Business Development Strategy for Sainsburry and Tesco

This presentation provides an analysis of sales and operating profit of Sainsburry and Tesco, trend lines, network diagram, and customer behavior research. It suggests that Sainsburry should focus on quality instead of price and provide training to its employees. Tesco should identify additional sources for earning revenue to reduce its dependency on sales. The network diagram technique is widely used in project management by project managers.

Business development stategy

Sainsburry sales
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
0
5000
10000
15000
20000
25000
YEARS
Sainsbury's SALES (£m)

Analysis
From chart, it can be observed that sales of
Sainsbury is increasing from 5000 to 17,857. But
in FY2000, sales decline by small percentage
from 17,857 to 17414. But after this fiscal year
sales increases and in 2012, it was 22294. On the
basis of analysis of overall trend it can be seen
that firm gives a good performance and sales
consistently rise from 1998 to 2012.

Sainsburry operating profit
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
-400
-200
0
200
400
600
800
1000
Sainsbury's OPERATING PROFIT (£m)From chart, it can be observed that sales of Sainsbury is increasing from 5000 to 17,857. But in
FY2000, sales decline by small percentage from 17,857 to 17414. But after this fiscal year sales
increases and in 2012, it was 22294. On the basis of analysis of overall trend it can be seen that firm

Analysis
On analysis of chart it can be seen that like sales
operating profit of the firm is also rising. But
growth rate is not same in case of operating profit.
This is proved from the low correlation between
sales and operating profit. In FY 2000 decline is
observed in sales and due to this reason operating
profit of the firm also decline. But after FY 2000
situation get changed and both sales and operating
profit get increased till FY 2012.

Tesco sales chart
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
0
10000
20000
30000
40000
50000
60000
70000
YEARS
Tesco SALES (£m)

Analysis
On analysis of chart it can be seen that sales of the firm is
consistently rising from FY 1998 to FY 2012. this indicates that
firm gives a marvellous performance and even crisis of 2007 comes
in existence it managed to increase sale of its product. This indicates
that firm prepare a good business strategy in order to maintain its
sales. After 2007 there were many business that run in loss and
failed to compete in uncertain business environment. But it was
Tesco who managed its sales in proper manner. This indicates that
its management is very sound.

Tesco operating profit
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Tesco OPERATING PROFIT (£m)

Analysis
From chart it can be seen that firm operating profit is increasing
continuously by following sales. This indicates that both are moving
in same direction and by nearby percentage. This is also proved by
the correlation value which is 0.99. this reflects that by whatever
percentage sales will change operating profit will also changed by
the same percentage. This also indicates that firm earning is
dependent on sales completely. So, Tesco even it is giving excellent
performance must try to identify additional sources for earning
revenue. This will reduce firm dependency on sales foe earning
target revenue.

Sainsburry trend line
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
0
5000
10000
15000
20000
25000
30000
Column C
Linear (Column C)

Analysis
On analysis of chart it can be seen that most of the times firm sales
is nearby to the trend line. Minor up and down is observed in the
chart. This is usual and not a matter of concern for the firm.
Deviation is above the trend line which is a good indication. This
indicates that firm will earn good profit in future and it can break
estimations that are made on the basis of trend line. So, it can be
said that firm in future will give a good performance.

Sales trend line of Tesco
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Column L
Linear (Column L)

Analysis
From the above chart, it is estimated that on the basis of previous five
year sales growth rate, it is estimated that sales will be increased up to
76866 in 2015. Which is good signal for the Tesco specially when
economic environment is not in well condition and Euro zone is facing a
problem. But firm must not fully believe on the trend line because it is
formed only on the basis of past data. With change in situation these facts
may prove wrong. Hence, firm need to review its competitors time to
time and also need to make sure that it is changing its strategy with
passage of time. This will help firm in making trend line estimates actual
in upcoming years.

Which factor given below mostly
affect your purchase decisions
Price Quality
0
5
10
15
20
25
30
35
Column C

Analysis
In research it has been find out that quality is a factor that mostly
affect people purchase decisions in comparison to price. Hence,
Sainsbury must focus on quality instead of price.

Do you think that employees of
Sainsbury treat customers in proper
manner
Excellent
Poor
Good
Average

Analysis
In research it has been identified that most of the
people think that Sainsbury employees are not serving
customers in proper manner. For this table given below
can be reviewed. Thus, Sainsbury needs to provide
training to its employees.

Sainsbury provides its products at
reasonable price
Strongly agree
Agree
Somewht agree
Disagree
Highly disagree
0 2 4 6 8 10 12 14 16 18 20
Column C

Analysis
In research it has been find out that firm is providing products at the
reasonable price. This is evident from the fact given below.Hence it can
be said that firm is giving good performance.

Network diagram

Analysis
Network diagram is a technique that is used by the business firms in order
to identify the time period with in which their project will get complected.
If project is completed in the time period that is indicated by the network
diagram then cost of project can be minimized and time as an important
resource can be used effectively. This technique also help in utilizing
human resource in the proper manner. This method mainly indicate the
sequence of activities that must be followed in order to complete project
on time. This sequence must be followed in proper manner in order to
make sure that project will be completed on time and in proper manner.
Due to these specific benefits network diagram technique is widely used
in the project management by the project managers.

References
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References