StudentShare solutions
Triangle menu

Evaluate Sainsbury plc's financial strategy - Essay Example

Extract of sample
Evaluate Sainsbury plc's financial strategy

Sainsbury's is headquartered in Holborn Circus. To ensure that its products are effectively distributed in the local and neighboring markets, the supermarket has established a number of subsidiaries in the UK market. Under the leadership of David Tyler and Justin King the company chairman and chief executive respectively, Sainsbury’s has more than 150,000 employees. This has resulted to a significant increment on the company revenue that stood at ?21.102 billion in 2011. This paper, evaluate Sainsbury plc’s financial strategy by analyzing its financial performance in the last few years. To expand its customer’s base and generate more revenue that is needed to undertake its operations, Sainsbury's has opened a number of stores, supermarkets and a significant number of hypermarkets. To ensure that the supermarket is financial strong to cater for its short-term and long-term liabilities, Sainsbury's operates Sainsbury's Bank whose key objectives is to sell financial products. One of the major factors that Sainsbury's has adopted to enhance its financial performance was the formation of a joint venture with Lloyds Banking Company among other firms. Major strategies that Sainsbury's has adopted to strengthen its financial position is merger and acquisitions (Adizes 35). As depicted earlier, the supermarket generated total revenue of ?21.102 billion in 2011. ...
ncial Statement 2012 indicate that as a result of the increase in the investment, the net debt of the company increased from ?1,814 million in 2011 to ?1,980 million in 2012. This was however, offset by reasonable cash that was generated from leasebacks and sales. Table indicating cash generated from operations and net cash from operating activities by Sainsbury’s in 2011 and in 2012 financial years. Figures are in ? million. Cash generated from operations 1291 1388 Interest paid (142) (126) Corporation tax paid (82) (158) Net cash from operating activities 1067 854 Net cash used in investing activities (883) (902) Issue of shares proceeds 14 17 New debt 391 45 Borrowings repayments (65) (79) Dividends paid (285) (269) Source- Sainsbury’s Annual Report and Financial Statement 2012 Financing of Sainsbury operations According to the board of the directors, Sainsbury’s is focused at effectively managing its finances by maintaining appropriate stand-by liquidity, reducing the risks of refinancing and diversifying the sources of funds. Two of the major long-term loans that are vital in the operations of Sainsbury’s include loans of ?1,036 million and ?843 million that are due on 2018 and 2031 respectively. The company has provided its property assets as the security for the loans. Other key sources of funds includes unsecured loans of ?499 million, finances leases of ?143 million, and convertible bonds issued to the public amounting to ?190 million. Based on the profitability of the company, the board is focused at repaying the loans in the next five years. In order to have adequate cash to cater for short term and urgent liabilities, Sainsbury’s maintains a revolving credit facility amounting to ?690 millions (Modigliani and Miller 263). According to the 2012 ...Show more


5th December 2012 Sainsbury plc’s financial strategy As the competition becomes stiff for local firms and international companies, various strategies have been put in place with an aim of putting at bay the competitors and increasing the company profitability…
Author : danika89
Evaluate Sainsbury plcs financial strategy essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Evaluate Sainsbury plc's financial strategy"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Financial Reporting for Sainsbury
The paper aims to identify and report some ratios within the annual report of 2010 for Sainsbury, UK which is a very famous and extensive retail store. The paper also elucidates on the various purposes as to why financial statements and annual reports can be helpful and the reason why organizations choose to publish annual reports and make them public for people.
6 pages (1500 words) Essay
Financial analysis of Sainsbury and Morrison
Sainsbury has shown a remarkable revenue growth as well as pre-tax profits in 2010 even at the time of recession and spending cuts. The in depth financial analyses and the share price movements illustrate that the company has sound liquidity ratios, better management efficiency as well as higher investment returns as compared to the Morrison.
13 pages (3250 words) Essay
Analyse and 'Evaluate' the Business Strategy that J Sainsbury Ltd. has Pursued
ping 22 Appendix 8: Financial Statement of Sainsbury 24 Appendix 9: Value Chain 26 26 Introduction Strategy is defined as how an organization and individual achieves its goals. The marketing strategies are altered as well as renewed in companies in the effort to survive and also prosper in an increasing demanding and complex business environment (Grant, 2010, p.270).
7 pages (1750 words) Essay
Evaluate Sainsbury plc's Financial Strategy

This essay, Evaluate Sainsbury plc's Financial Strategy, stresses that the financial statements of Sainsbury Plc persuade the loan companies to eagerly approve the Sainsbury Plc loan requests. The same financial statements easily encourage the current and future stock investors to put more funds into the Sainsbury Plc coffers.

9 pages (2000 words) Essay
Evaluate Sainsbury plc's financial strategy
Accordingly, this infers a close connection with the benefits of shareholders and therefore, with capital markets. For a corporate strategy to be successful, it must take into consideration all the external and internal participants in the corporate. Sainsbury’s Capital Structuring From recovery to growth, Sainsbury has exceptionally well regardless of the economic turndowns under the leadership of Justin King.
8 pages (2000 words) Essay
Evaluate Unilever's financial strategy
In this context, the present report focuses on the evaluation of financial strategy of Unilever. The stage of the organization is firstly decided using the organizational life cycle. The current position of Unilever suggests that it is operating in the matured position and is aiming towards sustainable growth in its business.
7 pages (1750 words) Essay
The Carbon atom closer to the viewer is called the ‘proximal’ and the one further the ‘distal’ atom. All staggered conformations have lower strains compared to eclipsed conformations. The staggered (anti) conformation is the most stable
4 pages (1000 words) Essay
Analyse and evaluate the business strategy that J Sainsbury Ltd. has pursued using either Bowmans strategic clock or Porters Generic Strategies framework
egic imperatives have shifted towards a priority emphasis in order to develop a superior capacity to reinvest the business model (Cravens, 2010, p.20). Sainsbury mission and goal is to become the first choice of its customers in terms of food, deliver products which are of
7 pages (1750 words) Essay
Evaluate Sainsbury plcs financial strategy
From recovery to growth, Sainsbury has exceptionally well regardless of the economic turndowns under the leadership of Justin King. Being the crown of United Kingdom grocer retail stores, there has been a lot of
8 pages (2000 words) Essay
Evaluate Unilevers financial strategy
Its technique is always to pay attention to quantity development and building up the aggressive position of the businesss manufacturers while
8 pages (2000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Essay on topic Evaluate Sainsbury plc's financial strategy for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us