Tesco Conflict Management

QUESTION 2

With reference to a firm regulated in the UK in a sector of your choice, prepare a short paper (intended for use as the basis for discussions with the Executive Board), which identifies two key areas of business where conflicts of interest might arise. Explain how these conflicts could be managed in practice, with reference to the organization’s systems and controls, policies and procedures.

Introduction

The aim of the paper is to analyse the areas of conflict management in an organisation in regards of Sainsbury that is second largest supermarket chain in the UK in regards of retail sector. Moreover, it further aims to highlight the policies and practices to resolve the issues that are arising from the conflict of interest and

Sainsbury plc. is the second largest retail grocery company operating in the UK with the revenue of about £23.949 billion and 161,000 employees all over the UK with their large variety line of their products and services in the market. Moreover, it is observe that Sainsbury has achieved a height in their financial performance and increase their annual turnover from £6.9 billion to £21.4 billion. The group has three business operational units i.e. Sainsbury’s convenient store, Sainsbury’s Bank, and Sainsbury’s supermarkets ltd. It is the constituent of the FTSE 100 Index and listed on the London Stock Exchange.

The superstore chain was founded by John James Sainsbury in 1869. In 1922, the company became the largest grocery retailer. In the early stages the company adopted self -service retailing in the UK and created its mark in the market during 1980 till 1994. The company is the UK based and the head office of the group is in City of London, in Holborn Circus. The company deals in variety of products and is committed to offer higher quality grocery products as compared to its other highly competitive rivals.

Conflict in

An employee that invests in the business or takes decision to invest can potentially affect his decisions which he makes on behalf of the company. For instance, the head of the marketing department gives contract of Sainsbury to a retailer who also serves in the capacity of the retailer for head of marketing department. The head of the marketing department might find it difficult at some point when it comes to making decision whether to awards a sales contract to the same retailer knowing that contract will not at large benefit the company (Li & Hambrick,