This is а major influence on the structure the firm adopts. If а business has а highly innovative culture whereby it wishes to be а market leader selling advanced products (as Sainsbury’s does), it may adopt а matrix structure to minimise bureaucracy and to allow teams to carry out the necessary research and development, and market research. On the other hand, an organisation which places importance on tradition (and would wish to appear conventional) may be best suited to а formal, hierarchical structure. This structure places emphasis on positions rather than people and this factor encourages the continuance of existing policies and practices.
Planning new services that Sainsbury’s can offer is important if they are to attract new customers or get customer loyalty from existing customers. Sainsbury’s 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.