Assess the extent to which Sainsbury's plan for 2007-10 likely to enable it to meet its corporate objectives

In this case study, they mention about 8 plans for 2007-10, there are those plans below:

• space growth-10% new space by march 2010.
• development of grocery and non-food ranges
• cost-cost saving of 155 million pounds in 2007/08.thereafter ongoing cost savings to offset half our operating cost inflation.
• channel growth through online and convenience expansion.
• profit-profit growth flowing through at a percentage rate in high single digits.
• sales growth-total additional sales of 3.5 billion pounds by March 2010.
• cash flow neutral over 3 years.

Because this is a team homework , Nara wrote about Space growth. Here I would like talk about Sales growth- total additional sales of 3.5 billion by March 2010.

I think this plan is likely to enable it to meet its corporate objectives, because Sainsbury has a big market, and it has a good reputation. the demand of it almost is elastic, they catched the customer loyalty that helps them to improve the sales volunm easier. For example they can open more stores which can saticfy more demand, and also expand the advertisement also can let the demand increase. Also they have the experience for how to sale and how to attractive consumers, it is good for enhance the sale. By the way, for a big company they have enough finace to produce more products, also increase the economic of scale which can help the sales growth.

However, additional sales of 3.5 billion pounds by March 2010 is not very enough to achieve this aim. Because in terms of Sainsbury, profit is not that changeable, they almost get the same profit because they are a supermarket. 3.5 billion is quite a lot, and just use 1 year may is not very easy. Just think about if they face to some current situation of economy is not good, for example recession, they may not can get the profit as much as before. Also they nee pay attention to their competitors, because if they reduce the price or got a better customer services ,more and more customer will go there and purchase on those products. In other hands they need do some market research and make some SMART objectives in order to achieve it. Therefore they may spend a lot of time. Also the material price may increase, so it depends on different situations.

At the end, I still think sales growth is likely to enable it to meet its corporate objectives, the reason of that like I mentioned above.