- They plan on continuing with their good reputation by making sure they have the best products and making sure that they don’t have any adulterated products. They also have a system where they give money back guarantees if the customer finds any fault in that product.
- Sainsbury plan on making their market into an international market; they have changed their objective from, being the leading market in England to being the leading market around the globe.
In my price comparison table shown above, Sainsbury’s are the cheapest and Waitrose in the most expensive supermarket. I am very surprised that Tesco did not turn out the cheapest. This is because in all their advertisements they boast about being cheaper than every other supermarket. But I do believe that Tesco’s total price is very reasonable as it is very similar to that of Sainsbury’s. I am not surprised that Waitrose is the most expensive because they are known for first- class, high quality food. Waitrose is part of the John Lewis group; their products are of a higher quality and are made with mainly organic ingredients.
To satisfy the needs of stakeholders e.g. to improve shareholders with financial returns an increase our market share
The second aim and objective of Sainsbury’s is to ensure that the needs of their stakeholders are met. Sainsbury’s currently has a market share of 16.3% and is number three in the UK for 2008. Sainsbury’s profit share of 479 million, whereas in 2003 it was £454. This shows that Sainsbury’s profit has increased very slightly since 2003.
Tesco has a market share of 30.6% in 2008. By looking as the graph below from February 2006 the profit increased greatly and ever since then it has stayed at between 31.2% and 31.6%. Tesco has a profit share of 98 million whereas 2003 the profit was 906 million. This shows that the profit share for Tesco has increased in our current recession.
Sainsbury’s profits have been fluctuating over time. There are many reasons that could have been affecting the level of profit of Sainsbury.
- The variety of products that are on offer at Sainsbury’s. With a wider range of products that suit everyone, this keeps customers happy and ensures that they will continue to return because they are happy with the services that are provided at Sainsbury. This brings Sainsbury’s profits up with customers continuously coming back to their local store.
- Time of year and seasonal fluctuation. The time of year will determine the amount of profit that Sainsbury’s make. At different times of the year such as Christmas, Easter, New Year and many others, there will be a definite increase in profits. Also, there tends to be different food around such times of year and decorations etc. Sainsbury’s will know that those products to the public. If these products are offered at special prices ( for example buy one get one free) then this will lead to an even bigger increase in profits because more customers will be attracted to the supermarket for the value for money the Sainsbury’s offers. Also in certain circumstances, certain products such as strawberries are better in certain seasons. Sainsbury’s should ensure that they are providing this produce as customers are likely to be expecting to see them in store.
- The Sate of the economy (credit crunch): Credit crunch is a term used to describe a sudden reduction in the general availability of loans or credit. It is also used to describe the sudden increase of cost of obtaining loans from the banks. There are many reasons why banks might suddenly increase the cost of borrowing or making borrowing more difficult. This can be due to a number of reasons for e.g. when the central bank suddenly and unexpectedly raises interest rates or reserve requirements. Also it could be due to the government imposing direct credit controls or telling the banks not to engage in further lending activity. This could affect the profit levels in Sainsbury’s. Many customers could be struggling with financial matters and may being to find the product in Sainsbury’s too expensive. This could lead to Sainsbury’s having to lower the cost of a majority of products, then leading to a slump in profits.
- Stock Exchange: The more money that people invest, ad then the more money there is available to Sainsbury’s. The money that people invest into Sainsbury’s is always available to them to do things such as open more supermarkets, leading to yet more customers and an increasing in profit.
- Other supermarkets: There are many other supermarkets that are in big competition with Sainsbury’s such as Tesco, ADSA, and Waitrose etc. If competitors are providing a wider variety of products, more special offers and generally have better value for money than customers are going to be drawn to those supermarkets. This will lead to a decrease in profits for Sainsbury’s because customers want the best quality products at fair prices. This will mean that Sainsbury’s will have to keep up the ‘goings on’ of other supermarkets to ensure they can try keep on top and increase their profits
Sainsbury is a large supermarket and the running of the business has a big impact upon the people associated with them. The activities of Sainsbury’s have an impact on their stakeholder in a number of ways. The following table explains exactly they are affected.
I believe that Sainsbury’s are meeting all of their need and a very high standard. Sainsbury’s are currently number three in all supermarkets across the United Kingdom so this proves that the majority of their customers are very satisfied with the products and with a wide variety of products to offer. This successfulness of the business ensures that they are meeting the need of the supplier and banks. Their successfulness and high profit share ensures that they have enough money
Last printed 08/05/2012 22:30:00 Oby Umekwe Page of