Sainsbury Value Chain

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In this section I will look more closely at what creates a competitive advantage between market competitors towards customers at the same competitive level. J Sainsbury appears have solid financial position which is reflected in the grew of 7.1% of the sales and the £738m of Underlying operating profit that up raised 10.0% in 2011. (Sainsbury, 2011). However Dave McCarthy, an analyst at Evolution Securities affirm that Sainsbury’s remains the most susceptible supermarket because they have both the weakest cash flow and the weakest margin in the industry of groceries (Financial times, 2011). Considering that the net cash from operating activities is reduced 18% in 2011, which can affect their aims to expand. Despite Sainsbury’s have demonstrate increase their store; they are near three times behind their main competitor Tesco how have 2715 stores in the UK (Tesco, 2011). Considering that accessibility is an important value for customers Sainsbury have a disadvantage in this aspect. Furthermore, Sainsbury’s is limited to the UK which is another disadvantage in front of Tesco how have operation in Europe, Asia and USA creating and important economy of scale which make able to reduce cost easily. In terms of Human resources management, J Sainsbury affirm, supporting the development of their employees recognizes the importance of its people in providing a foundation for delivering business excellence, with the intention to make it “a great place to work.” Sainsbury's provides employees with a stimulating and well equipped working environment, training and develop employees, Also s Even though Sainsbury’s sticks to a top-down management approach they have struggled to maintain continuity throughout all of their stores so that their management style is consistent, each outlet is workforce orientated as they embrace the ‘team’ approach and that if they can develop

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