SWOT Analysis of Sainsbury INTRODUCTION 1 Task 11

SWOT analysis of Sainsbury 2 4.Recommendation on Strategies/ actions companies need to take to add value in their business: 3 CONCLUSION 3 REFERENCES 4 INTRODUCTION SWOT analysis is the tools or a framework which is used to monitor the company's position and evaluate the company's strengths, weakness, opportunities and threats internally and externally. Sainsbury is the second largest supermarket chain in UK, which is founded in 1869, by John James Sainsbury. Further it will also include the SWOT analysis of

Swot Analysis of Sainsbury

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
1.Introduction of the company....................................................................................................1
2. Leadership style followed by Sainsbury and its function.......................................................1
3. SWOT analysis of Sainsbury..................................................................................................2
4.Recommendation on Strategies/ actions companies need to take to add value in their
business:......................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES ...............................................................................................................................4

INTRODUCTION
SWOT analysis is the tools or a framework which is used to monitor the company's
position and evaluate the company's strengths, weakness, opportunities and threats internally and
externally. Present report is based on the Sainsbury company. Sainsbury is the second largest
supermarket chain in UK, which is founded in 1869, by John James Sainsbury.
This report is included the leadership style and functions of every department of
Sainsbury. Further it will also include the SWOT analysis of the company to monitor its
strengths, weakness, opportunities and threats in the competitive market (Guo and Wang, 2019)
Task 1
1.Introduction of the company
Sainsbury is the second largest supermarket chain in UK. It founded in 1869, which is
founded in 1869, by John James Sainsbury. It has 1,415 shops across the UK and 186,900
employees working with it to accomplish the objective of the company. Its net income is £309
million in year 2018. Its vision is to become the most trusted retailer, they work with the
customer that people love to shop and work. Customer is the heart of the organisation and its
success and growth is based on the delivering the right product to the right people when the need
(Adewuyi, 2016).
2. Leadership style followed by Sainsbury and its function
Sainsbury is following bureaucratic leadership style. Bureaucratic style of leadership
refers to the term in which subordinates have to follow the rules and regulations ordered by the
leader to its subordinates. This leadership style helps in removing risk from the business. By
adopting this leadership style company has followed its rules and regulations. In this style of
leadership there is no flexibility given to its subordinates. All the subordinates have to follow the
duties and responsibilities assigned to them. Its main purpose is to focus on the performance of
its subordinates. Hence, Sainsbury is followed this leadership style (Muskett, 2017).
Functions of leadership style:-
 The main function of this leadership style is to follow the rules and regulations of the
Sainsbury.
 It is structured way of leadership style (Jenkins and Williamson, 201
 It is used in most of the organisation because it enhances the employee performance.
 Subordinates have to understand the procedures of doing work in the company.
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Sainsbury contribution in CSR projects
Sainsbury is organising the sustainability plan for the customers. It also sustainable
development in the country. In addition to it also promotes local marketing in the country. It
promotes the brand image as well (Guo and Wang, 2019).
3. SWOT analysis of Sainbury
Strength :-
Sainsbury is the largest retail chain in United Kingdom. It has over 150000 people to
carry its business over the globe .it has good brand value and effective advertisement across UK
through print ads and online campaign. It has over 600 supermarkets and 800 convenience stores
across UK. It usually stocks around 30000 product lines and variety of products in its store .It
has sponsored events like Paralympics and the company is listed on London stock exchange and
FTSE index so there are minimum chances of frauds and misleading activities(Adewuyi, 2016).
Weakness:-
Increase in price of food leads Sainsbury to increase its selling price which reduces its
profit also it has many competitors ASDA, TESCO, Boots, Walmart, Amazon etc. It becomes
quiet difficult for Sainsbury to compete with these companies because they are introducing more
reliable and quality products to customers(Muskett, 2017).If it does not go with current demand
of consumer then it may lack behind and it cannot explore more in international market. It may
have to implement new policies and procedures and making new strategies for its retail store and
products to improve its current method of doing business to overcome this type of weakness
(Jenkins and Williamson, 2015).
Opportunity: -
There are so many opportunities for Sainsbury. Sainsbury can more expand their business
in UK as well as internationally. create a online websites for their products. grow online relation
with international supplier and customer. Adapt new technology with the changing world.
Modify their taxation policy that currently used by Sainsbury. New trends are come up very fast
in market that open up many option for Sainsbury. Create new customer via online market. The
lower inflation bring more stability in market so Sainsbury can provide lower interest rate to
their customers. Sainsbury open up their store 24 hour by self checkout machine (Muskett,
2017).
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Threat:-
Threats are also present for Sainsbury such as increasing globalization. Less qualitative
product in comparison of its competitors. Brexit is also impact the prices of Sainsbury. There are
number of competitors in grocery and retail segment. rising raw material can pose a threat to
Sainsbury's profitability. Change in government policies can affect their market share. The
Sainsbury do not have more skilled worker as compare to their competitors. Growing local
distributor market is also a major threat. It have less connection with global market that decrease
their market share. It do not strong customer data based system (Guo and Wang, 2019).
4.Recommendation on Strategies/ actions companies need to take to add value in their business:
SWOT analysis is the powerful thing to analyse the strength and weakness of the company
internal affairs and here are some recommendation which requires the company to grow stronger
and stick to target to achieve goals in the market. Sainsbury's company appoints a skilled leader
and trainer so that they can help their employees in the premises and make a fearless relationship
with them so that employees can easily discuss their issue and problems which stop them, from
achieving their work gaols and also new technology's ad strategy are planned to boost the market
competition and become the top most company in every field (Sainsburys SWOT Analysis,
Competitors & USP, 2018).
CONCLUSION
From the above study it can be concluded that Sainsbury's is the second largest
supermarket chain of groceries in UK. Presently this company has 800 stores in the market and
lot of employees are engaged with its business. If employees are engaged there also should be a
leader in the company so leader plays a dominant role in the company structure, through their
guidance the employees are trained and help company to achieve their goals. In this the strength,
weakness, opportunities and threats of the company is examined and also some recommendation
on changes in strategies and action which company had to kept in mind while implementing their
plan strategies.
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REFERENCES
Books and journals
Adewuyi, A. W., 2016. Ratio Analysis of Tesco Plc Financial Performance between 2010 and
2014 in Comparison to Both Sainsbury and Morrisons. Open Journal of
Accounting. 5(03). p.45.
Guo, L. and Wang, Z., 2019. Ratio Analysis of J Sainsbury plc Financial Performance between
2015 and 2018 in Comparison with Tesco and Morrisons. American Journal of Industrial
and Business Management. 9. pp.325-341.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Muskett, D., 2017. Learning with Sainsbury's during the 1990s. In Reflective Learning in
Practice (pp. 63-70). Routledge.
Online
Sainsburys SWOT Analysis, Competitors & USP. 2018. [Online]. Available through <
https://www.mbaskool.com/brandguide/lifestyle-and-retail/2042-sainsburys.html>
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