Sainsbury Assignment Example | Topics and Well Written Essays - 4500 words

Sainsbury - Assignment ExampleJ Sainsbury is not pass judgment to distribute cash, pay dividend to sh arholders or share repurchases over the next five old age as it expects to expand its activities and invest in all positive net present value (NPV) projects by opening more shops in Moscow and its environs. unrivalled of the priorities will be, creating an online database for customers interaction, queries, purchases and free-draw. Consequently, all profits will be re-invested into its expansion program (Opening of new stores, extending its product line) as well as any profitable guess that the company may come across supported by the shareholders.Based on feasibility studies, the partners, I have targeted the heart of Moscow, to be used as the country head office hosting the stolon shop and serving as a warehousing, and dispatch unit for online purchases. This area is unique because of its accessibility to other cities, and European countries. The partners intend to use the Lon don Olympic to promote some of their brand such as insurance and banking options, and to benefit from ancillary auxiliary activities and industry. Rent for the grammatical construction stands at $100000 per annum for the first two years.Initial funding for the project is expected to be $1000,000. ... Initial funding for the project is expected to be $1000,000. Of this amount, the stir company will contribute40%, that is, $400,000 while local shareholding will contribute 30percent a bank loan of $300,000 has been secured to cover the remaining 30% of the funding requirements. Sales for the first year are expected to amount to about $2000,000 and are expected to grow at an annual rate of 30%. Gross profit is expected to be $475,102 against which expenses for rents, depreciation of factory equipment, wages and salaries, overhead expenses and miscellaneous expenses will be charged. Expenses during the second, third, fourth and fifth year are expected to witness increases as the compan y plans to increase expenditure on advertising, research and development, staff, and office and factory equipment. More stores will be created within this period, to facilitate dispatch of goods and services. About 80% of sales will be generated online. To minimize theft, customer loyalty card will be provided, to facilitate online purchases.1.0 IntroductionGlobalisation, the new information technology, and deregulation of pecuniary markets has eased the provision and search of finance. Millions of shares are traded every day on the worlds stock markets. (Penman, 2003). Investors who trade on these stocks are often forced to ask themselves whether they are buying or selling at the right price. (Penman, 2003). They often attempt to provide answers to these questions by turning to various media including internet chat rooms, printed press, talking heads on television and financial networks, who often voice opinions on what they feel the stock prices should be. (Penman, 2003). In addi tion, investors consult investment