Financial Management Report: Financial Planning at Sainsbury's

This report delves into the realm of financial management, focusing on Sainsbury's as a case study. It explores the crucial relationship between financial objectives and corporate strategy, highlighting how these elements work in tandem to achieve overall business goals. The report also examines the influence of government economic policies, such as regulations and tax incentives, on Sainsbury's planning and decision-making processes. It analyzes how the company adapts to evolving legislation and leverages government initiatives to optimize its financial performance and strategic direction. The analysis includes Sainsbury's financial objectives, its corporate strategy, and the impact of government policies on its operations, emphasizing the importance of adaptability and strategic alignment in achieving financial success.

Financial Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Relationship between financial objective and corporate strategy...........................................1
2. Government economic policy interact with planning and decision making in business........2
CONCLUSION ...............................................................................................................................3
REFERENCES ...............................................................................................................................4

INTRODUCTION
In business era, the process of planning, directing, organising and controlling each and
every financial operation like planing and using of monetary funds within an organisation is
known as financial management (Barth, 2015). Manager of companies use to make three type of
decision related to investment, dividend and financial decision that support in managing the
finance within specific period. To better under the working of financial management Sainsbury's
is collected, it is the 2nd largest supermarket chain in UK.
In this project, relation between financial, corporate objective and corporate strategy is
discussed. Apart from this, government policy interact with decision making of company.
TASK
1. Relationship between financial objective and corporate strategy.
In modern era of business, financial management is consider to be the most crucial sector
for a company that helps top attain the financial and corporate objective by following company
strategy. Financial managers should agree on plans for funding, investment and cash flow
management. Moreover, manager identifies whatever the firm's priorities are that can settle with
the support of following corporate tactics.
Financial objective of Sainsbury's: Companies in present time are mainly focused to
grow financial stability and profitability by developing major financial area such as by
controlling expenses, arranging monetary funds for various operation, implementation of
working capital management policies, dividend decision. Sainsbury's has leading chain of
supermarket all over the world and have the main focus to expand business in remaining part of
global by increasing total revenue. The present net profit of company is 219 million GBP which
management estimate to increase approx 402 million GBP in upcoming year, by reducing the
overall expenses on non profitable activities.
Corporate objective of company: Corporate priorities are those relevant with entire
business. These are typically set by the company's top managers and concentrate on establishing
more specific targets for the company's main operational activities. The manager of sainsbury's
have a defined a simple objective that is to provide best quality of goods and services for
customer and give stakeholder with best and sustainable financial results. Through
communicating the desire for consumers for good, nutritious, fresh and delicious food,
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Sainsbury's must innovate as well as provide expertise in providing quality goods at reasonable
prices, wholly imported.
Corporate strategy of Sainsbury's: The overall corporate strategy focuses on
companies corporate actions that support to attain the defined objective while accomplishing
competitive advantage. This is an ongoing procedure that needs a continuous effort to involve
shareholders in supporting the organization with their capital, thus growing the capital for that
specific period. Entities that succeed in providing unfailing consumer satisfaction are those
which periodically update their business strategy to strengthen regions that may produce the
expected outcomes (Finkler, Smith and Calabrese, 2018). The main business strategy of
Sainsbury's is to deliver the best quality of food item at decent price that make customer more
attached to their supermarket. Company also have adopted new style network by connecting
every existing cities of a country focuses on expanding non food product. The first bakeries,
fresh fish counters, gas stations and coffee shops, cafes, bookshops, bike shops, music shops,
clothing shops, banks & finance, florists and nurseries, newspapers and electronic goods were
launched.
Thus, it has been determined that financial and corporate objective of Sainsbury's are
inter related with corporate strategy that support in attaining the overall objective.
2. Government economic policy interact with planning and decision making in business.
In present time, several legislation and laws are developed by governments of UK that
influence the business operation of companies (Moutinho and Vargas-Sanchez, 2018). Some
laws are compulsory, such as minimum wage, whereas other policies can unintentionally affect
your company. Therefore it is required by the businesses to be sufficiently versatile to adapt all
evolving rules and policies made by local governance of business country that support in growth
and developing of company. The government may create a system that improves the corporate
environment's behaviour. For instance the governance of UK levy heavy taxes on the use of
carbon-based fuels and give incentives to businesses using renewable energy. These sudden and
planned governance economic policy have a major impact on the planning and decision making
of Sanisbury's. Manager needs to plan and develop activities that are more linked with the use of
renewable energy which support to receive additional benefits made by government.
Government also underwrite the emergent of new technology that will definitely impact
the entire business of that industry. Manager of Sanisbury's are needed to makes plans and
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policies so that more and more number of goods and food product are produced with the support
of existing technology. Tax and duty exceptions on a specific business stimulate development in
the industry and could even drive growth For instance, high tax rates on imports may increase
the total production of the same goods similarly high tax burden on the raw material would
majorly hamper domestic production. It is observed that in respective firm manager plan
appropriately mainly focusing on increasing high tax rate that would enables them to make
suitable decision for improving the production of local goods that are mostly in demand by large
number of customer throughout the year (Giannakis and Papadopoulos, 2016). Government
policy may affect interest rates, a boost throughout the business sector that raises borrowing
costs. Rising interest rates also lead to lower consumer spending, investment gets increased due
to low interest rates as companies expand production.
CONCLUSION
From the overall report, it has been founded that decision related to management and
controlling of companies finance is related with financial management. It is observed that
financial objective and overall business objective of company can be attained by focusing of
corporate strategy. Laws and regulation implemented by governance of specific country have a
major impact on the decision making of an organisation.
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REFERENCES
Books and Journals:
Barth, M. E., 2015. Financial accounting research, practice, and financial accountability. Abacus.
51(4). pp.499-510.
Finkler, S. A., Smith, D. L. and Calabrese, T. D., 2018. Financial management for public,
health, and not-for-profit organizations. CQ Press.
Giannakis, M. and Papadopoulos, T., 2016. Supply chain sustainability: A risk management
approach. International Journal of Production Economics. 171. pp.455-470.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
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