Business Consultancy Project: Sainsbury's Expansion into Wales

This business consultancy project focuses on J Sainsbury PLC's expansion plan into Wales. The project begins with an introduction to Sainsbury's, its market position, and its current operations. It then outlines a business expansion plan, including an executive summary and company description. A detailed cost-benefit comparison is provided, including lease costs, improvements, and staffing expenses. The project also includes a budget and resource allocation plan, with a breakdown of expenditures. The project concludes with an analysis of why the project is likely to be successful, highlighting factors like market demand and opportunities for increased market share. The project also acknowledges the potential risks involved and the strategies to overcome them. The project references relevant academic sources to support the analysis.

THE BUSINESS
CONSULTANCY
PROJECT

Table of content
 Introduction
 Business expansion plan
 Cost benefit comparison
 Budget- Resource allocation
 Why would the project be successful
 Conclusion
 References

Introduction
 Sainsbury is a retail firm based in London which is also the third largest chain of
supermarkets chain of United Kingdom having 16.9% share in retail market of UK. The
company was founded in 1869 at Holborn, London.
 The company has 1415 supermarket stores in which the company is employing more than
186,900 employees..
 The parent company i.e. J Sainsbury plc is divided into three divisions which are
Sainsbury Supermarkets Ltd (including convenience shops), Sainsbury Bank and
Sainsbury Argos.
 The company is listed on the London Stock Exchange and is a constituent of the FTSE
100 Index.

Business expansion plan
Sainsbury is expanding its business operations in new European country which is Wales. In
order to get the desired success in this new market, company is developing a expansion
plan for the next 6 months which is discussed below:
 Executive Summary: Sainsbury is a UK based firm who is expanding their business in
new market i.e. Wales.
 Company Description: Sainsbury is the third largest retail supermarket chain of the
United Kingdom which is providing a wide range of products of different brands to the
customers. The company has decided to expand its business for enhancing the
productivity and market share of the company.

Continue...

Cost benefit comparison
Category Details Cost in First Year
Lease. 750 square feet available next
door at $18 per square foot
$13,500
Leasehold improvements. Knock out walls and reconfigure
office space
$15,000
Hire two more designers. Salary, including benefits
Recruitment costs
Orientation and training
$75,000
$11,250
$3,000
Two additional
workstations.
Furniture and hardware
Software licenses
$6,000
$1,000
Construction downtime. Two weeks at approximately
$7,500 revenue per week
$15,000
Total $139,750

Budget- Resource allocation
The budget for the resource allocation is 20000 € which is segmented properly by the
managers of Sainsbury. The budget of Sainsbury for this expansion is divided into 4 parts.
This budget allocation is as follows:
Human resources
Training and development
Marketing
Equipments and machinery
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Budget(€)
10000
2500
2500
5000

Why would the project be successful
 The scope of the proposed expansion is very wide for the Sinabury as through this
expansion, company can satisfy the demands and needs of customers in Wales.
 Also due to this expansion, the company can acquire new customers and sales which is
beneficial for enhancing the profit and revenue for the company.
 Also through this expansion, the company has more opportunities to enhance the market
share and productivity of the organisation as new customers are attracted towards the
products and services of the company which will assist the company in achieving
sustainability at the marketplace for a long period of time.
 Risks such as low funding, poor skilled workers etc. exists which are overcome by the
company through the training activities, arranging funds from various resources etc.

References
Garba, A.S., 2011. Stumbling block for women entrepreneurship in Nigeria: How risk
attitude and lack of capital mitigates their need for business expansion. European
Journal of Economics, Finance and Administrative Sciences. 36. pp.38-49.
McKeever, M., 2016. How to write a business plan. Nolo.
Leigh, J. and Waddock, S., 2006. The emergence of total responsibility management
systems: J. Sainsbury's (plc) voluntary responsibility management systems for global
food retail supply chains. Business and Society Review. 111(4). pp.409-426.