...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...
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...Acknowledgements : First of all we would like to introduce our selfs, BIALLACH Safae and EL YOUNSI nahide, a 3rd year students in SUP DE CO MARRAKECH. In the third year the internship is a part of the program at our school. But for the two of us, we didn’t do an internship because we shose to go for a summer school programme in LONDON, UNITED KINGDOM for two weeks at the LONDON SCHOOL OF BUSINESS AND FINANCE (LSBF). The objectives during this journey were to improve our level in English language, to Discover a new culture, to visit a lot of places that we wanted to see and also to meet a lot of different people from different countries. Studiying in LONDON was a wonderful experience that we wont forget. for that, we would like to give some thanks to all the people that helped to gave us the chance to go for this programme. Without forgeting a special Thanks to our English Teatcher M.EL FOUADI KAMAL for this opportunity. Last, but not least, we would like to thank our parents and family for supporting our stay in LONDON financially and emotionally. INTRODUCTION ...................................................................................................2 SECTION 1 : TESCO……………. .........................................................................4 1-BUSINESS DESCRIPTION…………. ......................................................5 2-HISTORY .................................................................................................6 3-CORE...
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...Abstract The purpose of this assignment is to critically examine the performance of two companies using Ratio analysis over the a period of five years (2008-2012), in order to recommend the best company for investment, justified by the data collected, analysed using ratio analysis and interpreted The assignment, will compare two of the largest retail outlets in th UK in sainbury and Tesco. It will show that Tesco has higher Profitability, Liquidity and Gearing ratios than Sainsbury, While in investment ratios Sainsbury exceeds Tesco. However it will also show that over the five year period Sainsbury as more consistent ratio outputs than Tesco, whom go into a steep declines in various ratios during the 2012 period. This assignment will show that Sainsbury on the basis of consistence is a better investment option, while highlighting that the ratio cannot be the only tool used in analysing comparatively the two companies. Table of Contents Introduction1 Selection of companies2 3. Ratio Analysis3 3.1 Profitability Ratios4 3.1.1Return On Capital Employed4 3.1.2 Gross Profit Margin6 3.1.3 Profit Margin7 3.2 Liquidity Ratios8 3.2.1 Current8 3.2.2 Liquidity9 3.3 Gearing Ratio10 3.4 Investment Ratios12 3.4.1Dividen Yield12 3.4.2Pric to Earning13 4.0 Critical Analysis15 5.0 Conclusion16 APPENDIX17 Bibliography Table of Tables Table 1.1……………………………………………………………..4 Table 1.2……………………………………………………………..6 Table 1.3……………………………………………………………..7 Table 2.1……………………………………………………………...
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...Sainsbury: J Sainsbury PLC was founded in 1869 and incorporated in 1922, London. For the past 140 years, the company grew rapidly; today it is one of the “big four”# supermarket chain in UK. It currently sorely operates in UK and employs about 150,000 people. Its cooperation business is composed of four areas, which are supermarkets, online business, property market and banks. The Sainsbury supermarket operates a total of 890 stores comprising 547 supermarkets and 343 convenience stores around the UK. The stores are pride of providing health, safe, fresh and tasty food to its customers. It also jointly owns Sainsbury’s bank with Lloyds Banking Group and has two property joint ventures with Land Securities Group PLC and the British Land Company PLC. Its total revenue (excluding the value added tax) in Fiscal Year (FY) #2010 was £19,964 million, which increased 5.6% from the last year. The underlying profits before tax grew to £610 from £519 million. The basic earnings per share increased 93.4% to 32.1 pence from 16.6 pence. Food retail industry in united kingdom: In 2009, the value of United Kingdom food retail industry increased by 3.1% to reach $186.1 billion. According to forecast for 2014, the United Kingdom food retail industry has a value of $219.4 billion, and increase of 17.9% since 2009. The compound growth rate of the industry from 2009-2014 is predicted to be 3.4%. With a market share rose to 16.5% over the 12-week period, from 16.3% a year ago according...
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...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 to integrated strategic performance control system through the case of Sainsbury, the UK's third-largest supermarket. The first section lays out the most significant strategic issues that Sainsbury confront in the grocery retail industry...
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...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...
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...Global Production and Sourcing. Introduction: For this project I will be looking into the specific requirements TU at Sainsbury’s require around specific product types. I will be looking into Sainsbury’s TU toddler boy’s jersey wear. Researching into two countries of origin I will be looking into what management conditions, technological and economic issues that surround the choice from where Sainsbury’s choose to and how they are sourced and manufactured. Sainsbury’s was founded in England, London in 1869 by John James Sainsbury, and grew rapidly during the Victorian era. Sainsbury’s grew to become the largest grocery retailer in 1922, pioneered self-service retailing in the UK, and had its peak of success during the 1980s. However in 1995 Tesco overtook Sainsbury’s to become the market leader, and Asda became the second largest in 2003, putting Sainsbury’s into third place. (Museum of London. Unknown. The Sainsbury’s archive [Online] 22.03.2012) Sainsbury’s launched its TU fashion range in 2004, and is now housed in over 300 stores nationwide. Over the past six years, the retailer has seen its share of the £9.9bn value fashion market more than treble. The TU clothing range remains the UK’s seventh largest clothing brand by volume, TU kidswear however has gone from seventh place in 2011 to the UK’s sixth largest in 2012. (Drappers online, 2012, Sainsbury’s expected to reveal further gains in clothing market share. [Online] 22.03.2012) The Sainsbury’s TU clothing...
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...Contents 1. INTRODUCTION 3 2. PROCEDURES 3 3. FINDINGS 3 3.1 Customer Service Standards 3 3.2 Identifying and meeting the expectations of key customers 4 3.3 Maintaining Customer Aftercare 5 3.4 Obtaining and monitoring qualitive and quantitive customer feedback 5 3.5 Evaluation 6 4 Conclusion 7 5 Recommendations 7 1. INTRODUCTION This report is being produced at the request of Annette Wilson of Wilson’s 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...
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...Aldi and Sainsbury Grocery store is a shop which the main product sold primarily food HISTORY OF GROCERY SOTRES . They hold an extremely significant value in consumer lifestyle. This essay will compare strengths and weaknesses between Aldi and Sainsbury. Aldi Aldi is a private company which was founded in Essen, Germany 1946 by Karl and Theo Albrecht. Aldi is now a leading worldwide discount supermarket chain with more than 8,500 stores in more than 15 countries. After several years, the owners separated Aldi into Aldi Nord, which operates shops in the north of Germany, and Aldi Sud, which operate the south and the UK. Karl took the Aldi Sud (South), and his brother Theo took the Nord (North) (Rudolph, 2011). Moreover, in times of economic depression were consumers are caring more about the price. Aldi to took advantage of the depression with it being one of the leading supermarkets that offer discounts and lower prices than the main stream supermarkets. This strategy also known as razor strategy was very effective in the UK because when the economic depression hit Europe people felt the need to save and cut down expenses and restore to cheaper options. Aldi before depression. this below shows the number of the shops for people who want to save money for food for , which allows them to offer the best quality products at low prices (Haberer, 2008). According to Mirror Magazine “Aldi won the award of supermarket of the year, and this award for second year in a raw...
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...Case 2: A report on the case of Intermountain Health Care Introduction: This report analyses the case of Intermountain Health Care (IHC) which presents the idea of integrated model of health care system and provides perfect explanation of medical organization. The purpose of this report is to outline various lessons learned from the case of IHC and set an example for other medical organization by explaining success criteria of this case. Success criteria of the IHC: IHC has succeeded to deliver uniform quality medical care with continuous enhancement by implementing strategic vision in the organization and co-ordination among staff. For the health care organizations patient’s satisfaction is the essential key to success, by knowing this fact and to gain the satisfactory level of the patients, Intermountain has analysed and implemented qualitative principles for the satisfaction of patients. Also, with the help of these principles, Intermountain has planned the system. In this process of transformation at IHC, Dr. Brent James, a biostatistician and a surgeon, has played very important role and addressed the basic issues of quality management with the help of integration system. Simultaneously, as a result of integration system and as a part of organisational structure, Intermountain has found Dr W. Edwards Deming within the medical practice by mounting the cure percentage of patients which has made Intermountain unique from other health care organizations. To manage the delivery...
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...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...
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...ownership is spread out across different people with different views and opinions. Having many people with shares in your business can be very hard as it takes a long time and a lot of effort to make changes. Sainsbury’s is mainly owned by the J Sainsbury’s family but because they have sold a part of the company in shares this means that the family can’t make and decisions and changes in the business without putting it past their shareholders and asking them for their view. John Lewis is quite unique in that the company is owned by every one of their 69,000 permanent employees. Although Sainsbury’s and John Lewis are the same kind concept in which they sell the same kind of thing, they are very different in ownership. Stakeholders for Sainsburys are: Sainsbury’s family- The Sainsbury’s family are the main owners in the business, they are the ones that started the business and they are also the ones that put the time and effort in so that people are able buy shares in the company. Although they have sold a large portion of the business, they are the ones that have the final say in what changes happen. Any...
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...Name- MD. Jihan Iftikhar ID- 129106944 Strategic management Sainsbury’s Plc is UK’s well known supermarket chain with a history of 143 years. The supermarket chain is among one of the UK’s largest retailers which was originally founded back in 1869 by John –James Sainsburys and his wife Mary Ann Sainsburys. (www.Sainsburys.co.uk) In the current global recession , UK’s economy is severely affected and resulting inflation means that the survival of business has become a prominent challenge. The recent scenario in retail industry portrays a clearer image as companies like –comet, J-harris & Sons, JJb sports, Barrats etc had to close down their business’s. However even in these tough environment Sainsbury’s operates over 1000 stores and employs around 150000 people. The Company announced increase in profit and plan to open new stores in upcoming year. It is easy to understand that profitability lies on the underlying strategy of the organisation. In the case, the strategy formulation the strategy formulation can be captured by the framework that is provided by Michael Porter (Professor in Harvard University). The framework is known as Porters 5 forces which shapes the main strategy and gives outlook of any Company such as Sainsbury’s current business situation. This tool analysis includes 5 steps which determine the competitive power in a business situation which are: 1) Supplier power: - Sainsbury’s plc...
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...information to the top management of organization where it can be learned and applied to their organization. Analysis Sainsbury want to transform their supply chain by 700 million pound within three years. 700 million pound is a big number for the investment and 3 years is a short time to transform their company. They build new sites and factories which they actually can save their money with upgrade their current sites and factories. Then they develop too many software or information systems for their company which not only make up a lot of cost for IT but can make the operation become complicated. After the money, time also give the effect to your transformation. Sainsbury compress the time from 7 years intended plan to 3 years because they want urgency but it make the transformation become more risky. Besides, the important thing when the top management decide to make decisions about the whole operation of the organization, they need to ask their employee for the suggestion and feedback. In the Sainsbury Case, they do not get any input from their employee and just perform their transformation plan that cost a lot of money. Input from employee can help the top management to design the transformation plan which when it implement, the employee feel better and improve the productivity and increase the efficiency of the operation of the company. Although the Sainsbury provide the development programme and extensive training to their employee to establish with new environment of supply...
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...evaluation of the company’s performance but also gives room for effective comparison of the performance of one firm to that another (Baker, 2011:1). In this report, the main goal is to make comparison of two UK based firms; Tesco and J Sainsbury Supermarkets through the determination of ratio analysis for both of these firms over a time period of three years. Overview of Tesco Tesco is among the top food retailers in Ireland and United Kingdom with about 2715 retail stores located countrywide. Tesco was found by Jack Cohen in the year 1919 and its headquarters are located in East London. The management of the company has shifted forward by two major individuals inclusive of Sir Terry Leahy as the CEO and David Reid as the Chairman (Yahoo Finance, 2013:1). The company has a definitive product range such as Groceries, financial services, telecoms and consumer goods. The total revenue of the firm by March 2013 was about £ 43.6 billion with operating income of about £ 2.272 billion. Tesco’s net income is currently about 2.8 billion as of financial year 2013 (Yahoo Finance, 2013:1) Overview of Sainsbury Plc Sainsbury is the third biggest supermarket chain in the UK. The company has a market share of 16.5% in the UK Supermarkets chains. J Sainsbury was found in 1860 and currently it is one of the major players in the supermarkets with about 537 chains of supermarkets...
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