...Abstract This paper critically analyses the past and the current market trend, operations, and marketing strategies of Sainsbury’s Company. Different models of analysis were employed to clearly understand the current and previous state of Sainsbury’s. Some of these models include SWOT analysis, PEST analysis, CORE analysis, Porter’s Five Forces model, Key Success Factors, and Ansoff’s Matrix These models help in understanding all aspects that play a role for the success and the failures of the company that include its strengths, weakness, opportunities, threats, and several factors that bolster of hinders the success of the company. I also looked at deep analysis of the success of introducing “Dark Stores” in Ireland. It can be concluded from this study that, Sainsbury’s can successfully enter into Ireland market by introducing “Dark Store”. However, the company will likely face some challenges and competition from other companies in Ireland, but it can counter these by employing different strategies recommended in this study. Business Strategy: Sainsbury’s Introduction The task of the strategy is the most difficult and time-consuming part of strategic management. This task runs almost through all levels of management and should be taken into account in most parts of the company. The specific implementation of the strategy begins with a thorough analysis of what the company should do differently and better for the successful implementation of the strategic plan. Each manager...
Words: 7299 - Pages: 30
...accounted by the retail sector. Particularly, Sainsbury’s and TESCO are the two of renowned companies in the retail sector. This report deals with the comparison and would contrast both companies’ performance in the last two years with the understanding of ratio analysis, which are considered to be a very close business match. The ratio has been chosen to show profitability. Efficiency, Liquidity, Financial gearing and investment Black, (2009). To begin with, Sainsbury’s and TESCO operate in the UK grocery sector, with both companies classed in the big-4 supermarkets. According, to the latest Kantar Worldplanel (2014) report, TESCO held 29.6% of the UK grocery market in top place, while Sainsbury held 17% of the market, holding third place after ASDA. Furthermore, both companies have business in other services, including clothing, non-food items, banking and insurance services as well as international operations for TESCO. According, to Sainsbury’s latest Annual Report (2014), total revenue (all – UK) amounts to £23.949Billion, with non- food and banking making up a much bigger proportion of sales, Sainsbury’s (2014). In comparison, with Tesco’s latest Annual Report (2014), sales from non-Uk markets represent £63.557Billion. Ratio Analysis and Key Highlights of the Report In this report, ratio analysis has been conducted to evaluate the profitability and performance of the two retail companies, TESCO and Sainsbury. In other words, this analysis will help to understand the ratios and...
Words: 1868 - Pages: 8
...Assessment of Sainsbury’s An Assessment of Sainsbury’s (J Sainsbury plc) in terms of its strategic opportunities and problems and the management of its decisions Executive Summary This report is based on Sainsbury’s management and business plans and performs an analysis of the company’s performance, governance and strategies in accordance with the literature review conducted for our study. The literature review focuses on the use of loyalty schemes as introduced by Sainsbury’s and business strategies related to marketing that affect the sales and profits of a company. Sainsbury’s approach to business is providing quality services to make the company great as well as to retain customers and long term relationships with suppliers and distributors. In this regard Sainsbury’s seems to have succeeded as its last year’s sales figures have gone up by a considerable percentage and it leads the market in terms of sales, doing even better than Tesco. The management structure including corporate governance and the strengths, weaknesses, opportunities and threats of the company have been given here showing why Sainsbury’s could use its business strategies to become the largest retailer within the UK and move ahead of Tesco and other companies for a larger and more consistent consumer base. This report and analysis focuses on the strategic opportunities and directions available to Sainsbury’s after conducting a detailed analysis of its business strategies including governance...
Words: 5586 - Pages: 23
...Digital Marketing Strategy Plan For Sainsbury’s Digital Marketing Marketing Strategy For Sainsbury's B00230954, B00271749, B00270823, B00270405, B00270428 15/04/2016 Table of Contents 1. Introduction .................................................................................................................................... 2 2. Assessing Sainsbury’s Current Online Situation .................................................................... 4 2.1. Online Resources ..................................................................................................................................... 4 2.2. Competitive Environment .................................................................................................................... 4 2.3. Internal audit ............................................................................................................................................ 5 3. Creating A Digital Marketing Strategy ....................................................................................... 7 3.1 SOSTAC Model ............................................................................................................................................ 7 3.2 Situation Analysis ..................................................................................................................................... 8 4. Further Examples Of Different Strategy Models .......
Words: 8004 - Pages: 33
...set up strategies in order to make decisions in the future. However, it is important to highlight that this ratios provide an overview of the business's financial condition, but an analysis in depth is needed to know the reasons why certain changes have occurred (Maclaney and Atrill, 2002). Nevertheless, there are some limitations in the used of financial ratios, for instance, the information is out of date so it does not reflect the real situation of the company, hence it can lead to wrong decisions, also, the analysis made from the financial statements gives symptoms of such situations but not the causes of it (Berry and Jarvis, 1997). The purpose of this report is to analyze Sainsbury's financial performance using the analysis of ratios as a financial tool. This information will be taken from the annual reports of 2003 and 2004. In addition, it will include external and relevant information of the company which adds value to the analysis and thus to the financial performance in the already mentioned period of time. This will also help to compare Sainsbury's with its competitor Tesco, in order to identify and evaluate the performance of both companies. Finally, this report will give conclusions and recommendations to those investors who want to make an investment in a secure company. RATIO ANALYSIS...
Words: 2656 - Pages: 11
...PESTEL analysis – Political Factors • Increasing globalization, presents a challenge as well as an opportunity to Sainsbury's. The challenge will be to compete against unknown forces and to source the best quality/financially viable products from world over. Sainsbury's can enter the markets of emerging companies through joint ventures or partnerships to explore these new markets, although it does not have any plans on the horizon to do so. Development to the non-domestic market, means towards a "global localization" (Shanghai; Bangladesh) • The on-going investigation of price fixing amongst the big four retailers within the UK can have some negative impact to the industry in general and Sainsbury's in particular, as it is at the forefront of this allegation (Rigby 2008). Although Sainsbury's is very well established among consumers, these allegations can lead to a negative public image, as the consumers might feel cheated. • In the UK, the Government is to decrease the rate of corporation tax from 30% to 28%, which will save big companies like Sainsbury's significant sums of money (HM Treasury 2008). For employment legislations, the government encourages retailers to provide a mix of job opportunities from flexible, lower-paid and locally based jobs to highly skilled, higher-paid and centrally-located jobs (Balchin, 1994) aim to recruit and retain the best people, from backgrounds that reflect the communities we serve; “you can” program PESTEL analysis – Economic...
Words: 1278 - Pages: 6
...Summary | 3 | Introduction | 4 | Company Analysis | 5-7 | Event Analysis | 8-10 | Competitors Analysis | 11-13 | Conclusion | 14 | References | 15 | | | Executive Summary: Marks and Spencer has been described in the "FTSE UK Series, which measure the performance of the 100 largest companies traded on the London Stock Exchange that pass screening for size and liquidity, as a nationally recognized, well-established and financially secure company" (FTSE.com). Although Marks and Spencer has a good financial position and reputation in the market, there are times where the price of its shares fluctuate as on the 27th February UBS – a financial services company - included Marks and Spencer to its “buy” list, as a result the share price of Marks and Spencer raised from 353.4 to 360.1 (Financial Times (a)) and there was a fall in the share price in the beginning of October, mid November and at the launch of March caused by the fall in the market value. The increase in Marks and Spencer share price on the 27th February and the UBS decision to put M&S on its buying list could be linked to announcement of the Interim Management Statement on the 10th of January which indicated the glowing performance that M&S done in the 3rd quarter of its financial year. Marks and Spencer have many competitors, Sainsbury’s as they offer same standard of Marks and Spencer food and NEXT for the same quality of clothing. Sainsbury’s share price tend to have almost the same...
Words: 2420 - Pages: 10
...I have been given a task to draft a report on Annapolis Ltd for Mr. Khan to assist him whether to purchase controlling interest in Annapolis Ltd or not. In this report I will assess the financial health of Annapolis Ltd in the year 2011 through its accounting ratios. The process of evaluation will be based on the comparison of Annapolis Ltd accounting ratios of the financial year 2011 and year 2010. Ratio Analysis: Ratio analysis provides extremely important information about organization’s financial health. I am going to calculate the financial ratios for the present data of Annapolis Ltd. and then I will compare it with the financial data of previous year in order to judge the present performance of Annapolis Ltd. This analysis will help Mr. Khan to judge whether or not to invest in the company. Gross Profit Margin (GPM) The GPM is assessment of organizations distribution and production efficiency. The GPM will indicate the investors of the percentage of revenue left after deducting the cost of goods sold. It also helps to indicate the efficiency of organization’s production process. If there is a high GPM, it means that if the organization keeps its overhead costs under control, it can make a reasonable profit on sales. If the GPM is low or inadequate, this means that the organization will not be able to pay its expenses and expand for the future Gross Profit Margin (GPM) for Annapolis Ltd GPM = G.P for year/Sales for year x 100 2011 = 9, 71/3,348 x 100 = 29% ...
Words: 1374 - Pages: 6
...GRENOBLE GRADUATE SCHOOL OF BUSINESS MSc Finance 4, London 08 Fall Strategic Performance Control Dr Vassili JOANNIDES Kelly Goncalves, ID: 102178 May, 1st 2011 Table of Contents Table of Contents 2 INTRODUCTION 3 I - Critical Strategic Issues in Sainsbury’ s business landscape 3 1 - Background about the company 3 2 - Strategic issues in the Retailer and Consumer Landscape 3 Consumer Market landscape 3 Digital Technology 3 Distribution channel 3 II – Strategic performance control system 3 1 – An integrated risk management approach combined with the Balanced Scorecard 3 Linking risk to tactical plan and strategies 3 Rapid responsiveness toward changing consumer landscape 3 Digital Technology 3 CONCLUSION 3 References 3 INTRODUCTION As the consumer industry landscape increasingly evolves complex, it is crucial for an organization’s ability to manage risk while effectively predicting and responding to changes in key strategic factors for long-term success. Globalization, changes in consumer’s spending habits, rapid advances in media and technology and other factors force today’s business environment into a state of constant evolution. While it is fundamental for organizations to identify their most significant strategic issues, it is equally important to design and implement efficient strategic performance control system towards desired strategies. This paper is aiming to demonstrate the relevance of linking strategic issues...
Words: 2853 - Pages: 12
...Introduction Sainsbury’s was first established in 1869 by John James Sainsbury and his wife Mary Ann Sainsbury in London. Running for more than 145 years Sainsbury’s now became one of the largest retailers within the UK, (Sainsbury’s online, 2015). Rationale As Sainsbury’s contemplating to invest overseas in order to meet the company’s long term strategic goals. They have been studying numbers of diverse markets, and in order to help with their decision making, the management has appointed the author as a consultant. By which, are required to compile a report regarding the attractiveness of a country based on potential return on investment. Therefore, to help achieve the analysis and evaluations required in determining the opportunities and risks presented, wide ranges of research methodologies will be used, including appendices of graphs to help demonstrate the author’s understanding and perception of the country choice, as opposed to help with the recommendation stage. Country Choice The phenomena of hill’s theory on a country’s overall attractiveness (See appendix A) looks at a country as a possible market of investment for global businesses (i.e. Sainsbury’s). Moreover, it is reliant on harmonizing the benefits, costs, and...
Words: 791 - Pages: 4
...A Competitive Analysis on Tesco Introduction Tesco and Sainsburys rivalry goes way back and has been going on for over decades now. Tesco was founded in 1919 by a man named Jack Cohen. Its very first store opened in 1929 by T.E. Stockwell, and in 1932 Tesco became a PLC. Sainsburys started in 1869 and is part of the “multi-national company J Sainsbury in both the UK and the USA” (2008). The main focus of this essay is analysing Tesco against Sainsburys in their performance when it comes to marketing and how well they are market oriented and sales orientated, their ability to understand customers and its consumers and also their marketing mix. Market orientation for Tesco and Sainsburys is how they as a business both choose to focus on identifying and meeting their customers’ needs whether it be stated or hidden. This is quite different to the sales orientation because with sales orientation, Tesco and Sainsburys focus on promoting sales of whatever a company supplies or makes through sales calls and marketing. Tesco tend to place a positive image on their customers through their good customer service and their quick responses to customer needs. Tesco also tend to ensure that they are offering their customers as much help as possible in and around their store. This is how Tesco uses excellent market orientation. They also do this through refurbishment in and around the store which is their way of improving their service levels. After a customer makes a purchase or refund...
Words: 1258 - Pages: 6
...Consulting. The report is to evaluate the Customer Care Strategy for Sainsbury’s. The reason for choosing this organisation is because of their quality of products and convenience regarding the location of the store. Sainsbury’s is part of J Sainsbury PLC, which was founded in 1869 in London by John James Sainsbury and his wife Mary Ann Sainsbury. They now have over 1,200 supermarkets and convenience stores and have now grown to be one of the largest retailers in the U.K. Sainsbury’s state that they “put their customers at the heart of everything they do”. (Sainsbury’s, 2015). They state that their “values and ethos have never changed” (Sainsbury’s, 2015) however they are aware that the retail industry has changed over the years therefore they created a new strategy to continue to be known for excellent customer service and to evolve their organisation so that they can continue to provide for their customers by being able to satisfy the customers needs with regards to “what customers want, when, where and how they want it”. (Sainsbury’s, 2015). Sainsbury’s has recently undergone a period of restructure as they wanted to improve efficiency and customer service. 2. PROCEDURES The findings for the content of this report was primarily sourced from Sainsbury’s website which is detailed in the Bibliography/Referencing section. 3. FINDINGS 4.1 Customer Service Standards Sainsbury’s Vision...
Words: 2441 - Pages: 10
...MARKETING STRATEGY FOR SAINSBURY by Student’s Name Code + Course Name Professor’s Name University Name City, State Date Table of Contents MARKETING STRATEGY FOR SAINSBURY’S 3 Introduction 3 External Audit for Sainsbury’s 3 SWOT Analysis of Salisbury’s 5 Fundamentals Areas of Marketing Objectives 6 Marketing Strategies 7 Marketing Mix 7 Reference 8 MARKETING STRATEGY FOR SAINSBURY’S Introduction Sainsbury’s is a chain of supermarkets in the U.K. it is mainly focused on the sale of groceries. The supermarket was established in the year 1869 in Central London. It is the third largest grocery chain in the U.K after Tesco and Asda. It is indicated that Asda outdid Sainsbury’s in large after it acquired Netto. The U.K has recently registered a change in the shopping habits of the groceries consumers. Many of the consumers are now preferring online shopping and discounted chains as opposed to supermarkets. It is for this reason that this paper is going to give a report to the Board of Sainsbury’s on the marketing position that Sainsbury’s should adopt over the next three years. External Audit for Sainsbury’s A research conducted by the City analysts has predicted that Sainsbury’s is likely to register a decline in its grocery sales by 2.5% for the preceding three months. This is with the exclusion of fuel. This is going to be a big setback for Salisbury’s given that it has, for the last decade, registered only an increase in the sale of its groceries...
Words: 1661 - Pages: 7
...Tesco Plc: A Financial Analysis of a Top Retailer International Accounting Professor Nikolaos Tsorakidis Benavides-Vereau, Marisa Cheng, An-Ting Domingo, Ferdinand Jr Kangun, Ilya Shimba, Danielle Vlasieva, Nadia TABLE OF CONTENTS A. INTRODUCTION: 2 I. INDUSTRY OVERVIEW ..................................................................................................................................................3 B. TESCO ANALYSIS 3 I. GROWTH AND DEVELOPMENT .....................................................................................................................................3 II. PROFITABILITY ..................................................................................................................................................................................4 III. EFFICIENCY: ...............................................................................................................................................................5 IV. CASH FLOW ANALYSIS (INCLUDING LIQUIDITY AND FINANCIAL GEARING) ................................................................6 V. SHARE PRICE AND INVESTMENT RATIOS .....................................................................................................................7 C. SUMMARY AND CONCLUSION: D. APPENDIX APPENDIX A: ...
Words: 4519 - Pages: 19
...Table of Contents Introduction 2 Human Resource Defined 3 Strategic HRM Elements 3 Strategic Planning 4 Strategy 4 Strategic HRM and Goals & Objectives 4 SHRM – A tool to achieve organization’s goals and objectives 6 Case Study 7 Company Information 7 Company background 7 Core strategic aims and values 7 Pest Analysis 8 Political Factors 8 Economic Factors 9 Social Factors 9 Technological Factors 9 Employee and human relations 10 Human Relations 10 Key Success Variables 10 Employee Relations 10 Key Success Variables 11 Global market value and competitive advantage 11 Internal & external customer satisfaction 11 Key Success Variables 12 Conclusion 12 List of Figures Figure 1: Strategic Human Resource Management Model 6 Figure 2: Traditional HR versus Strategic HR 7 Figure 3: Pest Model 9 Introduction In the current global business environment, the role of HR cannot be neglected. HR consideration is equally important as the knowledge economy expects from their workforce to share their contribution in building the structure of the ideas for the benefits of organization as a whole and at the same time support in compliance of its strategy. HR competent people working in an organization set the benchmark in value additions for the business activities that are undertaken in return to have the desired achievements of goals and objectives. Hence it has been pretty crucial to acquaint with the dynamic HR changes that are happening in an economy. ...
Words: 2620 - Pages: 11