The Value Chain And The Value System Of Sainsbury

Sainsburys is currently the second largest chain of supermarkets within the UK, with a current supermarket sector share of 16.9%. Sainsbury’s was founded in 1869 and today operates in over 1,200 supermarket and convenience stores, and has over 161,000 employees. We will be looking at a number of areas internally and externally and see how they are effectively or not effectively performing.

The purpose of Sainsbury’s is that they are trying to make as much profit as possible, as they are competing with other supermarkets and be the number one UK’s supermarket, and this will allow them to expand on their business.

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.

Customers- Customers want the company to improve and give them better value for every product they buy. They want the company to produce high quality products for them. Customers are one of the main stakeholders of private sectors such as Sainsbury’s because without them Sainsbury’s wouldn’t achieve their aim.

Morrison’s is a food retailer which was established in 1899. Morrison’s started off as a stall at a local market in Bradford run by William Morrison and has since grown to be the UK’s fourth largest food retailer. Morrison’s aims to, “attract, motivate and develop people to ensure that Morrison’s becomes the ‘food specialist for everyone’”. In addition to Morrison’s being a supermarket it also offers a range of other services; cafés, recycling, dry cleaning, photo printer, petrol station and pharmacy. Morrison’s is highly customer orientated as they try to provide the best service to their customers by providing them with high quality and reasonably priced items.

Customer needs A range of different products and services Products: - Sainsbury has many ranges of products from groceries to toiletries. Sainsbury always try and make there products value for money. Check out queues: - Sainsbury always aim to minimise waiting time at the checkouts. Colleges of Sainsbury are multi skilled at busy times they are able to call on more colleagues to operate tills. Elderly people: Sainsbury realise that elderly people like to retain their independence by doing their own shopping. Sainsbury always put chairs for their older customers to rest. Employees at Sainsbury help elderly people pack their purchases and help them take them to their cars. Facilities for disabled people: - Sainsbury ensure that disabled customers are not offered a low standard of service.> They have disability parking spaces> Wheelchairs and specially adapted trolleys are available in every store and electric scooters.

Supermarket/hypermarket is large stores which give a range of product and services such as household goods and food to customers. These stores are normally in large open spaces because there are normally 25,000 sq ft big and sell a range of product to the customers. Sainsbury currently has 597 supermarkets in the UK. Sainsbury meets the needs of its customers by having a range of services such as electrical, clothing this will help them as it will help them find things customer wants such as clothing which will benefit them as customer get what their want and will have everything customer want in the superstores therefore it will focus on the need of the customer. It help make customer life easier by offering them range of food product this can benefit them as they are able to one big shop which will last a while in once which will help them make customer life more easier and it offer customer Great quality wide variety this mean that it will have range of product which will attach large amount of customer to the Store’s which will help bring in more profit which can be used to improve the business.

There are many physical resources in all Sainsbury stores. These are mainly the equipment and tools that are used when serving and providing for all their customers. Every worker at Sainsbury’s should manage the equipment in every store by frequently cleaning the store and the equipment and the managers should make sure that the equipment is fully working and fix any problems with them or call in maintenance if any equipment or tools are damaged/faulty. If say a shelf is not kept clean there can be built ups of dust and decay which

Sainsbury has developed different supply chain channels to manage the complexity faced due to different store formats such as country town, Sainsbury local. Sainsbury believes in continues improvement and aims to achieve it in many different ways. Sainsbury recognise the importance of its people who plays a major role in delivering excellent business. The logistic staffs of Sainsbury tend to work in flexible and well maintained environment. One of the collaboration of Sainsbury is to focus on the demands of the consumers and maintain a healthy relationship with the suppliers and other partners. Above all Sainsbury is committed in reducing the impact of its operation towards the environment (J. Sainsbury Plc-b, 2002).

Opportunity- If Sainsbury were been able to transfer their brand into Egypt market, it would be the biggest opportunity in conducting their business as Egypt is perceived as a market

     This report will show how Sainsburys have used performance management to increase their ability to provide a quality service and gain a competitive advantage, it will also show how systems have been implemented to achieve this and what Sainsburys have changed in recent years to achieve the competitive advantage it was looking for, The main area Sainsburys have changed is there Supply chain which had a cost gap of around £60 million. It will also look at how the operations functions carried out by Sainsburys can be linked in with other areas of the business like Finance, Human Resource Management and Marketing. The main contents of this report will

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

* External Context of Sainsbury’s belongs to the biggest supermarket leaders in UK. In other words, Sainsbury’s is part of big four ‘Asda, Tesco, Sainsbury’s, Morrison’s. The biggest rival today in UK market is Morrison’s, they booth fighting for a market but Sainsbury’s ram in a higher place. In Appendix 3, we can find concept of retail and types of functioning.