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I have selected Sainsburys¶s as an organization. This report is about

Sainsbury¶s key objectives, major influences (both internal and external),
functional areas and the effect of current economic situation on the business.


  



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Mission statement aim is to get the word across to the people about what the
company is really about and what it wants to be related and recognized with. This is
mission statement of Sainsbury

è
 
  
   


 
          
 
  

Sainsbury also has a logo and a strap line

D%&$ ! 

S: specific

M: measurable

A: achievable

R: realistic

T: time
[ Sainsbury's aims and objectives

Their business is now focused very much on Sainsbury¶s Supermarkets

and Sainsbury¶s Bank following the sale of Shaw¶s and [S Developmen ts
during the year.

Three key priorities and six goals were developed in 1998. These are
based on those environmental impacts that are considered the most
significant for the business. No change to priorities or goals has
been seen to be necessary as the business has not altered since the
priorities and goals were formulated.

Priorities:

· Reduce the environmental impact of products.

· Reduce CO2 emissions.

· Reduce waste.

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· Environmental Management System: Manage the significant

environmental effects over which we have direct control and seek to
influence those of our customers and suppliers who reduce the impact
our organisation has on the environment.

· Own-Brand Products and Suppliers: Influence our suppliers to reduce

their direct environmental impacts and improve the environmental
quality of own-brand products through more sustainable sourcing.

· Transport: Increase the efficiency of transporting our products, and

address employee and customer travel, with the aim of r educing CO2
emissions while achieving customer satisfaction and business growth.


 "($) %*%+ $ 

Sainsbury's Stakeholders and their [ob Roles The purpose of this task is to outline
certain departments within the supermarket, such as stakeholders, job roles etc. To
find relevant information needed I will be using resources such as information from
class notes/worksheets, textbooks and the Internet. Stakeholder is anyone who
shows an interest in the business. Shareholders/Owners Sainsbury is a Plc, which
means that ownership of the company is divided up between all the shareholders
and the decisions are made by the board of directors with the sharehol der¶s best
interests in mind. This is usually profit maximization, since each shareholder gets a
proportion of the profits, relative to their share size, called dividends, at the end of
each year. The company, which generates its shareholders the most divi dends, is
likely to attract the most potential shareholders and keep most of its shareholders,
which will generate capital for the company. In the case of Sainsbury¶s it is a profit
maximization firm.
(http://www.coursework.info/AS_and_A_Level/Business_Studies/Structures__Objecti
ves___External_Influences/Sainsbury_s_Stakeholders_and_thei r_[ob_R_L135631.
html )

 c$, -

In May 2007 we identified five areas of focus to take Sainsbury¶s from recovery to
growth:

!  )$$& ). To build on and stretch the lead in food. By sharing
our customers¶ passion for healthy, safe, fresh an d tasty food, Sainsbury¶s will
continue to innovate and provide leadership in delivering quality products at
fair prices, sourced with integrity.
! D' / -/$, -$)$%.'% $ 0)$$&/ To continue
to develop and accelerate the developme nt of non-food ranges following the
same principles of quality, value and innovation and to provide a broader
shopping experience for customers.
 ! -/%$ $% -$/-&& $'-' To extend the
reach of the Sainsbury¶s brand by opening n ew convenience stores,
developing the online home delivery operation and growing Sainsbury¶s Bank.
! $,/.%1 . To expand the company¶s store estate,
actively seeking and developing a pipeline of new stores and extending the
largely underdeveloped store portfolio to provide an even better food offer
while also growing space for non -food ranges.

D !.$. %/%  The ownership of property assets provides

operational flexibility and the exploitation of potential development opportuni ties will
maximise value

(http://www.j-sainsbury.co.uk/ar08/businessreview/corporateobjectives.shtml )

D.$ 2$"c -$!%c

3

_ Total sales are up to 7.6%

- Like-for-like sales growth of 3.9%
- Customer transactions continue to grow
_ Underlying profit before tax up 13.3%
- Sales growth, investment in offer, tight cost control
- Universal appeal delivering in a challenging environment
_ Customer offer developed further to perform in the current economic climate
On track for 4% gross space growth this year and 5% per annum thereafter
_ new store openings in line with plans, strong pipeline for future growth
_ Focus on fewer, larger extensions
- Bigger food and non-food offer
- delivering lower cost per square foot
_ Rolling refurbishments commenced now that catch -up work complete
_ Flexibility around capital spend
(http://www.j-
sainsbury.com/files/results/interims08/slides/files/2008_interim_slides.pdf )
 #1 &$% $ 
Although Sainsbury¶s seems to doing very well, it faces fierce competition from other
supermarkets in the industry. The other main players include ASDA, Morrison¶s and
Tesco. All these firms are significant in size and influence the market. As the figure
below shows, the market has a very high concentration with 76.2% of the market in
the hands of the top 4 supermarkets.

(http://www.studynet2.herts.ac.uk/crs/08/1BUS01910908.nsf/GroupView?openagent
&view=pages&group=demo )
 4&&-. 

Own-Brand Products and Suppliers Influence Sainsbury¶s suppliers to reduce

their direct environmental impacts and improve the environmental
quality of own-brand products through more sustainable sourcing for example
Sainsbury's will give a major boost to the world's forests today by announcing that it
will be the first to source all of its own-brand tissue from sustainable sources, as well
as providing other ways for customers to be green and clean at home. From May
2007, Sainsbury's entire range of own -brand tissues, kitchen towel and toilet roll will
be made from sustainable wood fibre which doesn't compromise the future of
forests.

This means 76 million kitchen rolls, 191 million toilet rolls, along with millions of
tissues every year will now be made from either recycled paper, or from material
approved by the Forestry Stewardship Commission (FSC). Both are recognised as
the most environmentally-responsible.

The move will account for 85% of all the wood -fibre products that Sainsbury's
currently sells, with an aspiration to extend to 100% to include paper tableware and
home accessories.
Sainsbury's is the first retailer to convert all of its own-brand tissue to recycled or
FSC approved fibre. The move will include all ranges, from µBasics', to more
premium tissue, so whatever a customer's budget, they can support the environment.
(http://www.j-
sainsbury.com/index.asp?PageID=424&subsection=&Year=2007&NewsID=851 )

 5!!'

Sainsbury¶s is doing good to survive as they got 4 major competitors e.g. ASDA,
Morrison¶s and Tesco¶s. They need to work hard in the grocery market because
Tesco got 31.4 % of the main market share.

#$)' 

 6--$'& 

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The Company has been advised of the following interests in its shares:

! Qatar Holding LLC notified the Company on 28 [uly 2008 that it held 27.277
per cent. Qatar Holding LLC is a wholly owned subsidiary of Qatar Investment
Authority (µQIA¶) and acts under QIA¶s direction and control.
! Lord Sainsbury of Turville notified the Company on 31 March 2008 that he
held 5.85 per cent. Lord Sainsbury of Turville holds 0.57 per cent directly and
5.28 per cent indirectly through Innotech Advisers Ltd, a company 100 per
cent owned by Lord Sainsbury of Turville.
! [udith Portrait notified the Company on 21 February 2008 that she held 4.09
per cent.
! Legal & General Group Plc notified the Company on 3 October 2007 that it
held 4.0 per cent.
! Credit Agricole Cheuvreux International Ltd, Calyon SA, Credit Agricole Asset
Management Group, Credit Agricole Asset Management notified the
Company on 23 November 2007 that the Group owned 3.21 per cent.

 7
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Lots of little things can make for big change. Our customers tell us they can see the
difference already. They have commented on our better pricing, improved availability
of products and higher service standards. But we know that will not be enough.
Customers want constant improvement and that is what we will give them.
A good example is our Sainsbury¶s to You home delivery service. This is an
important service for our customers but we pu t expansion on hold while we work
hard to improve our performance.
This service is now fully integrated with our stores and we have made good progress,
particularly on availability where, like stores, we have been able to reduce the
number of products out of stock. Availability has improved by 4.5 percentage points
and this is a good indication of the overall improvement being experienced by all our
customers whether they shop in-store or online. (http://www.j-
sainsbury.com/ar05/index.asp?pageid=61 )
 3($. 
There are too many pressure groups which are affecting Sainsbury¶s for example
Sainsbury's has been accused of misleading the public in an advertising campaign
about its use of pesticides.

Friends of the Earth says an advert for the supermarket published in national
newspapers falsely implies that apples and other produce from Sainsbury's are free
of pesticides.

The pressure group says the latest government figures show that 29% of apples
sampled at Sainsbury's contained pesticide residues and has accused the
supermarket giant of making "Pinocchio pesticide promises".

Sainsbury's has rejected the claim and says it is not seeking to misleading its
customers in any way. (http://news.bbc.co.uk/1/hi/uk/983656.stm )

 8 %.'$ 

! Save-As-You-Earn scheme for supermarket staff offers chance for company

shares to be bought at a 20% discount.
! A profit-sharing scheme allows employees to have shares or cash. Roughly 50%
of the company's shares are owned by current or former staff and it is this
scheme that is largely responsible.

! Under a staff discount scheme, employees receive a 10% reduction on products

bought from the compan y.

! Long service awards are given to staff with 15, 25 or 40 years' service.

! Also, the company operates performance -related pay and bonus schemes for
middle and senior managers.
(http://www.bized.co.uk/compfact/sainsbury/sains17.htm )

As employers are the main thing of any firm so Sainsbury¶s is doing too many things
to motivate their employees so that they work hard for the firm.

 "
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Government make sure that Sainsbury¶s is making environmental friendly products

and they are reducing CO2 emissions. As Sainsbury¶s main priorities are

Priorities:

· Reduce the environmental impact of products.

· Reduce CO2 emissions.

· Reduce waste.

Functional Areas:

The functional areas at Sainsbury¶s are: -

· Human resources
· Finance
· Administration
· Production
· Marketing and Sales
· IT
Each functional area operates to support Sainsbury¶s aims and
objectives and a range of activities goes on in each one.

HR:

U Business needs people with the right skills, in the right place and at the right
time

U Need to be able to fit work to people and fit people to technology, to provide
effective and profitable products and services

U Role of HR is to provide the basis for staff management, employee relations

and personnel practices required by the business

Finance:

U Supports and guides the business on where to spend the money and where
not to spend money.

U To make money available to spend on business needs

U Generates profit and loss accounts, t he balance sheet and advises

management on how well their function is doing.

Marketing and Sales:

U Sales is about the present market, marketing is about the future, the objective
of the sales team is to generate sales now

U The objective of marketing is to preserve customers over the long term and
generate new markets

U Ensures product quality, make sure the product is available at the right price,
the right place and is promoted in the right way

IT:

U Any business needs to be able to communicate both internally and with

externally and to provide, use and retain and manage information
 U Require both support function technology and information systems to support
efficient processes

U Technology advances brings both opportunities and threats to businesses.

 "" )) $) $$%  $ 

 $   $$%   $ 2 '    $%
& $$,&.$&  

Sainsbury's touted its discount grocer credentials yesterday, as it delivered booming

sales of own-label value lines and won over customers from the up market grocers
Marks & Spencer and Waitrose during the credit crunch.

[ustin King, the supermarket's chief executive, said: "We have successfully
developed our offer to help offset the rising cost of living and tighter household
budgets."

His comments came as Sainsbury's delivered an 11.2 per cent uplift in pre -tax profits
to £258m for the 28-week to 4 October. Its like-for-like sales jumped by 3.9 per cent,
excluding fuel, over the period.

Mr. King declined to provide sales data for the period since 4 October, but pointed to
Tuesday's TNS World panel data, which said that Sainsbury's had grown sales by 6
per cent for the 12 weeks to 4 November. Over the same period, Morrison¶s
increased sales by 9.4 per cent, ASDA by 9 per cent and Tesco by 5.4 per cent.
(http://www.independent.co.uk/news/business/news/sainsburys -sales-rise-as-credit-
crunch-customers-turn-to-ownbrand-products-1015867.html )

Supermarket giant Sainsbury's has appeared to buck the credit crunch trend and
today posted a 13.3 per cent hike in half -year profits.

Despite the gloomy retail market, Sainsbury's was buoyed by its 15th quarter of
sales growth in a row, reporting underlying pre -tax profits of £272 million in the six
months to October 4.
It hailed its 'universal customer appeal' for its healthy profit margins as it said sales
rose 3.9 per cent on a like -for-like basis in the
period.( http://www.dailymail.co.uk/news/article -1085031/Sainsburys-defies-retail-
gloom-post-13-3-credit-crunch-profit.html )

4
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Sainsbury¶s seems to be doing really well in UK. As they have less effect of credit
crunch. They will achieve their aims with the help of functional areas.

5

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As the mission statement of Sainsbury¶s says:

è
 
  
   


 
          
 
  

There is less effect of current economic situation on Sainsbury¶s as their sales are
increasing. They motivate their employees as well. I believe they will get their aim in
some years.

6
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7
) 

(http://www.coursework.info/AS_and_A_Level/Business_Studies/Structures__Objecti
ves___External_Influences/Sainsbury_s_Stakeholders_and_their_[ob_R_ L135631.
html )

(http://www.j-sainsbury.co.uk/ar08/businessreview/corporateobjectives.shtml )
(http://www.j-
sainsbury.com/files/results/interims08/slides/files/2008_interim_slides.pdf )
(http://www.studynet2.herts.ac.uk/crs/08/1BUS01910908.nsf/GroupView?openagent
&view=pages&group=demo )

(http://www.j-
sainsbury.com/index.asp?PageID=424&subsection=&Year=2007&NewsID=851 )

( http://www.j-sainsbury.com/ar05/index.asp?pageid=61 )

(http://news.bbc.co.uk/1/hi/uk/983656.stm )

(http://www.bized.co.uk/compfact/sainsbury/sains17.htm )

(http://www.independent.co.uk/news/business/news/sainsburys -sales-rise-as-credit-
crunch-customers-turn-to-ownbrand-products-1015867.html )

(http://www.dailymail.co.uk/news/article-1085031/Sainsburys-defies-retail-gloom-
post-13-3-credit-crunch-profit.html )


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