Sainsbury Plc Analysis

Topics: Financial ratio, Sainsbury's, Financial ratios Pages: 21 (7296 words) Published: December 10, 2012
Sainsbury’s Plc
1 Introduction
1.1 Topic Chosen
I was asked to choose a topic for my Research and Analysis Project. I have gone through different Topics. All the topics were appealing and interesting. After a careful study, I decided to choose Topic Number 8, the business and Financial Performance of an Organisation. I will analysed and evaluate the financial Performance of this organisation with the abilities and knowledge gained while studying ACCA. I will evaluate how the Organisation was performing in last three years. I will carry out this topic with shareholders Point of View. The purpose of this research is to provide the information to existing and perspective shareholders that are interested in Sainsbury’s and can be affected by the performance of this organisation. An organisation can be understand more easily and deeply if it is compared it with another organisation of same business. So I have to decide to make a financial and business comparison of Sainsbury’s with another organisation. For this purpose, I have selected Marks & Spencer 1.2 Reason For choosing this Topic

I have chosen this topic after a careful and thorough study. The Most important reason was the clarity and transparency of this topic. Business and Financial Analysis is one of the best techniques to measure the performance of an organisation. Financial analysis is assessing the profitability and viability of an organisation. Especially in the recession’s period, it is one of the most powerful techniques. Shareholders can be provided the information only by evaluating the financial performance and business aspects of organisation. It will help the shareholder to know about the figures in Financial Statement, what they mean, how they arise and how it can affect their wealth. It will provide a bigger and clear picture of the organisation in respect of its performance and survival. I will be using financial ratio analysis on the performance of the organisation. Ratio analysis helps us to know how the Organisation is performing in this year as compared to last year and how it is competing with the another organisations. This topic will also help me in enhancing my skills and abilities that I have gained from my work place and by studying ACCA. It will improve my writing, communication, research and analysing skills. It will help me to analysis the data more constructively. It will make me able to communicate the information more effectively. I believe that after completing this project, I will be more confident and solid in my studies and workplace. However, Ratio analysis has some limitations as well. They can provide clue to the performance or financial situation. But on their own, they cannot show whether the performance is good or bad. It is difficult to generalise about whether a particular ratio is good or bad. 1.3 Reason for Choosing this Organisation.

Sainsbury plc consists of Sainsbury’s – a chain of 502 supermarkets and 290 Convenience stores – and Sainsbury’s Bank. It has employed around 150,000 people. Sainsbury’s supermarket is the UK’s longest standing major food retailing chain, having opened its first store in 1869. Sainsbury’s was founded in 1869 by John James and Mary Ann Sainsbury. It started selling its own - products in 1882. In 1950, first Self-service store was opened in Croydon. Sainsbury’s was the first to use 100% recycle carrier bags in stores. As mentioned before, the topic of this research work is very clear and objective. I will use different techniques and methodology to evaluate the financial and business performance of Sainsbury’s. 1.4 Aim and Objectives of the Report

The aim of my research report is not to prepare a detailed financial and business analysis for the current year but also to predict the possible future prospect of the organisation. This will be carried out in Current and perspective Shareholders point of View. Because all shareholders and investors want to assess the performance of...
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