Btec Level 3 Business Environment P1

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Sainsbury’s Background information Sainsbury’s is the UK’s longest standing major food retailing chain which was founded in 1869 being established as a partnership when John Sainsbury’s and his wife opened a store in Holborn, London. Selling fresh foods then later expanding into packaged groceries like tea and sugar. Today Sainsbury’s has 1,200 super markets and convenience stores employing over 161,000 people. Sainsbury’s was the largest grocery retailer in 1922, as 1995 came, Tesco became the market leader and Asda became the second largest putting Sainsbury’s in third place. Ownership Sainsbury’s PLC is a Public limited company which means that they have their shared bought and sold on the stock exchange. An advantage of being a plc is that large amounts of capital can be raised quickly but a disadvantage of it is that the control of the business can be lost by the original shareholder if large amounts of shares are purchased but also is costly to have shares quoted on the stock exchange. In order to be a limited company, you have to be registered before the business can operate. Owners of the limited company elect directors to represent their interests Size of Sainsbury’s There are two main formats, regular Sainsbury’s supermarkets and local convenient stores. Sainsbury’s is a national business with a market share of 16.8% and at the end of 2012, Sainsbury’s had 583 supermarkets and 523 convenient stores. Sainsbury’s stores were located in London and south-east England but expanded to the midlands and since then which was 1945, this gave Sainsbury’s national reach. Business Sector Sainsbury’s is in the Secondary and Tertiary Sector as they sell food and have their own farm as well as providing services like banking, insurance, energy and fuel. Purpose of Sainsbury’s and their goals Sainsbury’s want to be the most trusted retailer where people

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