Case Study Analysis Assignment Sample

Introduction to Case Study Analysis Assignment

Need expert guidance for your assignments? Look no further than New Assignment Help. Our assignment help online in the UK is designed to meet the unique requirements of students across various disciplines. Utilize our Free Sample to hone your skills and ace your academic tasks.

• Sainsbury is a groceries company in the UK supermarket.
• Tesco is the competitor of the company and the company increases its business.
• Customers have preferred Sainsbury but Tesco products are very profitable so customers change their shop and started to purchase at Tesco.

Sainsbury is a large supermarket in the UK, it was founded by John James Sainsbury in 1869, and it is the second-largest supermarket in the UK, most 16% of the share takes this company in all the sectors of supermarkets. Sainsbury is a reputed groceries company in the 20th century and always thinks about employees so it builds a strong satisfied customer base and continues its business. This presentation, discussed how to grow Sainsbury’s performance of the year, its profitability, and improvement are discussed here. Hence, this company has many competitors, and Tesco is the chosen competitor of this company. Tesco is a famous company in the UK market and its turnover is high. Tesco overtook Sainsbury in 1995 and it runs heavily and customers like this company's products.

Performance in FY 2018 to 2022

• The performance rate highly increased in 2018, basically financial.
• The company is divided into three parts so it has three different sectors for increasing its earnings (Boylan et al. 2019).
• The company has profit in the competitive market and it increases to £589 million (sainsbury.co.uk, 2022).

The service of Finance is an important part of any business because any business runs on earnings and financial performance. In 2018, the performance of finance is very high and probably it is increasing day by day, it offers customers and shareholders so customers are happy and purchase all products in the company. This company is split into three parts, banking is the highly profitable sector and groceries is another sector. Sainsbury’s gives many offers such as travel-related offers and insurance and credit card offers, personal loans, and others. Sainsbury’s new offer has to continue heavily and its financial service is 3.9 million in 2018 and all customers are actives. Most of £69m has profited in bank sectors of Sainsbury. In 2018 its group sales is very high, 1.3% improved in group sales and most of the 20.4p has earned the company 83% of products are packaged and its packaging products are recycled so it cannot wastage the beauty of the environment.

Contd.

• In 2019, the company has been profitable and its tax profit is £635, it has saved the money of £220m (sourceessay.com, 2022).
• The pandemic destroyed all over the world and most businesses are affected by this situation (Sorrentino et al. 2018).
• The recent ratio of the company very much decreased in 2019 and 2020, almost 0.6 in these two years.

The company has profited in the last 5 years and it increases its business volume because this company changes its strategies and theories so its profitability is high in 2019, even the pandemic situation in 2020. Customers get high-quality products and it has return money on the employee and it was 8.5% so it is very high for return. The company increased its gross profit in 2019 by 7.9%. Hence, in 2020, the pandemic destroyed all over the world. Therefore, the company has decreased its profitability by 12% and 7% of gross. The company’s net profit is 0.6% in 2019 and it decreased in 2020 to 0.5%. The current profitability is not increased and it runs low.

Contd.

• Sainsbury’s profit of gross is increased in 2021 its margin of gross is £6.0761 and its operating cost is £0.2066 (macrotrends.net, 2022).
• In 2021, 29,048 GDP million of sales increased in the company, and sales growth is high in 2021 and 2022 (wsj.com, 2022).

The profit of Gross is one of the common factors in financial performance and it calculates the earning profit. The net margin profit is £2.9897. The fiscal year of the company increases in 2021 and 2022. The company’s income is highly increased day by day and its gross income decreased in 2021 and 2022 the profit margin of gross is 7.38%. The ratio of net profit is high and easily calculated by the company and the company’s potential depends on higher profit. The recent ratio of the company is highly increasing in 2021 and 2022. Sainsbury’s turnover of debtors is low in 2019, it was 40.26. The company creditors are paying the money for supplying products and basically suppliers and employees. Sainsbury has increased its budget resources and improved its turnover.

Profitability and asset utilisation of Sainsbury

• The company calculated its profit and its efficiency for financial growth.
• Gross profit is a basic factor of finance and it increased by 7.9 percent in 2019 but dropped in 2020 by 12 percent (Pizarro et al. 2018).
• In 2020, the framework of the gross profit is 7 percent. The gross profit of Sainsbury is higher than other companies in the UK.

The company runs heavily depending on its profit margin which increased day by day. In 2019 its results are high but in the pandemic situation, all business volume runs low and it decreased by 12 percent in 2020. The net profit of the company is the same at 0.6% in 2019 and it dropped to 0.5% in 2020. The company sales rate is £ 29,007.00 in 2019 and in 2020, it dropped sales rate of £ 28,993.00. The recent ratio company increased its assets in 2019 by £ 7,558.00 and it increased in 2020 by £7,586.00. The company turnover is high in the last five years.

Contd.

• The performance of the company is increasing day by day and its assets are high (Bhattacharyya et al. 2018).
• Sainsbury's ratio is quickly high in 2019, it was 0.475 and it increases quickly by 0.486.
• The company controls the position of inventory but has not fulfilled the short-term goal (Utama et al. 2022).

The performance of the company is increasing in the last five years, the pandemic affects the company's profitability but overcome all the challenges and increase its assets. In the data of Sainsbury, it is noted that this company's profit is high day by day. The company performance shows in the ratio of efficiency. The ratio of efficiency calculated the three parts, these are debtors, creditors, and inventory turnovers. Debtors' turnover increased to 43.96 in 2020 and the total debtors average is £ 1,473.00 in 2020. The sales rate of the Debtors in 2019 by £63,911.00 and it increases in 2020 by £ 64,760.00. Its ration is dropped in the other country of the UK. The company's creditors increased its turnover by a little percentage by 1%.

Implications of profitability and asset utilisation ratios

• Sainsbury is the oldest retail company in the UK and the quality of its products is very premium, this company has many strengths and weaknesses (Mehta et al. 2022).
• The quick ratio of the company is improving smoothly.

Ratio analysis is most important to explain the financial condition of the company. Ratio analysis is vital for providing positive and negative information about the company. Sainsbury's expanded its brand and all groceries products are highly reputed all over the world, so its profitability is high in the last 5 years and utilizes its turnover in the next year. The gross margin of the company increased in 2019 and 2021 but in 2020 has dropped the company profit and the managers of the company choose the margin of gross. During 3 years, Sainsbury increased its profit margin in every sector. The sale cost is highly increased and the company’s revenue is increased faster. Sainsbury's quick ratio is highly improved and same as Tesco, is the fastest groceries supermarket of the company. The debtors’ ratio has increased by a medium level.

Financial factors affecting the performance

• Income is one of the financial factors in the company and it generates the business volume.
• Gross margin is another factor of the company, it explains the diversity of the total revenue and total cost of goods (Sainsbury et al. 2022).
• All labour expenditures and overhead expenses include the factors of financial (entrepreneur.com, 2022).

All the ratios of the profitability of the company are increasing day by day and this company runs heavily. All financial factors affect the company's performance and operate all employees’ expenses and operate all systems. The diversity of gross margin and all expenditures of the company are managed financial factors. The company always calculated its turnover and all income information generated in a month and a year. All financial factors increase the company's performance because all work is divided into many parts and it is easy to solve it. Cashflow is another financial factor of the company and it is needed for business growth. It helps to show the schedule of the income and expenditure of the company. Cash flow is prepared monthly and next year it was done in a year.

Non-financial factors affecting performance

• Stakeholders are one of the important non-financial factors that affect its performance.
• The adoption of technology is another factor that affected the performance of Sainsbury (sainsburys.co.uk, 2022).
• Environmental, social, and governance are the factors that are responsible to bring changes in the performance of the organisation (Pittinoet al. 2020).

This company does not depend upon a single stakeholder, but it has many stakeholders which helps to give better performance. Society was under the harsh impact of covid hence, the pandemic affected its performance and laid down the market of the company. The adaptation of modern technologies helped the organisation to increase its production and support them to earn more profit. Hence, these non-financial factors are responsible to influence the performance of Sainsbury.

Performance of Tesco over FY 2018 to 2021

• Tesco is a multinational retail supermarket that has various stores and online markets
• It brings healthy and sustainable food at affordable prices (tesco.com, 2022).
• It deals with many suppliers and handles them efficiently.
• It brings quality products as its grocery items are produced in its factories (Moura, 2021).

It is a multinational supermarket that manufactures products in its own factories and brings fresh and sustainable products to the market. It brings quality products that are fresh and healthy. It maintains its ethics and morals while manufacturing products. The organisation has many suppliers and customers throughout the world and due to good quality, its customers do not switch to other companies. It is seen in the year 2022 the complete revenue sale of this company is £61344 million. All the stores of this organisation work effectively so that it attracted many customers and made a profit-making business. The authorities that are running the organisation maintain proper management techniques, which help them run the organisation effectively and maintain its market effectively. It maintains both online and offline market, which help them to attract customers from different places.

Contd.

• Its sale shows data, stating that the total sale in the year 2018 was £50993 million throughout the world (Utama et al. 2022).
• The total sale in the year 2019 increased to £56883 million (tescoplc.com, 2022).
• The sales dropped to £50788 million in the year 2020, but they again increased to £53445 million by the year 2021.
• The sale of this company again increased in the year 2022 (tescoplc.com, 2022).

The sale of this organisation from the year 2018 to 2021 shows that at the very first its sale increased from £50993 million to £56883 million. This sale dropped in the year 2020 due to the severe impact of the pandemic throughout the world. The harsh effect of the pandemic brought down the performance of the organisation and lessened the sale of organisation in the year 2020. Organisation had again made steps forward to raise its performance and by the year 2021, it has again shown an increasing rate of sales. Its sale has raised again after 2020, which shows that the reason behind the fall in sales was not the quality of goods and services but it was the external features that lessened the sale of the company.

Contd.

• They have an adequate turnover ratio of their debtors (sourceessay.com, 2022).
• There is a rise in the turnover earned by the creditors.
• It has increased its payment position but this rise is not so high (sourceessay.com, 2022).
• It has decreased its assets which shows that its performance had dropped and its ability to sell its inventories had also dropped.

Tesco is registered on London Stock Exchange and its performance shows that the gross profit ratio by the year 2019 was 7.3% which changed to 7.1% by the next year. This implies that the sale has been raised as compared to 2019. There are many creditors who spent in the market Tesco, this signifies that the organisation is supportive and profit-making, which is why they gain the trust of the creditors. Based on the assets and the liabilities the liquidity of this company is calculated which shows that the current liabilities have dropped and assets have raised, hence the changes are by 15 percent. The quick ratio was 0.47 in 2019, but it has shown some rise by the next year and raised to 0.60.

Profitability and asset utilisation ratios

• The ratio of financial metrics that are used to assess a business's ability to generate earnings (Awadari, 2021).
• It determines the financial performance of Tesco at the end of the financial year (Kinasih et al. 2019).
• The gross profit of this company shows it was £4696 in 2019 and dropped to £4580 by the year 2020 (sourceessay.com, 2022).
• The gross profitability in FY 2019 was 7.3 percent and it decreased to 7.1 percent by the next year.

The profitability of this company is determined by calculating its gross profit, sales, and ability to generate earnings. It always has a profit-generating business but there are changes found in its profitability. Total sale by the year 2019 was £63911 and increased in the next year, which was £64760, on the other hand, the gross profit was £4580 by the end of the year 2020, which was £4696 in the previous year. The company has earned less profit by the year 2020 in comparison to the year 2019. Its gross profitability was 7.3% by the end of the year 2019 and it was lessened by the next year. There was a slight drop in its profitability by the year 2020, which was 7.1%.

Contd.

• The asset utilisation ratio is calculated based on the actual assets available to the organisation and the can be used, which states that total assets are divided by the usable assets (Rashid, 2018).
• This consists of liquidity ratio, i.e. current ratio, quick ratio and many other things that are calculated under this.
• The current ratio gets increased due to the increase in current assets and fall in the current liabilities (londonstockexchange.com, 2022.
• The decrease in the current liabilities is favourable to the organisation.

This shows that the current ratio is the comparison between the current assets and liabilities. The current asset in 2019 was £12578 and liabilities were £20973 which reflects that the current ratio was 0.60. The current asset by the year 2020 was £13164, whereas the current liabilities were £17927, so the current ratio was 0.73. Hence this states that there was an increase in the current ratio and a fall in the current liabilities. The quick ratio by the year 2020 was 0.60 and 0.47 in the year 2019, which states that there is a near about 26 percent increase in this ratio. Its turnover from debtors and creditors shows that the company has adequate turnover and changes are not so high.

Comparison between Sainsbury and Tesco

• Sainsbury and Tesco are two organisations that have retail grocery supermarkets that sell quality products.
• Sainsbury has high fall in gross profitability in comparison to Tesco (sourceessay.com, 2022).
• The decrease in sales in Tesco is higher than that of Sainsbury.
• Tesco has adequate debtor’s turnover whereas it shows no change in Sainsbury.

Sainsbury and Tesco are two companies that have acquired a very good place in the retail market of groceries. There are various factors that affected the income and profit of these companies. The fall in gross profitability is seen in some years but Sainsbury had to face high fall than Tesco. The position of both companies is similar, but in terms of liquidity and efficiency, the performance of Tesco is better than Sainsbury's. The performance based on the debt-to-equity Sainsbury gives better results than Tesco. The company Tesco has adequate profitability and efficiency ratio, along with that it has adequate solvency position.

Factors affecting differences

• The turnover from the debtors and the creditors is one of the factors that bring differences between these two companies (sourceessay.com, 2022).
• The pandemic covid-19 affected the business and market condition of these organisations (Wang et al. 2020).
• There are internal and external factors that brought differences between these two organisations.
• The strategies that the organisations maintained and techniques applied for their business development affected their performance.

Sainsbury and Tesco are two reputed retail supermarkets that bring quality products to the market. They are known for the same types of products but there are various things that make them different from each other and bring differences to their performances. There are various internal and external factors that affect the performance of these organisations and bring differences between them. The pandemic harshly affected the market and brought down the economic conditions. The creditor's investment is more in Tesco thus its turnover is positive from creditors and debtors, on the other hand, the debt-in-equity is more in Sainsbury. These factors bring the differences, along with that, the social, economic, political, legal and many other factors are responsible to bring differences in the performance of Sainsbury and Tesco.

Recommendations to Auntie Betty and Uncle Bill

• Tesco is the chosen company that can invest money (Rosnizamet al. 2020).
• In the 21st century, Tesco provides all unique strategies and theories for its business growth and thinks about employees (Upadhyay et al. 2022).
• The digital marketing process is starting at Tesco so its profit is increasing and the investors are also profitable for this (Argyropoulouet al. 2022).

Auntie Betty and Uncle Bill are a couple of investors who are investing in many companies, and loyal customers of Sainsbury. It is recommended that Sainsbury and Tesco are both famous groceries company in the UK. Therefore, the first recommended topic is that Tesco is a growing company at that time, and a couple of investors should invest in Tesco for its growth. Therefore, people of the UK get good quality food and give good service to customers. The second recommended topic is that if the company investment is high then many people get new jobs at Tesco so, this couple should be investing in this company. Digital marketing has high profit so Tesco started this process and it should be important to invest in this company.

Financial reasons for recommendations

• Tesco's growth of earnings is highly stable so it is right to choose for the investments.
• Tesco’s gross margin profit is increasing day by day (Osemwengie, 2021).
• It has a large cash flow system that increased company profit (Sainsbury et al. 2018).
• Investors are returning the money from invested capital money. Investors are highly profitable for investing money.
• Tesco is better than other groceries supermarket and investors and employees are highly profitable for investing money in this company (Hsu et al. 2018).

Many financial reasons get from financial factors and Tesco has increased its profitability financially many advantages get from Tesco so it is recommended company. Investors should be invested money in Tesco so they get many advantages and are highly profitable. The first financial recommendation is that Tesco is high growth in turnover and earnings so Investors are highly profitable if they are invested money in this company. The second financial recommendation is that its cash flow is high so investors are profitable. Investors are returning more money that has been invested in the project. Therefore, it is the right decision for investors to invest money in Tesco.

Non-financial reasons for recommendations

• Customer of Tesco is highly satisfied because they get good quality products and service (Sughra, 2019).
• The leaders build a strong community for business growth so all targets are fulfilled together, and all employees work on loyalty (Maston et al. 2019).
• Every day the company's leaders calculated the data and earnings and expenditures that increase profit and managers are responsible for all finance and non-financial work (Urquhart et al. 2022).

Tesco has many non-financial aims that are to develop the company’s business growth and improves all the strategies and theories so the company’s profit rate is high. The leaders and managers are highly responsible for the company's work and always save employees. The first recommended topic is customer service, the company's leaders always motivated employees so employees are satisfied with their work and always give massive action. The second recommendation is that community building, the companies leaders and managers build a strong community so all work is easily done and all short and long-term goal is fulfilled and Tesco is highly profitable. Therefore, it will be right if the investors invest their capital in Tesco.

Conclusion

• Sainsbury and Tesco are two retail supermarkets that follow various strategies to develop their performances.
• The performance of these organisations is different from each other in different aspects.
• Their performances show that the business techniques they use are quite different.
• Their performance is better than each other in two different ways.

Sainsbury and Tesco use different strategies and techniques to develop their business and give better performance in the retail market throughout the world. They follow different theories to develop their business and to learn the market conditions. They were harshly affected by the pandemic, hence faced a fall in profits and earnings, but succeeded to gain their market by the next financial year. The performance of Sainsbury’s is better than Tesco's in one way, on the other hand, the performance of Tesco is better based on other perspectives.

References

Journals

Argyropoulou, M., Zissis, D., Korfiatis, N. and Zampou, E., 2022. Horizontal collaboration in the last mile distribution: gauging managerial response to disruption and abnormal demand. Benchmarking: An International Journal.

Awadari, A.C. and Kanwal, S., 2019. Employee participation in organizational change: A case of Tesco PLC. International Journal of Financial, Accounting, and Management, 1(2), pp.91-99.

Bhattacharyya, S., Sainsbury, T., Allen, P., Nosarti, C., Atakan, Z., Giampietro, V., Brammer, M. and McGuire, P.K., 2018. Increased hippocampal engagement during learning as a marker of sensitivity to psychotomimetic effects of δ-9-THC. Psychological medicine, 48(16), pp.2748-2756.

Boylan, S., Sainsbury, E., Thow, A.M., Degeling, C., Craven, L., Stellmach, D., Gill, T.P. and Zhang, Y., 2019. A healthy, sustainable and safe food system: examining the perceptions and role of the Australian policy actor using a Delphi survey. Public health nutrition, 22(16), pp.2921-2930.

Hsu, M.S., Harper, C., Gibson, A.A., Sweeting, A.N., McBride, J., Markovic, T.P., Caterson, I.D., Byrne, N.M., Sainsbury, A. and Seimon, R.V., 2018, July. Recruitment strategies for a randomised controlled trial comparing fast versus slow weight loss in postmenopausal women with obesity—The tempo diet trial. In Healthcare (Vol. 6, No. 3, p. 76). MDPI.

KinasihYektiNastiti, P., Atahau, A.D.R. and Supramono, S., 2019. Working capital management and its influence on profitability and sustainable growth. Verslas: Teorijairpraktika/Business: Theory and Practice, 20, pp.61-68.

Maston, G., Gibson, A.A., Kahlaee, H.R., Franklin, J., Manson, E., Sainsbury, A. and Markovic, T.P., 2019. Effectiveness and characterization of severely energy-restricted diets in people with class III obesity: systematic review and meta-analysis. Behavioral Sciences, 9(12), p.144.

Mehta, N., Cunningham, E., Doherty, M., Sainsbury, P., Bolaji, I., Firoozi-Nejad, B. and Smyth, B.M., 2022. Using regional material flow analysis and geospatial mapping to support the transition to a circular economy for plastics. Resources, Conservation and Recycling, 179, p.106085.

Moura, M.B.L.D., 2021. Equity Research in Food & Retail Industry-TESCO PLC (Doctoral dissertation, Instituto Superior de Economia e Gestão).

Osemwengie, C.E., 2021. An Appraisal of Financial Penalties under Deferred Prosecution Agreements in the UK. Butterworths Journal of International Banking and Financial Law, 36(6), pp.439-441.

Osemwengie, C.E., 2021. An Appraisal of Financial Penalties under Deferred Prosecution Agreements in the UK. Butterworths Journal of International Banking and Financial Law, 36(6), pp.439-441.

Pittino, D., Chirico, F., Henssen, B. and Broekaert, W., 2020. Does increased generational involvement foster business growth? The moderating roles of family involvement in ownership and management. European Management Review, 17(3), pp.785-801.

Pizarro, J., Sainsbury, B., Hodgkinson, J.H. and Loechel, B., 2018. Climate change vulnerability assessment for the uranium supply chain in Australia. Progress in Nuclear Energy, 109, pp.53-65.

Rashid, C.A., 2018. Efficiency of financial ratios analysis for evaluating companies’ liquidity. International Journal of Social Sciences & Educational Studies, 4(4), p.110.

Rosnizam, M.R.A.B., Kee, D.M.H., Akhir, M.E.H.B.M., Shahqira, M., Yusoff, M.A.H.B.M., Budiman, R.S. and Alajmi, A.M., 2020. Market opportunities and challenges: A case study of Tesco. Journal of the Community Development in Asia (JCDA), 3(2), pp.18-27.

Sainsbury, N.C., Genner, M.J., Saville, G.R., Pinnegar, J.K., O’Neill, C.K., Simpson, S.D. and Turner, R.A., 2018. Changing storminess and global capture fisheries. Nature Climate Change, 8(8), pp.655-659.

Sainsbury, T., Watson, T. and Breunig, R.V., 2022. COVID-19 private pension withdrawals and unemployment tenures. Available at SSRN.

Sorrentino, A., Pantaleo, A.M., Le Brun, N., Acha, S., Markides, C.N., Braccio, G., Fanelli, E. and Camporeale, S.M., 2018. Energy performance and profitability of biomass boilers in the commercial sector: A case study in the UK. Energy Procedia, 148, pp.639-646.

Sughra, G., 2019. A Study Investigating Corporate Social Responsibility (CSR) and Financial Performance of Retail Industry in the UK (Doctoral dissertation, Cardiff Metropolitan University).

Upadhyay, A., Kumar, A. and Akter, S., 2022. An analysis of UK retailers’ initiatives towards circular economy transition and policy-driven directions. Clean Technologies and Environmental Policy, 24(4), pp.1209-1217.

Urquhart, R., Newing, A., Hood, N. and Heppenstall, A., 2022. Last-Mile Capacity Constraints in Online Grocery Fulfilment in Great Britain. Journal of Theoretical and Applied Electronic Commerce Research, 17(2), pp.636-651.

Utama, A.G.S., Verma, M., Ng, J.Y., Kee, D.M.H., Nga, C.S., Izzati, N.N., Ng, Y.X. and Khoiruwnia, F., 2022. A Research on Tesco's Consumer Purchasing Behavior towards E-Commerce during the Pandemic Period. International Journal of Accounting & Finance in Asia Pasific (IJAFAP), 5(1), pp.53-63.

Wang, Y., Xu, R., Schwartz, M., Ghosh, D. and Chen, X., 2020. COVID-19 and retail grocery management: insights from a broad-based consumer survey. IEEE Engineering Management Review, 48(3), pp.202-211.

Websites

entrepreneur.com, (2022), financial factors entrepreneurcom, Available at: https://www.entrepreneur.com/starting-a-business/financial-factors-entrepreneurcom/25762. [Accessed on: 25th November, 2022]

londonstockexchange.com, (2022), Tesco plc company page, Available at: https://www.londonstockexchange.com/stock/TSCO/tesco-plc/company-page [Accessed on: 25th November, 2022]

sainsburys.co.uk, (2022), Reports and presentations annual reports Sainsburys, Available at: https://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/documents/reports-and-presentations/annual-reports/sainsburys-ar-2018-full-report-v2.pdf. [Accessed on: 25th November, 2022]

sourceessay.com, (2022), Ratio analysis of Tesco and Sainsbury with comparison, Available at: https://sourceessay.com/ratio-analysis-of-tesco-and-sainsbury-with-comparison/ [Accessed on: 25th November, 2022]

tesco.com, (2022), About Tesco, Available at: https://www.tesco.com/ [Accessed on: 25th November, 2022]

tescoplc.com, (2022), Report result and presentations, financial performance and five year record, Available at: https://www.tescoplc.com/investors/reports-results-and-presentations/financial-performance/five-year-record/ [Accessed on: 25th November, 2022]

wsj.com, (2022), Annual income statement, Available at: https://www.wsj.com/market-data/quotes/UK/SBRY/financials/annual/income-statement [Accessed on: 25th November, 2022]