Making judgments on how successfully Sainsbury’s are meeting objectives Essay
I can tell they are meeting this objective by looking at the profits they are making from their annual report. Looking at there annual report they are not making a loss they are making big profits. Other ways I can tell they are meeting this objective is by looking at their market share. Sainsbury’s is within the top three companies in the market with a market share of around 15%. Sainsbury’s is looking very stable in this market. The only possible thing that could happen to Sainsbury’s, which would wipe out its existence, would be a hostile takeover. This however would take a lot of capital.
I say this because Sainsbury’s is a PLC, and one of the disadvantages of being a PLC is that Sainsbury’s shares are being sold in the stock exchange. This could be bought by their rivals, which would then give them total authority over Sainsbury’s. They could change the name Sainsbury’s to their own. That is the nearest problem that could happen to Sainsbury’s, which could threaten their survival. Profit maximisation: In my judgement I can say that Sainsbury’s do try to maximise their profits. If you look at there accounts, Sainsbury’s are making over a
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This tells me that they are maximising their profits. This shows us that they are meeting this objective. They would be expected to meet this objective too, this is simply because they are in the top three in the market. This objective is also shown in theirstores. This is shown by the technology being used in the stores. This shows me that they are making the profit and have the money to spend on certain appliances for the use in stores. This also shows me that they are re-investing the profit made back into the company. If you look at their stores, you can always see a lot of staff members around.
This is probably because Sainsbury’s make so much profit that they can keep a large strong and efficient workforce. This is very important as a large and strong workforce helps keep the business moving and that the shelves would never be empty. Growth: In my judgement they are meeting this objective quite easily. This is because they are growing rapidly. Not just in the UK but overseas as well. They have started in Hungary and in Bangkok. This shows us Sainsbury’s intentions. There intentions are to grow into one of the world’s largest food retailers.
That is why I think this objective is being met easily. If you just look at there market share which is comfortably over 15% it shows us that in a few more years they could reach up to 25%. This then means they would be a monopoly. They would have total control over the markets. We have to remember that this market is very competitive. This also shows us that they are ahead of most competitors. Growth is based on expansion and market share. First of all, we can see that they are expanding nationwide. Better still, they have also started to expand overseas.
About market share, they have one of the largest market share in their market. Therefore, this objective is about growth. So I could easily say that they are growing and therefore I can say they are meeting this objective. Good customer service: this is the objective, which in my judgment they have met best. You only have to look at there slogan to see “every little helps”. This shows us that they always put the customer first. When I went to visit my local store. I was pacifically looking at the staff members and there attitude towards the customers.
During my time in Sainsbury’s I found out wherever and whenever there was a chance to help a customer they would of helped. That is why Sainsbury’s get repeat customers. They know if the customer comes in Sainsbury’s and feels wanted and happy they will come back again. So I have to say that they have accomplished this objective and in the future they would know how to carry on. Quality staff: in my judgement Sainsbury’s have a very strong and skilled workforce. Basically looking at their accounts, the way they treat the customers.
I could say that they have one of the best workforces in the whole of the food retailing market. If there work force was not good enough Sainsbury’s would not have more then 15% percent market share, they would not be expanding abroad if they had trouble at home at they would not be making a billion pounds plus profit. This shows us how heavily large organisations like Sainsbury’s rely on there staff. That is why training is so important. If the worker were trained in the right way they would perform in the right way. Their work force is also a reflection on their training and development departments.
This shows us that that department is functioning well as Sainsbury’s are getting a lot of the best workers in their labour market. Having quality staff means that Sainsbury’s would have a good customers service. This is because the workers would be trained to deal with customers in the right manner. My conclusion is that Sainsbury’s have already achieved all of these objectives. The next step would be to keep on achieving and improving them. Looking at Sainsbury’s performance so far they have a lot to keep up with and a lot of competition to become the number one food retailer.