Wednesday, 16 September 2009

Question 2 of the case study

The corporate objectives of Sainsbury are try to increase their profit and to have more customers.

So it is clear that great food and fair prices ,growing supermarket space,active property management and so on they all can help .Then let's set the great food at fair prices at an example .People always want to buy high quality goods especially food .So if the food that we sell is very high quality it helps us to improve our reputation .And hopefully the sales will increase as well.And the fair price which means that the price is good for every levels people no matter are they rich or poor they can all have the good quality food .that's really help to improve our living stander and the ranges of customers will be wider .Therefore the amount of customers will increase which helps the Sainsbury achieve their corporate objective to get more customers .

But is that fair price means very cheap? So will us lose our profit in order to keep the price low.And if it is too cheap people (especially rich people )may think the quality is suffer.But still it is a good way to go I suppose .

And the plan of "channel growth through online and convenience expansion" is good as well.Because the market will be expend after that .And people will become more easy to buy things from the Sainsbury.So it Will has much better reputation.So the sales revenue may increase then the profit may also increase.

Another important thing is reduce the cost of course .We can try to reduce cost by reduce the labour cost and choose the good location but cheaper.And try to divide the big supermarket in to several little convenience shops i am not mean all I mean some just divide some big supermarket.Because then we do not need to offer the space for car park.Which could reduce our cost.

1 comment:

chris sivewright said...

good - you are improving