The Management of Sainsbury
24 Pages6457 Words205 Views
Added on 2019-12-18
The Management of Sainsbury
Added on 2019-12-18
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BUSINESS RESEARCHPROJECT
TABLE OF CONTENTSSECTION 1: INTRODUCTION.....................................................................................................1Aim of the study:....................................................................................................................1Research objectives:...............................................................................................................1Rationale of study...................................................................................................................1Research questions.................................................................................................................2SECTION 2: LITERATURE REVIEW..........................................................................................2SECTION 3: RESEARCH PROCESS............................................................................................5Research Investigation............................................................................................................5Research Design.....................................................................................................................5Research Philosophy..............................................................................................................6Research Approach.................................................................................................................6Data Collection.......................................................................................................................6Sampling Method...................................................................................................................7Data Analysis..........................................................................................................................7SECTION 4: DISCUSSION AND EVALUATION.......................................................................7SECTION 5: CONCLUSION AND RECOMMENDATIONS....................................................19SECTION 6: REFERENCES........................................................................................................20
SECTION 1: INTRODUCTIONResearch is the key part of each and every business entity which supports to managementin order to analyse current market trend and on the basis of strategies are to be framed. If thereare any kind of big problem comes under consideration at the working environment then with thehelp of research accountable factors are to be analysed and then appropriate solutions are made.The retail industry in the UK is one of the largest as well as fastest growing sector and if thereany new company comes and enter then level of competition arises. At the current researchproject there are problem is related to the Sainsbury company is identified related to thechallenges which are comes from the competitors in the retail sector. At this study there aredifferent kinds of research methods are to be used which are like as descriptive design, inductiveapproach, qualitative investigation method etc. Apart from this, on the basis of primary datacollection such as questionnaire the data are derived as well as research problem is to beconducted by the scholar.Aim of the study:To analyse the challenges faced by the major supermarkets from new entrants- A casestudy of Sainsbury.Research objectives:To assess the current scenario of retail sector.To analyse the challenges which are being faced by Sainsbury.To evaluate measures used for creating competitive edge of firm in retail sector.To recommend different strategies to overcome potential challenges faced by Sainsbury.Rationale of studyThe current research is to be conducted for determine that which kind of problems,challenges as well as constraints are to be faced by the Sainsbury company which is one of thelarge firm within the retail sector (Kim and e Mauborgne, 2014). Further, the key reason forconduct the study is that what kind of challenges are faced from the rivalry firms and in whichmethods it will be reduced and overcome from the workplace.Research questionsWhat is the current scenario of retail sector?1
What are the challenges which are being faced by Sainsbury?What are different measures used for creating competitive edge of firm in retail sector?What are appropriate different strategies which can be used by Sainsbury to overcomepotential challenges?SECTION 2: LITERATURE REVIEWCurrent trend of retail industryAs per the view of Fernie and Sparks (2014) in the market there are several numbers ofthe industries are available under which huge number of business entities operate. In allindustries there one of the fastest growing industry is retail under which goods and services areto be provided up to the consumers using small outlets and in the small quantity rather than inbulk. In the UK there are various number of large and small companies operate and some ofthem are having global presence. The retail sector business entities which have high brand imageare such as Tesco, Sainsbury, Morrisons, Asda, Iceland etc. In the market there are total value ofsales and revenue of the UK's retail sector is worth of 358 billion GBP at the end of anaccounting year 2016 (Yeung and Coe, 2015). Apart from this more than one third people of theoverall population of UK purchase as well as consume the products and services from the retailbusiness organisations which is the most fruitful for it. In addition to this, the retail sectorcontribute in the growth rate of UK economy is worth of 5%. Further, due to having hugenumber of retail outlets there are competition level in the chosen sector is very high ans stiff andfor that the companies have to make changes in their existing strategies. According to Salamon (2015) competition comes into consideration in the workplace ofretail sectors is in form of prices and quality of the products. Along with this, on the basis ofseveral kinds of allowances also competition taken into account and to reduce it variety ofcompetitive strategies and techniques are adopted by seek firms. Apart from this in terms of wayof service deliver also lead to arise competition which is such as physical stores as well as online.When one business provide its products and services through the online then working womenand customers attract at the higher number. In opposite to this, the physical stores attract lowernumber of consumers of the retail products which is one of the significant part of the UK's retailsector.2
Challenges being faced by SainsburyDave (2016) states that Sainsbury faced in third year that has fall there profits down 10%to 277 million euro. Economic Uncertainty- Sainsbury also face economic uncertainty, in pasteight months there are many problems rises, Today's president Donald Trump are now fuellingmore uncertainty in the market. There were another problems is that how to communicate withthere customers. Sainsbury also face in remove price as a competitive advantage. Sainsbury facessome pressure to keep pricing in line with the competition. Sainsbury should have to bold aboutpromotions and their use. Sainsbury needs to received as equitable on price and also could claimwhich is effected in consumer sentiment. Digital Transformation-Marketing is greater focus ondigital channels. Company also faced such digital problem that new digital media channel; willbecome important, but Sainsbury has faced to such kind of problems. So that company shouldfocus to social sites to increases there profits. Food Price decline is Sainsbury face uncertainty intrading environment so that there will be deflation in prices of food items (Teng, Wang andZhiqiang, 2014). In this way, 1.9% in same stores sales is now expected in the second half, sothere were no signs of return to growth yet. There were another challenges is to face bySainsbury that Tesco will launch aggressive war by introducing rival group on track again.Sainsbury also declared the price cut of 450 million euro, which refers unclear profit margins inthe sectors. Shareholder's less focus in grocery- Sainsbury also faces shareholders problems thatStakeholders does not focus on better values in grocery, there will not launch any standards sothat Sainsbury does not face there market shares gains.Several measures adopted to create competitive edge of firm in retail sectorPantano and Viassone, (2015) ascertained that creating a competitive advantage is noteasy but Sainsbury has to adopt several methods to create competitive edges, they are: EstablishBrand Loyalty- Every customer have complete faith about the brand they have purchased. Sothat company should established a brand and try to make complete loyalty of brand by thecustomers. So that, company can make a effective relationship with there customers. Patentthere Products- Company can make there products patented so that no one can use there productswithout taking there permission, so that Sainsbury can make there products to make therecompetitive advantages. Continually Innovate- Sainsbury should continually adopt innovationtechniques so that they can compete there competitors by launching existing products in a new3
pattern, this is done so because by using innovative techniques such as changing new styles orpattern of the products, they can highlight there products among there competitors products(Varley, 2014). Hire connected team members- Sainsbury also hire such employees which arehaving the nature of connectivity with there team members, in this way company should hiresuch a person who have good communication skills, so that they can connect with there teammembers. Using long term contracts and incentives- Sainsbury also use long term contracts sothat it will help to make a contract with there team members in long time. To make theremembers connected with long years, it will need to use high range of incentives. To providebetter incentives will automatically create an encouragement to there employees to work hard, inthis way company can achieve there growth. Incentives may be provided in term of bonus, extrabenefits, hospitality and education facility and perks to there employee to develop and encouragetowards the work.Various strategies which can be adopted by Sainsbury to reduce such challengesAccording to Phuangpornpitak and Tia (2013)Sainsbury can create a well definedsources such as all type of raw materials and commodities in substantial to create the standardindependently. Company also decides that there brand name will not make any contribution toglobal deforestation. In this way, company also decide to sell all the fish which areindependently certified so that it will create a substantial and strength in there position as aleading retailer in the seafood. They also try to hit there sales in 1 million euro by trading fairlyproducts. Company also make an activity to double the amount of British food as well. Theyalso established all the food items such as meat, poultry, eggs, game and dairy products will besourced from suppliers who adhere to independent higher welfare standards. The company alsotry to make there suppliers will also be leaders in meeting or exceeding there social andenvironment standards in 2020.As per the opinion of Garg and Garg, (2013) Between now 2020, they will continue toreduce salt, saturated fat, fat and sugar in their own brand products and they will lead onproviding clear nutritional information, enabling there customers to take informed choice. By2020, they also double the sales of lighter alcohol wine and reduce the average alcohol content ofthere brand wine and beer. By 2020, they will put all waste to positive use. They will make surethat there packaging has been reduced by a half as compared to 2005. Company will have4
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