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.

case study,question 2

Functional objectives are the overall aims and mission which in order to achieve the corporate objectives. In this case study, one of the corporate objective channels. Actually, there is a functional objectives that the case study mentioned, which is to extend the reach of sainsbury's brand by opening new convenience stores. Well, let's talk about the functional objective. openning new convince store, for example 24 hours supermarket which can help increase the demand. Also if the sainsbury has more stores it can enhance the reputation of this brand, Sainsbury will become more popular, because if you can see sainsbury everywhere, it will be attractive, and then the demand will increase. Indeed, Sainsbury could become a franchiser and they can seek some franchisee. From those franchisee, sainsbury can get more income of entry fee, also depends on the brand franchisees can get revenue more easier or get more revenue as well. Well I think this is a good correlation. However, to opening a new stores not very easy,because they need spend time to look for the land where is a good place that can build a new store. Almost the function of the land include high population, good environment, and so on. But id all functions are achieved which means it will be very expensive to rent. Also opening over demand stores that they need care about is every store of sainsbury has a good reputation, I do not think so .. Therefore they need think about those problems and if they want to solve them, it must be waste the time and money.
Anyway, I would like introduce my opinion which is they can make a limitation that the amount of how many store should be open and what is the different size of each shop. If they make those rules the problem may easier to deal with. Because there will not have over demand stores, and some of them will not waste, also a limitation of the size of store will save the money for example do not need spend a lot of money to maintaim some facilities or easier to layout and so on.

meeting the developing world

Sir Richard Branson said developing countries will lead the world economy out of recession and that returns on investment will be higher there for the foreseeable future.

What I am thinking about that is catch a opportunity from the crisis is a successful entrepreneur's skill. like Richard said"the worse the crisis, the greater opportunity."

what is the opportunity in recession for a entrepreneur,for example some products will reduce the price when is recession, because that time the demand had decreased. therefore, some of people buy a lot and stock them after the economy recovery, they will sale it again but with higher price. So they can earn more profit. in another hand, when the world face to recession, a lot of people loss their job, so, some people know not every people who loss their job are not useful, then they may recruit them with low wages but those people achieve the standard that they need. etc.

But the problem of catch a opportunity from recession is the risks, they might get loss if they make a wrong decision , because in fact we can say recession is means the economic is negative and not stable. therefore, entrepreneurs need spend time to think about is this opportunity help them a lot or just do nothing.

10 solution of rebooting Britain-revive the export economy

Export means sell the product and services to other countries.
Nowadays not only Britain face to recession, but also all over the world meet this problem. Therefore we cannot measure revive the export is good or not, thus I would like talk about the advantages and disadvantages of if revive the export.
There are some advantages of producing manufactured goods and export them. Because of the government wants promote the injection,which including the government spending, export and investment. Then they should producing manufactured goods, because it is cheaper than import those goods from other countries,actually they can save money. Secondly, the market of those goods may become competitiveness, because it can motivate the market share growing, which may let more people to know it, and demand of this goods will increase, Also exports can help the international trade of Britain. Thirdly, because of the government wants to growing with an injection of investment, therefore , they can get the invest from other countries, which means they can get more capital to produce more products,then the demand can be satisfied.
However, because of the recession, manufacturing some products it's quite difficult to start. This because they need to know what are the appreciate to produce, are there a lot of competitors and so on, all of these question that they need think about, so they will spend more time, more money as well. Where they can buy the materials, if they have, that's fine, if they do not have which means they need buy materials from other countries. In fact recession is globally, therefore, the price of materials is more expensive than before, so they will spend more. They can borrow money from other countries which can help them to produce more products and then export. But this is not good for the future, because they will receive a lot of national debts which may give them lots of pressure in the future.

Anyway, revive the exports economy is a solution which can help rebooting Britain.

Examine the problems that might emerge if Sainsbury's does not set SMART objectives

Firstly, what is SMART stand for?
S means specific
M means measurable
A means agree
R means realistic
T means time bound

after we know what is SMART mean, now, let me examine the problems that might if Sansbury's does not set SMART objectives one by one.

1) if the objectives are not specific:
let's have a look of the plan for 2007-10, in case study, they describe their plan very clearly, for example, space growth, there are 10% new space by March 2010 will be build. Actually, this example reflect that this is a specific objective, therefore if they have a specific objective that means they can make a specific strategy which can achieve it. So they may save money and time , which means the problem of this might be, they will get loss if they do not have a specific objective.Also they do not know how many time they need, they might waste the time on some thing which are not useful. Also it may demotivate labours, because staffs do not know what should they do and how to do, and also they do not know the value if they do this non-specific objective.

2)if the objectives are not measurable:
If the objective is measurable, it means that the measurement source is identified .Measurement is the standard used for comparison. For example, what opportunity cost means to me may be different compared to what is means for you. So if you know and you can measure which means you may can manage it. because if a Sans bury can measure,it will encourage and motivate them, measurement will tell us when we need do what, and maybe how to do, but if the objective is not measurable, which means we can not get a encourage and motivation, the productivity may decrease and the benefits above are difficult to achieve.

3)if the objectives are not Agreed(same as Achievable)
Objectives need to be agreed , if the objective is too far in the future, you’ll find it difficult to keep motivated. Also because Agrees objectives need manager and coordinate are involved in setting the targets, therefore if it not agreed it might waste the time to setting a target.

4)if the objectives are not realistic
If the objective are not realistic which means they might be difficult to achieve the objective and then may have conflict with other objectives. I think it will be waste the money and time. by the process, the staff may demotivate because of the time and so on.

5)if the objective are not Time bounds
if the objective are not time bounds, they may become more difficult to organise the finance because sans bury will not have a specific plan of future and they do not know how much money they will spend, for example they said sales growth- total additional sales of $3.7 billion by march 2010. If they do have a time bounds they will make a plan if they achieve this objective what will they do, if not what Will they do as well. therefore just opposite id they do not have a time bounds objective.

at the end, hope you can give me some suggestion if you think i am not right of the content above, thanks

Chapter 1 my version(50 words)

Functional objectives are set for each division or department of a business.Also the functional objectives will use to ensure that the business can achieves its corporate objectives.
corporate objectives are design to enable a business achieves the aims and mission.
A strategy is basis on a specific objective, strategies are the medium to long term plans that how a business achieve their objectives.

10 key points

1. functional objectives basis on corporate objectives.
2.functional objectives is an individual department of business.
3.strategies basis on objectives.
4.it is important to make sure that all members are understanding the overall objectives.
functional and corporate objectives are SMART:
5. specific-very clear and easy to define
6.measurable-quantifiable( e.g to reduce the market share from 40% to 25% in next 2 weeks.)
7.agree-manager and coordinate are involved in setting the target.
8.realistic-no conflict with other objectives
9.time bounds- basis on the accurate time (e.g build 10 news stores)

10. business strategies is a medium to long term plans.

Niall Ferguson-- reduce the national debt

According to the news, that I can know, if UK wants to reduce the national debt, the government needs to increase the tax and cut the government spending. therefore the government will get more income which may help the treasury to increase their financial assets. Then the national debts will decrease.
advantages:
For a long term, a low national debts is good for the development of domestic economic. Because less debts will reduce the pressure of the government, they do not need think about how to return the debts anymore. Then they can pay more attention on their own economy. Also reduce on national debts classify the economic of this country is not bad, it may growth which is better than before. Also reduce the debts may save more money, because the government may not pay the interest rate, and nowadays, the exchange of English pounds is depreciating, which means they will pay more money to the country that lent money to UK.

disadvantages:
In another hand, reduce the national debts is not a good idea, because if some crisis suddenly happened, for example global recession, the government can not deal with it on time, cause they do not have enough money. also they can not spend more to encourage their domestic business,such as invest some small firm, help some company which face to bankrupt and so on.
For instance, in 2012, UK will hold the Olympic games, for the government this is a quite big leakage, so they need borrow money from other countries.
But for the content above depends on the different countries. some rich countries are not really a debtor, they might be a creditor. otherwise for some poor countries, their treasury may become empty, they need help from other countries. Also it depends on different situation of different time. For example, nowadays, all the world face to global recession, America which is the richest country,but they borrow more than 10 billion dollor s from China ti deal with the problem.
conclusion:

At the end, I think reduce the debt or not depends on the different situation of different countries, because for different time reduce the national debts will bring the different effects for them, even though the good or bad effects.