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I am going to analyse Sainsbury's and produce a detailed business report.

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Report Brief I am going to analyse Sainsbury's and produce a detailed business report. In this report I will include the business's objectives, organisational structure, culture and communication channels within the business and the use of ICT. I will examine how these factors effect its performance and operations and help it to meet its objectives. I will do this by looking at business reports, looking at sainsbury's web site and interviewing employees. Introduction John James and Mary Ann Sainsbury established Sainsbury's supermarket in 1869 and is Britains longest standing major food retailing chain. They first opened a small dairy shop in a poor area of London; it was so successful that further branches were opened. In the late Victorian period competition from national multiple retailers such as Lintons posed a serious challenge to small chains like sainsburys. So John James found it necessary to step up his rate of expansion so that he could buy goods as competitively as these companies. Sainsburys established opened an early lead in the introduction of in-store technology like scanning, Eftpos, computerised stock control and sales- based ordering; techniques which brought it a huge competitive advantage. Sainsburys products more than doubled in the decade up to 1994; exotic fruits, ready meals, speciality breads and reduced fat milks were introduced in response to customers increasingly sophisticated tastes. ...read more.


The company has a dividend reinvestment plan that allows shareholders to reinvest their cash dividends in the shares bought in the market through a specially arranged share dealing service. This idea means that instead of giving out shareholders dividends the company reinvests them back into the company hopefully making the company better, more efficient and making the company and the shareholders more money. Sainsburys needs to be a plc for many reasons, one of which is it needs access to finance, if the business was not a plc they would have to provide capital from his own savings or could take out a loan from a bank or other type of institution. Plc's are able to raise finance easier because it is more financially secure. They can raise capital through shares, bank loans, or overdrafts. Large companies can borrow money more cheaply than larger ones. Business objectives Sainsburys has its own mission statement, which they believe will develop their business even further and set targets to give you a datum from which to work from. Sainsburys statement is "to be the consumers first choice for food, delivering products of outstanding quality and great customer service at a competitive cost through working faster, simpler and together". ...read more.


By having other brands in the store sainsburys influence customers to come into their stores to get other items other than food. While they are in the store most customers will get other food items even if they didn't intend to. Functional Areas Sainsburys has been split into many areas; these are personnel, store manager, check-outs, produce, fresh foods, admin, deli counter, bakery, dry foods, stock control, ware house, frozen foods and BWS. Each area has its own structure and management (diagram). Each department has its own manager; they are in control of their own areas. They can then feed back information from managers above themselves. This means the people at the top are able to get a better view on what is happening on the ground, therefore giving them a better understanding of what all their employees are doing. By splitting the company up into all these different areas it means that they can concentrate on the needs of their customers. If they have one big company combining everything together, then it would be awkward for the customers to find what they wanted from the services provided. It would also be hard to control all the employees and make sure they are all doing thing right, the store would be chaos. But by having separate areas customers for example are able to find there way around the different organised department. ...read more.

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