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

Managing for the Future - Essay ExampleIt is besides 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 keep on Londons Drury Lane around the family 1969, Sainsburys has developed a massive history behind him over the years. Sainsbury holds more than 15% of the market share of the UK retail markets. Sainsbury hold the mo position in the UK online retail market and is only behind Tesco. Sainsburys follows a simple heating 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 necessary raw materials and commodities in a sustainable stylus (J Sainsbury Plc, 2010). Forecasts and Strategic Plan Sainsbury is focused to provide healthy, safe, immaterial and tasty food at fai r prices. The range of mountains continues to operate on five areas, which makes the chain of mountains differentiate itself from the retailers. The chains current focus mean is on Growing space and creating property value Providing great food to the consumers Compelling general trade and clothing Developing new business channels Providing complimentary channels and services. Strengths Sainsburys has won numerous awards 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 all the way maintained industry standards and gained recognition in the industry The chain has made considerable amount of political campaign 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 active user base of over 11 million. The chain has got high points on a regular basis in the industrys most value basket survey (J Sainsbury Plc, 2012). Weakness Their strategy is very puzzling at times. At times, they are targeting to solicitation to mass markets which may result in tempting to go on an acquisition spree and thus 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 write up space in all new and existing stores for introducing the chains new health, beauty and folk line of products will benefit the chain in the upcoming days and may provide great 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 term 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