Premium Essay

Sainsbury's Operation

In: Business and Management

Submitted By wsutha07
Words 2907
Pages 12
Sainsbury’s which is a well renowned retail supermarket in the U.K. is the company which I will emphasize through this assignment. It was formed by John James Sainsbury and Mary Anne Sainsbury in 1869 as a small dairy shop in Drury Lane, London. Subsequently as a consequence of their hard work more new stores were opened in other market streets in Stepney, Islington & Kentish Town. Since those early days it has evolved in leaps and bounds to be on the level which it is in the present. Having seen two world wars, severe economic collapses, competition and etc… it is amazing the route they have come across and to be able to do so they should have had some significant aspects and in this assignment we will evaluate on them.

Initially the founding principle of the company was to be the first choice of the customers for food shopping by offering,

• High quality products • Value for money • Good customer service.

Building the company and achieving success their goal is to deliver an ever improving quality shopping experience for our customers with great product at fair prices. We aim to exceed customer expectations for healthy, safe, fresh and tasty food making their lives easier everyday. Not only the above goal but they also have a set of values; which they have created to meet the challenge. Such as,

• Getting better everyday • Great service drives sales • Individual responsibility team delivery • Keep it simple • Respect for the individual • Treat every £ as your own

Today the present exposure of the company is a much evolved version of the early day store. After being in the trade for more than 130 years today they have more than 720 stores operating

Similar Documents

Free Essay

Afbs

...the UK and Ireland employing in excess of 20,000 people. ALDI’S POLICIES: ALDI does not have a clear defined Vision and mission statements, however it has clearly defined policies based on which it could create its competitive position in the market. ALDI’S Policies are based on ‘What if a grocery store challenged the typical retail business model?’ALDI’s business model enables to provide the customers the highest quality products at the lowest possible prices. This value stems from the numerous efficiencies and innovations instituted at every level of ALDI’S operation. The following are the cost saving strategies that ALDI adopts: * Customers bring their own bags or buy our reusable bags to save money * Modest store size, plus eliminating non-essential grocery store services means ALDI captures the very essence of conservation and savings for customers * In-house distribution network streamlines operations and maximizes efficiencies, resulting in even greater savings for customers * Not operating 24 hours a day lowers labor, energy & rent costs, with savings passed on to...

Words: 2377 - Pages: 10

Premium Essay

International Finance and Accounting

...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...

Words: 4418 - Pages: 18

Free Essay

Bvng

...products such as clothing, home ware and pharmacy. Sainsbury is a PLC Public Limited Company this just means shares can be bought from Sainsbury this expands the business and more profits are made. The advantages of a PLC company is that there is limited liability for the shareholders also these business can raise large capital sum as there is no limit to the number of shareholders. Sainsbury has accomplished this by having shareholders all around England. The downside of a PLC is that there are lot of legal formalities required for forming a public limited company. It is costly and time consuming. However Sainsbury would not find this as a problem as they are successful in UK and one of the largest supermarkets. The liability of J-Sainsbury's is limited this means that the owners (shareholders) of the business are only responsible of the losses of the business, but only of the amount they have invested. To start a PLC, the business must have more than £50,000 capitals...

Words: 5470 - Pages: 22

Premium Essay

Case: Itsm

...INSEAD The Business School for the World Universitet St.Gallen 603-020-1 Sainsbury's (A): Transforming the SupPlY Chain 0l12008-5166 ThiscasewaswrittenbyRegineslagmuldel'AssocialePlofegso!ofAccountingandconirolatlNsEAD.andDanie] coor.n, es"o"iute proressoi ot supity ctrain vanagemenr and Technology ai lhe universrty of st. Galen's KrihneIi is intended to be used as a Insrirute of Logisrics, with assistan;tuom Dan crotl;D, Resealch Associate at INSEAD. siluatron basis for clas;iscussion ralher lhan 10 itluslrate either effeciive or inefrective handling of an administrative Resealch Initiative on High The aulhors gratefuly acknowledge rhe financial suppor( provided by lhe INSEAD-PWC Pedormance Organizalions. Copy ght O 2003 INSEAD/University ot St. Callen, France/Switzerland N, B.: To oRDER coPIEs or INSEAD crsEs sEE DEraL! oN EA.K covER CoPrEs vaY Nor Gitll - v'- the case for learninq ' *:::f:::*'***^ iiliLi:H- :fiiIi"il"., " " INSEAD The Business School for the World Universidit St.Gallen 603-020-1 Sainsbury's (A): Transforming the SupPlY Chain 0l12008-5166 ThiscasewaswrittenbyRegineS]agmuldel'AssocialePlolesso!ofAccountingandcontrolatlNsEAD.andDaniel Kiihnecor"r.n, es"o"iute professo; of supply chain Management anct Technology a.t lhe universrty of st. Galen's be used as a ir"riiri.'.r L"gi"it*, *tth assistan;tuom Dan crofl;D, Resealch Associate ar INSEAD. Ir is inrended to siluatron basis for class-discussion...

Words: 4323 - Pages: 18

Free Essay

Dd131 Tma 03

...local areas with superstores and convenience stores as well as on the High Street. Supermarkets expansion has resulted in the suffering and closure of many small local businesses. Dennis Wrong, Socioligist states that in a situation where the gain of one is equivalent to the loss of another so the net gain is zero, it is a ‘zero-sum’ game. This essay examines the relationship between supermarket power and a ‘zero- sum’ game. It shows how the supermarkets gain is balanced by the loss to others and outlines the ‘positive sum’ games of power. The concept of power is viewed in variety of ways by different groups, I feel this depends on the angle you are viewing things from. Contemporary UK has four huge supermarket chains, Asda, Morrisons, Sainsbury’s and Tesco often referred to as ‘giants’ by the economy which indicates the level of power and dominance they have in the market. Every consumer has personal preferences and rights of choice when it comes to making purchases of goods and services. These preferences some would argue, are influenced or controlled by the varieties made available to us along with other contributory factors. With the four supermarket chains dominating the food market, the power they have over what they offer to consumers limits the choices of the consumer. Some would...

Words: 1214 - Pages: 5

Premium Essay

Sainsbury

...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...

Words: 2522 - Pages: 11

Free Essay

Managing Financial Resources

...supplementing financial analysis with non-financial considerations. Tesco is Britain’s leading food retailer and the third largest in the world. Tesco opened in 1929. After joining the eighties trend for large out-of-town supermarkets, in the 1990’s the company started pioneering many new innovations. Tesco has over 530,000 colleagues over 12 countries serving up to 75 million transactions every week. J. Sainsbury is into grocery, retail and financial services. It has a 16.8% UK market share. It has 157,000 colleagues, 23 million customer transactions per week, and 1,106 stores. The information in appendix 1 and 2 was extracted from both companies’ annual reports, for Sainsbury’s year ended March 2013 and February2013 for Tesco. Analysis An operating profit of £9.25 was made on every £100 of capital employed from Sainsbury’s. Compared to Tesco, an operating profit of £7.02 was made on every £100. Looking at the two figures Sainsbury utilizes their capital more efficiently than Tesco, because looking at their revenue scale Tesco is has 2188 compared to Sainsbury which only has 887. Using the 10 year benchmark in the UK, the risk free return rate is at 2.87% in the UK ( (Bloomberg). Therefore comparing Tesco and Sainsbury against the risk free return they are both performing well. Gross profit J. Sainsbury made £5.48 in gross profit for every £100 of revenue whilst Tesco is performing better at £6.31 in every £100. The gross profit margin of both companies is mostly affected by...

Words: 884 - Pages: 4

Free Essay

Unit 1 Coursework

...possible. I will also be, looking at the companies aims to see if they have reached them yet, or what they are doing to reach their aim. I will be explaining areas of growth. As a result of the research I found the following information from research on the computer, getting help from teacher and by my own knowledge. :Sainsbury’s: Background information Sainsbury's Supermarkets is the UK's longest standing major food retailing chain, having opened its first store in 1869. The Sainsbury's brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. It differentiates itself by offering a broad range of great quality products at fair prices with particular emphasis on fresh food, a strong ethical approach to business and continuous leadership and innovation. Size of business J Sainsbury plc consists of Sainsbury's – a chain of 504 supermarkets and 319 convenience stores. A large Sainsbury's store offers around 30,000 products and an increasing number of stores also offer complementary non-food products and services. Business sector Sainsbury’s is currently in the Tertiary and Secondary Sector this is because Sainsbury’s provide services (they have banks), sell Food and also they have their own farm. Main goals and purpose At...

Words: 5399 - Pages: 22

Premium Essay

Tesco Analysis

... FLOW  ANALYSIS  (INCLUDING  LIQUIDITY  AND  FINANCIAL  GEARING)  ................................................................6 V.  SHARE  PRICE  AND  INVESTMENT  RATIOS  .....................................................................................................................7 C.  SUMMARY  AND  CONCLUSION:   D.  APPENDIX   APPENDIX  A:  COUNTRIES  AND  STORES.  CHART  1.   APPENDIX  B:  TESCO’S  GROUP  INCOME  STATEMENT.  CHART  2.   APPENDIX  C:  TESCO’S  GROUP  BALANCE  SHEET   APPENDIX  D:  TESCO’S  GROUP  CASH  FLOW   APPENDIX  E:  TESCO’S  RATIOS   APPENDIX  F:  SAINSBURY’S  RATIOS   APPENDIX  G:  TESCO  AND...

Words: 4519 - Pages: 19

Free Essay

Morrisons

...Wn Morrison Supermarkets Plc is the fourth largest chain of supermarkets in the United Kingdom. It was founded in 1899 by William Morrison. Originally it started as an egg and butter stall in Bradford, England, the same location of it's headquarters. Morrisons opened it's first store within the town centre in 1958 and then opened it's first superstore in 1961 named "Victoria". Morrisons is part of the FTSE 100 Index of companies and has had a market share of 11.8% as of December 2008. This market share has made Morrison the smallest of the "Big Four" supermarkets behind Tesco (30.9%), Asda (16.8%) and Sainsbury's (16%). In 2004, Morrisons conducted a takeover of Safeway which propelled the business becoming the fourth largest supermarket in the UK with currently over 400 stores and 132,000 employees across the business. The Morrison family currently owns around 15.5% of the company. Strategy Plans The organization is concentrating on increasing clientele for the business so they are preparing and using different techniques with their main focus on offering fresh foods such as fresh fruits and fresh vegetables. The organization has it's own packaging factory and they are trying to offer various types of packaging meals, for example pizzas, pies, cooked meats, and sausages as well as packaging dairy products and bread. The organization acquires it's resources straight from the butchers. This is considered a great strategy technique for the organization. Their aim is to provide...

Words: 398 - Pages: 2

Premium Essay

Tesco

...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...

Words: 9552 - Pages: 39

Free Essay

Morrisons Report

...One 1.0 Introduction to the assigment - Morrisons The supermarket chain to which this report refers to is ‘Morrisons’; this is considered to be one of the big four supermarket retailers in the country and since its creation in 1899 has grown from strength to strength. Morrisons is a family run empire that first started as an egg and butter merchant in Bradford, as times progressed its first supermarket was opened in 1961 (also in Bradford), throughout the 1970s and 1980s the company diversified into distribution of stock, and in 1999 its 100th year of trading it also opened its 100th store. In 2000 its first store opened in Wales, and in 2004 they branched into Scotland. “The OFT said the big four supermarkets - Tesco, Asda, Sainsbury's and Morrisons - had built up their dominance of the food retailing business over the past six years.” , A sign of the times was when the company took over the Safeway’s Group ‘creating the UK’s fourth largest supermarket group’. At present there are more than 360 stores; several factories, distribution centres and head office administrative posts across the country employing over 130,000 staff and welcoming around 10 million shoppers each week; their mission statement is ‘to deliver the very best for less’ . 2.0 A review of the macro environment of Morrisons ‘Macro environment relates to the larger forces that have an impact on society as a whole and not just on one or a few organisations…the company’s macro-environment consists...

Words: 3547 - Pages: 15

Free Essay

Swot

...SWOT ANALYSIS STRENGTH: Tesco has become the largest brick and mortar grocery chain in the U.K. Tesco had grown from stride to stride to become the largest brick and mortar grocery chain in the U.K. In 1995 it overtook the venerable Sainsbury’s, an entrenched leader in the market since the late 1800s. Since then, there had been no looking back for Tesco. For the fiscal year 2000, Tesco reported sales of £18.7 billion and net income of £1 billion, an increase of 11%. Much of this meteoric growth resulted from a combination of astute real estate planning, excellent location strategy, creative execution of multiple format stores and above all its ability to keep pace with prevailing customer trends. To become a market leader a company has to obtain a proper planning. Location is a very important factor in the success of an organization. It is very important to choose it wisely. If a company has multiple stores its customer accessibility will be increased. It will be very easy for customers to go to the stores if there are many outlets. The level of customer satisfaction will also be increased. Tesco serves its customers with cheap price and best quality.. “Pile it high and sell it cheap” was the slogan that launched Tesco and the company was leaving no stone unturned to offer its customers the best value for their money Tesco introduced a variety of innovative practices that have increased efficiency and reduced operating cost over the...

Words: 1685 - Pages: 7

Premium Essay

Swot, Pestel, Porter's Five Forces and Value Chain Analysis of Tesco

...ntroduction This report is aimed at critically analysing the macro, meso and micro business environment of Tesco, one of the largest food and grocery retailers in the world, operating around 4,331 stores. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, SWOT and Value Chain analysis have been used by researchers in order to achieve this aim. Tesco – Company Overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 470,000 people . They operate approximately 4,331 stores in 14 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Datamonitor (2010), the commercial network portfolio of Tesco comprises : over 960 Express stores which sell approximately 7,000 products including fresh foods at suitable localities ; 170 Metro stores which sell a variety of food products in town and city centres; and 450 superstores which sell both food and non-food items including books and DVDs. Tesco also provides online retailing services through their website tesco.com and Tesco Direct . In addition, they provide broadband I nternet connections and financial services through Tesco Personal Finance (TPF). Tesco was founded in 1919 and launched its first store in Edgware, London, UK in 1929 (Tesco, 2010); however, over the decades it has evolved to become the market leader within the UK food retail segment (Datamonitor...

Words: 3863 - Pages: 16

Free Essay

Sainsbury's Egypt

...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, unethical business practice...

Words: 3759 - Pages: 16