MANAGEMENT_ECONOMICS_1.docx - Management Economics 1 Table...

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Management Economics1
Table of ContentsIntroduction................................................................................................................................3Discussion about Sainsbury with its products and services.......................................................3About the Company...............................................................................................................3History of the Company.........................................................................................................4Products of the Company.......................................................................................................4Analysing Sainsbury’s Market...................................................................................................5Market structure of Sainsbury................................................................................................5“Different market structure of Sainsbury and discussion of various characteristics previousmarket structure”........................................................................................................................7Nature of the industry of Sainsbury...........................................................................................9“Operating in the various market structures is optimal for the Sainsbury or not”.................9“Government intervention is advantageous for society or not".............................................9Conclusion................................................................................................................................10Reference list............................................................................................................................112
IntroductionThe report will discuss the history of Sainsbury along with the details of its products andservices. The situation analysis of Sainsbury will be also discussed over here and it willinclude analysis of the respective organisation. Moreover, it will explain various marketstructures utilised by Sainsbury previously. The report will also discuss the current marketstructure of Sainsbury and its importance within its business. Finally, it will evaluate howvarious market structures are optimal for the selected organisation and how governmentintervention makes a positive effect on society as well as the business of Sainsbury.Discussion about Sainsbury with its products and servicesAbout the CompanyJ Sainsbury plc is the third biggest chain of supermarkets in the whole of the UK. It is aparent company of Sainsbury's Supermarket and it holds 16.3% of the supermarket share. It isa retailing public limited company. Sainsbury was founded 151 years ago in 1869 Holborn,London, United Kingdom. Its founder was John James Sainsbury (J Sainsbury, 2020). Hestarted with a small shop in Drury Lane, London but who knew that one day Sainsbury willbecome one of the largest and biggest retailers of groceries. According to 2019 data,Sainsbury has 1428 shops overall in the UK but its headquarters is in London. 3
Figure 1: Sales of Sainsbury(Source: Statista, 2020)History of the CompanyWith 151 years, Sainsbury has a long history where it all started with a rental shop dealing ingroceries and later in packaged groceries like tea and sugar. Since the beginning, they had themotto of fair price and quality product as they started their slogan – "Quality perfect, priceslower". Starting with 1882 Sainsbury started their brand and produced their brand products.In 1922 it was incorporated as the private company. Sainsbury faced a downfall during theSecond World War as there was a sourcing problem and was not able to maintain the qualityfor which it was once known. Since then Sainsbury has been trying to improve by modifyingits packaging, designing and marketing as they shifted their small streets shops to bigsupermarkets. In 1977 Sainsbury also started a joint venture with companies in the non-foodsector such as – textile, electrical goods. Sainsbury started to power its one of the stores byconverting food waste into bio-methane gas to generate electricity; this was achieved in 2014.

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