Monday, January 27, 2020
A Strategic Analysis Of J Sainsbury Marketing Essay
A Strategic Analysis Of J Sainsbury Marketing Essay J Sainsbury plc consists of Sainsburys a chain of 509 supermarkets and 276 convenience stores, Sainsburys online, Sainsburys property and Sainsburys Bank. Sainsburys Supermarkets is the UKs longest standing major food retailing chain, which opened its first store in 1869. The Sainsburys brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. Today 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. At Sainsburys products are improved and developed to ensure the company leads in terms of the ingredients used and integrity of sourcing. Sainsburys goal is to improve quality shopping experience for customers with great products at fair prices. Their aim is to exceed customer expectations for healthy, safe, fresh and tasty food, making the customers lives easier every day. Sainsburys brand Values-passion for healthy, safe, fresh and tasty food, their focus is on delivering great products at fair prices, they have a history of innovation and leadership and a strong regard for the social, ethical and environmental effects of their operation, and this has continued to stand the test of time. Sainsburys five principles are at the core of their business:  ·Ã‚        The best for food and health  ·Ã‚        Sourcing with integrity  ·Ã‚        Respect for our environment  ·Ã‚        Making a positive difference to our community  ·Ã‚        A great place to work. And at Sainsburys they believe that these principles provide differentiation from their major competitors and define and direct all their activities. Sainsburys business priorities are:  ·Ã‚        Great food at fair prices  ·Ã‚        Accelerating growth of complementary non-food ranges  ·Ã‚        Reaching more customers through additional channels  ·Ã‚        Growing supermarket space  ·Ã‚        Active property management The organisation that has been selected to examine and analyse is Sainsburys.  Sainsburys has started its journey in 1869 and since then it has gradually established itself as the third largest supermarket chain in UK. Over the past few years its parent company J Sainsbury plc  has prolonged its business and now owns a whole range of other companies like Sainsburys Supermarkets, Sainsburys Local, Bells Stores, Jacksons Stores and JB Beaumont, Sainsburys Online and Sainsburys Bank. The increasing figures of Sainsburys  global sales and purchasing operations contributes to a significant rise in the business competence and productivity. However, this report will be examining Sainsburys position in the retail industry, explaining the role of interaction within the macro and micro environment, drawing up a detailed competitive advantage of the organisation and the strategies that influence the business policies to survive in the competitive market. Analysis of Financial data Gross Profit Margin (GPM)- Due to the intense competition in the supermarket industry margins are generally low. See the following table for comparators which shows relatively poor margins for Sainsbury even compared to other retailers ; Company Industry ROA Profit Margin Marks Spencer Retailer and Financial Services 4.43% 3.91% J Sainsbury Retailer and Financial Services 5.60% 3.61% Thorntons Retailer of Chocolates etc 8.43% 6.45% Next Retailer of Clothing 26.14% 13.82% Dixons Group Retailer of Electronic etc Goods 19.78% 14.41% Yates Group Retailer of Food 9.13% 13.34% Safeway Retailer of Food 7.24% 4.14% Morrisons Retailer of Food 12.93% 5.87% Tesco Retailer of Food and Household Goods 9.99% 5.72% Strategic analysis of Sainsbury PLC using Porters 5-Force Model SWOT Analysis A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of an organization. With the help of this SWOT analysis we will be able to find out the positives and negatives of Sainsburys. Strengths: Sainsburys has had thirteen straight quarters of growth showing real turnaround in its business. Even for 2007 it has shown an increase of 7% in turnover and a huge 450% increase in profit after tax (Annual Report 2007).It has an extremely experienced leadership team. Sainsburys seems to be very well placed on green and environmental issues due to its various recent initiatives, like buying fair-trade bananas (economist.com 2008 [online]). Furthermore its help in closing down gang master has had a positive effect on the public in general. It has a positive consumer brand and its liked by both green activists and consumers. It is one supermarket chain that has a clear celebrity endorsing products, leading to increased sales. With Jamie Oliver, it has been simple for Sainsburys to see uplifts in sales of specific ingredients that have been featured in ad campaigns. The supermarket had to order nine tons the equivalent of two years supply of nutmeg to meet demand when it appeared in one of Jamie Olivers ads. Weakness: The takeover bid by the Qataris Private equity firm last year can have some implications as people are gravitating towards British companies and the prospect of Sainsburys being governed by a foreign firm can lead to consumers switching loyalties. Unlike Tescos expansion plan (economist.com [online] 2008), Sainsburys is not present in markets other than the UK. This can lead to trouble especially if there is some problem within food retailing in the UK or if there needs to be a source of extra growth. Opportunities: Sainsburys alternative business presents a great opportunity for future growth. Its investments in property and a goal of  £40 million profit through its bank seem like a good strategy to pursue. Online sales are a great opportunity as well, since online margins are higher and investments are not huge. Threats: There needs to be continuous heavy investment in environmental and green issues without immediate benefits. The problem lies in maintaining a balance e.g. Bio-fuel is an important tool to curb global emissions and its use affects Sainsburys supply chain directly, so Sainsburys should support it. However, a spurt in bio-fuels has made corn dearer (independent.co.uk [online] 2008) affecting its prices within the UK and making Sainsburys consumers bear the brunt. Sainsburys operations are subject to a broad spectrum of regulatory requirements particularly in relation to planning, competition and environmental issues, employment, pensions and tax laws and in terms of regulations over the groups products and services. This concludes that with the help of this SWOT analysis Sainsbury would now know where they stand. This will also allow them work on their opportunities, weaknesses and threats and build up on their strengths giving them a cutting edge. Macro-Environment: At this present phenomenon the nature of the retail industry is changing its image dramatically and the importance to survive with the competitors and remain as a leading company in the market has reached its highest peak. However, there are some issues which may have some impacts on the business.  Political factors: At present the changing trend of globalised business could be a challenge as well as an opportunity for the Sainsburys because they would have to compete against new forces from all over the world to maintain best quality of the products and services they offer. Customer may get a negative impression because of the investigation going on price fixing as Sainsburys is listed in the top four retailers in UK (Rigby 2008). The UK Government is to reduce corporation tax rates from 30% to 28%, which will help Sainsbury, to save large amount of money (HM Treasury 2008).  Economical factors: The rising food prices because of global food crisis may have impacts on the business of Sainsburys as it will definitely increase their purchasing and production cost (economist.com 2008). And eventually it will increase the overall price of the products in the super market  Supply chain of Sainsburys may get affected with the rising cost of fuel which may lead to an overall increase in prices. The credit crunch will cut the purchasing power of the consumers as they would have less money to spend on luxury products. Therefore, automatically it is going to decrease profit margins for Sainsburys. On the other hand Sainsburys operates financial services company with HBOS (Annual Report 2007) and also a bank. However, both of are directed affected due to recession. As the competition in the market is really high other big competitors like ASDA ,TESCO ,MORRISON ,LIDL , ALDI are cutting down their product prices and giving lot of incentives to customer which may bound Sainsburys to drop their prices to survive in the market. (Annual Report 2008) SOCIAL FACTORS: Sainsburys may introduce new recipes to cook easy and healthy food because now a days consumers tend to eat fresh food and  seem to be more health conscious. According to the health department the obesity rate in UK is increasing (department of health 2008). And because of that reason the UK government has emphasised on healthy eating (eatwell.gov.uk 2008) which gives Sainsburys to an opportunity to manufacture more healthy foods at a cheaper price to match the ongoing trend. Technological: It is predicted that by 2011 the online retail sales in Europe will hit approximately 263 Billion Euro because of the rapid increase of internet shopping in which the shoppers in UK may accounting for more than a third of all revenue.  Sainsburys can take the advantage of utilizing internet as an advertising media as 8% of the global advertising is spent on the internet and the percentage is increasing day by day (The Economist, 2007). It will be very cost effective and help the company to globalize very easily. Self checkout machines may increase customer loyalty as they dont have to wait in long queues sometimes for very few products. It saves their time and increase comfort while shopping. It can also be very cost effective as it will require less worker to work and can be in operated 24 hour shops which will boost up the sales figure. RFID (Radio Frequency Identification Device) is a new technology yet to be popular but can play vital role in supply chain management fort the company. It can benefit big companies like Sainsburys to save their valuable time as it requires less inventory and offers more efficiency. (Directions magazine 2008) Environmental factors Environmental factors are one of the key issues these days. Every company has to ensure that they contribute in reducing carbon footprint and to increase energy efficiency (Bream 2008) which means big companies like Sainsburys would have to invest more money to sort out Green issues. With the growing ethical issues such as selling organic foods and treating animals in a good way may have impacts on the business of Sainsburys because they would have to retain their customers and balance their pricing after maintain all the environmental issues. Legal factors: Sainsburys would have to develop its packaging and labelling policies to meet all the implications of LAW on food and drinks. Which will add extra cost to their overall budget. As Sainsburys operate a bank and is involved with financial services they would have to be more concerned about the legal issues and risks involved with their business. Porters 5 Forces Competitive rivalry-The retail market is enormously competitive with a very crowded market. Now, as more and more companies are trying to get into non food sectors it further intensifies the competition. Sainsburys has a market share of 14.9% in 2007, steadily increasing since its restructuring programme that started in 2004 (Annual Report 2007). This is a positive trend but it lags well behind the runaway market leader Tesco, showing that there is considerable distance to cover. Tesco, Asda, and Morrisons are the other three big supermarket chains in the UK retail sector. All of them have a different competitive advantage over their competitors. Sainsburys reach in the convenience stores makes it have a larger customer reach. Banks and building societies compete with Sainsbury bank but it is not a core business for Sainsburys. Barriers for entry-Barriers to entry are extremely high in the food retail market due to a number of factors. Firstly, organised retail is amongst the most sophisticated sectors within the UK and needs a lot of investment, along with significant brand development, which takes years to establish. Secondly, retail is also at an advanced stage within the UK and most of the western world, which means there is little scope for new entrants to establish themselves. Local knowledge is extremely crucial within the food retail sector, something that is difficult for foreign firms to replicate. This is corroborated by the presence of few global supermarkets within UK. Threats of Substitutes- The threat of substitutes in the food retail industry is a low one simply because consumers view it as a necessity, especially in the developed world and increasingly in the emerging markets. The retail market is always trying to converge and assimilate new innovations with respect to food products or alternative businesses, to make shopping an extremely pleasurable experience. This makes them extremely difficult to substitute. The only major threat of substitute is an internal industry threat whereby one supermarket can lap up the business of other supermarkets. Buyer power- Buyer power is high in this industry simply due to the presence of so many competitors selling the same products. It is only differentiated in price and consumer loyalty and increasingly on green credentials. Moreover, the switching costs are low for consumers. As the economy goes further towards recession consumers needs are likely to be given more weight, increasing their power considerably. Supplier power- Supplier power is usually more complicated as it is difficult to categorise it. It is safe to call it a mutually dependent relationship as suppliers are in itself huge companies, like PG, Unilever, Cadbury etc. with huge brand appeal. It can be argued that if supermarkets do not sell their products consumers will shift loyalties, making suppliers very powerful. However, if the products of big companies do not reach supermarkets, their sales volumes will be affected hugely. The relationship might change depending on the situation of the big branded supplier, for example, when sales of Cadburys dairy milk increased through the successful Gorilla ad campaign. Supplier power of smaller suppliers will not be considerable because of their sales volumes on dependence on these supermarkets. Competitive advantage: Sainsburys has got some competitive advantage which made its business so successful all over UK and established the 3rd food retail chain in United Kingdom. The competitive advantages are discussed below: Æ’ËÅ"      16 million customers visiting every week Æ’ËÅ"      More concerned with the environmental issues such as green house effect , reducing fuel emission , providing 15 million reusable bags , 8 million car stickers and fridge magnets to remind and encourage people to use environmental friendly resources. Æ’ËÅ"      Performing social responsibility while working with Comic Relief to raise money and help poor neighbourhood. Æ’ËÅ"      22% market share makes them one the power key player after Tesco in the British retail industry. Æ’ËÅ"      They have established a brand image and are considered to have the supermarket power which is Locations. Æ’ËÅ"      Sainsburys marketing strategy is to attract the middle class consumers  with an affordable cost  while maintaining particularly quality of the food they simultaneously. Æ’ËÅ"      They are promoting a new section name Active Kids to help school kids and teachers to overcall child obesity.http://www.bitc.org.uk/resources/case_studies/afe_1343.html) Æ’ËÅ"      Sainsbury is the first super store to start One Hour Delivery slot outside of London. In addition if the y fail to do so on time customers will be paid  £10 next time they do online shopping. (http://www.sourcewire.com/releases/rel_display.php?relid=19562hilite Æ’ËÅ"      Sainsburys bank loans ranked 13 out of 16 in the Ciao top list as The Best Loan Lenders                http://www.ciao.co.uk/Sainsburys_Bank_Loans__6914648) Æ’ËÅ"      Developing customer service is a key advantage for Sainsbury. They discovered their highly skilled employees focus on their duties rather than Customers. So therefore , they changed the strategies and focused more to improve customer service to get extra advantage. Æ’ËÅ"      The adoption of RFID has brought new competitive advantage as only few companies has the privilege to use this innovative technology. Æ’ËÅ"      Making Sainsburys store more accessible for its customer while keeping in mind about some facts such as geographical aspects, ever changing lifestyles, and Government restrictions. Æ’ËÅ"      Cutting cost , giving incentives and introducing constant innovative products is a core advantage over competitors. Æ’ËÅ"      Sainsbury manufacturers their own products and has their own brands which helps them to produce products in a bulk quantity at a cheaper price. Æ’ËÅ"      The company has a unique core competency which is they promote value by providing good quality products at a competitive price. Æ’ËÅ"      Vertical integration in between buyers and suppliers has managed to organise and run a healthy supply chain system for the company which may help them to expand their business in future. . Limitations inter-related with the PEST Analysis: In analyzing the macro-environment, it is important to identify the critical factors that might have affect on the business. A number methods of have been developed so far. PEST analysis happens to be one of the key tools to determine those factors in a various way. Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The utilization of PEST analysis could be considered effective for the corporate benefit and strategic developments of the company. Although everything has its own Pros and Cons , PEST analysis as a tool is not unlikely to them. It can be said that Pest Analysis are sometimes done on simple assumptions which may not even exist in real. The reason behind may be the facts we take into account while doing a PEST for any company. It may not be considered on specific area or may be they less possibility to happen reality. It is also considered that PEST analysis doesnt really emphasise on critical factors and it one of the major lacking of this method is it only covers external issues without concerning the internal environment of the company and position of competitors in the industry. Another disadvantage for PEST would be it is not done on a regular basis as the rules and regulations, currency rate , variables , foreign investment and economic figures etc .change quite often. Indeed to make it more realistic and practical it is important to gather information and obtain different perspectives based on individual point of view which is going to increase cost thus, results as a limitation for this vastly use d tool. The current position of the company in the market is quite strong though with the booming recession and business expansion of other competitors may cause some difficulties in future. Sainsburys being one of the largest supermarket company in UK should set some standards to achieve outstanding performance as a overall company. Moreover,  Sainsbury should introduce some new business policies to expand its business outside of UK and explore the new markets like China, India , USA, Australia. Conclusion: From this investigation it can be seen through the various analyses methods used; Marketing Audit, Porters 5 Forces and SWOT, that Sainsburys is an iconic British food brand, well loved by its consumers and importantly profits, have improved tremendously. Although it has shown steady growth it is important for Sainsburys to go the next level by challenging Tesco, a competitor identified in the Porters 5 forces analysis, either by thinking of international expansion or on price. This in conjunction with its increasing property portfolio and alternate businesses should help in continuing the strong growth path, as well as tiding over threats (SWOT) in its external environment.
Saturday, January 18, 2020
How Does the Individual Influence World Events Essay
â€Å"How does the individual influence world events?†Muhammad is the prophet of the Islam. Islam means submission to the will of Allah. Allah is the one and only Islamic God. He taught the Middle Eastern people that Allah was the only God and that all other gods must be abandoned. Muhammad was and still is a highly respected individual that created the largest religion the world has ever seen. The Muslim religion has over a billion and a half followers, which is 25 % of the world’s population. Muhammad claimed that he saw an angel while meditating at a cave. The angel told Muhammad that he was the messenger for God. From that day and on, Muhammad began to spread the word of Allah. He began to preach at Mecca in 610 but reached minimum success. In 622, a criticized Muhammad left Mecca for Yathrib. To all Muslims, this migration is known as the Hijrah. In Yathrib, Muhammad drew many followers and influenced many people. Yathrib was later named Medina meaning â€Å"the city of the prophet†. During this time, Muhammad became a military leader. In the year 630, Muhammad and 10,000 of his followers marched into Mecca and caused Mecca’s leaders to surrender. The prophet entered Mecca in triumph. Many Meccans pledged their loyalty to Muhammad and converted to Islam. â€Å"How does the individual influence world events?†Barack Obama is the president of the United States of America. Everything he does sets the mood for the entire world, so much that he is under tremendous pressure. This pressure includes living up to the change he promised the world, pleasing his people and fixing the U.S’s un-stable economy. No other political figure in today’s world may be as significant as President Obama. His decisions and actions affect both people in America and people across the world. For example Obama has sent 50 thousand troops to Afghanistan. This negatively affected his image due to the fact that he promised for change when this action shows no change between him and former president Bush. This also affected the Muslim view on Barack Obama because they thought that he would focus on peace more than war. Due to his race, the world has broken many racial barriers and racism is not as much a factor as was before. Barack Obama can be labeled as one of the most influential political leaders of all time, even though he has been in office for so little time. This is because of the racial barriers he has broken and the ideas and decisions he both promised and has fulfilled. â€Å"How does the individual influence world events?†The individual can influence today’s world in many ways. We can become more involved in the care of the environment by making small decisions that will not drastically change our lifestyles but can change the world. These changes include minimizing the time of showers, shutting off all lights when you are not using them, using renewable energy sources, switching to compact florescent light bulbs etc. The individual should educate themselves along with others on how becoming green is the way to go. China for example is making big changes when it comes to helping the environment. China has 50 % of all solar energy panels and is the number 1 producer of wind turbines.
Friday, January 10, 2020
Bias in Abstinence-Only Education Essay
In addition to being an ineffective deterrent to unwanted pregnancy and sexually transmitted diseases, abstinence only education prevents young women from making well informed decisions about their sexuality. Cases of teen pregnancy and STD/HIV infections is on the rise despite the government allocating funds for abstinence only programs. This paper seeks to look at the government policies with regard to abstinence-only education programs and its relationship with unwanted pregnancies. It is a known fact that sexual abstinence is being practiced in all countries in the world as a sure way of preventing sexually transmitted diseases and pregnancy. Men and women of all ages who are not ready to accept the risks that accompany sexual activity embrace abstinence which is a normal and acceptable practice. As a way of expressing love, affection and tenderness, majority resort to intercourse and sexual activity. Sex is also being used by couples to strengthen their relationships. However, it has often been argued that using sex to cement relationships can distort one’s judgment. Among women, having sex may strengthen the feeling of love but do not actually cement or deepen the relationship. Exploring sexual behavior within an environment of deep commitment where having children is considered as a possibility is always rewarding. Majority of people are however not prepared for commitment hence opt for abstinence until they develop a stable relationship. Abstinence is 100% effective in protecting an individual from sexually transmitted. However, if the majority of the population could realize its effectiveness, then we would not be having such headlines like the ones we have seen in the past of teen births being on the rise. However, abstinence is not an easy practice considering how strong sexual drives are among humans. The rate of teen births steadily declined since 1991 and this could have been because of the intensive educational campaigns that were initiated during that period. These campaigns included encouraging people to use contraceptives and condoms and enlightening people on the risks of Aids and sexually transmitted diseases. However, today statistics now show an increase by 3% in teen births the first time ever in 14 years. (Wilson, Kelly, Patricia,2005) Is it that the sex education programs that the government adopted are no longer working? The government has tried to show some effort in curbing STDs and unwanted pregnancies. The first federal abstinence-only program was enacted in 1981 and this was designed primarily to support pregnant and parenting teenagers. This came through the adolescent Family Life Act which was also passed the same year. AFLA also funded â€Å"abstinence-only†programs meant to encourage responsibility and self discipline among teenagers (Abstinence Only Programs 2008, p.2). Abstinence-only program’s purpose was to teach the general population and especially the teenagers how they stand to gain from abstinence. It also sought to teach abstinence from pre-marital to all schooling children. The abstinence-only program was supposed to teach the values of abstinence with regard to unwanted pregnancies and sexually transmitted diseases. According to this program, the expected standard of human sexual activity revolved around a mutually faithful monogamous relationship. However, with all these well clarified goals, current scientific research shows that this program is ineffective. A study of ‘abstinence-only-until marriages’ program inferred that the classes fail to serve its goal of delaying the onset of sexual activity the young people. An evaluation of 11 of these programs showed that they do not have a lasting positive effect on the asexual behavior of young people (Ibid 4). Instead of a positive effect on the young people they showed a negative willingness to use contraceptive because the program emphasized on contraceptive failure. It has often been reiterated that abstinence-only programs endanger the youths because adolescents are denied complete information. These programs fail to provide contraception information and in some cases, they have been accused of providing wrong information which may lead to youths forgoing contraceptive use. Teens are exposed to pregnancy and sexually transmitted diseases because of lack of responsible sex education. Only safer sex intervention can reduce unprotected sexual intercourse as compared to abstinence only programs. The Federal Fund for abstinence -only programs have negatively influenced schools. Avery good example involves the Gloucester High school in Massachusetts with the summer vacations beginning 17 girls at the school are expecting babies (Kathleen Kingsbury, Wednesday June 18, 2008). This proves further the failure of the program to curb pre-marital pregnancies. In order to reduce the prevalence of this at the school a local pediatrician advocated for the prescription of contraceptives. However, this has been met with hostility. Amazingly it is the desire of these teens to get pregnant and this only proves how distorted their perception towards life is.
Thursday, January 2, 2020
Why Reading is SO important
â€Å"Today a reader, tomorrow a leader.†Margaret Fuller Often, people tend to question themselves as to why reading is so important. Why kill all your time on reading? Why spend more time on words? Academic Excellence Evidence shows that the children that do focus on reading and find pleasure in so doing, are very likely to have an expansive base on vocabulary, high general knowledge as well as an improved understanding of other people’s culture. It is a matter of fact that trough reading, a child’s capability to flourish at school more than in social or economic ventures can be analysed through reading. The third grade is always the turning point for students because they no longer â€Å"learn to read†but rather they â€Å"read to learn†and this tends to be a very great turning point for the students themselves. Research shows that 66 % of fourth graders scored ‘below proficient’ on the 2013 National Assessment of Education Program (NAEP) reading test which demonstrates that they are not at their grade’s reading level. This shows a lag in the reading and leaning strategies that are in place to aid for better education and learning systems. This is a very critical issue to acknowledge. As a result, children are four times more likely to fail to graduate high school if they are not at par with their grade’s reading level. Even more distressing is the fact that among students from low-income backgrounds, 80 % scored below grading level in reading, which makes us recognize the fact that lack of resources such as books can immensely influence the reading level of a child. 5 Essential Reading Components Reading by itself is a very astoundingly complex and cognitive process. It might be considered as a singular act but rather it is a much intertwined fusion of 5 tasks that are simultaneous. Children who read regularly are prone to hone these 5 skills with ease. Phonics – the connection between letter symbols and sounds. Phonemic awareness – the ability to manipulate and notice sounds in a word. Vocabulary – the ability to understand the meaning of the word while reading or writing. Fluency the ability to read with speed, accuracy and expression. Comprehension – the ability to understand while reading. What parents can do? Children are made readers on the laps of their parents.  Emilie Buchwald Parents are clearly the most influential educators in a child’s life, some could say even more influential than a teacher, as they spend the greater amount of time with their children. Their relationship with the children as their early mentors makes it possible to influence their reading and learning ways to be more of readers. Below are some things that parents could indulge in: It is said that babies can recognize their parents’ voice from inside the womb itself. Reading to your baby from the time they are born expands their exposure to language. Reading aloud to your child helps in building the child’s interest. Pointing out the words and pictures and sharing your ideas about the book can also help a lot. Surrounding your child with books is another good strategy. It doesn’t mean that you have to pile them up with books rather visiting libraries and bookshops is one of the great ideas that you could indulge the child in. Notably don’t pester your kids with meaningful words or stories all the time. Let them savor the book in their own way.
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