Data Analytics for International Business: A Dashboard Solution for Addressing Decline in Profit and Sales of Sainsbury

This article discusses how data analytics can help address the decline in profit and sales of Sainsbury, the largest supermarket chain. It provides a theoretical framework related to the problem and a critical analysis of the dashboard solution. The article recommends conducting an in-depth market research, cost-benefit analysis, and using social media marketing to improve profitability.

Data Analytics for
International Business

TABLE OF CONTENTS
INTRODUCTION TO ISSUE.........................................................................................................3
Theoretical framework related with the problem........................................................................4
Dashboard...................................................................................................................................5
Critical analysis and justification of the solution of dashboard for addressing the problem......6
CONCLUSION AND RECOMMENDATION...............................................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION TO ISSUE
The companies operate in the external environment and as a result of this the business
need to work in competitive manner. The reason pertaining to the fact that the competition within
the international market is high and this as a result of this, it is necessary for companies to work
without any error. The present study is based on company Sainsbury which is a largest
supermarket chain founded in 1869 by John James Sainsbury. For the business to operate in
better and effective manner it is necessary that the problems of company must be solved
properly. There are many different issues which are being faced by company while operating
within the external environment (Thrall, Cohen and Dorminey, 2020). Hence, it is very important
for the company to continuously monitor the working efficiency and changes within the external
environment so that problems can be identified. After the effective analysis and evaluation of the
performance of Sainsbury it was evaluated that the profitability and sales of company is
declining.
For the business to be successful it is necessary that the profit and sales of the company
must be increasing. The reason pertaining to the fact is that the objective of the business is to
earn profit and in case the business is not yielding profit then this will affect the efficiency of the
business. This is necessary because business is being set by the company for earning profit and
to grow and develop the business further (Yan, 2017). Hence, in case the profitability of the
business is declining then this will be impacting the operational efficiency of the company and
will restrict their growth and development. Hence, this is the major issue which Sainsbury is
facing the issue of decline in the profitability of the business.
This issue was majorly being faced due to the current pandemic situation. The reason
underneath the fact was that due to the pandemic the business and industry was affected to a
great extent. hence, as a result of this the profitability of the company impacted to a great extent.
along with this, due to the pandemic there was also economic shut down and due to this as well
the sales decline. This in turn has resulted in decline in the performance of the company (Opper,
Wong and Yang, 2012). hence, as a result of this discussion it can be stated that the major issue
which Sainsbury is facing is the decline in sales and profitability of company affecting the
overall operational efficiency as well.
The objective of dashboard is to identify the trends in declining of profitability of
Sainsbury and to propose some of the options for recovery. This objective is very important for

the reason that this will assist the company in improving the working efficiency of company and
increase its profitability. Hence, it will assist Sainsbury in identifying the areas where company
is lacking and how they can improve it.
Theoretical framework related with the problem
With the above discussion it is clear that for getting successful it is necessary that the
business is not having any of issues being faced by them. The reason underlying this fact is that
in case there will be any of the issue then this will negatively impact the working efficiency of
the business. hence, in this case Sainsbury must comply with the concept of wealth maximisation
and profit maximisation (Khan, 2017). The reason pertaining to the fact is that in case these
elements will not be considered then this will be affecting the working efficiency of the business.
Sainsbury must focus on the wealth maximisation objectives rather than profit maximisation
profit. This is necessary for the reason that in case of profit maximisation, the major focus is on
earning profit by managing the financial resources in proper and optimum manner. On the other
hand, the wealth maximisation objectives involve the different set of activities which assist in
managing financial resources and try to increase the value to the stakeholders. This is very
essential to the focused by Sainsbury as in case they will not be focusing on the wealth
maximisation then this will improve the working efficiency of the company. This is necessary as
it will increase the working efficiency of the company and will result in increasing profitability
of the company.
Along with this, the discussion also evaluated that it is also very essential for the
company that they improve the sales of the business. Hence, for this, there are many different
types of the strategies which can be used in the effective analysis and increasing of the sales. For
increasing the sales, Sainsbury involves the use of focus on consumer buying behaviour. The
reason pertaining to the fact is that in case the consumer and their requirement will not be
focused in proper manner then this will result in decline in sales of the business. Hence, it is very
crucial for Sainsbury to inculcate the practices of consumer behaviour understanding. The reason
behind this fact is that when the company will understand the behaviour of consumer then only
they will be in the position to provide the product in accordance to that. Hence, in case when the
consumer will be provided with the things which are required by them in the intended manner
then this will result in increase in sales of the company (Musweu, 2020). Thus, in turn this will
increase the overall profitability of the company and will gain a competitive advantage.

In addition to this, another major aspect which Sainsbury is focusing for increasing the
sales is that company has a focus on the effective and in- depth market research. This is
necessary because of the reason that in case the company is not using the latest trends within the
working of the company then this will not be liked by the consumer. Hence, for this it is
Sainsbury is including time to time market research and the changes within the product and
services so that consumer may like it (Qazzafi, 2019). Thus, this will increase the sales of the
company and ultimately the profits of the company will also be increased. Hence, the use of
effective market research will assist Sainsbury in understanding the consumer in better and
effective manner. Along with this, the market research will also assist the company in
understanding the latest trend and also the strategies of competitors. In case the competitor
strategy will be different from the company then with help of the market research it can be
changed.
Along with this, it is also very important for Sainsbury to continuously work on
improving the brand image of the company. The reason underlying this fact is that in case the
company will be working on the brand image then this will assist the company in improving the
business. The most essential aspect for the effective development of brand image is to have a
good quality product and services. The reason pertaining to the fact is that in case the quality of
the product and services of company will not be superior then this will not be liked by the
consumers (Dahiya and Gayatri, 2018). Hence as a result of this, the working of the company
will be impacted and will start declining. This in turn will result in decline in sales of the
company and ultimately the profitability. Thus, in order to increase the working efficiency of the
company and its capability it is necessary that proper and good quality is being maintained. This,
in turn assist Sainsbury in improving the working efficiency and increase sales and profitability.
SWOT
Strength
The strength of Sainsbury is that this is the
largest supermarket chain and has highly
qualified set of employees
Along with this another strength is that it has
good branding and marketing strategy
Weakness
The weakness of company involves rise in
food prices within the world and this affecting
the working of company.
Opportunity Threat

The opportunity involves increasing the
business in countries where company is not
having presence.
Along with this another opportunity is
installing the self- checkout system
The threat involves majorly the high
competition which can affect the working to a
great extent.
Hence for increasing the profitability problem the opportunity of company will be helpful
to the company. the reason behind this fact is that when the company will increase its operation
in other countries then ultimately it will result in increase in profit.
Dashboard
Attached in excel

Critical analysis and justification of the solution of dashboard for addressing the problem
The dashboard is being defined as the way of storing and presenting the data in such a
manner that the problem or issue is being highlighted within it. It is very necessary for the
companies to have proper dashboard outlining the issue or problem being present within the
company. this will assist company in presenting the problem with help of charts and tables
(Nofiana and Sunarsi, 2020). This graphical presentation of the data is very assistive for the
company to present the problem in proper manner and this will assist the company find some
solution to the problem.
The dashboard relating to the problem of Sainsbury that is decline in profit and sales of
the company outlined many different issues. With the analysis of the ratio relating to gross profit
it was evaluated that there is less difference in comparison to the last year. In the year 2020, the
GP ratio was 6.95 % but it declines to 6.08 %. There is a slight difference between gross profit of
the company. But in against of this, the operating profit ratio depicted more deviation within the
ratio. In the year 2019 it was 2.07 and in 2020 it was 2.24 whereas in 2021 it was 0.21. This
simply means that there is high change within the operating profit and this implies that operating
expenses of the company are high. further with the analysis of the net profit it is clear that there
is drastic change within this ratio (Oktaviyani and Munandar, 2017). This is clearly visible from
the data and chart that the net profitability of the company has reached to negative reflecting that
company has incurred loss. Hence, as a result of this it can be stated that the indirect expenses of
the company are very high and due to this there is high deviation within the gross profit and net
profit. Thus, it is very essential for the company that they must focus on trying to reduce this
difference and limit the indirect and operating expenses of the company.

Further with the analysis of the dashboard it is clear that there is different indicator for
the measurement of performance. The first indicator is the profit and this is because of the reason
that it is declining since 2019. In addition to this another indicator involves the sales of company.
it is very fluctuating as in 2019 it was high but in 2020 it declined and in 2021 it increased again.

Hence, with the discussion of the dashboard it is clear that it is necessary for the company
to improve the expenses of the company. thus, in order to manage this problem Sainsbury need
to evaluate and conduct an in- depth market research. The reason pertaining to the fact that when
the company will be undertaking a detailed research relating to various alternatives of resources
and other elements required for business then they can find some cost effective alternative
(Asche, Sikveland and Zhang, 2018). In addition to this, the company must conduct the cost
benefit analysis before deciding any of the decision or project. The reason pertaining to the fact
is that in case the cost of project is more as compared to the benefits then this can result in loss

for the company. Hence, for managing the effective profitability of the company it is necessary
that proper cost benefit analysis is being conducted.
Moreover, by analysing the dashboard it is clearly visible that company must also focus
on increasing the sales. The different sales increasing ideas were also highlighted within the
dashboard which can be used in order to improve the working efficiency. The reason pertaining
to the fact is that in case the sales of the company will be increasing then this will assist the
company to overcome the loss incurred. In addition to this, the company must also try to increase
the sales and to have some margin for the retained earnings (Gonçalves, Gaio and Robles, 2018).
This is necessary for the reason that in case there will be some of the funds being kept aside then
it can be used in for any of the contingent situation. The reason pertaining to the fact is that in
case the funds will be managed in proper manner then the cost of working will also reduce and
this will be impacting the working condition of the company.
Along with this, for solving the problem it is necessary for the company that they must
focus on the effective use of social media marketing. The reason underlying this fact is that when
the latest social media and digital marketing techniques are used then this will be impacting the
working to a great extent. hence, as a result of this the working and efficiency of the company
and its performance will increase and as a result of this, sales will be increasing. Along with this,
it is also advisable to the company that they must include the taking of online feedback from the
consumers (Vătavu, and et.al., 2018). The reason underlying this fact is that when the online
feedback will be taken from the consumers then this will connect the consumer with the
company more. The consumer will be attracted and feel connected with the company in case the
suggestion and feedback of consumer will be included. Thus, for the success of the company it is
necessary that the company includes all the necessary suggestion and proper market research of
the company.
In addition to this, the sales pyramid can also be used by Sainsbury in order to improve
the efficiency and profitability of company. the sales pyramid includes different aspect of
business like performance drivers, sales activities, sales objectives, performance indicator,
performance goals and sales result. When company will be focusing on overall sales pyramid
then this will improve the working efficiency of the business. along with this, for effective
improvement of sales the company must also focus on the marketing mix. this is crucial for the
company because changes in the marketing mix will help company in making the changes as per

requirement of consumers. Hence, this will attract large number of consumers and resultantly
sales will increase.
CONCLUSION AND RECOMMENDATION
The above report evaluated that the use data analytics and interpretation is very important
in this competitive era. The reason pertaining to the fact that in the current modern and advance
world the use and development of technology is increasing. Hence, as a result of this, the
working efficiency of the company will improve. But with respect to the high competition and
other factors the company might face some or the other issue while working. In addition to this,
the company exist in external environment and it is not static so there are immense number of
changes taking place. In case these changes are not being adapted then this will impact the
working efficiency of the company. the above report evaluated the case of Sainsbury and there
the major issue was the decline in sales and profit of the company. hence, this was the major
issue and it impacted the overall working to a great extent. in case this issue was not solved then
this could have resulted in more decline in performance. the above report also evaluated that
major solution to the problem can be use of quality service, intensive market and competitor
research. along with this the solution provided to the problem with help of dashboard was the use
and focus on extensive social media marketing.
After the above discussion, it is clear that there are many different types of reason for
decline in the profit and sales of company. hence, with the above analysis some of the
recommendation for Sainsbury to improve the performance and profitability are as follows-
 The first and foremost suggestion to Sainsbury is that they must involve the focus on the
total quality management (Boțoc and Anton, 2017). The reason underlying this fact is
that in case the quality of the goods and services will be high then this will improve the
working efficiency and will attract large number of consumers.
 Along with this, after the analysis of the dashboard it is clear that the indirect expenses of
the company are high. this is implied because of the reason that the gross profit of the
company was good in comparison to the net profit. Thus, it can be stated that the indirect
expenses of the company are high and due to this, the net profit is being converted in
loss.
 Moreover, in addition to this, another advice to Sainsbury with respect to solving the
issue is that they must time to time take feedback from the consumers. The reason

underlying this fact is that in case the continuous feedback is taken then this will outline
the views of consumer relating to the company and its product and services (Işık, 2017).
Hence, it is will assist Sainsbury to implement these changes and to increase the
profitability and sales of the company.
 Further, it is also advisable to Sainsbury that they must involve the use of good data
analytics software so that they can improve the analysis. The reason underlying this fact
is that when the software will be used for analysing data then this will improve the
working and analysis in better and effective manner. Further the use of data analysis
software will also provide solutions to the company for improving the working and
profitability.

REFERENCES
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