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How can Sainsbury's increase its market share?

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Introduction

How can Sainsbury's increase its market share? Background information on Sainsbury's: Established in 1869 and part of J Sainsbury's plc, Sainsbury's Supermarkets Ltd is the UK's second largest food retail chain, with 535 stores and annual sales of over �12 billion. J Sainsbury's plc is a leading UK and US food retailer group with interests in financial services and property. Comprising Sainsbury's Supermarkets and Sainsbury's Bank in the UK and Shaw's Supermarkets in the US, the group employs over 170,000 people. J Sainsbury's plc objective is to meet its customers' needs effectively and also provide shareholders with good, sustainable financial returns. Sainsbury's aims to ensure all colleagues have opportunities to develop their abilities and are well rewarded for their contribution to the success of the business. Its policy is to work with all of its suppliers fairly, recognising the mutual benefit of satisfying customers' needs. It also aims to fulfil its responsibilities to the communities and environments in which it operates. J Sainsbury's plc Mission Statement: Our mission is to be the consumer's first choice for food, delivering products of outstanding quality and great service at a competitive cost through working 'faster, simpler and together'. ...read more.

Middle

B Before exceptional items and amortisation of goodwill. 2002 2001 % Change Sales - continuing operations1 �18,198m �16,940m 7.4 Underlying profit before tax2 �627m �549m 14.2 Profit before tax �571m �437m 30.7 Underlying earnings per share2 21.5p 18.8p 14.4 Dividend per share 14.84p 14.32p 3.6 2003 2002 % Change Sales - continuing operations 1 �18,495m �18,198m 1.6 Underlying profit before tax 2 �695m �627m 10.8 Profit before tax �667m �571m 16.8 Underlying earnings per share 2 24.2p 21.5p 12.6 Basic earnings per share 23.7p 19.1p 24.1 Dividend per share 15.58p 14.84p 5. Summary balance sheet 2003 �m 2002 �m Fixed assets 7,878 7,343 Stock 800 751 Debtors and other assets 2,694 2,591 Cash and current asset investments 659 386 Debt (2,063) (1,542) Net debt (1,404) (1,156) Other creditors and provisions (4,896) (4,620) Net assets 5,072 4,909 Equity shareholders' funds 5,003 4,848 Minority interests 69 61 Capital employed 5,072 4,909 How has J Sainsbury's plc performed over the past five years in terms of growth, revenues and profits? 1997/98 1998/99* 1999/00 2000/01 2001/02 SALES (incl. taxes) 52 weeks �m 15,496 16,378 17,414 18,441 18,206 Group profit before tax, amortisation of goodwill, exceptional costs, and non-operating items 728 755 580 549 627 % Change 11.8 3.7 (23.3) ...read more.

Conclusion

Running a business on the basis of majority decisions. Key Features � Set objectives � Allocates tasks � Leader retains control throughout � Explains decisions � Ensures employees' social and leisure needs are met � Encourages employees to take part in decision-making. � Uses delegation Communication used One-way communication downwards from leader to subordinate Generally from leader downwards, though some feedback takes place Extensive two way communication between senior and junior employees Circumstances in which style may be appropriate Useful when quick decisions are required or when large numbers of unskilled employees are involved Can appear democratic, but is really autocratic leadership with a human face Useful when complex decisions are made requiring a range of specialist skills. The style Sainsbury's would most fall under is Autocratic or authoritarian leadership, it cannot be solely categorised in this niche as it has influences from the Paternalistic leadership and probably even some from the democratic side. They are mainly authoritarian because they tend to use one-way communication more than two ways. The senior managers will have little or no involvement with junior employees and it is highly likely that each store has its own set of targets and objectives to work towards. ...read more.

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