Sainsburys Corporate And Business Strategy Education Essay

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Maximizing shareholder value Sir Terry Leahy, chief executive since the mid 1990s, has adopted brave step of tryingnotin the direction of on the usualcorporatetune. Our main aim is to create value for the customers to gain their lifetime loyalty this is the company mission.Customer service of course at the higher level of the company on the other hand to make profit. However it remain to be seen whether tesco keep focus now widely seems huge corporate success story and the leading company in the United Kingdom retail market or if it will give way to corporate superiority as sometimes happen to main companies.

Sainsbury's corporate & business strategy

  • As a leading food retailer, they are committed to being best for food and health.Sainsbury goal is to offer our customers great quality food at fair prices Sainsbury's goal is to offer our customers great quality food at fair prices. Their aim is to help and motivate customers to eat a healthy reasonable diet by promote vigorous eating and energetic lifestyles.

  • Without compromising on taste or quality Sainsbury's intend to make products as healthy as possible . wherever possible, their team of over 100 product developers and technologists work to regularly decrease levels of fat, soaked fat, sugar, salt and additives in our products while looking to increase nutrients and food groups typically lacking in the UK diet.

  • As 'Best for food and health' helping their customers live healthier lifestyles. They do this by contribution great tasting, healthy food at reasonable prices and thrilling our customers to cook with confidence.

  • We believe that while selling our products making sure that customers have clear information about products which they buy and give training to our colleagues with training to avoid the under-age buying of alcohol.

  • Environmental issues are taken seriously at sainsbury's. They aim to be environmentally accountable in the way to run their business.

Most of what we use on food, nearly all of it goes to non-farmers. Uk farmers as estimated receive just 9p of every £1 spent on food by the customers.Very less money infact get back to the farmers, as much money go through the worldwide economy. Much of the money goes in the account of the big companies like Unilever Nestle and Altria (Kraft Foods) and the big supermarkets like Asda/Wal-Mart, Sainsbury's and Tesco which are dominating in the market.

Top 10 global food retailers


Sales 2002 (US$ million)

Wal-Mart (US)


Carrefour (France)


Royal Ahold (Netherlands)


Kroger (US)


Metro (Germany)


Tesco (UK)


Costco (US)


Albertson's (US)




Maximising profits, minimising competition

A small number of multinational companies increasingly control the food production in the UK and worldwide. While in every sector the number of corporations of the food system has fallen, market power of the survivors has increased, and competition between them has diminished. It is enabling them to take out ever larger profits from the food system. Through a small number of corporate food processors and retailers many farmers selling their produce to millions of customers. According to the principles of competitive economics, markets are most valuable when there is strong competition between a number of businesses.

Tesco is the British grocery and convenience sales monster.Tesco now has properties in China and Turkey, as well as other significant emerging markets.

  • Tesco is the British grocery and convenience sales monster.Tesco now has properties in China and Turkey, as well as other significant emerging markets.
  • RevenueFiscal Year2008 47.298 Billion GBP ($74.144 Billion)

  • RevenueFiscal Year2009 54.327 Billion GBP ($85.163 Billion)

  • Revenue Growth:14.9%

  • Net IncomeFiscal Year20082.124 Billion GBP ($3.330 Billion)

  • Net IncomeFiscal Year20092.161 Billion GBP ($3.388 Billion).

One in every £4 spent on fair trade products in the Uk says supermarket pound The supermarket says that one in every four pounds and adds that annual sales of Fair-trade increased by 10% to £218m compared to this time last year.

Consumers make choices about where to shop everyday.

In Britain consumers have a choice just on 15 minutes drive they find three or more different supermarkets research shows.Consumers can and do change easily between the stores they use in the grocery market. Each time consumers go for shopping they choose where to use their money. From one month to the next If they select to shop in a different store this would call switching. And the value of this switching has doubled since 2002 and more than £10 billion. Wide range of retailers for consumers to choose from including Wal Mart/ Asda, Sainsbury, Morrison, Waitrose, M&S, Somerfield, Aldi, Lidl and Netto, other smaller supermarkets, Costco and Makro, the Co-Ops, Symbol groups (e.g. Premier, Costcutter and Spar) and thousands of independent retailers.In grocery market has undergone severe changes.

Sainsbury's and Tesco are beating the recession blues

Over the last five years Sainsbury's had been losing their market share. But over the past 18 months they got back and these profits are the result of that," he said. Over the Last six to 12 months Sainsbury's profit figures are looking backwards .

Tesco heads the top 10 list of the most recession-proof retailers in Britain, which includes growing Welsh online ethical clothing company Howies, at number six - sandwiched between Waitrose and John Lewis. Sainsbury's is at number eight.

Patrick Minford, Professor of Economics at Cardiff University Business School, said the recession probably started in the third quarter, when the Gross Domestic Product fell 0.5% after a year in which money has been very tight.

"There is no town or city that is resistant from recession," he said.

From January to September. the retailer's pre-tax profits plummeted from £451.8m in 2007 to £297.8m in 2008.

Tesco begins new sales strategy to reduce food waste

Tesco begins new sales strategy to reduce food waste

The UK's largest retailer has introduced the first of its new Buy One, get One free later deals designed in response to alarming research showing the high levels of food waste.

"Customers really like our Buy One Get One Free deals but feedback shows smaller households sometimes can't use the free product before its use by date," Lucy Neville-Rolfe, Now we're giving customers the elasticity to take advantage said by Tesco Executive Director .

"As well as giving our customers a flexible new offer, we're helping them to cut food waste."

Our business Structure we recognized five areas of focus in March 2007 to take Sainsbury's from recovery to growth:

Great food at fair prices To make on and widen the lead in food for healthy safe fresh and tasty food Sainsbury's will continue to innovate and supply leadership in delivering quality products at flaxen prices, sourced with reliability.

Reaching more customers through additional channels

By opening new convenience stores to enlarge the reach of the Sainsbury's brand, developing the online home delivery operation and growing Sainsbury's Finance.

Growing supermarket space

To enlarge the company's store estate, actively looking for and developing a pipeline of new stores and extending the largely immature store collection to provide an even better food offer while also growing space for non-food ranges.

Active property management The ownership of property assets provides operational elasticity and the development of possible development opportunities will maximise value.

Sainsbury's offer skills training Sainsbury's often offer some formal short trainings like in stock taking and stock taking as well as basic maths and English literacy skills equivalent to feve good GCSEs.More employers wants by government to offer skills training courses.