Applied Business Studies
Unit 1: Investigating Business AO1
Task 1:Describe in detail the main aims and objectives of the business
At Sainsbury’s we will deliver an ever improving quality shopping experience for our customers with great product at fair prices. We aim to exceed customer expectations for healthy, safe, fresh and tasty food making their lives easier everyday.
I will be investigating the factors that have contributed to the success of a business in terms of its main aims and objectives and the external environment factors that have affected the ability of the business to achieve its aims and objectives. I have chosen to look at J Sainsbury PLC to do this. I decided to use Sainsbury’s, as it is a long well established respected company. There is a large amount of information, available, through books, the internet, the stores and media. I especially found them to be a very helpful and willing to assist me with my work.
Sainsbury's was founded in 1869 by John James and Mary Ann Sainsbury. They opened their first small dairy shop at 173 Drury Lane, London. Drury Lane was one of London's poorest areas and the Sainsbury's shop quickly became popular for offering high-quality products at low prices. It was so successful that further branches were opened in other market streets in Stepney, Islington and Kentish Town. By 1882 John James Sainsbury had four shops and had plans to expand his business further. He opened a depot in Kentish Town, north-west London, to supply this growing chain and, on the same site, built bacon kilns which produced the first Sainsbury brand product. It was also in 1882 that John James opened his first branch in the suburb of Croydon. This shop sold a wide range of 'high-class' provisions and was more elaborately decorated than the earlier shops. The late Victorian period brought competition from large national multiple retailers posed a threat to small chains like Sainsbury’s. John James stepped up expansion so that he could buy goods at competitive prices. The number of branches trebled from 16 to 48 between 1890 and 1900 .
John James also opened a new depot at Blackfriars south-east London, which was close to the wholesale markets and the London docks. During the war there was staff shortages women were recruited to fill the jobs vacated by men. The interwar years, brought hardship, but this was a time of rapid expansion for Sainsbury’s. Sites were acquired in London’s expanding suburbs the company expanded into the Midlands in 1936 with the acquisition of the Thoroughgood chain and by 1939 there were 244 Sainsbury’s shops. In 1950 Sainsbury’s opened the first ‘American style’ store. The first self-service store proved very popular. Over the next three decades all Sainsbury’s counter service stores were replaced by modern supermarkets. In the 1960’s the scale of the company increased and it was necessary to decentralise the distribution system and establish a network of regional depots. Sainsbury’s was amongst the first retailers to establish and develop increasingly sophisticated computerised stock control. By the 70’s Sainsbury’s had reached a size that warranted public status. The company’s public floatation in 1973 was the largest ever floatation on the Stock Exchange, with a 45 fold over-subscription for shares. The 80’s and early 90’s saw the expansion of Sainsbury’s into the north-east of England, Scotland, north Wales and Northern Ireland extended the company’s trading areas to become national in scale Sainsbury’s also established an early lead in the introduction of in-store technology like scanning, computerised stock control and sales-based ordering; techniques which brought it huge competitive advantage. By the end of Sainsbury’s 125th year, the company had 355 stores.
Today Sainsbury’s PLC is made up of Sainsbury’s Supermarkets, convenience stores and internet...