What are the key objectives of Safeway plc?
Business objectives are there to provide a guideline for the business to now what they have to achieve why, where and how. Objectives are measured into a suitable scale smart targets are what most companies use and I think should. Smart – these are objectives that are sensible and realistic
Measurable – when they will be carried out by. Achieve – how, why, where they will achieve the targets. Realistic – they have to be realistic targets to set in the first place. Targets – the targets that will set. Objectives are normally measurable and have a stated timescale – for example, a business may have an objective to boost market share from 24 per cent to 33 per cent over the next four years. Market share is the total of shares sold in proportion to the rest in the market. One of Safeway’s key objectives is to try to maintain its present market share in the face of fierce competition from its major rivals Tesco, Asda (Wal-Mart), Sainsbury’s, Somerfield, Co-operative Societies, etc.
All companies have objectives some larger and more vital than others. Larger businesses may aim to maximise profits, especially if they are public limited companies whose shareholders will want the highest possible return on their investments. Safeway’s Mission Statement is:”Our Goal is to be the first choice for those customers who have the opportunity to shop locally in a Safeway store.As Simon Laffin has quoted “Driving profit through sales” is a major objective for the company. Usually increasing the variety in products brings in a wider audience of customers increasing profit.
“Best Deals Ever” cut the price of certain products to hopefully sell more of that product. The way to broadcast this would be to advertise it through the use of posters, flyers and other advertising methods if you have people visiting more often and more customers this shows success for the increase in sales. A survey has shown that Safeway’s customers have risen by 8 with a 5% increase in sales in the last year. Making a grand profit of 35% profit, showing that the theory of more customers and sales increases profit.
Helping with the society around its shop. Recently supermarkets have realised helping the community around there shop is vital in attracting new customers i.e to help the surrounding schools with computer vouchers etc. Safeway are also working with the local farms at the “Best at fresh” campaign, making a wide selection of fresh foods for the buyers to purchase. This having to stay in contact with the community outside Safeway to bring in the fresh supplied food. Many different types of sponsorships Safeway get involved with are such ones as the computer voucher scheme involving giving computer discounts to schools with a certain amount of goods bought per person so it encourages the teachers of the school to advertise that super markets. Safeway have made a contribution of ï¿½100k to the community in the year 2001.