Increasing sales or market share
Safeway implies “we believe that building an advantage over our competitors can only be done through Safeway people”. This means, the only way Safeway can be the best selling supermarket in the UK is through the people who are employed, which also means that, if the people are happy and enjoy what they do and where they work, so therefore they will work harder, more sufficient and have the skills, knowledge and they will put in their best to achieve the best, therefore the customers and the employees will be happy and comfortable, which will also therefore make the store one of the leading supermarket.
They also imply “our vision is to de a company where everyone feels they can do something personally to bring in more clients and create more sales,” which means, they want their workers to be enthusiastic with the way they work, basically they should love what they do, so that other people will be intersected in working for them, which will enable more services. Safeway also quote “we have put our stores firmly at the centre of our business.
” This means that their main focus or main priority of their business is the supermarket and taking care of it to make it suitable for people to shop with them. They also quote, “our goal is for Safeway to be the first choice retailer for those customers who have the opportunity to shop locally in one of our stores,” this clearly means that Safeway wants their customers to first choose them to buy their daily groceries and product that they need, so that Safeway could be one be one of the beat retail business for people to shop in.
That is why they need these strategies and commitments to make their business work and for the customers to enjoy and get what they want from Safeway. And finally, Safeway says, “this new strategy is transforming Safeway, attracting over a million new customers in it’s first year, diving sustained increasing in sales and delivering 37% growth in profits in the three years to march 2003,” which basically means, Safeway is changing everything about it is to a new, exciting way to attract new or more and more customers to the supermarket.
And the way they have changed it is by changing the sales, by increasing it and bring or devising growth in profit by 37% for the past 3years till march 2003, like they have rebuilt the store and put more stork, more choices and made it much more exciting and fun for people to shop with them and of course get exactly want they want and need. OBJECTIVES 1. Focus on product and price
Safeway quotes “we will be recognised for offering great value and above all, great offers. ” I believe this means basically that Safeway is saying that, they will be seen as the supermarket with good low prices of product that everyone can afford with excellent groceries and good s production, they also quote, “our highly successful deep-cut deals programme communicates great value direct to our customers.
” Which also means that, they have successfully succeeding in cutting down their prices to a lower rate, so that their customers can buy more groceries and be satisfied with the prices and also save more money, which will definitely make the customers happy and also makes them to buy more and finally makes Safeway happy because their earning more profit. 2. Best at freshness Safeway says, “We offer outstanding fresh foods for consistently high quality, sold in stimulating and different ways,” it means that, they offer remarkable fresh foods, of high groceries and products, sold in a developed and changed way.
They also say, “we’re also building an exciting merchant culture so our staff understand their products and engage our customers with a real passion for what they sell,” which I clearly think it means that, Safeway are training their staff to understand and know more about the products they sell in a more enthusiastic way. So that, they may be able to effectively communicate personally with their customers about their purchases and any enquires of anything thing in their store. 3. Best at availability Our goal is that our customer will always find the product they want to buy on our shelves whenever they want it.
4. Best at customer service Safeway says, “We will offer the best all-round customer care in the sector,” which means, they are willing to help and care for their customers in any of heir enquires of purchases. They also say, “our people at all levels are being given skills, resources and authority to deliver truly exceptional services that goes well beyond what is expected by our clients,” basically it means, their staff are being taught more to deliver excellent service that goes further than their customer expectations.
5. Financial services Safeway implies, “we have developed a range of financial products to meet the needs of our shoppers,” which means that they have created financial products to meet the need of their shoppers such as their partnership with Abbey national, direct saving account, which offers high interest rates for the shoppers and finally personal savings account, which will give the customers the opportunity to free saving and more shopping. Task 2: Objectives of Safeway
Safeway’s business as we have discussed about in the previous text, which stats that Safeway is one of the leading grocery retailers in the UK, meaning that Safeway have goals and targets that they focus on to profit and boost their business and to have a sense of direction. And Safeway being a public limited company Plc will aim to increase, because of demand from, which shareholders would want the highest possible return on their investments. They would achieve this though their business objectives.
Their business objectives will be reflecting on their mission statements, also their aims and goals under the aspects, which will come under the secondary objectives, where these objectives will affect the success and efficiency of the business. This includes; 2. 1 Making a profit Safeway ‘s strategy for increasing their profits is though some of their key objectives, such as, “focus on product and price”, where they recognize for offering great vale and above all, great offers, will be the first step to increase of profit.
Safeway’s quote ” we want to offer outstanding fresh foods of consistently high quality, sold in a stimulating and different way”, meaning they are making developments, along with radical improvements to how they offer their products, to attract their customers back and even bring more help to increase their revenues. In also boosting their revenue, the Morrison’s have recently taken over Safeway and are proudly boasting about the number of prices they’ve cut, plus major television is advertising.
Morrison’s have traditionally been an Every Day Low Price retailer and Safeway has attracted consumers into store through their promotions, and as a result customers have increased, so has their revenue. For their improvements, Safeway states “The new strategy is transforming Safeway – attracting over a million new customers in its first year, diving sustained increases in sales and delivering 37% growth in profits in three years”. They implemented this new commercial strategy for their business to deliver a goal, for Safeway to be the first choice retailer for those customers who have the opportunity to shop locally in one of their stores.
Safeway states that, for the first half year their performance was solid with pre-exceptional profit growth of 4%, achieved in a very competitive market place. That is by using their strategy and objectives, it was encouraging and given then progress with new formats and ranges, helping them to look for ward in delivering continued growth and good results for the year as a whole. On the second half results were affected by the announcement on 9 January of the proposed merger with Morrisons, where their prices needed to be slashed down.
We have previously mentioned, that Safeway derived solid profit growth in the first half year, despite that the first half of the previous year, additional 8 million of transitional revenue casts for reformatting stores. Including these costs, operational profit rose by 4% to 22 million. For the year as a whole, operating profit decreased by 4%to 3398 million. These occurred because of the funding level of some suppliers who were understandably concerned about the future ownership of the business. However they tired to use their strategy to regain themselves.
Well Safeway, despite all these exceptional items and problem (not included), looking at their Annual Report (year ended 29 march 2003), at their profit and loss account from 2002-2003, where their retained profit for 2002 is i?? 1,149. 7 million, and for 2003 is 1,218. 9 million. And their total gain since the last Annual report is i?? 32. 1 million in 2002 and i?? 168. 1 million in 2003, that is after all prior year adjustments such as dividends paid, shareholders’ funds e. t. c. Which shows a substantial amount of increase between both years.
But then, their earnings per share being in 2002 24. 0p and in 2003 16. 4p, also showed a decrease. As we have Safeway has gain in their profit and form my external research I believe that Safeway are striving to gain profit and using their visions as objectives to gain these profits, as we have seen they are gaining profit but also declining because of their sudden changes occurring, such as the merge with Morrisons and from last years incurring an additional 8 million of transitional revenue costs in reformatting their stores.