Strategic Management (M1) Essay Example | Topics and Well Written Essays - 2000 words

Strategic Management (M1) - Essay Example Numerous company benefits are provided by Marks and Spencers which offer both safety in financial aspects such as pension schemes, paid maternity and paternity leave, employee discount within all of their stores to encourage brand loyalty, and many other motivating factors such as team building exercises, promotion opportunities and investment opportunities such as offers of shares that become available. Social needs are met and encouraged by team building exercises, and teamwork is encouraged throughout the organization. This helps provide a friendly atmosphere throughout the workplace. Esteem needs are met by the recognition of achievements by senior management to ensure that credit is always given where credit is due. This keeps employees motivated and gives them a high level of job satisfaction and gives them incentives to fulfill their potential and achieve great things. The top of the hierarchy is the self-actualization needs. This is about the development and realization of a persons full potential. Marks and Spencers allows this need to be met by offering career enhancement and promotion opportunities, a challenging role for employees, achievement in work and pushing employees to fulfill their potential. Marks and Spencers believe that self-actualization is a very important factor and will increase efficiency within the organization. To conclude, Marks and Spencers main sources of motivation come from offering the employees benefits and incentives and satisfying their needs to ensure that the environment in which they work is perfect in order to gain the best performance from them. The motivational policy within Nestle is based around a culture that has equal respect for all employees and there is a mutual respect that flows throughout the organization. This capacity to enhance human energy is an essential component to ensure the long-term competitiveness of the company. Nestle have a personal

Valuation of Sainsbury and writing the report Research Paper

Valuation of Sainsbury and writing the report - Research Paper Example The low valuation of the company exposes it to dangers of potential takeover target. To enhance the value of the company the board is thinking of measures to improve the company valuation. There is an increased perception that the company will be able to benefit from geographical diversification and to improve its image in the market. The company management has come up with the idea of acquiring the UK based J Sainsbury Plc in a bid to improve the valuation of the company. The companies listed on the London Stock Exchange exhibit high level of compliance to corporate governance and corporate social responsibility practices. The domestic companies are mandated to adhere to the corporate codes and ethics. If a company fails to comply with any particular code then it has to explain the reason for the non-compliance. This ensures transparency in financial reporting and makes the financial reports of the company more credible. The retailers in the European region have a strong brand image and are highly responsive to the requirements of the customers. The major retail chains in UK like Tesco, Sainsbury are mature and are continually expanding internationally as well as in terms of wider range of products and services. The retailers in the country are diversified in the true sense with some of them even engaged in financial services. Even Sainsbury is involved in banking services. The movement of the retail chain into financial services is a type of horizontal diversification (Welch & Worthington, 2008). Sainsbury is a UK based company with a diversified range of products and services. By the acquisition of Sainsbury, CF Inc will be able to make a foray in the European market. The primary activities of Sainsbury are retailing in groceries and other related items. The company also has an alliance with the Lloyds Banking Group in financial services (Reuters-b, 2011). In the recent financial crisis the retailers across the world witnessed a fall in the net income owing to the reduced consumer spending. With the rebound in the economy the performance of the retail industry is expected to improve. The economies across the world are slowly on the way to recovery. With a rise in the level of economic activity it is anticipated that there will also be arise in the disposable income of the consumers. This is likely to have a positive impact on the retail businesses as well. The consumer demand is expected to rise with the increase in the income level. It is expected that the consumers will increase their retail spending which will also boost the earnings of the retail businesses. Future of retail- Advancement in technology like internet facilities has made retailing an exciting and challenging field. The recent fundamental changes have altered the ways and mechanism of retailing. Despite this retailing is necessary in some form or the other. For instance though the manufacturers are now able to sell directly to the consumers through online system but st ill it is difficult for the consumers to make all the purchases online. The traditional retailers operating through physical stores would still be necessary. This is because for some products the consumers are convinced only after a thorough examination of the product before purchasing it. In some cases the experience of going to the retail store is as important as making the purchase (Harris, 2000). Valuation of Sainsbury The fundamental analysis involves valuing a company based on important financial