University of West London: BA40047EE Understanding Business Report

This report provides a comprehensive analysis of two distinct businesses: First Group and Sainsbury's. The first part of the report focuses on First Group, exploring its core business functions across its various divisions, including First Student, First Transit, Greyhound, First Bus, and First Rail. It examines the importance of urbanization, congestion, local and national authorities, demographic changes, and geographical markets to First Group's operations. The second part shifts to Sainsbury's, conducting a SWOT analysis to assess its strengths, weaknesses, opportunities, and threats. The analysis considers Sainsbury's position as a major UK food retailer and its operations in the financial sector. The report integrates various academic sources to support the analysis and conclusions.

Running Head: UNDERSTANDING BUSINESS
Understanding Business
Name of the student
Name of the university:
Authors note:

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UNDERSTANDING BUSINESS
Table of Contents
Assessment 1:.............................................................................................................................2
Introduction:...............................................................................................................................2
Core functions of a business:.....................................................................................................2
Importance:................................................................................................................................4
Assessment 2:.............................................................................................................................6
The SWOT analysis of Sainsbury has the following strengths:.................................................8
The SWOT analysis of Sainsbury has the following weaknesses:............................................9
The SWOT analysis of Sainsbury has the following opportunities:........................................10
The SWOT analysis of Sainsbury has the following Threats:.................................................10
References:...............................................................................................................................11

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UNDERSTANDING BUSINESS
Assessment 1:
Introduction:
First Group has been called a diversified portfolio with the leading brand in the
market for business transport and revenue wit half is being underpinned through every year
contract withers through national or through local authorities. First Group involves biding of
long stand as well as operational expertise is critical for success in terms of its markets and
for investment to create an experience about a customer where the convenience of customer
is improved for helping to drive with growth in future (Storey 2016). First Group is known to
be very stable as well as enterprise with resilience with the ability for growing for
capitalizing in terms of leadership positions they do have in markets. The group is said to be
having an excellent job in the market in each division in five of numbers and do have
opportunities in creating values. There can be an evident focus on challenges as well as
opportunities for every business to mobilize First Group’s strengths (Storey 2016).Core
functions of a business:
First student: the First student’s made a continuation with its progress since, its fourth year
for its contract pricing of either up or out with its strategy. As well as the efficiency of cost in
the programmers which was offset through cost inflation of continued driver as well as
shortages in the US is with the rate of retention of under contract other than being targeted as
well as the effects of weather in terms of the second half. They do have a start being very
encouraging for this year in the season of the bid as far as it would continue for the driver
cost as a factor of inflation of being experienced in several parts of US into the price of the
contract (Schaltegger, Lüdeke-Freund and Hansen 2016).

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First Transit: First Transit is said to have been with its continuation towards growth in order
to win business which is new although the company’s operation with respect to shuttle bus in
terms of Canadian oil stands which could not renew two of the contracts at the year-end
which did effect on the margin for going forward with division (Schaltegger, Lüdeke-Freund
and Hansen 2016).There was a delivery in business with 5.5% margin in the year, with
margin of 7% as of second half being planned in spite of cost pressure which is still going
from shortages of driver in specific regions, more medical costs as well as individual costs
with respect to specific poor performance contracts that got resolved this year (Sekaran and
Bougie 2016).
Greyhound: Greyhound had its important short-haul as well as growth express that was
more than being offset through a declination. In terms of the long haul when demanded as an
impact of completion being intensified starting from the low cost of airlines that are bringing
specific aircraft being additional into operation and also for being connected for the number
is growing in terms of secondary airports (Saebi and Foss 2015). The growth I about these
business shows a shift towards travel patterns in the US. They do have their ability for
mitigating with these challenges of revenue with the help of cost efficiencies those are limited
through increase with the maintenance of fleet as well as the cost of a driver bringing about
result into reduction in the margin of Greyhound. First Group is presently making an
investment in order to support for growth opportunities of Greyhound and for continuing with
trimming of timetables and also the group is conducting a review for the business model of
Greyhound as well as into its prospects in order to determine exact response towards long
term challenges related to structure(Saebi and Foss 2015).
First Bus: the First bus was found to be accelerated in each and every quarter for the
financial year although conditions in the market in the industry had remained to be uncertain
as well as could vary in the local market. They could get the best outturn in the year and

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could have several of their business which is local and has not got forced for being shut down
for few days in terms of weather conditions and situations for the final quarter in the year.
The company becomes very pleased to stable for volumes, the effect for their steps to make
network tailor, (Schaltegger, Lüdeke-Freund and Hansen 2016) fares as well as the footprint
of the depot and also fuel tailwind that have brought about improvement into the margin.
They can maintain momentum in order to meet their ambitions for getting up with being
efficient with the industry (Trugman 2016).
First Rail: Although First Rail’s liking for its passengers in terms of growth with its revenue
accelerated for the year they could acknowledge while rate being slow for growth of the
industry that prevailed presently (McNamee, Pearson and Boer2 015). The financial result as
an overall with terms of their Rail division was considered to get solid for the year along with
contributions of Great Western Railway as well as SWR. TPE’s like for its passengers with
revenue growth got to be 10% and which is very low with respect to projections during the
time of bid resulting in a loss for March 2018. They had a plan to increase capacity for more
than 80% and for creation of authentic intercity railway for the North for remaining franchise
that is right for their passengers as well as communities, and they are confident that they
would drive acceleration for TPE;s patronage in annual as well as growth of revenue over the
period of time. They have their assessment in terms of growth that would be short for bid
assumptions all due to present conditions of the market and do have the decision for
providing of loss forecast as well as the remaining life of the contract of TPE (McNamee,
Pearson and Boer2 015).
Importance:
Urbanization: In terms of urbanization world is found to become increasingly urbanized as
well as globalized. The cost of failing as well as increased efficiency with respect to links of

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transport would create interconnected economies and people as well as an economic activity
for moving into the urban areas (Rosemann and vom Brooke 2015). It can be found that more
than half of GDP in terms of global is generated for large 600 cities as well as more than half
of world’s population is live in the urban areas, and both are intended to increase. Despite
long-distance of communication as well as with the rising of global cities are expected to
continue, and they have given importance to face to face interactions in terms of knowledge-
based economies. Transport links to the town will have continuation as a significant driver
for being beneficiary in these trends (Rosemann and vom Brooke 2015).
Congestion: In terms of congestion with approximately 1.5 million public were found to be
moving globally into urban areas in each and every week, mobility maintenance within the
city in spite of increased population density with the priority and as an approach based on the
car with no more to be adequate. Several estimations had an annual cost for congestion in an
average UK driver within the year (Bell, Bryman and Harley 2018). The price could be
counted for degradation as well as with the high priority of carbon emissions. Uses of
systems of public transport is essential for the continued success of cities. The business can
be effect into congestion on a daily basis, and long terms solution can be provided for
allowing trailers for leaving of cars behind (Bolton and Hainnon 2016).
Local and national authorities: In terms of local as well as national authorities efficient
transport services will deliver with a diversified range of social as well as economic
advantages and their several services got mandatory or financial support through
communities they have served with. Their divisions have been emerged from through public-
funded models with respect to the provision related to transport. With respect to all cases,
operators of the private sector as in First Group have given opportunities for the operation of
services being commercial for increasing competition in the improvement of value in terms

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of money and to bring about innovation as an increasingly fast-moving and difficult
environment (Bell, Bryman and Harley 2018).
Demographic change: For demographic change transport solutions is needed for making
into demographic changes. Several segments of the communities in the form of education
have been considered to be more reliant in terms of mass transportation. With the fast age
population in several parts of the world, the population is getting increased. Increased
numbers of urban dwellers are yet to choose for nor driving and those costs that are given for
purchasing as well as maintaining car and with issues related to parking as well as
sustainability. There can be found demography in growth that is open for the use of services
that is provided for meeting their needs as well as requirements for targeting of customers
specifically in Greyhound as well as First Bus (Pauwels et al. 2016).
Geographical markets: In geographical markets, some core areas in the United Kingdom, as
well as North America, is found to share with various demographic, social as well as
characteristics those are political that have made them to be attractive for operations of
transport. Both are found to be more and more increased urbanized with over the 80% of the
population growth being in the UK as well as North America that live in urban areas. With
respect to the increased part of populations in either of age or education of retirement, brands
of demographic were due to their use of services to be very higher in proportion. As
ownership of the car is high in both the markets, national as well as local authorities, do
encourage for more use of alternatives (Bell, Bryman and Harley 2018).
Assessment 2:
Sainsbury's is the public ltd company and registered on the FTSE 100 and London
stock exchange (LSE). It is one of the biggest leading United Kingdom food Suppliers
Company and part of a property and financial sector. The company is the United Kingdom

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(UK) based company and the traditional food chain merchandise, and it was established in
1869 by the J.J Sainsbury (FATRICIA 2016). Sainsbury is known as the third-largest food
Retailers Company in the UK and the share price of the company, around 16.3 % of the
convenience stores and supermarkets. At the present situation, the company around 800
stores are included convenience stores and supermarkets. The employee of the company is
more than 145000, and it is one of the leading economy players in the company. So the
Sainsbury's it's known about them it's service and quality besides its price (Mussa and Zhi
Zhang 2016).
SWOT analysis of Sainsbury:
Sainsbury is one type of retail brand and based on the United Kingdom with interest
in retail banking and grocery retailing. Accordingly, the company's retail stores are dealing
with in grocery, other merchandise and food. As well as the company operates domains such
as property investments and financial services (FATRICIA 2016). So the company is part of
a retail business and operates a convenience store and supermarkets. The segment of the
financial services company is subsidiaries Sainsbury's bank PLC while taking care of the
joint ventures in property investments section. Recently the organization amalgamated with
the Land securities Group PLC and Land Company PLC (Mussa and Zhi Zhang 2016). The
company food suppliers (2000) and non-food suppliers (1000) network is around the world.
There are also 15 private labels of products available which it deals in the ownership group of
around 770 supermarkets and convenience stores. So the company retail store has a more
variety of merchandise, such as greengrocers, dairy, groceries, chilled, meat and fish, bakery,
food brands, drinks, cold storage, health and beauty products, household, home, baby and pet.
In the year 2017, the company is registered an annual turnover of around 29.1 billion pounds
(Mussa and Zhi Zhang 2016).

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The acronym of threats-opportunities-weakness-strengths (TOWS) analysis allows the
company owners of Sainsbury's group to develop more four new types of strategies:
SO (strengths-opportunities) Strategies
WO (weaknesses-opportunities) Strategies
ST (strengths-threats) Strategies
WT (weaknesses-threats) Strategies
The SWOT analysis of Sainsbury has the following strengths:
Sainsbury's group has various strengths, and these strengths enable the prosper of the
market place. So these strengths help us to protect the market place and share and as well as
penetrating the markets.
Innovation promotion strategies: the strategies for promotions which are taken by the brand
are very eye-catching, and it pitches the brand straight against the rival. For example, brand
match promotion where each product sold by the brands from Aldi and Tesco, which shows
that they are not expensive; instead, it is cheap (Fatricia 2017).
Coupons: For from the other retailers who issue tickets. Similarly, Sainsbury's vouchers are
made by taking into consideration the researched data on the shopping behaviour are
compiled and collected by their Nectar Card Scheme (Thompson and McLarney 2017).
Retail banking and wholesale: the segment of financial service and the division of a retail
business brand has a number of retailers who provide banking services furthermore the
wholesales also provides banking services to the customers. Their rivalry does not frequently
follow the banking services offered by the retailers, but it helps to diversify the risk (Hammad
2015).

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UNDERSTANDING BUSINESS
Right expansion moves: The supermarket grew from minor grocery stores which deal in
retail products and gradually like a grapevine started to expand into bigger stores which are
very convenient, afterwards became supermarket that supplied several merchandise
categories that met the needs for the customer's every day. Thus growing from small stores,
this chain has become one of the top 4 supermarket chains in the UK (Carrà, Peri and
Maesano 2016).
The philosophy of the organization: the philosophy of the business Sainsbury's helps the
customers to survive well at little cost (Goethals 2018).It flows and maintains a minimum
cost strategy regarding its product categories Sainsbury's helped mainly to stop consumer
turnover from all earning background most of them are loyal toward the brand and rely on the
retailer for their everyday requirements (Carrà, Peri and Maesano 2016).
Employee diversity: In Sainsbury bank currently more than 195,000 peoples are work which
is provided by the excellent services to the customers. In 2008 the employees were around
27500 in the YOUCAN scheme. The company is participating in the Stonewell's Diversity
Champions program.
So there are some others strengths are, the ratios are very low concerning the customer to the
employee, the base of customer loyalty, staffs, are focused on the customer, the networks are
established of outlay.
Opportunity to serve to all various types of peoples:
In Sainsbury some retail shops are available and the offerings the all different kinds of
customers. While there are some valuable products met to the economy financial service
segment and several expensive, branded items including some unique items which can be
bear by a high level of income group people. (Haleem and Jehangir 2017).
The SWOT analysis of Sainsbury has the following weaknesses:

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UNDERSTANDING BUSINESS
Weaknesses refer to the areas where the brand or the business need to improve. Some key
weaknesses of Sainsbury's are as follows:
Switching of the brand: In brand switching the retail brands are facing a usage amount of
risk. So its spite the string loyalty promotions and programs. Retain customers are still
finding the challenging of Sainsbury's bank (Fernandez Hidalgo 2015).
So there are some other weaknesses are, the business is limited only the United Kingdom, in
the new industry lack of experiences are available and growing margins (Carrà, Peri and
Maesano 2016).
Low margin: In the retail stores, the growing competition is the added value of the risk, and
the online retailer's stores are the most retailers lost volume (Haleem and Jehangir 2017).
The SWOT analysis of Sainsbury has the following opportunities: Opportunities refer to
the factors of the business environment which are surrounded by the organization on top of it
can capitalize and increase the returns. Furthermore, opportunities to be included are:
Growth in villages: In the past days, branded products are not used in rural areas. But in
today world the branded products are used in rural areas and growth the villages. So the
communities are growth and the market structure in the remote areas and opportunity for the
rest of the retail sectors (Roque 2017). So the other opportunities are, all over India the
growing market is improving. Growing the number of an employee with increasing their
desire and need for holidays.
The SWOT analysis of Sainsbury has the following Threats:
Threats refer to the factors of nature, which can harm the prosperity of the company. So the
industry is highly competitive. Furthermore, threats to be included are: (Ike 2016)
Intense Competition: The competitors of Sainsbury's are Asda, Aldi, Resco and Lidl.

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References:
Ayodele, A., Abdallah, N.M. and Issaka, Y., USING TESCO AS A CASE STUDY.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university
press.
Bolton, R. and Hannon, M., 2016. Governing sustainability transitions through business
model innovation: Towards a systems understanding. Research Policy, 45(9), pp.1731-1742.
Carrà, G., Peri, I. and Maesano, G., 2016. ENHANCING ORGANIZATIONAL
PERFORMANCE THROUGH STRATEGY, INNOVATION AND LEADERSHIP: THE
CASE OF A F&V PRODUCER ORGANIZATION. Quality-Access to Success, 17.
Devitt, C., Boyle, L., Teixeira, D.L., O’Connell, N.E., Hawe, M. and Hanlon, A., 2016.
Stakeholder perspectives on the use of pig meat inspection as a health and welfare diagnostic
tool in the Republic of Ireland and Northern Ireland; a SWOT analysis. Irish veterinary
journal, 69(1), p.17.
FATRICIA, R.S., 2016. SWOT ANALYSIS OF SAINSBURY’S SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan, 5(1).
Fatricia, R.S., 2017. STRATEGIC ANALYSIS OF TESCO SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan, 6(02), pp.69-86.