisles so it is easier for more than 2 trolleys to pass by.

In order for a company to remain competitive it is important that they collect information about their market. This is called market research and may be done in several ways. This information will provide the business of what goods and services customers want and need, what the overall view of customers is about the businesses current products, the strengths and weaknesses of competitors and the expected future sales of products.

Questions from staff

Employees are able to ask any question to their customers about their views on the business and their products. Market research is regularly carried out within Sainsbury's. Regular contact is in place between the customer and their representative's in order for questioning to take place.


This a type of market research where customer's behavior is watched and recorded.


These are sets of questions written to collect information from a large number of customers. Getting customers to fill this survey out is an easy way to get what customers think. This type of market research is very cheap to produce. People who tend to receive this Type of market research by post hardly bother to fill them out.

Customer panels

These are small groups of people who meet up regularly to offer opinions on a business's product. They give view on the advertising of a company and any ideas of new products or special offers. They provide useful and detailed information.


Most businesses have their own websites. These websites are used to advertise products and get customer view.


Most business websites also has a contact us section where the business provides us with a number, address and email of the business. This is a way customers are able to get their view across and also get any complaints across.

Features of customer service


  • Communication skills
  • Helpfulness
  • Accuracy of information
  • Training


  • Speed
  • Reliability
  • Availability of products


  • Quality
  • Clear information
  • Safety
  • Packaging

After sales care

  • Customer care telephone lines
  • Dealing with complaints
  • Repairing goods
  • Exchanging goods


  • Credit
  • Range of methods


All products must meet the expectations and needs of the customers. The goods need to be of good quality. Health and safety information should be in place for any customers who buy a product which it applies to. Packaging of products should provide information which help customers. The packaging should be easy to open so customers don't hesitate to open or need any further equipment to open the packaging.


All employees need to have the skills needed for their job. Training should be in place for employees in order for them to received detailed information on their business and its customers. This is also useful for customers which may ask questions. So the employee may give a direct answer. Communication skills training should also be in place in order to help employees to be polite, patient and able to give simple answers. This is also very important during telephone conversations. Employees should be quick with any inquiries, be helpful and also friendly. By employees wearing their business uniform it makes it easier for them to be pointed out by customers.

After sales care

Good after sales care is when the business deals quickly and fairly with complaints, exchange goods that are faulty or do not meet the customer's needs, when they repair guaranteed or paid for goods and when the business is able to offer advice and support to customers.


Products are expected to be delivered on time. Speed is also important in some circumstances where some foods may go off.


Many businesses give the choice of how the customer decides to pay for its goods or services. In terms of expensive items a credit by the business should be offered.

Modern technology has helped many businesses update and improve their services.

A business website offers customers with up to date information with businesses products and answered questions. Products may be purchased over the internet giving the customer the chance to shop at anytime. Also any inquiries or complaints may get across to the business by email.

In the UK there are a number of laws to protect the health and safety of consumers.

Health and safety

Health and safety Act, 1974:

This one of the main laws in the UK. This law handles the interests of its employees and consumers. (Labeling dangerous substances)

Food and Drug Act,1984:

This law states the things that may and may not be added to foods. It is illegal to sell foods from dirty and unhygienic premises.

Food Safety Act, 1990:

This law states it is illegal to sell consumers food of poor standard. Applies to farmers, restaurants and shops.

Consumer's protection Act, 1987:

This law covers dangerous products and the safety of consumers. The businesses are liable for any harm caused to consumers by their products.

The sales of products

This law looks after customers when they are buying goods and services.

Sales of goods act, 1979:

When products are sold they must be undamaged and in good working condition. They are expected to work and perform as they are described.

Consumer credit act, 1974:

Some customers when purchasing products and services borrow money. This act prevents businesses to charge high rates of interest and gives the customers the change to change the mind on whether to borrow the money or not.

The labeling of products

Much information is given to customers through the label. This act prevents the customers from being given false information about products.

Labeling food regulations, 1970:

Pre packed food must contain a list of ingredients on the label. Foods within the UK having more than 1% or more of genetically modified ingredients must be labeled to make this clear.

Weights and measures act, 1986:

It stated the weights and measures that are used in trading. Weights and measures must be accurate and must be as shown on the labels.

Trade description act, 1968:

Act which makes it illegal to give a misleading description of products on the packaging or advertisements.

The misuse of information

Businesses collect a lot of information about their customers. This law prevents the misuse of this information.

Computer misuse act, 1990:

It is illegal for people without authority to have a look or use your confidential information.

The data protection act, 1998:

Businesses are required to store personal information to maintain data securely. Individuals have the right to ask for any changes to be made to it. The business has not got the right to share your information with anyone else.

Investigating job roles and working arrangements

Organisational structure

Organisations are structures in a number of ways. The structure of an organization will determine the performance of the organization. Organisational structures allow the different responsibilities for different functions to be clearly allocated. Organisation structures aim to increase efficiency and success of an organization. A businesses organization is usually presented in an organizational chart. This is a plan that shows the division within a workplace between employees. Organisational charts help employees to see how they fit into the business. They present different job roles and a short description. The five main job roles within a business are the chief executive, the directors, the manager, the supervisors and the operatives.

Chief executive

A chief executive is one of the highest ranking officers which have total control over all management. They create an effective organization to increase chances of delivering excellence within a business. They manage professional staff to enable them to maximize their contributions. They need to keep constant reviews of the company's progress in order to meet and set new targets. Have responsibilities for setting budgets and in most company's they have to have day to day responsibilities to finance. The chief has a leading role to all the other workers and get the last word in any decision making. They decide how a store is going to be set out and which employees are going to be sent to which trainings. Have you noticed that all Sainsbury's look the same and everything is laid out in similar places to other stores, well that's a decision which is made by the chief executive and that the workers need to do.



Managers have an important role within a business. They work under the guidance of the directors. They plan any activities. Look after employees, manage finance and try meet targets set by directors. A manage usually has a secure job as they have a full time contracts. They have the duty to make decisions, i.e. How many new employees are needed? They need professional qualifications such as accounting and marketing. They need to have good communication and IT skills. They draw up plans; look after human and non human resources and attempt o meet the business targets.


They are also known as team leaders. They provide links between the operatives and managers. They need to monitor the work of the operatives. They need to ensure that production and quality targets set by managers are met as soon as possible. They need to advice managers of problems or difficulties in the work of the business. Some supervisors have been given the responsibility for some of the roles which have previously been owned by managers. They may recruit new employees or lead training sessions. Supervisors are usually paid more than operatives. They also have a day to day responsibility for the operatives, they ensure that they work effectively and deal with problems as they arise.


These are the most junior employees within a business. Their role within a business is to have completes responsibility of their own work. They carry out basic functions of the business. They have little job security. Many of them are employed on temporary contracts. Once their contract comes to an end they may find themselves as unemployed. In some businesses they may make small decisions. Most operatives are unskilled.

Support staff

They need to have specialist skills. They offer advice and assistance in their specialist areas to other employees. Some support staff may be mangers that are looking after teams of people and are in charge of finance. The senior support staff takes important decision making.

Job description:

A document that sets out the duties and tasks associated with a certain position.

Span of control:

The number of workers directly supervised by a more senior employee.

Line manager:

An employee's boss, which gives advice, answers and questions.


The power the senior employees have to take control of other employees and decision making.

Organisational chart:

A plan showing the roles within a business. Arranged to enable business meet their objectives.

Informal structure

An informal structure with in a business is based on friendship groups, sports team

Formal structure

This is an official structure where each employee has clear authority and responsibility with the official lines of communication both upward and downwards.

Flat structure

In contrast to different structures a flat structures only have layer of management. This means that the span of control is wide whereas the chain of command is short. These types of organizations are usually small ones due to the small layers on the structure.

Advantages of flat structures

  • Greater communication is present between the workers
  • Makes decision making much easier
  • Fewer levels of management means fewer costs. As managers are usually paid high wages.

Disadvantages of flat structures

  • The growth of the organization may be limited
  • Workers may have more than one boss
  • The structure is limited to small organizations such as private limited companies.

Tall structure

A tall structure has many levels of management. There is a long chain of command running in the organization. The layers of management decrease the span of control.

Advantages of tall structures

  • Narrow span of control. Each manager has its own employees meaning that they can be closely supervised.
  • There is a clear management structure
  • The function of each layer is clear and it's their own responsibility to keep control.

Disadvantages of tall structures

  • Communications need to go through many layers of management
  • Freedom of employees is restricted
  • High management costs
  • Decision making can be slowed down

Hierarchical organization structure

A hierarchical organization structure ranks employees at various levels within the organization. Each level is one above the other. At each stage one person is in charge of a number of workers which are under them. A hierarchical structure states each employee's role within the organization.

Advantages of hierarchical structures

  • Responsibilities are clearly defined
  • Employees are very loyal to their department
    Disadvantages of hierarchical structure
  • Departments can make decision instead of the business as a whole
  • Communication may be poor due to many layers

Centralized and decentralized organizations

In centralized organizations the management or head office will retain the major responsibilities and powers. There is tight control within the organization. In a centralized organization employees are not able to show flair and initiative.

In contrast to this in a decentralized organization the responsibility is spread specifically depending on the decisions to be made. Sainsbury's is an example of a decentralized structure, in each Sainsbury store there is a manager who can make certain decisions concerning the store. This manager is responsible to a regional manager.

Some organizations may decide a combination of centralized and decentralized will be more effective. An example may be that within a organization the accounting may be centralized to save costs where as the recruitment may be decentralized.

Advantages of centralized organizations

Senior managements have greater control

  • Decisions can be made to benefit the organization as a whole.
  • Organization can benefit from senior managements decisions.

Advantages of decentralized organizations

  • Senior managers have the time to concentrate on important decisions
  • Decision making is a sense of empowerment. Empowerment may increase the motivation of workers making them deliver more.
  • Those lower in the structure have a great understanding of their surroundings and the people they work with.
  • Empowerment makes it easier for people to accept and make a success.

Employment contracts

By law employers need to be provided with a written contract of employment. The contract clearly states the terms and conditions under which the person is employed. Having all this written out can help to avoid any misunderstandings which may occur in the future. This must be issued within 8 weeks of starting work.

If contract is broken

An employment contract may be broken if either you or your employee do not follow the terms and the conditions that are stated on the contract. This is also known as a breach of contract. If the contract is broken by your employer the best way is to firstly try and informally solve it with your employer. If this does not work then you should try raising a grievance against your employer.

Changes to a contract

An employer cannot change your contract arrangements without the employee agreeing. In some cases you may be faced with either accepting the arrangement or losing your job. However in these types of cases you may take action against your employer if you disagree with the change.

Type of work

Worker may be employed in different ways. A permanent employee contract means that the employee has a job for an unlimited time. There is no date stating when the employment will cease. Whereas temporary contacts of employment last only for a certain period of time. Usually up to one year.

Hours of work

The contract needs to clearly state the number of hours an employee has to work each week. It needs to state weather the employees is working full time or part time and needs to state any other arrangements.

  • Shift work:
  • Some contracts require employees to work shifts. Shift work is continuous , with different employees working a set number of hours at different times. Most shift work is required for businesses which require long hours.
  • Overtime:
  • The contract needs to states which hours would be overtime. Time worked beyond the normal working hours. It should state the rate of pay offered for working overtime.

  • Flexible:
  • Some employees may work hours which best suit them. Although they have certain amounts of hours they need to work.

Place of work

Employees always work at the same place. Workers often live within a short distance of their place of employment. A contract may include millions of people's work at home using computers in order to communicate with people in the business. These are known as teleworkers. Some employees are expected to travel regularly to customers as part of their jobs.


A contract must state the amount an employee is to be paid and the intervals at which the employees will be paid. Whether it's weekly or monthly.

Other benefits

The contract of employment also needs to state other things such as the amount of holiday they are entitled to, the amount of pay they will receive if he or she falls sick and pensions arrangements.

Sainsbury's employment contract

Every employer of Sainsbury's must have an employment contract. This is to prevent any misunderstandings and for you to know your right to the job. The Sainsbury's employment contract includes:

  • Details of the employee. Their name, address, phone number, date of birth and other useful information.
  • It includes the date the employee started working there.
  • The job title and the description of the employer i.e. store manager
  • The store in which they will be based at.
  • Their financial earnings
  • The hours of works they will do a week
  • Their holiday entitlement
  • Sick pay entitlements
  • Pension
  • Grievance procedure
  • Disciplinary procedures
  • Notice periods
  • Finally the contract ends with the signature of both the employer and employee and the date.

A Sainsbury's average salary is £32,000 per year. Their payment is delivered to them on the 23rd day of each month. In Sainsbury's the average hours are 40 hours per week from Monday to Friday and they get 1 hour lunch.

An employer at Sainsbury's is entitled to 27 days of paid holiday per annum. A Sainsbury employer is entitled to 2 weeks full pay whereas over 2 weeks only 50% pay.


Flexible working arrangements help businesses to decrease costs by increasing productivity. Higher productivity enables businesses are more competitive with other businesses.

Multi skilled employees:

Workers who can carry out a number of jobs within a business.


Is the amount of goods or services produced by an employee over a set period of time.


Is the extent to which a good or service satisfies a consumer. A high quality product will satisfy a customer

Team working:

Is a group of employees which work together to complete a task.


Productivity is a measure of output from a production process. A increased output of goods benefits the business in many ways:

  • An increase in productivity lowers costs for the business.
  • Products may be sold at lower prices as their production is cheaper. This will also draw more customers.
  • The Businesses may decide to not change the price of products due to the low price of productivity which lead to greater profits.

Greater competitors

By a business being extremely competitive with other businesses it enables them to:

  • Make their products more cheaply
  • For their goods to be supplied with higher quality
  • To supply better advice and support
  • And to provide goods more quickly

Sainsbury's has a number of competitors such as marks and Spenser, Morrison's, Tesco and others. All of these following supermarkets are in competition between each other. This is done by:

  • Advertisements
  • Cheaper products and services than competitors
  • Good customer service

This are all provided by Sainsbury's.

Improve quality of goods

It's very important for businesses to produce high quality goods. Products want quality goods and are not up for paying for products which do not fulfill their expectations. Improving the quality of products will also affect the business as a whole.

Sainsbury's provide good quality products for fair prices for fair prices. All Sainsbury's customers are left satisfied with the products they have purchased as well as they priced they have left for it.

New technology

By introducing new technology it helps businesses become more competitive. By introducing new technology it will change many working arrangements.

  • Workers usually want to run expensive machinery.
  • Machinery will replace full time employees with temporary, part time or some may totally lose their job.
  • New technology may result in many working from home.

Sainsbury's have introduced online Sainsbury's website in which customers may get any useful information about the store on. Customers are also able to purchase products and supplies through the website. The website is very clear and the website is simple to use. Responds are made very quickly to all customers. This attracts many customers as well as keeping the old.

Team working and multi skilled employees

There are many businesses within the UK that have formed their employees in to teams. The groups consist of 5- 20 workers. Team working allows employees to work flexible hours and shifts so some staff from each team is always on duty. The workers need to be multi skilled in order for them to be able to switch jobs at times.

In Sainsbury's, there's a large amount of workers which all fulfill the same job needs. There are many cahiers and assistants which are all around the store. These employers are also multi skilled as their shifts change.

Recruitment and training

When someone is in need for a job there are many places they seek to find a job. These include:

  • The internet
  • Job centre
  • Recruitment agencies
  • Newspapers

When looking for a job both the employer and employee look for different things.

Recruitment process:

The steps involved when recruiting a new member of staff.

A recruitment process is needed in order for:

  • Everyone to be aware of the job they need to do
  • So the best person is selected for the job
  • So the recruitment if legal

Law and ethics

  • Law states there must be no discrimination; everyone must have the same opportunity regardless of their sex, race or disability.
  • There must be no favoritism all candidates should be treated fairly and equally. All candidates must be put through the same recruitment process in order to make it fair.

Identifying the vacancy

In order for a vacancy to be filled in Sainsbury's they go through a recruitment process which manages Sainsbury's to find the right employee for the job.

Recruitment process

Job analysis

This step in the recruitment process identifies whether a job is needed or not. This identifies the job role that is needed. The main purpose of a job analysis is to prepare a job description and job specification, which will help hire the right person with the right skills for the jobs.

Job description

Once Sainsbury's has analyzed what job needs filling. It then draws up a job description. A job description contains:

  • The job title
  • The department the job will be done at (position of job)
  • A summary of the job
  • The tasks which will be involved
  • Duties to the employee
  • Responsibilities
  • Working conditions
  • How to apply for the job and when the deadline is

This helps applicants to decide whether they would like to apply for that job, to let them decide whether they have the skills needed for that particular job.

Person specification

A person specification is a sum up of the type of person needed for the job. Things usually included in this are:

  • Experience and qualification needed
  • General intelligence
  • Specialized skills
  • Health considerations

This will allow the applicant to compare their personal life achievements and health with the one needed for the job. If similarities are found then the applicant will apply if not the applicant may look for another job.

Job advertisement

This is an announcement of the job. This may be announced in a magazine, newspaper, at a job centers or even on the internet. This informs all people which are seeking a job that there is one available. The advertisement will include a description and specification of the job to inform applicants of the job role, qualifications needed, etc. This allows many people to view the vacancy and apply for the job making it more likely for the organizations to pick the best candidates.

CV/ Application form

Applicants which find themselves useful for the job will then apply for the job as well as send their CV along with their form. The applicants must answer all questions and no untruthful information must be given. The form must be sent off before the job entry deadline in order for their form to be accepted.


The interview is one of the most important parts of the recruitment process. The applicants get the chance to not only find out about the business but also have the chance to tell about their self. During an interview a candidate will want to know and will also be told about several important factors which may lead to a decision about the job. These include:

  • Salary
  • Job security
  • Holiday
  • Hours
  • Health and safety
  • Training
  • Facilities

However on the other hand the employee will want to find different factors in an employee such as:

  • Attitude
  • Motivation
  • Communication skills
  • Initiative
  • Body language

All suitable applicants will be invited for an interview and will all be asked the same questions in order to make the job recruitment process fair. In some jobs a certain test will need to be carried out. All candidate's interviews and tests will then be reviewed and marked.


All candidates who mostly meet the job description will be further contacted for more information. Some will be successful and some unsuccessful.

Check reference

The selected candidates references will then be checked and the selection will be further cut down to a shorter list. This will then enable the organization to pick the one which will best fits the job and they will then be offered the job, if the job is accepted by the candidate, the unsuccessful candidates will be notified.

Employment contract

The selected candidate will then get a written employment contract which states all the working arrangements for the employee, written by the employer. These arrangements are sable and if any changes are to be made to it both parties need to agree.

The recruitment process is very important in many businesses including Sainsbury's. It makes sure that the right person with the right skills and attitude is chosen for the job. It makes sure the job will be done to the best potential.

Different types of recruitment:

  • Internal:
  • Means that a job vacancy is filled by a current employee rather than employing externally.

  • External:
  • When an employee is appointed from outside of the organization.


Sainsbury's looks for motivated people during the recruitment process.

  • As motivated workers tend to be more productive, this will lead to increase in profits.
  • They tend to have Better communication skills and treat customers with respect, this leads to customers being happy and revisiting the store.
  • They are more likely to stand by the business for many years this will decrease any cost of recruiting anyone else.

They also look for someone's body language. They seek to see whether someone is a quiet and nervous person. Someone who lacks interest, whether they are someone who is aggressive. Or on the other hand someone shows interested and has a positive posture.

A business looking for a potential applicant

  • Jobcentres:
  • It is usually free for a business to advertise the vacancy through the jobcentres.

  • Employment agencies:
  • These charges for their services.

  • Head hunters:
  • These are used to recruit people from other business. The golden hello, these are one off payments that are made to someone when they transfer to another business.

  • Advertising:
  • Usually done through newspapers, or local or national press.


Training to be taught and learn new things linked to your job.

Businesses train the workers in order to:

  • Improve their performance
  • To develop new skills
  • To avoid any misunderstandings
  • To gain confidence in employees

Types of training

Induction training:

This is an introduction of the workplace and of the employees to the new employees. The new employees are alerted of the rules and important health and safety information. It is important for this day to be interesting but not too long as it may put the employee off joining the company.

On the job training:

This training takes place during you work.

Off the job:

This is training that takes you away from your normal work. This may be in the same room or even in a totally different building and also run by another company.

Sainsbury's training

When Sainsbury's opens a new store hundreds of jobs are available. These jobs are advertised on their in store job boards. The staffs are usually recruited several months before opening of the store. This allows the new employees to get training over and done with.

Sainsbury's want all staff to gain the skills and knowledge they need to do their best. Sainsbury's provides different types of training for their staff. These include courses, workshops, job shadowing and mentoring.

Staffs at Sainsbury's have the opportunity to learn via the internet. This has a lot of information on training and has hundreds of title you can visit.

Sainsbury has a graduate training programme where all new employees are introduced to the store by shadowing a manager and working under their supervision.

Training costs

Training involves many other costs excluding the training course itself. Other costs may include:

  • Travel costs
  • Accomadation
  • Food/drink
  • Other travels
  • Employee to replace this employee
  • Plus the actual course fees

Government and training

The government attempts to improve quality of training. They try and do this through the learning and skills council. This:

  • Encourages businesses to improve their productivity and competitiveness by ensuring staff have the right skills.
  • Provides career development loans for adult learners.
  • Provides financial support for students from lower income families.

Reasons for governments involvements in training

The government gets involved in order to:

  • Get the unemployed to find work
  • To improve the competitiveness of UK industry against foreign competition. This will create a better skilled and more flexible workforce. And will improve productivity and quality.

Government training schemes include

New deal:

This is a job related training- for long term unemployed people. Variations include:

  • New deal for young people
  • New deal for over 25's
  • New deal for over 50's
  • New deal for lone parents
  • New deal for disabled people

The new deal aims to help people who are out of work to get a job. It gives them the chance to train, learn and do work experience so you can:

  • Gain more confidence
  • Get new skills
  • Sind and stay in a workplace
  • Have more experience, so will be worth more for a business.

New deal for young people and 25 and 50 plus

New deal for young people will help youngster aged 18- 24 find and also keep a job. If you're someone who has been claiming job seekers allowance for than 6 months and your aged between 18 and 24 you must take part in the new deal for young people. You will be given a personal advisor which will be with you every step of the way.

New deal for lone parents

This is a voluntary programme to help lone parents find work. Your personal advisors will not only help find you work it will also help find childcare. Your personal advisors will inform you of the benefit and tax changes which will occur once you start Working.

New deal for disabled people

It helps disabled and health related people to move up into paid work. Many people have noticed that people with a disability have a wide range of talents which are wanted in many businesses.

Investors in people

This was launched in 1991 by Michael Howard. This is all about business improvements. It encourages employers to train their employees. In order for an employee to receive the award an employee must:

  • Be committed to training all employees
  • Set training goal
  • Plan a structured programme of training
  • Be able to evaluate the success of their training.

Investors in people in Sainsbury's

Sainsbury's were the first major food retail to achieve corporate investors in people recognition in 2001.

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