Managing for the Future Essay Example | Topics and Well Written Essays - 3750 words

Managing for the Future - Essay ExampleIt is also the co-owner of Sainsburys Bank along with Lloyds Banking group (J Sainsbury Plc, 2012). Besides that, it has also owns property joint ventures with The British Land Company PLC and Land Securities Group PLC. What started off as a small retail storehouse on Londons Drury Lane around the year 1969, Sainsburys has developed a huge history behind him over the years. Sainsbury holds more than 15% of the market share of the UK retail markets. Sainsbury hold the second position in the UK online retail market and is only behind Tesco. Sainsburys follows a simple heating system of offering great food at fair prices to its consumers and this has been treated as one of the reasons for their success. By the year 2020, they have a target of sourcing all undeniable raw materials and commodities in a sustainable manner (J Sainsbury Plc, 2010). Forecasts and Strategic Plan Sainsbury is focused to provide healthy, safe, fresh and tasty food at fa ir prices. The concatenation continues to operate on five areas, which makes the chain differentiate itself from the retail merchants. The chains current focus plan is on Growing space and creating property cling to Providing great food to the consumers Compelling general merchandising and clothing Developing new business channels Providing complimentary channels and services. Strengths Sainsburys has won many selects in the industry for its superior product quality over the past few years. Some of the awards comprises of fresh produce retailer of the year, honest food award and even wine retailer of the year. So it has clearly maintained industry standards and gained recognition in the industry The chain has made considerable amount of parturiency in order to modernize the brand by integrating technology at the point of sales (POS). Has tie ups with Nectar, a loyalty programme with an energetic user base of over 11 million. The chain has got high points on a regular basis in the industrys most respected basket survey (J Sainsbury Plc, 2012). Weakness Their strategy is very puzzling at times. At times, they are targeting to appeal to mass markets which may result in alluring to go on an acquisition spree and then landing up with failed takeovers. Yet to recover the leading position of being the most preferred retailer in the UK region from the rival leading retailers. Opportunities Sainsburys ranking as an UK based online grocery provider is strengthened with higher sales on a year on year basis. With the increase in internet usage among the consumers, this segment can provide more sales to the retail chain. The addition of level space in all new and existing stores for introducing the chains new health, beauty and household line of products will benefit the chain in the upcoming days and may provide greater share of revenue (J Sainsbury Plc, 2012). Threats Sainsburys is less committed to reinvest the capital generated in the business. This can spell hazard for the chain as Tesco who is a stronger competitor in this segment is more focused on committing a large amount of capital for maintaining their long consideration growth oriented strategy. Have high reservations in establishing the brand of Sainsburys overseas and in foreign locations, which provides them with a disadvantage of being