The Business Environment in the UK Market - Term Paper Example

? BUSINESS SKILLS AND EMPLOYABILITY IN J SAINSBURY PLC By Location Introduction The business prospects of J Sainsbury plc evidence how the enterprise dominates the UK consumer market since it is the second largest chain store in the country. The UK market e environment is composite of both internal and external factors, which impose challenges to the entire business’ operations. As leading chain store, the company faces the external environmental pressures that comprise of consumers, suppliers, financial stakeholders, and competitors. Further, J Sainsbury also faces the threat of interest groups that seek to ensure profound production and distribution comprehends consumer welfare appropriately. Researches implement that the corporation operates at least 1,106 supermarkets in the UK, and other leading economies. The tally also includes a broad chain of convenience stores that the company runs at a global perspective (Cunningham & Harney, 2012, p. 47). Its analysts argue out that the customers are of salient value to the longevity and growth in performances thus all its investment initiatives focus on that fact. J Sainsbury Company elevates its chain stores to ensure that its products aim at the right consumer groups in order to achieve a profitable market share, and growth on a global perspective. The UK based supermarket operates on a global platform with standardized practices while targeting a broad customer network with divergent needs and wants. Secondly, the company’s 480 retail outlets based in the UK have been of significant importance to the entire organization in maintaining its second position and challenging TESCO, the country’s market leader (Hensmans, Johnson, & Yip, 2013, p. 88). Despite its global targeting approaches, the grocery chain has continuously accrued beneficial outcomes, and profitable performances in all its segments, a factor that is evident in the over 20 countries of operations at the global platform. The chain store’s forecasts ensure that it has gradually diversified competitively and profitably over its local and foreign competitors. Informative survey shows that the company’s market operations face contests since the global grocery industry comprises of both local and international competitors and it is evident that some of them exceedingly operate in broader segments (Cunningham & Harney, 2012, p. 67). The following discussion seeks to establish J Sainsbury’s business practices and its SWOT analyses, with the recommended approaches to restructure its strategic plan (Wied & Ebers, 2007, p. 133). Sainsbury’s business environment The corporation founded in early 1869 by UK nationals, John and Mary Sainsbury and it grew proficiently throughout the 19th, 20th, and is currently turning into a global icon after pausing at the second largest chain in the UK, and further as the most profitable grocery company. The adventurous global market production and sales approach emanates from the company's sustainability strategy, which entails the salient measures observable before the purchase of groceries and other consumer products. Statistics reveal that Sainsbury strategic planning contributed to its profitable outcomes whereby the management reported pretax revenue of over ?400 million. Sainsbury’s economic precision extends towards growth in the market since its product portfolio includes the requirement of enticing and outsourcing on producers in order to reduce the expenses articulated to producing and packaging some of the company’s consumer goods (Zentes, Morschett, & Schramm-Klein, 2011, p. 244). The company’s coherent integration of the varied political systems enables it to win economic gains throughout the target markets. The use of technology and innovation stimulates competition, and Sainsbury displays the ability to prosper competitively in the global market. J Sainsbury’s SWOT analyses Strengths The company’s credentials and its success in the grocery industry emanate from the long-range objectives and strategies to acquire profitable outcomes in all its operations. The strengths of the Sainsbury’s UK marketing strategy in relation to aggressive environmental approaches seem justifiable in various forms. For instance, the company gradually ventured into different markets in the country ranging from the populated to the least populated, and it currently holds a profitable market share over the hundreds of competitors present (Chorafas, 2003, p. 25). Evidence shows that the company’s profitable performance emanates from the managerial resolution that all operations should honour the stipulated social, cultural, and political measures. The strengths Sainsbury rests assured of being factual to the employee discipline and the profitable outcomes in its performances (Hensmans, Johnson, & Yip, 2013, p. 89). Surprisingly, the company beat Asda, UK’s market challenger that occupied the second position after Tesco through an intensive strategic outsourcing of suppliers to avail necessary products at reduced costs. Arguably, the company’s management, and its critical analyses on evaluating the salient importance of its 157,000 employees stipulates the management’s devotion into pursuing success and establishing credibility. The company further benefits from its locations since all UK customers show loyalty to the grocery chain stores bearing in mind that the stores are available in every location in the country thus making it a possibility for the business to serve the 56milion population (Chorafas, 2003, p. 36). The company has shown insulation from competitors through the establishment of ideal IT systems to evade communication hindrances, and further through the establishment of precise and competitive suppliers to aid in warehousing, processing, storage, and distribution of the required consumer goods in the market. Sainsbury’s weaknesses Sainsbury’s success is dependent on the appropriate layout of economic and technological factors to ensure gradual updates on the products to match the present and future needs. Despite these strongholds, Sainsbury suffers adversely in business operations as the strategy seeks to implement a common culture throughout its markets. The employee community entails people from different societies whose differences are imminent in terms of languages, living standards, extent of modernity, cultural integration, and availability of innovation (Cunningham & Harney, 2012, p. 69). Since the company depends heavily its employees for effective diversification and acquisition of the desired profit margins, the company's dependence variably affects its business outcomes. According to the accrued statistics, it is evident that Sainsbury has never toppled Tesco’s market position in its history despite its strategic planning in order to acquire successful outcomes. Therefore, it is sound to highlight that the strategic positioning of the company’s plans has been often ill advised, and lack the desired competitive edges to engage the market leader (Chorafas, 2003, p. 75). Consequently, Sainsbury seems to be suffering such problems due to its poor research and development programs. The employee tally serves as a reassurance to any organization to acquire beneficial outcomes thus Sainsbury’s suffers negatively by failing to empower its 157,000-employee population towards innovative practices (Zentes, Morschett, & Schramm-Klein, 2011, p. 248). Sainsbury further suffers a competitive disadvantage in its bid to become a market leader since Tesco has always been in the lead despite the witnessed challenged (Wied & Ebers, 2007, p. 143). Lastly, the organization suffers from incompetence in the execution of its marketing strategies since it often employs uniform approaches to the entire market thus; its standardization deters the desired outcomes since some of the clientele feel insignificant despite the availability of their needs and wants in the company’s product portfolio. Sainsbury’s opportunities As a conservative company to the environment, Sainsbury’s management stipulates the importance of ensuring growth and sustainability would be through responsible outsourcing of suppliers. The strategic move accounts that the company acquires over 40% of its products through its external suppliers. Through these strategic approaches, Sainsbury reduces the risks of criticisms from politically influenced bodies via the practice of friendly and ethical approaches in delivering customer values in its product portfolio (Hensmans, Johnson, & Yip, 2013, p. 98). Further, the witnessed financial prowess in the grocery industry emanates from the internal packaging and branding of 60% of its products and outsourcing the remaining amount from subsidiary businesses. Further, Sainsbury Company accrues beneficial exchanges from its economic and technological operations as the management ensures regular financial audits, and innovative approaches to its operations at the global scale. Thirdly, the company has a 157,000-employee population who exhibit competence in undertaking their tasks throughout all of the company’s outlets. The employee population undertakes their tasks in the processing and packaging of the products in accordance to the set strategies and the prices of the products to reach the consumers profitably. These socio-cultural factors affect the communities’ perceptions about the different business entities that exist in the market and their importance in improving the lives of the community. Sainsbury engages in strategic employment processes whereby it ensures that over 60% of its employees in its subsidiaries belong to the constituent societies (Wied & Ebers, 2007, p. 149). Arguably, the company engages in socially responsible activities that enable it to match the established rules and regulations to match the outlined ethical needs prerequisite of the society. Sainsbury’s threats The use of IT applications in the technological edge is a competitive strategy to ensure informative revelations of a company’s products. Sainsbury’s threats emanate from the leading supermarkets in the UK economy. Mainly, the company has been suffering broadly from Tesco’s threats in achieving successful outcomes in its consumer segments. A recent survey revealed that Sainsbury’s strategic initiatives often lag behind those implemented by the Tesco Company. According to expert analyses, Sainsbury often engages in outsourcing its products rather that providing an internal mechanism of handling them. Arguably, the approach of internal handling of the marketing mix utilities is a significant resolution of deterring any negative consequences from affecting the company’s image (Zentes, Morschett, & Schramm-Klein, 2011, p. 254). For instance, the outsourcing approach that the company practices in accessing Brazilian chicken has severed it a blow since the society learned of the supplier’s ill practices of adding water to the meat, which eventually reflects as weight in the buying process. Therefore, Sainsbury continues to suffer from ethical concerns since its clientele perceive that most of the company’s groceries and other fresh products may comprise of the similar attributes thus viewing it as a fraudulent company rather than a consumer-oriented business entity. Another threat that has been present in the company is the slow rate of diversification (Wied & Ebers, 2007, p. 163). Arguably, the company has lasted an age that guarantees it to a profitable multinational corporation, and such a resolution would serve to the benefit of yielding economies of scales thus leading to increased profit margins. Recommendations on the ideal strategic approaches and future objectives Companies yield many advantages from the use of technology-based applications in the present global markets whereby technology serves as a success engine. Arguably, the company would accrue the advantage of increased sales since the customer groups would be able to learn about its products thus gaining the ability to purchase those products that suit their needs. Further, the use of mobile applications would enable the consumers to define the range of offers provided by the company and they would be able to articulate their perceptions, and wishes concerning the necessary changes that the company would have made towards its products. Additionally, the technological applications would serve as a platform for drawing consumer loyalty since the abundance of the logo would still be insinuating to them that they are part of the company, and they would eventually seek belongings by making frequent purchases (Chorafas, 2003, p. 95). Further, the use of mobile applications would enable the company to make prompt research and development since they will be able to acquire information and grievances from the consumer markets. Sainsbury’s devotion to the market and implementation of research tools would lead to the use of technological applications that will serve to stimulate production and packaging of its own groceries. Arguably, the role would be witnessed through the acknowledged communication procedures. Such a recommendation is salient into ensuring that its product line acquires profound devotion from the clientele against the wish of the competitors. Further, the resolutions shall serve to shelf the injurious outcomes of the overall performances whenever its competitors gain the ability to develop entities that are more advanced (Hensmans, Johnson, & Yip, 2013, p. 108). Arguably, the IT applications shall serve to limit over 50% of the able clients from different economic backgrounds from disserting the company’s segments. Conclusions In conclusions, it is probable that the company currently owns over 16% of the UK market share as a market challenger since Tesco sets stiff competition. The incorporation of environmental strategies to pursue the demographic market segments implicates an essential factor towards the company’s long-term growth. Sainsbury extents its philanthropic involvements as a financier to the Global R&D Centre thus the company holds more advantages over its competitors since it can benefit from any new developments born from the various researches undertaken by the organization (Zentes, Morschett, & Schramm-Klein, 2011, p. 264). It is evident that these social involvements serve to propel the company’s dominance in the UK market share since its customers and interested public acknowledge that the profits accrued are vital to enhance human welfare. Bibliography Chorafas, D, N, 2003, Operational Risk Control with Basel Ii Basic Principles and Capital Requirements, Burlington, Elsevier. Cunningham, J, & Harney, B, 2012, Strategy & Strategists, Oxford, Oxford University Press. Hensmans, M, Johnson, G, & Yip, G, S, 2013, Strategic Transformation: Changing While Winning. Wied, S, & Ebers, M, 2007, SWOT Analysis Robert Mondavi and The Wine Industry, Mu?Nchen, Grin Verlag Gmbh. Zentes, J, Morschett, D, & Schramm-Klein, H, 2011, Strategic Retail Management Text and International Cases, Gabler, Wiesbaden. Read More