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Sainsbury's Strategic Report ( 2015 )

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Sainsbury’s strategy follows with their quote ‘We will make our customers’ lives easier. Great quality. Great prices. Whenever and wherever’ or following with their motto ‘Live well for less’. It is believed that their goals to retain the customers by making lives easier everyday by putting out fair prices and quality services to all. To peruse their goals Sainsbury’s have their stores in key locations so that they offer great quality products and services at fair prices all the time; changing the dynamics of the industry to suit the customers lives. Sainsbury’s Strategic Report (2015) is divided in two sections; the non-financial KPIs are as follows: product quality, Like for Like Transactions, Price perception, Sales growth, Service …show more content…

Sainsbury’s use KPIs in measuring the rate of change the most, for example by observing the trends of revenue per customer in the present and last quarters meaning the significance of a trend-line going down would be that businesses would need to look at the reasoning. This shows specific targets can be measured but also shows that they are just not about making a profit but impersonates that if known to people then they will view Sainsbury’s as ethical and green so that they are more likely to want to buy from Sainsbury’s than other competitors. The sale growth and the dividends have been growing in the last two years shows that Sainsbury’s have been making progress and as a business, investors would be interested in. However, in 2014/15 the sale growth have decreased and as a result the dividends have also decreased. To take this further, a measure of profitability can be derived to see the degree of success towards business objectives in terms of profit. It express the generated profit such as expenses, labour cost and sales revenue in relation to a company 's business resource. Gross profit margin measures differences between cost of sales and sales revenue, in other words a measure of profitability in purchasing and selling before any other expenses are taken into

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