Business priorities
In order to complete these goals or aims Sainsbury’s began by listening to customers and colleagues, then looking into their stores to understand what is in the way of them delivering or succeeding theses aims and objectives.
Sainsbury’s states that their stores must be clean and welcoming and that they will be friendly and helpful to their customers. Queues must be minimal and their service counters second to none. They know that service drives sales, which is every businesses number one priority.
Customers increasing demand healthy, fresh, safe and tasty food and by being better than anyone in providing these Sainsbury’s will create a key reason for their customers to shop with us. Sainsbury’s have a lot of companies to compete with for example Tesco’s Asda, Morrison’s, Waitrose and Mark and Spencer.
Sainsbury’s wish to become apart of their customers everyday lives, providing for their daily and weekly food and grocery shopping needs, as well as providing the ability for tem to buy clothing other products.
History
Sainsbury's was established as a partnership in 1869 when John James Sainsbury and his wife Mary Ann opened a store at 173 Drury Lane in Holborn, London. In 1922 J Sainsbury was incorporated as a private company. The first self-service branch opened in Croydon in 1950. In 1973 the company was floated as J Sainsbury plc in what was at the time the largest ever flotation on the London Stock Exchange; the company rewarded the smaller bids for shares in order to create as many shareholders as possible. Today the family retain at least 14% of the shares.
Map1
This map shows a map of Muswell hill. Muswell Hill is a suburb of north London, mostly in the London Borough of Haringey It is situated 6.2 miles (10 km) north of Charing Cross.
Muswell Hill is in postal district N10 and the area is mostly in the Hornsey and Wood Green constituency.
MAP 2
Nearest Transport link
Tube: east Finchley (1.54km)
Railway: Alexandra place (1.77km)
Airport: London City Airport (16.62km)
Neighbourhood profiles are based on ACORN classifications, which describe the type of neighbourhood a postcode has been matched to, not the specific postcode. Since most postcodes include a mix of people, the description will never be exact.
Neighbourhood profile
This is a profile for the central postcode in N10 which is N10 1Prneighbourhood profiles vary significantly from postcode to postcode.
Often, many of the people who live in this sort of postcode will be well-off professionals living in larger houses and converted flats. These are known as type 13 in the ACORN classification and 0.87% of the UK’s population live in this type.
Neighbourhoods fitting this profile are found in many urban areas of the UK, but particularly in London (Kensington and Chelsea, Wandsworth, Ealing, Richmond-upon-Thames and Fulham). Edinburgh and university towns such as Durham, Oxford and Cambridge.
Here is an overview of the likely preferences and features of your neighbourhood:
This means muswell hill is a wealthy place. There is quite a lot of rich people that live up here. However this also tells us that they care about the health so they tend to buy organic food.
Muswell hill Sainsbury’s would make a lot of profit due to high number of couples with children. This would beneficial Sainsbury because usually families would spend quite a lot when shopping as they get high family income.
A Muswell hill person seems to have high income so they buy organic foods which are quite expensive. The type of products Sainsbury sells is organic food, ethical products and specie food.
The current market jitters are centred on disturbances in the world's credit markets. Worries about the increased mortgage lending have spread around the financial system, and the central banks have been forced to pump in billions of dollars to oil the wheels of lending.
The impact of the local, national and economic activity on Sainsbury’s is the amount of sales revenue. If the economy is doing well locally that branch would do well in its local area. But if the economy is doing bad nationally this would therefore decrease sales, and obviously this would affect your local area.
All Business has aims and objectives. Theses are the targets which the business is
An example of an aim is:
Profit maximisation
It is often argued that the main aim of private sectors business is to maximise their profit. This is achieved where the differences between the total revenue earned by the business form selling its products and the total costs of those products is the greatest.
It is very difficult for businesses to achieve profit maximisation thus is because a business must have the lowest possible running costs. They might pay staff low wages, buy in bulk have zero waste, turn off all lights.
Ryan air is an example of a business aiming for profit maximisation. It charge customers for excess luggage, drinks etc and pays staff low wages. In some cases they are so extreme that they refuse to let staff charge their mobile phones form the mains in which they work. Most businesses aim to get reasonable profits. This is called satisfying
Growth
Many businesses pursue growth as their main objectives. Business people argue that firms must grow in order to survive. Failure to growth might result in a loss of competitiveness, a decline in demand and eventual closure. If a firm is able to grow and dominate the market, in the future it may be able to enjoy some monopoly power and raise its price. By growing, a firm can diversity and reduce the risk of business enterprise. It can sell to alternative markets and introduce new products. If one market or product fails it will have a range of other to fall back on. Firms can exploit economies of scale if they grow large enough for example Tesco. This will enable them to be more efficient and enjoy lower costs. Sainsbury cannot dominate its market because it has competitions form Tesco’s, Asda and Somerfield.
Sainsbury’s has reported what it describes as “strong” half- year result with profits up 20%. Pre-tax profit hit £232m in the 28 weeks to 6th October, compared with £194m in the same period a year ago. This amount of increase is a fairly huge chunk to achieve in one year. Like – for- like sales, which strip out the impact of new stores, were up 4% excluding fuel, while total they are gaining a huge amount of profit. Although they are 3rd in terms of market share between their competition, this still shows that Sainsbury’s are gaining strength, this is shown by the fact that their sales has risen. These results prove that Sainsbury’s is fulfilling their main objectives which are to make profit, this also come under aims such as “treat your own” and “great service drives sales”.
- A number of people might benefit from growth
- Employees may find their jobs will be more secure (although, this might not always be the case if growth involves purchasing more machinery).
Sale revenue maximisation
This is different from profit maximisation because sales is the money made before you pay off all your costs. A company pursuing this objective give up same profit to get the highest sales
Sale manager and sales reps benefit from……………………………
A stakeholder is a party who affects, or can be affected by, the company's actions. The stakeholder concept was developed and championed by R. Edward Freeman in the 1980s. It has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, and business purpose.
Meet stakeholder needs
Stake holders are people who are affected by the activities of a business, Example of stakeholder are employees, suppliers, directors, customers, the local community and shareholders. Customers are stakeholders because they are affected by the product range, prices, customer services, returns policy ect.
Survival
Survival, this is an aim if the business is just starting up. When a business is starting up it would be important for it to run at least two years. 60% of new businesses fall within their first two year. Reasons for business failure include lack of finance, lack of experience or poor location.
Survival can be an aim for a large existing business. This can be the case if it is affected by strong competition. Mark and Spencer has lost sales in their clothes section of products due to competition form Next and other stores alike 5 years ago its share price halved in value from £5 a share to £2.50. this meant that it was under treats form being taking over- they almost did by BHS- Philippe Green. Even multi- nationals can have basic survival as there objective, not just small companies.
For Sainsbury’s this means that at some point survival would have been one of there main objectives, however this would have been very early on. As Sainsbury’s has been opened for over one hundred and thirty years it’s unlikely that Sainsbury’s would even consider having survival as one of their main objectives now. However if Sainsbury’s was to take a bad marketing step or financial step and their share prices dropped then survival would come back into action and they would need concentrate on this, as I have explained already its not just small companies that have survival as one of there basic objectives or aims.
Survival is also important when trading becomes difficult. During recession a business could face falling demand, bad debt and low confidence. In the UK recession of 1990-92 many well known companies ceased trading. In 1992 around 73,000 businesses collapsed. Improved trading conditions in the 1990’s
Individual businesses or industries may face difficulties due to competition form rivals, falling demand for their products or the effects of poor decisions.
The Treat of takeover
Treats of takeover firms sometimes becomes targets for other firms to take over. When this happens the survival of the firm in its existing form may be the main objective. One way to achieve this is to persuade the owners (shareholders) not to sell share to the person or company budding for them.
In the long term it is unlikely that survival would remain the only objectives, expect perhaps for the small businesses. Business owners tend to be ambitious and so pursue other objectives.
Over the years Sainsbury’s has constantly been in the media concerning takeovers. In early November this year the royal family of Qatar contemplated a full takeover offer for the supermarket, the family’s investment vehicle, Delta Two, announced that it had upped its stake in the supermarket chain form 17.6 % to 25%. They also announced that they had bought 123million Sainsbury’s shares at 595 pence per share, making £732m in all. This possibility of a takeover sent in the supermarket to record highs.
The Qatari royal family first unveiled its interest in Sainsbury’s when in April Delta two announced it had bought 17.6& of the group. This takes the Delta two stake to just over 25% which is well ached of that held collectively by the Sainsbury’s family. Delta is run by Paul Taylor, who was once chief of an investment vehicle of property magnate Robert Tchenguize. Tchenguize also own roughly 5% of Sainsbury’s shares.
Most people assumed this takeover would go ahead but where surprised to find that the company decided to withdraw the bid because of “turmoil in global credit markets” it also said concerns about funding Sainsbury’s, which employee pension schemes had led to the move. Shares in Sainsbury’s, which had yet to back the offer, dell nearly 21% in response to the news and this would have hit Sainsbury’s quite badly. Although the word takeover often sounds like a bad thing it may also be a good thing for some companies for example if this company had taken over Sainsbury’s
What are sainsbury’s and net profit figures for the past 4/5 years?......
What does this tell you about Sainsbury’s performance?.....
TASK 2
Local Economy
The Business structure of Haringey is characterised by small medium enterprises.
Haringey has a total of 5,645 VAT registered businesses 4,615 of these businesses only employ between 0 and people only 180 of these businesses employ 20 or more people.
Muswell Hill has a total of 475 VAT registered businesses 425 of these businesses only employ between 0 and 4 people only 5 of these businesses employ between 0 and 4 people.
The impact of external influences on Sainsbury’s
The fact that there are many different businesses and outlets around Sainsbury’s mean that there is lot of competition with other stores such as Mark and Spencer’s
As there are many middle class people around the Muswell hill area, it means that there is good chance that a huge amount of money is spent in Sainsbury’s.
The transport around Muswell hill includes a very good bus services that go to a range of places such as wood Green, Edmonton, Tottenham, Finchley etc. this means that more people will be able to go to Sainsbury’s to buy their goods.
There are many schools around the Muswell hill area which means that a lot of students may go there to buy lunch which would also benefit Sainsbury’s. There are no tube stations around the Muswell hill area which is downfall, as it means less people are likely to use Sainsbury’s.
Employment figures
In June 2005, 8,410(7.9%) of Haringey residents were registered unemployed during the period November 2005 and June 2005 unemployment across the borough stayed the same at 7.9%.
In June 2006, 160 (2.9%) of Muswell Hill residents were registered unemployed During the period November 2005 and June 2006 unemployment across Muswell Hill stayed the same 2.9% out of the 625 London wards, Muswell Hill has the416th highest unemployment rate
- Social and ethical factors
Fair Trade
Fair trade is an organized social movement and market-based model of international trade which promotes the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of .
Value isn't just about price; it's about the well being of the poorer countries.
Every banana we sell in Sainsbury's is a Fair-trade banana and they have a long-term relationship with the farmers that grow them. Their commitment to continue sourcing Fair-trade bananas has helped give them the confidence they need to replant their banana farms and rebuild their communities. This will gradually lead to economic growth.
Here are some of the fair trade products
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Cooking ingredients
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Baby food
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Clothing
- Flowers Household
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Biscuits
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Ice cream
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Hot beverages
- Beer, Wine & spirits
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Confectionary Rice and Sugar
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Fresh fruit and fruit juice
Sainsbury’s labelling
There are many laws and regulations when labelling products.
Food products need to carry the name and address of the manufacturer, packer or retailer. However, these details might be misunderstood because if the main ingredients are imported from another country, a manufacturer doesn’t have to say where these have been bought from. They can get around this by saying the product was ‘produced in the UK’.
A stout’s pie, steak or a chicken tika might have been made in the UK, but the meat might be sourced from Brazil or India. Around half of the chicken eaten in the UK is imported but it is usually covered in spices or used in a ready meal so the consumer doesn’t know it has come from another country.
According to laws, the labels or packaging used on ready meals only need to state the origin of the ingredients. Sainsbury’s and the co-op have a policy that they have to state the country of origin of the meat used in their ready meals on the label, but there are other supermarkets that reveal this in formation.
These laws mean that Sainsbury’s need to be careful, as customers are becoming more anxious of what they purchase and eat, and therefore they might shop in other supermarkets like Morrison’s, Tesco or Marks and Spencer.
(Source from wikipedia.com)
Employee Regulations
There are many different regulations and laws that can affect Sainsbury’s; one of them includes the working time regulation, which states that a worker is entitled to at least a rest period of 11 uninterrupted hours between each working day. An employee is also entitled to one whole day off a week. Buts days off can be taken over a two week period, meaning workers can take two days off a fortnight
Managers need to make sure that their workers can take their rest, but aren’t required to make sure they do take their rest.
These rules mean Sainsbury’s have to employ enough people so that when some workers are taking time off, others can take their place. This also means more money will be spent on wages, and Sainsbury’s could lose out on profits and money.
This usually motivates the workers because they don’t want to be blamed on for losing profits.
Recent Legal Changes
The new Employment Acts Law from October 2007
There is a minimum right to paid holiday, but your employer may offer more than this. The main things you should know about holiday rights are:
from 1 October this year you are entitled to a minimum of 4.8 weeks
the entitlement will increase again to 5.6 weeks from 1 April 2009
those working part-time are entitled to the same level of holiday pro rata (so 4.8 then 5.6 times your usual working week)
you start building up holiday as soon as you start work
your employer can control when you take your holiday
you get paid your normal pay for your holiday
when you finish a job, you get paid for any holiday you’ve not taken
bank and public holidays in Britain can be included in your minimum entitlement
TASK 3
Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include tohelp create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine whichportion of the population will purchase the product/service, based on variables like age, gender, location and income level. It can be found out what market characteristics a targetmarket has. With market research, companies can learn more about current and potential customers.
Example of Sainsbury’s marketing
- Leaflets
- Magazines
- TV adverts
- News papers
And the effects are that everyone would know about it so more people would shop at Sainsbury.
The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. One version of the origins of themarketing mix starts in 1948 when James Culliton said that a marketing decision should be a result of something similar to a recipe. This version continues in 1953 when Neil Borden, inhis American Marketing Association presidential address, took the recipe idea one step further and coined the term 'Marketing-Mix'. A prominent person to take centre stage was E. Jerome McCarthy in 1960; he proposed a four-Pclassification which was popularised. Philip Kotler describes the concept well in his Marketing Management book
(www.Wikipedia.com)
Market mix is a selection of products by a company from which a customer can choose.
The 4ps are otherwise known as the marketing mix, these are the basic tools of marketing: product, place, price and promotion.
Products
Price
Sainsbury sell a champagne bottle for £32.49
Per case: £142.44 £106.83
You save £35.61 off our original price
Case of 6 x 75cl Bottles (equivalent to £17.81 per bottle)
Tesco would sell the same bottle for £106.83
This tells us that Sainsbury is much cheaper then Tescos
Promotion
Promotion is a series of marketing active designed to make costumers aware products. The ultimate aim, of course is to persuade them to buy those products. Promotion is an important part of the marketing mix and businesses can use a variety of different type of promotion.
- Advertising
- Sales promotion
- Merchandising
- Public relation
Place
Place is another term for distribution. It covers the range of actives necessary to ensure that goods and services are available to customers. Deciding on the right place involves a range of decisions.
Place is the fifth element of marketing mix. This is where it cover the range of actives necessary to ensure that goods and services are available to customers.
- What is the different between niche ad mass marketing? Give an example of each. Which one does Sainsbury’s do?
TASK 4
Enterprise and Enterprise skills
Business owners are not the only people who demonstrate enterprise skills. Successful recognise the importance of employees and the benefit of recruiting and retaining staff who can demonstrate enterprising behaviour. Many organisations realise the importance of flexibility and quick decision- making within their organisations. Employing enterprising people is to respond to competitor action and to ensure the achievement of its SMART objectives.
Enterprising behaviour can be demonstrated in a wide variety of job roles and positions. For examples, sales personnel certainly self – confidence and motivation when prospecting for sales and closing deals. In addition, they will be required to take risks when identifying new clients and proposing solutions to their requirements. It may require innovation to develop new markets for products – to find new ways in which existing products could be exploited the ability to identify and exploit marketing opportunities will probably distinguish an outstanding salesperson from an adequate one.
Do Sainsbury staffs demonstrate enterprising behaviour?
Many businesses just like Sainsbury’s have large sales teams rather than a single salesperson. The ability of sales manager to coordinate the sales team, to build trust and to inspire the staff can often be the difference between a satisfactory and an outstanding one.
The impact it has on the ability of Sainsbury’s to achieve it aims and objectives are short of staff and lot of people being off sick etc.
TASK 5
Team
Teams in Muswell hill, cash department decided to change working styles by counting money 3 times a week instead of 7 which has saved money and proved to be a good change. (Money pic ups etc.)
This summer was bad for Sainsbury’s due to the weather half prices were made on products like barbeque. Charcoal, meat, strawberry etc. there is no car park in the Muswell store so if weather us bad customers don’t like to go and products can get turned in fields and unable to sell, which can lead to less of sales around £20,000 a week for around 6 weeks.
The importance of teams
If you have ever been involved in running a mini-enterprise, organising a school event or been involved in team sport you will appreciate the importance of teams and effective teamwork. You might also appreciate that a team is much more that a group of people. People in a team help, complement and support each other. This doesn’t happen automatically – people have to work at being a team.
A group of people can be viewed as a team when it has these features:
- A collective consciousness - people in the group think of themselves as a team
- A shared sense of purpose - the members of the group have the same tasks, goals or interests
- Interdependence - the people in the group need each other if they are to achieve their aims and objectives
- Interaction – the people in the group communicate with one another, influence one other and react to one other.
- Collective action – it is a unified collection of people.
From this list you should se that a team has a strong identity, is capable of change, has resilience and, possibly above all else, can learn from it mistakes.
What effects doe’s team have on Sainsbury’s?
The impact it has on the ability of Sainsbury’s to achieve it aims and objectives are Well Sainsbury’s is a business which sells products, clothes and vegetables. The effect it has on its team is that it is quicker, faster and stronger when people work together so they could serve their costumers and that’s it one of their main aims and objectives.