“To deliver this goal we will focus on:
- Product and price, and be
- Best at fresh
- Best at availability and
- Best at customer service”
The Key objectives are usually related with the following -
a) Making a profit (or surplus)
- Try to cut down on daily expenses. Nowadays an example of this would be changing the workforce to machinery rather than labour.
- Concentrating on goods that the market has a high demand rate would be good to boost sales within the company.
- It can work out the level of production at which the levels of profit are greatest, and remain at that level of production.
- Adjusting prices to maximise profit.
- Creating a new product out on the market hoping to start a new craze.
- Making a profit is vital for satisfaction of shareholders, old and new. Often this can be a main objective to provide a good value to investors, giving them a good share price.
b) Survival
Much business just tries to break even and run the business day to day making a profit. This is also known as survival. This is a good method but eventually they will go below no business will be able to keep losing bits of money.
c) Increasing sales or market share
Increase in sale on the market share is a key objective for Safeway plc.
As Simon Laffin has quoted “Driving profit through sales” is a major objective for the company. Usually increasing the variety in products brings in a wider audience of customers increasing profit.
“Best Deals Ever” cut the price of certain products to hopefully sell more of that product. The way to broadcast this would be to advertise it through the use of posters, flyers and other advertising methods if you have people visiting more often and more customers this shows success for the increase in sales.\
A survey has shown that Safeway’s customers have risen by 8 with a 5% increase in sales in the last year. Making a grand profit of 35% profit, showing that the theory of more customers and sales increases profit.
d) Helping with the society around its shop.
Recently supermarkets have realised helping the community around there shop is vital in attracting new customers i.e to help the surrounding schools with computer vouchers etc.
Safeway are also working with the local farms at the “Best at fresh” campaign, making a wide selection of fresh foods for the buyers to purchase. This having to stay in contact with the community outside Safeway to bring in the fresh supplied food.
Many different types of sponsorships Safeway get involved with are such ones as the computer voucher scheme involving giving computer discounts to schools with a certain amount of goods bought per person so it encourages the teachers of the school to advertise that super markets. Safeway have made a contribution of £100k to the community in the year 2001.
Environment
Governments are making environmental issues a big part of their time and so are supermarkets interested in the following things: -
- Packaging development
- Sustainability of raw materials
- Waste management
- Energy conservation
The way in which Safeway percept there views on environmental issues are as follows,
“We strive to operate in harmony with the global environment and promote environmental protection as an integral part of our business activities”
Safeway was the first company to introduce recyclable bags back in 1970; it also introduced the first bottle banks into the supermarket community. Also doing smaller things like changing there vehicles to using natural gas.
Since 1998 Safeway has seen a 24% benefit on fuel savings, also decreasing capital costs and this using less fumes on the vehicles creating less pollution.
e) Producing high quality products or high quality services
A good example of this policy is the so-called “Best at fresh”
“The growing strength of our fresh food offer – how we have made the product the hero, upgraded our ranges and helped suppliers achieve success in the market place.”
For example Safeway’s passion for fresh food means that they are constantly improving their ranges, including the introduction of fresh pasta, a delicious patisserie range and a wide selection of fish and seafood.
Safeway’s new ways of merchandising have allowed their customers to see the freshness and quality of their products.
Another good example of this policy is Safeway’s “Customer service”
“Giving Safeway people the skills to deliver first class customer service”
The people who work in Safeway’s stores are central to the delivery of their business goals. It is the skills, flair and enthusiasm of their people that ensure success. This is reflected in the investment they are making in training and development.
Making staff more knowledgeable about the product offering ensures a high degree of customer satisfaction.
Increasing current market value is also an important objective for Safeway Plc, as this is an indicator of public confidence in the firm.
Current market value
Safeway Plc has a market capitalisation of £3.5 billion pounds as identified in ‘The Sunday Times’ dated October 7th. The following chart identifies Safeway’s progress versus the FTSE 100 over the past two years. This timescale is the same as the C.O.O’s (Chief Operating Officer) revised strategy.
