Sainsburys objectives Essay
AIMS AND OBJECTIVES
The company aim is to provide a world class service to customers by incorporating quality principles with our everyday routine.
The company’s objective is to discharge the responsibility as leaders in its trade by acting with complete integrity, by carrying out its work to the public good and to the quality of life in the community, to provide unrivalled value to its customers in the quality of the goods it sells, in the competitiveness of its prices and in the range of choice it offers.
It aims in its stores, to achieve the highest standards of cleanliness and hygiene, efficiency of operation, convenience and customer service, and thereby create as attractive and friendly a shopping environment as possible and to offer its staff outstanding opportunities in terms of personal career development and in remuneration relative to other companies in the same market, practising always a concern for the welfare of every individual.
The company’s final objective is to generate sufficient profit to finance continual improvement and growth of the business whilst providing its shareholders with an excellent return on their investment.
MARKETING AND SALES
The company has a separate Marketing and Sales department and market research is used in the forms of market research staff – using survey questionnaire – in streets and in store, customer focus mornings where feed back can be gained, and questionnaires regarding current promotions e.g. Reward Card.
The company hopes to present an image of high standard – appealing to family groups and younger people and quality and value for money.
The company’s advertising strategy is through local TV and Radio, Local and National Strategies, Head Office planning – branch and Marketing and Sales Manager Region e.g. Radio, TV, University, Freshers, Sponsorship – Advertise by magazines, posters, instore demonstrations and customer led, evenings, mornings, suggestions, feedback, comments, book, school visits, community groups, talks to groups.
The major influences on the price of the product are costs by the producer, competitors prices, regional pricing and select prices.
The major markets are customers residing in the South Kirklees area.
The main channels of distribution are contract distribution to supply products to store. Minority of goods delivered direct by suppliers.
The main costs of distribution are transport and other related fixed costs – depot vehicles and labour, fuel, consumables. The company is establishing closer links with suppliers by sharing vehicles.
The major customers for the products are supermarket customers in South Kirklees.
The company leases the land and buildings, and the main items of capital equipment are plant machinery e.g. refrigeration, air conditioning, lighting and additional heating costs, checkout tills, display equipment – shelves, trolleys, meat and bakery equipment, the fork lift truck, waste compactors, scissor lifts and computer and catering ovens.
The company owns the company patent, trademark and products e.g. Classic Cola, Novon Washing Powder (65% of sales – Sainsbury’s own brand) and its own magazine.
The company’s sources of finance are through ploughed back profit, shares, bank facilities, hire purchase/leasing and trade credit.
Income is through profit and shares.
Examples of fixed costs are capital equipment, contracted staff time, products and business rates for buildings.
Examples of variable costs are energy – heat, light, refrigeration, staff overtime and consumables e.g. staff clothing, paper stores, carrier bags.
The company would like to invest in additional equipment and facilities for existing stores and updating others. This would provide better service and generate more sales. The cost of the investment would be variable and would be evaluated through a measured increase in turnover.
The organisation has found recent trading conditions difficult because of strong competition in a small geographical area and competitive pricing e.g. special offers, introduction of a Reward Card – customers and staff card, more advertising.
The products/services offered are a large supermarket, a wide range of food and non-food e.g. cd/video, books, pharmaceuticals, a cook shop, food includes:- bakery, meat, fish produce, dairy, frozen foods, tinned/packets, also a customer restaurant and a petrol station.
The location of the company is in Huddersfield – adjacent to the ring road opposite The University of Huddersfield and Oldgate House – same side as Aspley Marina.
Reasons why the organisation is located in Calderdale/Kirklees are to provide a service to customers within the geographical area and the suitable density of population.
Reasons for this specific site are because of excellent road links for distribution and particularly customers, a good public transport system and land available for sale suitable for new store.
The production process is split into Inputs, the Process and Outputs.
The Inputs are goods and commodities are received from suppliers and received 24 hours a day.
The Process is that when received, all items are counted manually and taken to the warehouse – loaded on to special shelves. Information is recorded on the computer. Each department identifies goods needed. A list is made and items taken for display and sale in the shop. Department staff replenish the shelves when needed under close supervision and management in order to supply a high class service to customers.
There is a customer self service – and goods are taken to a checkout till for payment.
There is an additional display and sales area inside the front entrance for cigarettes, books, newspapers and other small items. In addition a customer service desk is provided for customer contact.
There is an adjoining restaurant for customers – with the necessary preparation and sale of food.
The Outputs are the provision of goods for sale in the store i.e. food and non food as well as a customer restaurant and petrol service station.
Human Resources Profile
Gender is mainly 25% Male and 75% Female, and a predominate number of staff are employed – in checkout/replenishment of goods. Other staff include checkout, catering, administration, replenishes, warehouse, butchers, bakers, sales assistants.
The recruitment and selection procedures of the organisation are that internal recruitment is provided, they maintain a waiting list of speculative enquiries, they occasionally advise local press and they liaise with DSS re disabled staff.
Training provided by the company includes Sainsburys own retail training scheme, NVQ level 1,2, NVQ level 4 for Trainee Managers, Assessors Awards for Department Managers, a regional co-ordinator, employment with training, plus operation skills training for in-house training.
Methods used to motivate the workforce include the encouragement of employee commitment through involvement in decision making process.
Also a Reward/Profit sharing scheme is used, as is a Pension scheme and additional voluntary contribution, a SAYE scheme, a Staff Association (national/local) and staff discounts.
Employees have union representation through the following unions USDAW, T & GW Union, a Recognition Agreement of no negotiation rights. Currently 13% of employees are in a union.
MANAGEMENT, ADMINISTRATION AND COMMUNICATION
Internal methods of communication are through senior management weekly meetings, store manager meetings, deputy manager meetings, department manager monthly meetings with staff, staff/management daily meetings, special additional meetings re initiatives, daily and weekly bulletins and through OASIS (E-Mail).
External methods of communication are mail, phones, and through the Media – TV, Radio and Press.
Communications problems encountered and overcome have been continually ensuring communication of staff at all levels – staff/customer – upwards to management. The company has set up Staff Councils, elected regular Representatives of Staff and guaranteed Communicators who will inform a group of people.
Developments in communication include Staff Councils.
The consumers individual needs and expectations and the need to match customers needs to remain in business is one factor looked at.
Another is the Governments Statutory legislation e.g. Health & Safety, Hygiene, Employment, and Trading Standards. Local Authorities e.g. Planning Agreements, and Highway Authority are others.
Competition from other superstores, regarding prime sites, maintaining the share of business, the effective change of products, the range and expansion into new initiatives are the big external factors in this trade.