PERFORMANCE OF SAINSBURY’S RETAIL COMPANY

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1.0 Company’s Profile

1.1 Brief History

John James Sainsbury founded Sainsbury in 1869. Currently, it is the among the market leaders in the United Kingdom, where it controls over 15% of the total market share in the supermarket sector. Besides, the company has vested interests in retail banking under the financial segment Sainsbury Bank Plc. (Sainsbury, 2018).

1.2 Corporate philosophy

            The business operations at Sainsbury are run to fulfill the corporate philosophy of the company that prioritizes the needs of its customers by helping them to live well while spending less (Smith, 2010, p.258). The company works towards attracting and retaining customers based on running a sustainable, low-cost strategy on all its products and services.

1.3 Corporate governance

The company is devoted to elevated standards of corporate governance that abide by the rules and guidelines stipulated in the Corporate Governance Code (Sainsbury, 2018). Based on these principles the company stresses the importance of having complete shareholder relations, aligning the remuneration policies to meet the needs of customers, and so on.

1.4 Business strategy and investments

            The company’s business strategy is aimed at the areas that are essential to its business operations and how they can make the different investments provide the maximum profit. The business strategy at Sainsbury is supported by five pillars (Smith, 2004, p.236). They include; providing customers with value, offering quality products, understanding customer needs, and so on.

1.5 Stock price performance

                According to Sainsbury (2018), in January the company stock sales across the group reduced by over 1% failing the company to meet its expectations by close to 0.3%. The period between October and November 2018 proved to be difficult as depicted by the stock price performance at the London Stock Exchange.  Currently, the company stock shares retail at 274.40 Gbp.

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