Financial analysis of sainsbury plc essay

Assignment Answers The following assignment focuses on the financial analysis of the annual reports and the effects of the developments and the downturn in the financial markets in U. K for the Morrison Plc. This assignment talks about the financial condition of Morrison plc in London in last few years.

Financial analysis of sainsbury plc essay

Stern,pp- 3. In order to start the business within the supermarket in UK, organization has to invest more capital. Thus, the company is able to establish their products and service as well as build a success or string brand image.

Financial analysis of sainsbury plc essay

Due to high investment of capital, Sainsbury faced low threats from the new entrants. The main threats that have to faced by the company are existing brand. On the contrary, Krivtsova and Belozerova cited that in the supermarket in UK, the new entrants have to make long term plan for starting their business along with the regulatory permission of government.

It takes long time to execute. From this point of view, Sainsbury faced low competition from the new entrants. However, the superior policies such as low cost products, online shopping facilities, 24 x 7 complain help line, quick delivery of purchased products, etc helps in capturing the lot of loyal customer to Sainsbury Plc.

Intensity of competitive rivalry: Luck acknowledged that the intensity of rivalry within the supermarket of UK is extremely high for Sainsbury.

According to MertensTESCO and ASDA always focus on switching the customers through effective service such as high quality products in low prices, promote the brand through effective media like Facebook, Twitter and involve film stars or sportsman in order to promote the brand.

Earlier it has been analyzed that UK retain industry creates competition by decreasing product price itself that result low revenue growth. It displayed that big competitors capture the loyalty of customers.

Therefore, the competition from rivalry within the retail industry in UK is high.


Apart from that, the other company likes ASDA, Lidl, etc continuously low down their products service price in terms of capturing high market share. Threats from Substitutes Products: In the apparels items, Sainsbury faced high competition from the substitute products.

On the other hand, in food items, the company faced low competition from substitute products. Regarding apparel products, there are wide ranges of counterfeit product development companies that decrease market share of luxury brands.

Sainsburys and Tecso Financial Analysis | Xayrish Abdullaev -

The food items does not affected by the substitute products of Sainsbury because people of UK are very much conscious about their health. Bargaining Power of Customers: In the retail industry in UK, lots of competitors are present with strong brand image.

It indicates that customer have wide range of options in order to switching cost from one company to others. From the point of view of bargaining power of customer for Sainsbury, business is strongly high.

People of UK are too much price sensitive. If they find similar products in other companies at low cost, they switch their mind and buy the products from that company. Bargaining power of Suppliers: The positions of suppliers in UK retail industry are not string. Due to this specific reason, suppliers have not string position within the retail industry in UK.

Therefore, suppliers provide strong raw materials to the Sainsbury that is one of the greatest opportunities in making the company in top position. Moreover, bargaining power of the suppliers is relatively low for Sainsbury in UK retail industry. Holopainen and Toivonen depicted that some of the people gone for brand rather than products.

Therefore, establishment of successful brand image can increase the products.3. Evaluation of Financial public presentation of Sainsbury Plc.


Ratio is a quantitative relation between two sums demoing the figure of times one value contains within the other. Datas may be extracted from accounting statements and converted into statistics.

Discuss the main financial statements (e.g. – balance sheet, profit and loss account). P12 Compare formats of financial statements for a Sole Trader and for Public Limited Company (example – Tesco). P13 Using the scenario 5, interpret the financial performance of Tesco Plc and Sainsbury Plc.

This essay, Evaluate Sainsbury plc's Financial Strategy, stresses that the financial statements of Sainsbury Plc persuade the loan companies to eagerly approve the Sainsbury Plc loan requests. The same financial statements easily encourage the current and future stock investors to put more funds into the Sainsbury Plc coffers.

This financial performance will reveal financial information of J Sainsbury plc (Sainsbury’s) from to Company Background According to the official website, Sainsbury’s is the third largest British supermarket chain.

Financial analysis is the evaluation and interpretation of the financial data. This analysis is important for investment and financial decision making. This financial can be internal to the company for check and balance and for the . Sainsbury's Bank plc (Sainsbury's Bank), a subsidiary of the J Sainsbury plc is a banking service provider.

Financial analysis of sainsbury plc essay

The company’s products include savings accounts, loans, credit cards, prepaid currency cards, and traveler’s checks.

Financial Performance And Analysis Of Sainsbury Plc Essay