Financial Management: A Comparative Analysis of J Sainsbury and Morrisons

Financial
Management

Contents
• Introduction
• A Brief history of J Sainsbury
• Sainsbury's Financial Performance
• Competitor of Sainsbury
• Comparative Analysis of Sainsbury with its competitor Morrisons
• Recommendation
• Usage of Investment Appraisal technique
• Calculation of Ratios
• Advantages and Shortcomings of the different techniques of Investment appraisal
• Conclusion
• References

INTRODUCTION
Financial management is the management theory and practices which focuses on strategically
planning, organising, directing and controlling of different financial issues and requirements of an
organisation. In simple words, it is a practice of handling finances of a company while focusing
on the organisation's success. Planning, budgeting, managing and accessing risks related to
finance is the main scope of financial management. In this report the main focus is given to the
financial information of a plc. The company taken for this report is J. Sainsbury plc. It is a retail
food supermarket in the United Kingdom (Heo, Lee, and Rabbani, 2021).

A Brief history of J Sainsbury
J. Sainsbury is one the leading supermarket chain in the United Kingdom. It currently holds market
share of 16% in the the supermarket sector. It was founded in the year 1869 by John J Sainsbury. He
started the business as partnership between him and his wife Mary Ann with a single shop in Drury
Lane, London. They began trading with fresh foods and later expanded into packaged consumable
items and groceries like tea, sugar, chips. The mission of the business in the 19th century was Quality
perfect, Prices lower. The business grew stronger and wider. The management offered extra
convenience to the public to hold the competitive edge in the market and it was in the year 1922 that
the business was incorporated as a private company and became one of the UK's largest grocery
group.