...and would contrast both companies’ performance in the last two years with the understanding of ratio analysis, which are considered to be a very close business match. The ratio has been chosen to show profitability. Efficiency, Liquidity, Financial gearing and investment Black, (2009). To begin with, Sainsbury’s and TESCO operate in the UK grocery sector, with both companies classed in the big-4 supermarkets. According, to the latest Kantar Worldplanel (2014) report, TESCO held 29.6% of the UK grocery market in top place, while Sainsbury held 17% of the market, holding third place after ASDA. Furthermore, both companies have business in other services, including clothing, non-food items, banking and insurance services as well as international operations for TESCO. According, to Sainsbury’s latest Annual Report (2014), total revenue (all – UK) amounts to £23.949Billion, with non- food and banking making up a much bigger proportion of sales, Sainsbury’s (2014). In comparison, with Tesco’s latest Annual Report (2014), sales from non-Uk markets represent £63.557Billion. Ratio Analysis and Key Highlights of the Report In this report, ratio analysis has been conducted to evaluate the profitability and performance of the two retail companies, TESCO and Sainsbury. In other words, this analysis will help to understand the ratios and will be used to make interpretations about both company’s condition. According, to Maheshwari et al (2011), “Financial statements are prepared with the objective...
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...Sainsbury: J Sainsbury PLC was founded in 1869 and incorporated in 1922, London. For the past 140 years, the company grew rapidly; today it is one of the “big four”# supermarket chain in UK. It currently sorely operates in UK and employs about 150,000 people. Its cooperation business is composed of four areas, which are supermarkets, online business, property market and banks. The Sainsbury supermarket operates a total of 890 stores comprising 547 supermarkets and 343 convenience stores around the UK. The stores are pride of providing health, safe, fresh and tasty food to its customers. It also jointly owns Sainsbury’s bank with Lloyds Banking Group and has two property joint ventures with Land Securities Group PLC and the British Land Company PLC. Its total revenue (excluding the value added tax) in Fiscal Year (FY) #2010 was £19,964 million, which increased 5.6% from the last year. The underlying profits before tax grew to £610 from £519 million. The basic earnings per share increased 93.4% to 32.1 pence from 16.6 pence. Food retail industry in united kingdom: In 2009, the value of United Kingdom food retail industry increased by 3.1% to reach $186.1 billion. According to forecast for 2014, the United Kingdom food retail industry has a value of $219.4 billion, and increase of 17.9% since 2009. The compound growth rate of the industry from 2009-2014 is predicted to be 3.4%. With a market share rose to 16.5% over the 12-week period, from 16.3% a year ago according...
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...Aldi and Sainsbury Grocery store is a shop which the main product sold primarily food HISTORY OF GROCERY SOTRES . They hold an extremely significant value in consumer lifestyle. This essay will compare strengths and weaknesses between Aldi and Sainsbury. Aldi Aldi is a private company which was founded in Essen, Germany 1946 by Karl and Theo Albrecht. Aldi is now a leading worldwide discount supermarket chain with more than 8,500 stores in more than 15 countries. After several years, the owners separated Aldi into Aldi Nord, which operates shops in the north of Germany, and Aldi Sud, which operate the south and the UK. Karl took the Aldi Sud (South), and his brother Theo took the Nord (North) (Rudolph, 2011). Moreover, in times of economic depression were consumers are caring more about the price. Aldi to took advantage of the depression with it being one of the leading supermarkets that offer discounts and lower prices than the main stream supermarkets. This strategy also known as razor strategy was very effective in the UK because when the economic depression hit Europe people felt the need to save and cut down expenses and restore to cheaper options. Aldi before depression. this below shows the number of the shops for people who want to save money for food for , which allows them to offer the best quality products at low prices (Haberer, 2008). According to Mirror Magazine “Aldi won the award of supermarket of the year, and this award for second year in a raw...
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...University of Birmingham MSc International Business International Finance and Accounting Group ID Number - 1318585 Group ID Number - 1397851 Group ID Number - 1398597 Group ID Number - 1397574 content Introduction 2 Background of the two companies 2 Tesco 2 Sainsbury 3 Background to the industry 4 Ratio analysis 5 Conclusion 17 Reference 18 Appendix: Ration Calculation 20 Introduction Tesco and Sainsbury are two retailer companies that were founded in the UK. Now Tesco becomes one of the world’s largest retailer companies operating in 14 countries and Sainsbury becomes the third largest retailer company in the UK. This report aims to produce a business report on these two companies and the retailer industry. Therefore, this report contains three parts: background of two companies, background of the industry and 20 ratio analyses of both companies. Every ratio analysis includes three stages: calculation of the ratio, analysis of each company’s change in this ratio during the two-year period and the compare of these two companies’ financial performances. Background of the two companies Tesco Tesco is a famous supermarket in the world and was founded in 1919 by Jack Cohen in London. Until now Tesco is 94 years old and it is one of the world’s largest retailers with over 530,000 staffs. Tesco served customers reaching 75 million every week in store or online. Tesco’s success is due to understanding customers’ needs and then innovating...
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...Introduction: Established in 1869 by John James and his wife Mary Ann in a partnership retailer store, presently it is the third largest retail supermarket chain in UK market with a total market share of 16.3%. Sainsbury is the UK’s oldest and major food retailer. In the early of 1990 Sainsbury was the market leader, however due to some reason it lost its position to Tesco and come in third position in terms of leading retailer in UK (J Sainsbury plc. 2015). The downfall involves several reasons, such as lack of innovative marketing strategy, unhealthy acquisition in Egypt, changing management and misleading in sustainability aspect, which obstruct in communicating right message to the customers. Background of Sainsbury: Sainsbury is looking to drastically their business operation by launching new outlets across the south of England. The company had opened fifty high street shops in England by 2014 which significantly has boosts the employment opportunities in the respective area (RetailWeek. 2013). However, the company is looking for international market opportunities from the last few years and already has owned a chain in the US and a chain in Egypt in addition to their core domestic business. Based on the Appendix-1, it can be inferred that the financial performance of Sainsbury are tending to downwards in terms of profit margin. The net profit margin was 5.50% in 2011, which dropped to 5.40% in 2013. The prime reason for drop down in their profit margin can be economic downturn...
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...Acknowledgements : First of all we would like to introduce our selfs, BIALLACH Safae and EL YOUNSI nahide, a 3rd year students in SUP DE CO MARRAKECH. In the third year the internship is a part of the program at our school. But for the two of us, we didn’t do an internship because we shose to go for a summer school programme in LONDON, UNITED KINGDOM for two weeks at the LONDON SCHOOL OF BUSINESS AND FINANCE (LSBF). The objectives during this journey were to improve our level in English language, to Discover a new culture, to visit a lot of places that we wanted to see and also to meet a lot of different people from different countries. Studiying in LONDON was a wonderful experience that we wont forget. for that, we would like to give some thanks to all the people that helped to gave us the chance to go for this programme. Without forgeting a special Thanks to our English Teatcher M.EL FOUADI KAMAL for this opportunity. Last, but not least, we would like to thank our parents and family for supporting our stay in LONDON financially and emotionally. INTRODUCTION ...................................................................................................2 SECTION 1 : TESCO……………. .........................................................................4 1-BUSINESS DESCRIPTION…………. ......................................................5 2-HISTORY .................................................................................................6 3-CORE...
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...Contents 1. Strategic Review................................................................................................................5 1.1.1. 1.1. 1.1.2. 1.2. The industry.....................................................................................................................................7 Needs and Expectations of stakeholders of an organization ............................... 10 1.3.1. 1.3. The macro-environment.............................................................................................................6 External factors affecting the organization...................................................................5 Macro-environmental level: Pestle analysis is applied ...............................................12 Major Changes taking place in the external environment.................................... 12 1.3.2. Industry Level: Porter five forces.........................................................................................13 2. Review of Tesco Existing Plans ................................................................................. 16 2.1. Tools to analyze the effect of current business plan............................................... 16 2.2. Position of Tesco in its current market ....................................................................... 17 2.3. Competitive Strengths and weaknesses of current business strategy ............. 19 3. Consideration...
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..................................................................................................................... 4 2.2. Competitive Environment .................................................................................................................... 4 2.3. Internal audit ............................................................................................................................................ 5 3. Creating A Digital Marketing Strategy ....................................................................................... 7 3.1 SOSTAC Model ............................................................................................................................................ 7 3.2 Situation Analysis ..................................................................................................................................... 8 4. Further Examples Of Different Strategy Models ................................................................. 21 5. Concluding The Report ................................................................................................................ 24 6. References ....................................................................................................................................... 25 1...
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... ACKNOWLEDGEMENTS IV ABTRACT V DECLARATION VI CHAPTER ONE 1 INTRODUCTIONS 1 1.1Brief Overview of the Project of Business Post Group Company 1 1.2 Brief Background 1 1.3 The Formation of Business Post Group Company. 2 1.4 Present Status 2 1.5 THE COMPANY ANALYSIS OF BUSINESS POST GROUP. 3 1.6.1 Business Activities 3 1.6.2 Listing 3 1.6.3 Form of Financing 3 1.6.4Market 4 1.6.5 Group Structure (if multinational company) 4 1.6.6Market Capitalization 4 CHAPTER TWO 5 2.0 BUSINESS POST GROUP (UK MAIL GROUP PLC) SHARE PERFORMANCE FOR YEAR 2011, 2012, 2013 and 2014. 5 2.2THE USEFULL INFORMATION OF ANNUAL REPORT 6 CHAPTER THREE 7 3.1Liquidity Ratios 7 3.1.1 Current Ratio 7 3.1.2 Acid test (quick) Ratio 9 3.1.3 Cash Ratio 10 3.2 PROFITABILITY RATIO 12 3.2.1 Return on Capital Employed (ROCE) 12 3.2.2 Return on Shareholder’s Equity (ROE) 13 3.2.3 NETPROFIT MARGIN 3.3EFFICIENCY RATIO 17 3.3.1 INVETORY TURNOVER 17 3.3.2 AVERANGE/ RECEIVABLE COLLECTION PERIOD 18 3.3.3 CREDITORS PAYMENT PERIOD 19 3.4 FINANCIAL STRUCTURE 21 3.4.1 EQUITY RATIO 21 3.4.2 DEBIT RATIO 23 3.4.3 DEBT TO EQUITY RATIO 24 CHAPTER FOUR 26 4.0 CORPORATE SOCIAL RESPONSIBILITY OF WAITROSE COMPANY 26 4.1 Corporate Social Responsibility 26 5.0 CONCULISION AND RECOMMENDATION 27 5.1 CONCLUSION 27 ...
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...secondary data from the company’s website, scholarly articles, reports, etc have been utilized. The report also uses various strategic analysis tools like PESTLE analysis and SWOT analysis to access the competitive position of the company and its internal as well as external environment. It has a strong leadership position in retail and its low cost strategy has been a great success to attract more number of customers. It has also operations in other countries where it has emerged successful by adapting to localization techniques. It is recommended for the organization to increase its international presence in order to derive more growth and profitability. This report highlights the strategic marketing of Tesco and the ways in which it has created a leadership position in the extremely competitive market and industry in which it operates. The market position of Tesco has also been accessed by the use of different strategic tools like SWOT analysis and PESTLE analysis. Table of Contents Executive summary 1 Introduction 3 Methodology 4 Discussion and analysis 4 Role and importance of strategic marketing at Tesco Plc 4 Process involved in development of strategic marketing in Tesco Plc 6 Alignment of corporate strategy with strategic marketing at Tesco Plc 9 Models used in strategic marketing 10 Pestle analysis 10 SWOT analysis 12 Strategic...
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...EDEXCEL BTEC (HND) BUSINESS Group: Ed excel Level 4 Module: Unit 2 – Managing Financial Resources & Decisions Module type: Core Module Code: H/601/0548 Module Credit: 15 Teaching Period: (15+6 weeks) Level: 4 (QCF) Contact Hours: (21*3 = 63) Lecturers: 15 weeks Support and guidance: 3 week Assessment and feedback: 3 weeks MODULE LEADER: MR GEORGE MUWONGE Lecturer: Mr Solomon A Odegbesan Start date: 28th January 2014 Day: Tuesday Time: 10:00-13:00 Campus: Park Royal Term: Winter CONTENTS 1. INTRODUCTION, AIMS AND OBJECTIVES 2. MODULE OUTLINE AND TEACHING METHODS 3. READING AND COURSE PREPRATION 4. LECTURE WITH DETAILED COURSE PROGRAMME AND OBJECTIVES 5. ASSESSMENT DETAILS INTRODUCTION This unit is designed to give learners a broad understanding of the sources and availability of finance for a business organisation. Learners will learn how to evaluate these different sources and compare how they are used. They will learn how financial information is recorded and how to use this information to make decisions for example in planning and budgeting. Students...
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...(HND) BUSINESS Group: Ed excel Level 4 Module: Unit 2 – Managing Financial Resources & Decisions Module type: Core Module Code: H/601/0548 Module Credit: 15 Teaching Period: (15+6 weeks) Level: 4 (QCF) Contact Hours: (21*3 = 63) Lecturers: 15 weeks Support and guidance: 3 week Assessment and feedback: 3 weeks MODULE LEADER: MR GEORGE MUWONGE Lecturer: OLAJUMOKE TAIWO Start date: 30th September, 2014 Day: Mondays Time: 10:00 – 5:00 Hrs Campus: Kilburn Term: Winter CONTENTS 1. INTRODUCTION, AIMS AND OBJECTIVES 2. MODULE OUTLINE AND TEACHING METHODS 3. READING AND COURSE PREPRATION 4. LECTURE WITH DETAILED COURSE PROGRAMME AND OBJECTIVES 5. ASSESSMENT DETAILS INTRODUCTION This unit is designed to give learners a broad understanding of the sources and availability of finance for a business organisation. Learners will learn how to evaluate these different sources and compare how they are used. They will learn how financial information is recorded and how to use this information to make decisions for example in planning and budgeting...
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...From diagrame, Aeon achieved a new revenue record of RM3.256 billion for the Year which is 9.1% higher than the RM2.985 billion for the previous financial year. Correspondingly, AEON registered a strong profit before tax of RM299.5 million and profit after tax of RM212.8million representing 8.0% and 8.9% growth respectively over the previous year’s performance. The Year’s results were most commendable if we take into consideration that the results for the preceding year had included both the RM12.7 million gain on disposal of its amusement business and the RM11.3 million net proceeds from insurance claim though they were offset by an impairment loss of RM14.1 million in one of the Company’s store and shopping center’s property, plant and equipment. In addition, growth of retail business is driven by two new stores Aeon Ipoh Station 18 and Aeon Seri Manjung Shoping Centre and the better performance of property management service with tenant sales increasing upon agreement renew and new stores rent out. Indeed, there are three more outlets opening in Kulai, Johor in end of 2013 and also Bukit Mertajam and Sungai Petani in 2014. Besides that, AEON’s new land acquisition, for the construction and operation of a mall with car parks and a departmental store cum supermarket, is much in line with the overall group’s expansion strategy of opening 1-2 new malls per annum, we are expecting revenue of Aeon will growth substantially against other competitors. The current ratio ...
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...From diagrame, Aeon achieved a new revenue record of RM3.256 billion for the Year which is 9.1% higher than the RM2.985 billion for the previous financial year. Correspondingly, AEON registered a strong profit before tax of RM299.5 million and profit after tax of RM212.8million representing 8.0% and 8.9% growth respectively over the previous year’s performance. The Year’s results were most commendable if we take into consideration that the results for the preceding year had included both the RM12.7 million gain on disposal of its amusement business and the RM11.3 million net proceeds from insurance claim though they were offset by an impairment loss of RM14.1 million in one of the Company’s store and shopping center’s property, plant and equipment. In addition, growth of retail business is driven by two new stores Aeon Ipoh Station 18 and Aeon Seri Manjung Shoping Centre and the better performance of property management service with tenant sales increasing upon agreement renew and new stores rent out. Indeed, there are three more outlets opening in Kulai, Johor in end of 2013 and also Bukit Mertajam and Sungai Petani in 2014. Besides that, AEON’s new land acquisition, for the construction and operation of a mall with car parks and a departmental store cum supermarket, is much in line with the overall group’s expansion strategy of opening 1-2 new malls per annum, we are expecting revenue of Aeon will growth substantially against other competitors. The current ratio ...
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...critically analyses the past and the current market trend, operations, and marketing strategies of Sainsbury’s Company. Different models of analysis were employed to clearly understand the current and previous state of Sainsbury’s. Some of these models include SWOT analysis, PEST analysis, CORE analysis, Porter’s Five Forces model, Key Success Factors, and Ansoff’s Matrix These models help in understanding all aspects that play a role for the success and the failures of the company that include its strengths, weakness, opportunities, threats, and several factors that bolster of hinders the success of the company. I also looked at deep analysis of the success of introducing “Dark Stores” in Ireland. It can be concluded from this study that, Sainsbury’s can successfully enter into Ireland market by introducing “Dark Store”. However, the company will likely face some challenges and competition from other companies in Ireland, but it can counter these by employing different strategies recommended in this study. Business Strategy: Sainsbury’s Introduction The task of the strategy is the most difficult and time-consuming part of strategic management. This task runs almost through all levels of management and should be taken into account in most parts of the company. The specific implementation of the strategy begins with a thorough analysis of what the company should do differently and better for the successful implementation of the strategic plan. Each manager must consider ‘What...
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