Sainsbury’s Stakeholders Analysis

A Sainsbury’s stakeholders analysis essay gives detailed information on the stakeholders that directly influences Sainsbury Plc. It gives a full description of the people who affect the company both externally and internally.

In this essay, we are going to look at the definition of a stakeholder’s analysis, the history of Sainsbury, and the various stakeholders that make Sainsbury such a successful company.

What is a Stakeholder Analysis?

When writing a Sainsbury’s stakeholders analysis essay, we must first answer the question what is a stakeholder’s analysis? A stakeholder’s analysis can be described as identifying the people that are involved in a company and grouping them according to their participation, interest, and purpose. It is a way of understanding and determining the best way to involve and communicate with each stakeholder throughout the entire company.

Who is a Stakeholder?

A stakeholder is any person or organization that has a vested interest in a company and can affect or be affected by the way the company operates and its performance. Examples of stakeholders involved in an organization are;

• Investors.
• Employees
• Customers.
• Suppliers.
• local community
• Trade associates
• Governments

History of J Sainsbury Plc

J Sainsbury Plc was founded as a partnership in 1896. It is the third-largest supermarket in the United Kingdom. It has ventured into the supermarket industry with 547 supermarkets and has also tapped into the convenience store industry with 348 convenience stores.

The company has a total of 150,000 employees and serves around 19 million customers every year.

Who Were the Founders of J Sainsbury Plc?

J Sainsbury was founded as a partnership by John James Sainsbury and his wife Mary Ann Sainsbury. Below is detailed information about the founders of J Sainsbury.

John James Sainsbury

John was an English grocer who founded the now called Sainsbury Supermarket. He lived in London and was married to Mary Ann Sainsbury in 1868. Together they founded the John Sainsbury Plc company which consists of supermarkets and convenience stores all over the UK.

Segments of Sainsbury Company

A Sainsbury stakeholder’s analysis should include the segments of the company itself. Sainsbury’s business strategy consists of three segments. These segments are;

Supermarkets and Convenience Retailing

This consists of 547 supermarkets and 348 convenience stores located all over the United Kingdom.

Sainsbury bank ventures Example: Lloyds Banking Group

Sainsbury went ahead to acquire shares in multiple financial sectors, like in the Lloyds Banking Group in 1997.

Property investment through British land joint venture and land securities joint venture.

Sainsbury also owns real estate assets that it had acquired through the British and land securities ventures.

Sainsbury Stakeholders

In a Sainsbury’s stakeholders analysis essay, we should first describe the different stakeholders involved in the company. In Sainsbury, a wide range of stakeholders deal with the company itself. The stakeholders in this company are divided into two segments; the external stakeholders and the internal stakeholders. Below, we are going to go into detail about the different types of stakeholders associated with Sainsbury.

The Internal (Primary) Stakeholders

The internal stakeholders are the ones whose interest in the company comes through a direct relationship like employment, ownership, or investment. These people invest in the company’s performance to ensure they keep their jobs and are getting paid. Some examples of these stakeholders are;

Employees

Employees are the people hired by a company and have a direct interest in how it performs since it affects their daily wages. If a company does not perform well, employees risk being fired and sent home. If it performs well, there can be a pay rise and even promotions for the employees.

Owners

These are the people who have invested capital in the company and are now the owners of the establishment. The number one interest of owners in a company is the realization of profits from the company. They get this information from the annual report that Sainsbury produces annually.

Managers

Managers of a company form the executive branch in the Sainsbury management system. They get a monthly salary, stock options, and grants for stocks.

The External (Secondary)Stakeholders

The external stakeholders include the individuals, groups, firms, and organizations not directly influenced by the performance of the company. These external parties make up the external environment of Sainsbury.

They are not usually involved in the daily running of the company but are influenced by the activities that the company undertakes. Some examples of the external stakeholders of Sainsbury are;

Customers

These are the clients that Sainsbury deals with to increase their sales growth. Sainsbury operates in a way that it would make customers’ lives easier. Sainsbury identifies the needs of customers and tries to provide quality service that makes the customer come again.

Sainsbury’s ability to recognize customers as the most important stakeholders gives them a competitive advantage against any other product-driven consumer company. Customers also influence J Sainsbury’s plc to perform their corporate responsibility in the local communities.

Sainsbury achieves corporate responsibility by appointing a corporate responsibility committee that works closely with the customers to ensure corporate social responsibility is achieved. Sainsbury heritage has always been to treat its customers like kings in the retail industry.

Creditors

Creditors are suppliers that provide this retail giant with supplies for its customers. Continuously, this retail giant trades with creditors to ensure business growth through sales. Other major supermarkets or other retail giants in the retail industry deal with creditors to have a strategic advantage against other retail giants in the same market.

Government

The UK government has an interest in the running and profitability of Sainsbury. Since Sainsbury recognizes and provides employment for the local community, the government believes that the revenue earned by these individuals can lead to a major economic impact on the country.

Another interest that the government gets from Sainsbury is the generation of revenues through taxes. Sainsbury’s record for paying taxes has been stable ever since its conception.

Local Community

The revenues that Sainsbury makes spill over to the local communities. They have set up local charities that influence stakeholders’ decision-making process, like the customer’s purchasing power. Sainsbury continues to use the local community to influence their supplier power since this is where they get customers and employees.

The Major Differences Between Internal and External Stakeholders in Sainsbury CSR

Below are the key differences between the internal and external stakeholders of Sainsbury;

Meaning

Internal stakeholders are the individuals or entities that have an interest in Sainsbury and are directly affected by the activities of the company. The activities of the company did not directly affect external stakeholders, in contrast, the internal stakeholders are not directly affected by the activities of the company despite their interests.

The Influence

The activities of Sainsbury influence internal stakeholders, while the activities of the company do not influence external stakeholders.

Interaction with the company

The way the internal and external stakeholders interact with the company is different too. The internal stakeholders offer their services to Sainsbury while the external stakeholders deal with the company from the outside.

Information Available

The way internal and external stakeholders receive information from Sainsbury differs. Internal stakeholders are always aware of internal problems in the company, while external stakeholders receive information from the company website or annual reports.

The Five Corporate Values of Sainsbury

• To improve all our customers lives
• To source our products from legitimate suppliers.
• To create and respect the employee’s working environment.
• Make a positive influence in the local community.
• To provide a better environment for investors.

Take Away

Sainsbury’s stakeholders analysis essay gives a detailed picture of the J Sainsbury stakeholders and their relationship with each other. Sainsbury believes the stakeholder group is responsible for the overall success of the entire company.

Sainsbury benefits from the ethical trading initiative with their customers and suppliers to ensure quality services for all their stakeholders. The five corporate values that Sainsbury adheres to show their commitment to competing against any other retail giant.

Being a joint-stock company, Sainsbury benefits from its investors. The capital gained from the company’s investors has ensured that they receive a competitive advantage against other retailers0 in the same industry. Their employees have also received training from a technical management academy which offers the best education when it comes to customer service.

The ongoing success of Sainsbury is because of its strong economic standing in the retail industry, fair prices of its goods, and the creation of online purchase platforms where clients can access their products easily.

CSR benefits from corporate assignment to the local community have proved successful since this is where they get clients and employees to work in their companies. The stakeholders are Sainsbury’s wheel of success since they depend on them to grow their company.

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