Detailed Business Performance Analysis of Sainsbury's and Tesco Sales

This report provides a comparative analysis of Sainsbury's and Tesco's business performance, focusing on sales trends, operating profits, and customer purchase decisions. The analysis includes graphical representations and trend lines to illustrate the firms' sales growth from 1998 to 2012. The report highlights Sainsbury's increasing sales, with a minor decline in FY2000, followed by consistent growth. It also examines Tesco's strong sales performance, even during the 2007 crisis, indicating effective business strategies. Furthermore, the report investigates customer preferences, revealing that quality significantly influences purchase decisions. It also addresses customer service evaluations and provides insights into the application of network diagrams in project management, emphasizing their role in time and cost management.

Business development stategy

Sainsburry sales
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0
5000
10000
15000
20000
25000
YEARS
Sainsbury's SALES (£m)

Analysis
From chart, it can be observed that sales of
Sainsbury is increasing from 5000 to 17,857. But
in FY2000, sales decline by small percentage
from 17,857 to 17414. But after this fiscal year
sales increases and in 2012, it was 22294. On the
basis of analysis of overall trend it can be seen
that firm gives a good performance and sales
consistently rise from 1998 to 2012.

Sainsburry operating profit
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-400
-200
0
200
400
600
800
1000
Sainsbury's OPERATING PROFIT (£m)From chart, it can be observed that sales of Sainsbury is increasing from 5000 to 17,857. But in
FY2000, sales decline by small percentage from 17,857 to 17414. But after this fiscal year sales
increases and in 2012, it was 22294. On the basis of analysis of overall trend it can be seen that firm

Analysis
On analysis of chart it can be seen that like sales
operating profit of the firm is also rising. But
growth rate is not same in case of operating profit.
This is proved from the low correlation between
sales and operating profit. In FY 2000 decline is
observed in sales and due to this reason operating
profit of the firm also decline. But after FY 2000
situation get changed and both sales and operating
profit get increased till FY 2012.

Tesco sales chart
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Tesco SALES (£m)

Analysis
On analysis of chart it can be seen that sales of the firm is
consistently rising from FY 1998 to FY 2012. this indicates that
firm gives a marvellous performance and even crisis of 2007 comes
in existence it managed to increase sale of its product. This indicates
that firm prepare a good business strategy in order to maintain its
sales. After 2007 there were many business that run in loss and
failed to compete in uncertain business environment. But it was
Tesco who managed its sales in proper manner. This indicates that
its management is very sound.

Tesco operating profit
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0
500
1000
1500
2000
2500
3000
3500
4000
4500
Tesco OPERATING PROFIT (£m)

Analysis
From chart it can be seen that firm operating profit is increasing
continuously by following sales. This indicates that both are moving
in same direction and by nearby percentage. This is also proved by
the correlation value which is 0.99. this reflects that by whatever
percentage sales will change operating profit will also changed by
the same percentage. This also indicates that firm earning is
dependent on sales completely. So, Tesco even it is giving excellent
performance must try to identify additional sources for earning
revenue. This will reduce firm dependency on sales foe earning
target revenue.

Sainsburry trend line
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5000
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30000
Column C
Linear (Column C)

Analysis
On analysis of chart it can be seen that most of the times firm sales
is nearby to the trend line. Minor up and down is observed in the
chart. This is usual and not a matter of concern for the firm.
Deviation is above the trend line which is a good indication. This
indicates that firm will earn good profit in future and it can break
estimations that are made on the basis of trend line. So, it can be
said that firm in future will give a good performance.

Sales trend line of Tesco
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Column L
Linear (Column L)