Finance for Managers 1

Finance for Managers: Sainsbury's Supermarket Ltd, UK

TABLE OF CONTENTS

INTRODUCTION ........................................................................................................................ 3

PART 1: THE SOURCES OF LONG TERM FINANCE OF SAINSBURY'S

SUPERMARKET LTD, UK ........................................................................................................ 4

PART 2: THE ROLE OF THE MANAGEMENT ACCOUNTANT OF SAINSBURY'S

SUPERMARKET LTD, UK ...................................................................................................... 10

PART 3: ANALYTICAL TECHNIQUE USED BY SAINSBURY'S SUPERMARKET

LTD, UK ...................................................................................................................................... 14

PERFORMANCE MANAGEMENT FRAMEWORK AT SAINSBURY'S SUPERMARKET LTD.......................... 17

FORMAL FEEDBACK PROCESS AT SAINSBURY'S SUPERMARKET LTD ............................................... 17

INFORMAL FEEDBACK PROCESS AT SAINSBURY'S SUPERMARKET LTD ............................................ 18

STEPS SAINSBURY'S SUPERMARKET LTD TAKES TO PROTECT ITSELF FROM LITIGATIONS .................. 18

CONCLUSION ........................................................................................................................... 19
 Finance for Managers 3

Finance for Managers: Sainsbury's Supermarket Ltd, UK

Introduction

The purpose of this paper is to assess the source language and use financial information

and assess the role of accountants in different organisations.

In this paper we are going to analyse the source language and practice the financial

information, in addition this paper will also examine the accountant’s roles in diversified issues

in organisations. This paper is mainly focused on a selected organisation, namely the Sainsbury

Supermarket Co., Ltd., UK. Method of valuation and cost is practiced by the design, planning

and control, financial management and performance management and evaluation. Management

accounting information is usually collected is a breakdown of the performance of different

companies can be measured separately, in order to ensure that they work best to their ability.

Enterprise sells a variety of products; the financial meltdown should be generated for

each of them. This will allow us to ensure that the very profitable product does not have to

subsidize those who do not sell. It is obvious that diverse companies have dissimilar accounting

management needs will depend on the business of the region found, that is primarily important.

Management accounting information collected is likely to be broken down, a separate part of the

business so that productivity can be monitored (Holly and Duchaine, 2011).

This research study sets out to clear the basic concepts of financial management,

assessment of finance of the company with the basic sets of accounts prepared while moving up

to the end of financial year. The financial manager plays a dynamic role in Sainsbury

Supermarket development. This paper is divided in to three parts to investigate the major

management issues related to financial and accounting at Sainsbury's Supermarket Ltd. The part

will examine the long term sources of in relation to finance of Sainsbury's Supermarket Ltd, UK;
 Finance for Managers 4

this includes analysing the profit and loss in the fiscal years, to judge the long term competitor’s

market share. It also includes evaluate the long term government bodies and taxation, planning

long term strategies and assess growth and market competences. The second part investigates

the role of the Management Accountant of Sainsbury's Supermarket Ltd, UK.

This contains assessment, including comprehensive financial manager and the official

explanation of compare and contrast. This shows that both textbook Management Accountants

analysis furthermore describes how to effectively use the financial information of the source of

information organisation. Till the conclusion of financial year At Sainsbury's also make its final

account (Holly and Duchaine, 2011). Sainsbury's at the end of financial year prepares its

financial account to be aware of its financial position. Like to be aware of the assets in hands of

the company and the liabilities company needs to pay. The final account consists of two major

accounts – profit and loss account and second is balance sheet. The third and the final part

elaborate the analytical Technique used by Sainsbury's Supermarket Ltd, UK. This part includes

the to assist in strategic planning and control, performance management and appraisal, decision-

making process, and the techniques audit including a discussion of a suitable substitute (Holly

and Duchaine, 2011).

Part 1: the sources of long term finance of Sainsbury's Supermarket Ltd, UK

J Sainsbury plc, United Kingdom's leading food retailers in the UK, mainly in financial

services, including Sainsbury supermarket Sainsbury's Local, Bell store, shops in Jackson and JB

Beaumont, Sainsbury's online and Sainsbury's Bank with 153,000 employees around the world.

The company supplies over 20 million customers in every week and at the ending months

of the 2012; it had almost 1000 stores across the United Kingdom. Sainsbury’s Supermarket
 Finance for Managers 5

offers a large number around 40,000 products and the company owns 60% of own brand. The J

Sainsbury’s was founded by John James and his wife Mary Ann Sainsbury in 1869.

The company was started from a small business of dairy shop at 173 Drury Lane, London

and the place where the shop was first opened was one of London’s poorest areas. The shop

managed to attract a lot of customers and became popular for offering high-quality products at

low prices over the short period of time. In 1882, after 13 years of interval, John James

Sainsbury owned four shops. He had so success in his business and he kept on expanding his

business improving its product qualities and facilities.

Sainsbury is wholly owned by its original family. Only in 100 years in 1970s this

company has reached the influential size and status in order to ensure the public's position. The

public flotation of the company 45 times over-subscription of the shares on the Stock Exchange

in 1973, the largest ever flotation (Geoffrey and Andrew, 2011).

Over the last century, the company might have direct or indirect influence of external

factors and the impacts might have contributed towards the current or present shape that exists

today. The purpose of the financial statements of changes in an organisation's financial

performance provides the strength and financial condition, which is to make economic decisions,

many users useful information.

The statement needs to be relevant, understandable to all, contain reliable information

and comparable. The organisations liabilities, equity, reported assets, income and expenses are

reported in a financial statement. Potential investors, banking institutions, government agencies

and employee/employers are the audiences or target users of financial statements (Lars,

Gulbrandsen, 2010).
 Finance for Managers 6

Financial Statements are formal records of an organisations financial activity. It is a part

of the process of financial reporting. The financial statement gives a summary of a company or

organisation’s yearly or short and long-term financial position. There are four fundamental

categories of financial statements:

 Balance Sheet: This is the financial condition of a company's financial assets, liability

and net assets at a given point in time and report form

 Income Statement: a company’s profit and loss statement that the company's operating

results have been reported for a specific time constraint.

 Retained earnings Statements: this overview provides the reporting period the retained

earnings change of the company.

 Statement of cash flows: The company's cash flow reports and cash flow activities,

mainly in operations, investment and financing activities:

In the past year 2012 the Sainsbury's Supermarket have achieved the savings in operating

costs over 100 million pounds. Taking nearly $ 6 million pounds cost save over the five years

(reviews.money.co.uk). This is due to the increase in productivity, savings of procurement and

simplifies ongoing in-store processes. For instance, Sainsbury's Supermarket will continue in

logistics in the efficient use of the vehicle, the load and fuel efficiency, improved route

optimization. In addition, the Sainsbury supermarket recently launched a new data warehouse

technology, Sainsbury staff, staff and employees of the organisation work are more effectively

help to recover product accessibility and reduce wastage material.

The performance of the firm in long term is analysed with the help of Gearing ratio, a

comparison of total debt on the company from external sources with the capital available from

shareholders with in the company. Thjis ratio needs to be low that shows that the firm is
 Finance for Managers 7

finanaced more by equity, otherwise more finiancing by debt resulted in high gearing ratios. In

UK, gearing ratios less than 50% are more acceptable as the companies show more solvency

with low gearing ratios.

The gearing ratio of Sainsbury plc. in the year 2011 and 2012 were 55% and 49.03%

respectively. Following calculations represent these gearing levels:

Gearing level in 2011 = long term debt ÷ shareholders capital x 100 = 1814 ÷ 5424 x 100 =

33.44%

Gross Gearing level in 2012 = long term debt ÷ shareholders capital x 100 = 1980 ÷ 5629 x 100

= 35.17%

The above figures concluded that the gearing ratio of Sainsbury has been slightly increased from

33.44% to 35.17 in a peiod of one year from 2011 to 2012. This level has shown that the

dependence on external debyt is increased but the solvency of the firm is well under acceptable

lo=imit or under 50% statndard in UK.

This final account of Sainsbury's Supermarket gives the image of the company to the

stake owners of the company about, how the company is going on in its financial terms. This is

the major account and is very important to be considerable for lending money to Sainsbury's

Supermarket, or while purchasing shares, giving goods on credit, etc. A measure of both a

company's efficiency and its short-term financial health, the working capital ratio is calculated as

to assess these two elements; balance sheet is prepared along with profit and loss account. In

balance sheet to give the accurate statements, assets are always equal to liabilities of the

company.
 Finance for Managers 8

The Sainsbury's Supermarket Ltd, UK continue to manage the cost of inflation pressure

strict control to achieve a savings of over one million U.S. dollars GBP in the year of 2012

(reviews.money.co.uk). Sainsbury's Supermarket Ltd, UK basic raise in operational profit is

6.9% to £ 789 million (2010/11: £ 738 million), and in operating margin improved by 4 basis

points and , in constant prices of fuel its 10 basis points. Related Pre-tax profit increased 7.1% to

712 million pounds (2010/11: £ 665 million).

The Sainsbury's Supermarket Ltd, UK continues to take profit from the cash generated

from its operation, enhance of 13.4% from the last year part to promote an on the whole

development and perfection in operational capital. This money continues to invest in continuing

returns, and enhance economic development prospects. During the year of 2012, the main capital

expenditures amounted to raised £ 12.4 million (2010/11: £ 1.138 billion). The Sainsbury's

Supermarket Ltd, UK is pleased that the investment in the past few years is stronger and

continues to provide more than the company expected its minimum rate of return

(reviews.money.co.uk). In the year of 2009, Sainsbury’s Supermarket Ltd, UK has planned to

increase speed in the investment sector to capture the benefits of cheap land prices relatively and

higher availability (Alessandro and Douglas 2010).

Sainsbury's Supermarket Ltd, have since its inception strong pipeline of properties for the

future has in store for sales where Sainsbury's Supermarket Ltd, UK can bring high returns,

including growth in the region at Sainsbury's Supermarket Ltd, UK are based on the market.

Sainsbury's Supermarket Ltd, investment has been increased in recent years, the space to help

Sainsbury sales and property growth, but the new space, with an initial dilutive effect due to

opening of the costs and profits of the sales curve. Delivery of the commitment to accelerate

growth in space now, Sainsbury's Supermarket Ltd, UK will return to space growth rate of about
 Finance for Managers 9

5% Years. This will decrease Sainsbury expenditure of capital and increase its progress of cash

flow from these new sales; Sainsbury's Supermarket overall return stores mature (Andy, 2011).

Sainsbury design management financing, diversification of sources of funding, in order to

reduce the risk of refinancing, and maintain sufficient liquidity. Sainsbury's to develop the debt

financing of £ 2.7 Billion and £ undrawn committed credit lines of $ 070 million at its disposal.

In the case of Sainsbury's core capital, it consists of two long-term loans of £ 1.036

billion due in 2018 and £ 843 million due to in 2031, the assets of the mortgaged property. In

addition, the Sainsbury unsecured loan of 499 million pounds in 2012 and 2017, public offering

of convertible bonds 748,000 pounds, 190 million, is due in July 2014, finance leases of £ 143

million (reviews.money.co.uk). The Sainsbury's group maintained a sterling $ 69 billion

syndicated revolving credit. The purpose of the standby liquidity facilities will expire in October

2015.

For Sainsbury, the available profit before tax and interest has been increased sufficiently

in last five years that has increased the interest cover for the borrowing from external sources.

Interest cover payable for year 2011 and 2012 is calculated below:

- Interest cover for 2011 = profit before interest and tax ÷ Interest expense =

738 ÷ 97 = 7.9 times

- Interest cover for 2012 = profit before interest and tax ÷ Interest expense=

- 789 ÷ 109 = 7.5times

Hence, Sainsbury plc favoured debt capital as compared to equity capital due to high tax

benefits as the UK government is always deducted tax from the payable interest for the due

loan on the company and in result decreased the tax commitment of Sainsbury.
 Finance for Managers 10

To consider the Sainsbury core capital expenditure, it is estimated at £ 1, 02 million to £

1,240 (2010/11: £11.38 billion), due to Sainsbury's expansion and convenient opening program,

28 expansions (2010/11: 24 extensions) and 73 new convenience stores (2010/11: 47 new

convenience stores). Core capital spending as a percentage of sales (including fuel, excluding

VAT) was estimated at 5.6% (2010/11: 5.4%).

Sainsbury's advantage, to continue to maintain a good property yields at mature stores to

increase sales and leaseback activities no further real estate development potential to produce

proceeds of £ 303 million (2010/11: £ 275 million), disposal of property total profit contribution

of £ 8300 million (2010/11: 108 million). Net capital expenditure of £ 962 million (2010/11: £

880 million).

Part 2: The Role of the Management Accountant of Sainsbury's Supermarket Ltd, UK

Management accounting records to help manage business activities, planning and control,

and to assist in the decision-making process. Any period of time (for example, many of the

retailer's sales, profits, and inventory levels) to prepare the day-to-day management of

information, they can prepare. No legal requirements is required for the preparation of

management accounts, although very few (if any), well-run enterprise to survive. There is no

pre-determined format management account. We hope that they can be detailed or brief

management. Management account can focus on the specific areas of business activities.

Application of management accounting records is to help manage business activities,

planning and control, and to assist in the decision-making process. Any period of time (for

example, many of the retailer's sales, profits, and inventory levels) to prepare the day-to-day
 Finance for Managers 11

management of information, they can prepare. On the other hand, concentration in the financial

accounting business as a whole, rather than analyze the business part. For example, sales

summary figures for total sales, rather than selling a product, released a detailed analysis, market

and financial accounting information is a monetary nature. The financial accounts presented a

historical perspective on the financial performance of the business. For instance, the total sales,

rather than selling a product sales summary data released a detailed analysis of the natural

currency markets and financial accounting information. The financial accounts offered a

chronological perspective based on the business’s financial performance. In the world of

retailing, many stores managers and owners are overly concerned about the overall image and

marketing strategies of their stores and underestimating the demographic, socioeconomic and site

specific factors of the store. Location factors considered by some store managers and owners

search for their store's Web site, most of them did not enter enough depth in their search and

store managers and owners choose the site, it is very common, just as it is available, and not

because its task is the most appropriate site. Having a good understanding of demographic,

socioeconomic and site specific factors may help store managers gain the competitive edge over

their competitions.

The financial statements are practised to organise to submit annual reports to

shareholders after the statement of financial analysis to a more detailed consideration of it.

Shareholders use usually with financial professional analysts to help them make decisions,

Investment Company or financial statements. Banks and lending institutions use financial

statements to make decisions about providing a company with fresh capital, extending a debt or

to finance an expansion venture or other capital pertaining to a company’s growth plans.

Government agencies use financial statements to analyze the propriety and correctness of taxes
 Finance for Managers 12

or duties declared and paid by an organisation. An employee of a company use financial

statements to get information about the stability and profitability of their employer. The

financial statement also gives an employee insight into how a company will provide retirement

benefits and employment opportunities that allows an employee to climb the company ladder of

success. The financial statements is also beneficial to the consumers or customers of the

company, scalability, sustainability, contribution to the local economy through the provision of

information to patronize local suppliers and the organisation's long-term as well as short-term

trends.

Although a financial statement cannot provide users with all the information they might

need, it is still a good point of origin for ascertaining information that is common to all users.

Financial accounting reports are easy to insider trading, securities fraud, creative accounting,

financial analysis misleading, bribery and kickbacks. The truthfulness and consistency of an

organisation's financial and accounting information is very important, because it uses the internal

and external entities. Many of the variables are practised to make sure that the accounting

information, such as the ethical behaviour of individual accountants, the integrity of the

accounting standards, internal audit and corporate structure.

The purpose of Sainsbury's Supermarket Ltd management accounting is to maintain

collecting, processing and transmission of information, support competitive decision-making to

help manage the planning, control and evaluation of business processes and the company's

strategy. Management accounting of the interesting things is that it is difficult to find the title of

the individuals in the company's management accountant. "Are often people in many

organisations is an accountant, but these people are usually financial accounting, cost

accounting, tax accounting, internal audit department.

Management Accountant of Sainsbury's Supermarket Ltd, UK concerning to provide

information manager people inside the company to command and control its operation.

Management Accountant of Sainsbury's Supermarket prepares a large number of different

reports. Some reports compare actual results with plans and benchmarks focus on managers or

business units. Some reports provide a timely and frequent updates of key indicators, such as the

receipt of orders, backlog of orders, capacity utilization and sales.

Some reports gives on time as well as regular updates of important indicators, like the

orders receipt, orders backlog, sales and capacity utilisation. Other analytical report writing,

decline in profitability of specific product lines, and other issues need to be investigated. Other

reports analyze the business situation or opportunity. The report analyzes the business situation

or opportunity, contrasting for the production of restricted set of stipulation in the financial

statements of annual and quarterly in accordance thorough the financial accounting of GAAP.

The Sainsbury Supermarket Co., Ltd., rationale the management accounting information

is needed to provide an accurate and sound economic decision-making. The Accounting

Information provided external parties, such as investors, creditors, financial reporting or tax

authorities. Management accounting financial accounting is different, because the former is for

internal decision-making and the need to follow the rules, the standard-setting agencies to issue.

Financial accounts follow the guidelines according to the Generally Accepted Accounting

Principles (GAAP). The occurrences of unethical practices in businesses and companies have

become more frequent and common. An unethical action in a company can have a negative

effect on the company as a whole that could lead to its downfall. Many companies strive for

good ethics to build credibility and a good reputation with consumers, suppliers and other

organisations.
 Finance for Managers 14

The focus of Sainsbury's Supermarket Ltd management accounting shows on issues such

as planning, control and decision-making of the strategic and operational management of the

environment that is the truth of the conditional. Information economy transition to problematises

the Sainsbury Supermarket Co., Ltd. Management originally designed to solve the labor deviant,

but between now and the control method of the monitoring and control system of the decision.

Therefore, the text of the mainstream of modern management accounting is mainly in the context

of participation and support internal decision-making, in order to achieve organisational goals

envisaged senior management technologies and processes.

Sainsbury's Supermarket Ltd must adhere to the Corporate Social Responsibility (CSR)

guidelines. It is the understanding that a business has a social obligation beyond making a profit.

Many companies incorporate an internal corporate “code of ethics” to their mission statement

that sets guidelines to help in the CSR process.

Part 3: Analytical Technique used by Sainsbury's Supermarket Ltd, UK

Michael, (2011), describes the UK’s retain industry as a sector which is very dynamic,

diverge and large. The large food retailers of UK offer greatest employment in the region, and

according to Lars, Gulbrandsen, (2010), a total of 326,000 people are employed by Tesco, while

J. Sainsbury’s employs 147,500, ASDA employs 128,000 and Somerfield employs 54,000.

Sources such as Julian, (2011) and Sainsbury’s website inform us that there is high

commitment by these food retailers towards recruiting and sustaining a socially as well as

culturally diverse workforce. Data collection has been made from J.Sainsbury for the purpose of

this research which comes at second in terms of size of retail companies in UK. According to

Geoffrey and Andrew, (2011), the company is a key player in the retail industry with operation

of 785 stores holding a market share of 14.7 %.

For operational control, Sainsbury’s has adopted a strategy of centralized one business

(Holly and Duchaine, 2011). Vibrant transformation has been seen in Sainsbury’s management

since the current CEO, Justin King, was appointed in 2004 and the slogan of recovering

Sainsbury’s greatness was raised. To make each level of the organisation more efficient, they are

in the process of reshaping their culture of management and strategies. Personal Interviews were

used for collection of data for the purpose of this research from the organisation. Performance

Management System is amongst the critical tools for management control. Performance

management in the current context is constantly changing due to impact of new technology

introduction and differences in terms of culture; it is also become more complex as team

members are more likely to have different viewpoints due to the above mentioned factors

(Alessandro and Douglas, 2010).

Recently, a performance culture is being created by many organisations which consist of

many strategies so that contributions at an individual level can be developed for an overall

busoness success (Erik and Hutchinson, 2011). As mentioned in Michael, (2011), performance

management is the name given for this process (IPM, 1992).

It is believed by managers that when it is understood by employees how their work

contributes to attainment of the goals and written objectives of the organisation (Holly and

Duchaine, 2011). The introduction of systems of performance management is done for

improvement of quantity as well as quality of work being done and also to bring in line the

objectives of organisation with all the activity (Alessandro and Douglas 2010).

Performance management has the aim of establishing a culture of high performance in

which responsibility is taken by teams as well as individuals for hysterically business growth, as

well as their own skillfulness and technical contribution under a framework with provision of
 Finance for Managers 16

effective leadership (Armstrong, 2006). After studies of performance management systems in

various organisations, on the other hand, revealed that many of the systems of performance

management consisted of multiple contents and objectives (Andy, 2011).

The systems, as said by the authors, might have a link with objectives of business and

also in developing competences and skills of employees. It could be included in the system, at

the same time, training, development, succession planning, planning, reviewing and setting of

objectives and competencies also. On the contrary, for making the system more effective, such

an integrated system should include various tools of a large numbers.

The process of performance management is a management structure to ensure that the

organisation and the collective efforts of all of its resources in order to optimise the

organisational aims and objectives. Performance management provides a wide spectrum of

understanding about performance drivers enabling an organisation to compel for highest

performance and better decision making. It highlights the importance of integration of human

resource, process and information to the organisation’s goals and objectives (Zorn & Taylor,

2004).

At Sainsbury's Supermarket Ltd, it is firmly believed that the process of performance

management has to be in collaboration, where managers and employees share in the

responsibility for goal setting, accountability, financial performance and the results of its

performance.

Sainsbury's Supermarket Ltd is one of the organisations, which is not only famous for its

business intelligence but also for its management processes. It understands the importance of

management decisions, which is distinctly proved with its outstanding performance. A leader
 Finance for Managers 17

like Sainsbury's Supermarket Ltd has always given importance to strong and rigorous planning,

which had made it analyze the need of the holistic approach towards performance management.

Performance Management Framework at Sainsbury's Supermarket Ltd

The performance management framework adopted by Sainsbury's Supermarket Ltd

focuses on three fundamental principles, which are, adapting a forward looking view to business,

ensuring integration among plans and department and effective decision making at all levels of

organisation. These simple principles enable an organisation to take sound decisions, discover

their ineffectiveness and make more balanced use of resources in planning and controlling

activities. Furthermore, employees’ performance management is always at the heart of the of

human resource management processes of Sainsbury's Supermarket Ltd. Establishing and

implementing a complete and reliable performance management of the HR department managers

and employees of the company's goals.

The starting point of this plan is the evaluation of each employee, which can now easily be

conducted with the help of performance management software (Perkins, and White, 2008).

Formal Feedback Process at Sainsbury's Supermarket Ltd

The software of performance management can greatly reduce it takes time to collect the

paper form, automatic reminders, status report and upgrading processes contribute to the

implementation of the tasks and their business goals, and to improve efficiency. This

advancement also provides the objectives and performance of the Sainsbury supermarket

employees aligned throughout the year; it should always be the cornerstone of the overall talent

management strategy, the visibility of any organisation. Furthermore, Sainsbury's Supermarket

Ltd also gives exceptional value to its customer’s feedback; it maintains a separate suggestion

box website for its customers and even offers rewards to its customers for providing their

valuable feedbacks (O'Brien, 2002).

Informal Feedback Process at Sainsbury's Supermarket Ltd

Even though the assessment is based on annual or biannual events, the feedback should

not be imperfect to an official performance appraisal conference. Feedback from employees and

customers, continuous improvement is essential; therefore, it is the height of the Sainsbury

supermarket weighted. Regular and consistent management performance can be a powerful tool

for employee engagement (Chase, 2008). Officials and staff to create an opportunity to review

the performance of the share of positive and negative feedback to determine the goals and

development planning.

Staff rating, follow-up is also essential. In many cases, such monitoring is ignored, this

will only add to the frustration of the staff and to reduce the importance of a comprehensive

evaluation system. If a company set goals, it is necessary, it should always be re-evaluated. The

company ignored the development of its employees, may lose their talent pool, and damage its

commercial success. Eventually, a critical evaluation of the process of the company may be a

waste of money. Sainsbury's Supermarket Ltd believes in investing in training and development,

to help its employees to improve their ability for long term collaboration (Chase, 2008).

Steps Sainsbury's Supermarket Ltd takes to protect itself from Litigations

The task of Sainsbury's Supermarket Ltd is to minimize delivery time of its products

(Lars, Gulbrandsen, 2010) has employed multi channel retailing system that provides enhanced
 Finance for Managers 19

customer experiences. The management of Sainsbury's Supermarket Ltd analyzes the customer

data to personalize the promotion offers. Typical cross channel logistics capabilities required for

better customer service are cross channel returns authorization, integrated pricing and promotion

across channels. The firm manages the multi channel customer loyalty that is calculating points

for the customer across channels and redemption across channels. They target the customer

emails based on their shopping history, preferences and products ordered (O'Brien, 2002). High

correspondence with customers enables them to address customers’ issues effectively, which

reduces the chances of litigations.

It gives importance to manage disagreements and conflicts with grace. Disagreements

and conflicts are normal in almost all relationships in which both parties have a common

interest. In fact, the absence of these indicates the lack of interest in the work by the employee.

Furthermore, it always believes in identifying the real cause of the problem in order to cut the

issue from its roots.

Conclusion

To conclude, the whole concept of financial management, finance is the main backbone

of the Steps Sainsbury's, without finance Steps Sainsbury cannot predicts its future. It is not

necessary that company having excessive finance will lead. Finance need to be managed

efficiently through carefully study and its interpretation at its best. Financial decisions are

necessary for any organisations, but it should also satisfy the logic of financial accounts and in

relation to stake owners of the company. So the financial manager of Steps Sainsbury plays a

crucial role in performing all the back stage activity of the successful show which is hardly

recognised but is inevitable and very important. Sometimes Steps Sainsbury's is barely surviving

in hard times of recession so that does not mean to shut the company down at that time. There is
 Finance for Managers 20

need to explore new financing channels, the company running without any obstacles, and will

touch the sky most competitive spirit.

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