Management Styles

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What market share does each of the businesses have? Sainsbury’s Supermarkets is the number two UK supermarket with a market share of 11.9. Similarly, Shaw’s is the number two players in its respective market. Based on data published by the Office for National Statistics and Sainsbury’s Supermarkets, excluding petrol What are the strengths of the J Sainsbury’s plc brands? J Sainsbury’s plc has built up a reputation for quality food at affordable prices over many years, developed from the early Sainsbury’s stores that offered customers highest quality at keenest prices. J Sainsbury’s plc has built on its high level of customer trust to transfer good value, without compromising quality, into new markets.

How does J Sainsbury’s plc seek to build shareholder value? J Sainsbury’s plc seeks to generate value for shareholders and customers on a sustainable basis and we are now aligning our strategy, management processes and performance measures for this purpose. J Sainsbury’s plc’s present focus is to improve the performance of the core UK supermarket chain. Whilst doing so we will continue to explore and develop growth opportunities in other markets. Through implementing ‘Managing For Value’ we will stretch our ambitions and challenge the conventional wisdom within the Company, thereby unlocking our potential and delivering value. No part of our current business plan is exempt from review and over time we will increasingly see the impact of these disciplines taking effect on the business.

What is the relationship between the operating businesses? Each of J Sainsbury’s plc’s operating companies share similar brand values: excellent quality, range, service and value. Competencies, knowledge and experience can be shared between the operating companies. A recent example where J Sainsbury’s plc has been able to leverage Sainsbury’s brand is in Sainsbury’s Bank. By using the trusted quality of J Sainsbury’s plc, coupled with Bank of Scotland’s experience and infrastructure, Sainsbury’s Bank has expanded its financial services to establish an extensive range of products and services under the Sainsbury’s banner. On a smaller scale, J Sainsbury’s plc utilises the experiences of colleagues on both sides of the Atlantic through a seconded scheme.

Concisely outline each area of the business We have a loyal customer base, which trusts the Sainsbury’s brand and values the range of services we offer. Using the strength of the Sainsbury’s brand we aim to serve customers in new markets and grow our business for shareholders. By applying skills and competencies learnt in one market we could improve our businesses in others. Due to the use of ICT computer processes have replaced many tasks. For example in the old system a worker would have to be employed to address, write and send mail to all customers concerned (which may be thousands if it is advertising) in the new system thousands of letters can be written, uniquely named and addressed and sent to a remote queuing system where all letters will be printed and dispatched.

Many other tasks such as improved printing speed, more economical machinery, networks; work sharing, etc have all been massively improved to boost efficiency. This change can be clearly seen in the Sainsbury’s annual reports. Every year the efficiency and profit increases as technology levels increase.

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