A Report On Corporate Finance Management

In the following report we will be going over our analysis and findings during the process of our study of Sainsbury’s internal and external environment.

Sainsbury's has two major shareholders and the latest figures on 5th July 2017 show that: Qatar Holding LLC holds majority of the shares with 21.99% and Credit Suisse AG holding 11.4% in shares.

Sainsbury’s goal is to reflect they commitment to meeting customers’ needs; however, they want to shop food, clothing, general merchandise and services also they vision is to be trusted retailer where people love to work and shop. They strategy plan is to know they consumers better than anyone else, be there for them whenever they need them also offering great products and services at fair prices. They colleagues make the difference; they value makes them different.

J Sainsbury plc (Sainsbury) is a retail chain based in the UK. Sainsbury is engaged in grocery retailing through its supermarkets and convenience stores principally in the UK. The company operates its business through three divisions, namely, Retailing, Financial Services and Property Investment. Sainsbury serves its customers through a chain of 537 supermarkets and 335 convenience stores under the brand Sainsburys, and financial services via Sainsburys Bank. Sainsbury offers around 30,000 food and non-food products and services. The company is headquartered in London, the UK J Sainsbury plc Key Recent Developments Mar 11, 2010: Sainsbury launches first bakery college in the UK Mar 08, 2010: Sainsbury to add

J Sainsbury's aims and objectives Their business is now focused very much on Sainsbury’s Supermarkets and Sainsbury’s Bank following the sale of Shaw’s

Sainsbury is engaged in grocery and related retailing. It is separated three segments: Retailing (Supermarkets and Convenience); Financial services (Sainsbury's Bank joint venture), and Property investments (The British Land Company PLC joint venture and Land Securities PLC joint venture). In 2012, this company has operated over 1000 stores comprising 572 supermarkets and 440 convenience stores (Sainsbury company information, 2013). In the current competitive food retail market Sainsbury has focused on its clear strength: providing shoppers with an easy alternative to the larger out-of-town supermarkets whilst maintaining a commitment to fresh quality foods (Sainsbury,

On the other, although the majority of the information shown in the case study presents arguments for the fact that it was inevitable that Woolworths would fail as a business, it is also shown that the company was once a reputable company and generated high levels of consumer demand through the customer being able to buy “pick-n-mix sweets, a DVD, a magnifying headlight and a cheese grater “ in the same store. The revenue generated within the first six months of 2008 was £1107 million, which suggested that the firm was able to sell efficiently to an extent. If the financial department at Woolworth’s had evaluated the balance sheet and income statement from previous years, they would have potentially been able to minimize the risk of the high expenses, reduced profit margins and overall prevent the administration of the company that occurred in 2008. This point therefore indicates that it was not entirely inevitable that Woolworths would fail as a business, as measures could have been carried

In practice, dividend policy will be affected by taxes as tax rates for different categories of investors will differ. Also, a firm’s dividend policy is perceived by the financial markets to be a signaling mechanism. A cut back in dividends may signify that the firm perceives tough

Sainsbury’s have to ensure they make changes regarding customer needs as quickly as possible. This is important because if Sainsbury’s don’t act on customers’ needs they will possibly decline and lose their current market position because customers will go to its competitors such as Asda or Morrison’s etc. This shows that Sainsbury’s have to make decisions as soon as possible in order to maintain their position in the market and to be better than its competitors through improvement. This will also contribute to Sainsbury’s keeping a good reputation which will also help to attract new customers.

The aim of the report is to use different valuation techniques to see if the current share price of Tesco plc is fair, undervalued or overvalued. Some of the findings will be compared with other firms in the same industries and share holders will be informed on whether they should buy, hold or sell.

This report provides a view on operations of SAINSBURY’S , the third largest supermarket chain across United Kingdom. SAINSBURY’S , in spite of being the longest standing retail chain has been facing stiff competition from rivals like TESCO , MORRISONS. The competitors seemed to have developed at a faster pace since SAINSBURY’S has been through a difficult time in recent years and TESCO is now twice the size in terms of turnover.

Sainsbury's continued their programme of change aimed at releasing the talents of their colleagues, helping them to focus on the customer, and restoring their pride in working for Sainsbury's. It's clear to them that new and exciting working environments add to this pride. This will grow as they increase the pace of their programme of developing and extending stores. It is also why they're keen to tell everybody about their acknowledged successes, such as organics and ready meals, their record in protecting the environment and supporting farmers, and new initiatives, such as their innovations in e-commerce.

Now, if these figures are compared with the market leader, it will be clearer about the company’s profitable position. In the years 2009, 2008 and 2007 TESCO, who is the market leader for the market Sainsbury’s are operating, also performed very well. TESCO’s revenue also took a steep upward curd in between 2007 and 2009. Their revenue increased by 29.4% to £54327m in 2009 from £42641m in 2007. TESCO’s ROCE was 11.44%, 14.02 and 15.90% in the mentioned years. The gross margin and operating margins

Sainsbury 's is the second largest cable of supermarkets in the United Kingdom with a share of the UK supermarket area of 16.8%. Originated in 1869 by John James Sainsbury with a shop in Drury Lane, London, the company developed the biggest grocery dealer in 1922, recognized self-service trading in the UK, and taken its peak through the 1980s. In 1995, Tesco passed Sainsbury 's to become the marketplace lead, and Asda developed the second leading in 2003, relegating Sainsbury 's to third place. The holding company, J

J Sainsbury plc is the third largest supermarket in the United Kingdom. J Sainsbury plc is engaged in retailing and retail banking. The Company includes Retailing, Financial services, and investments. The company offers different kinds of groceries, for example, fruit and vegetable, meat and fish, baby and household. Sainsbury 's Bank provides lots of products, such as insurances, credit card and loans. Not only risk profile analysis and value analysis of the Sainsbury’s could help people to decide whether people can trust the company and buy stocks, but also it is beneficial to Sainsbury’s understand the company 's operation status. So it is necessary to analyse risk profile and value of the Sainsbury’s company. This essay will focus on the analysis of the agency problem on Sainsbury’s company, analysis of the business risk of the Sainsbury’s company, analysis of the financial risk of the Sainsbury’s company and analysis of the Sainsburys company’s value. this essay will provide some possible solutions to this issue. This essay will attempt to show that the Sainsbury’s company and provide some recommendations in order to develop better.