There are two different types of activities in a business a “core” activity and a “peripheral” activity. A “Core” activity is the main dealing of the business and is the most important activity for the business and usually generates the largest and usually generates the largest amount of income. For example, a car showroom’s core activity would be selling cars, and an electrical stores core activity would be selling different types of electrical goods.
A “Peripheral” activity is not needed by a business but if a business does have a peripheral activity this will result in the business getting an increase of profit, for example, a car showroom’s core activity is to sell car’s but can also provide a peripheral activity of providing a loan with interest, and a electrical stores core activity is to sell different types of electrical goods and can also provide a peripheral activity of providing extended guarantee with the products costing the customer a little extra.
The core activity of Errol Anderson motors is to provide a service to his customers by repairing their cars and other motor vehicles. Errol Anderson motors does not have a peripheral activity as fare as I know. I think the reason he has not got any other activities is because he has not got enough time and Errol Anderson has only limited skills. Errol Anderson motors has many competitors to try and beat, but there is no competitor that is very close to him, for example there is no other motor repair garage right next to him.
Some of Errol Anderson motors competitors are, kwik fit, Euromasters and other garages which provide a Service of repairing cars. I think some car owners will not go to big garages such as BMW, ROVER and FORD because they all normally more expensive. Errol Anderson motors main customers are going to be friends, residents, small business and households and other small businesses in the area. Errol Anderson motors will come under the Tertiary sector because he provides a service. Errol Anderson motors is a motor repair industry.
In recent years, motor repair industries are making more profits; this is because more and more people are buying cars so this will boost the motor repair industry. We can see from graph D that more and more people is being hired to work in the tertiary. Also we can see that tertiary sector is still growing in the number of people employed. The main activities of J-Sainsbury’s Retailing industry: Retailing involves selling goods directly to the customer. This selling can take place in: Shops Supermarkets Shopping centres Markets
Mail order On-line shopping (new development) Out-of-town shopping centres (lakeside) On the whole, the Retailing industry is growing. Consumer spending has risen steadily in recent years. The number of retail outlets and the number of people employed in this industry has continued to grow. 1997 319,000 Retail outlets 2. 5 million people employed 200,000 million value sales This is a very competitive industry. All these businesses have to keep changing and developing new ideas and products to keep ahead of the competition.
They compete with each other in the following ways: Prices/Discounts/Special offers Quality and range of products Opening hours (24 hour opening) Location Services J -Sainsbury’s core activity is to offers over 23,000 products of food and groceries 40% of these products are Sainsbury’s own brand. A wide range of quality food and grocery products are sold in the supermarkets and many stores offer bread baked on the premises, delicatessen, coffee shops, meat and fish counters, pharmacies, restaurants and petrol stations.
Sainsbury’s Bank continues to lead the field in the research and delivery of new products to meet the needs of their customers. J-Sainsbury has many peripheral activities such as financial services. E. g. : Instant Access Savings Account, Direct Saver Account, Personal Loans, Sainsbury’s Bank Drive, VISA credit card, Home Mover Mortgage, First Time Buyer Mortgage, Buy-to-Let Mortgage, Remortgage, Home and Contents Insurance, Travel Insurance and Pet Insurance. They also provide an online shopping service, where you can order products of the Internet and they will even deliver it to your door.
This is said to be J-Sainsbury’s peripheral activities. In some J-Sainsbury’s they have dry cleaning services and photos booths. J-Sainsbury has many competitors so service must to outstanding to keep up. Supermarkets like Asda, Safeway, Tesco and Waitross are known as the competitors. J-Sainsbury’s services over 11 million customers a week. The people who are likely to shop at Sainsbury’s are residents, people who live goes so they can drive there as there is a large area of free parking and other people can shop through there online shopping service.
The online shopping service is a very good way of doing your shopping because in the world now people are so busy working they have no time to go and do there shopping so by using this service they can shop quick and it can be delivered to you’re your door. Also it is useful for elderly or disabled customers. The industrial sector that J-Sainsbury’s operates in is the tertiary sector. This is because it is a retailer and retailing is one of the tertiary sectors. Task 4 Location in a business Every business locates where it thinks it will be successful.
Businesses need: > Staff to work there > Raw materials to produce finished products > Customers > To keep their costs as low as possible. > Transport Then their reasons for choosing a particular location start to make sense. Local Labour Supply All Organisations need to be able to employee staff. So it makes sense to locate in an area where people live. The factors, which influence a particular location, are often called local skills and the cost of labour. Local Skills In some parts of the country particular skills is a tradition.
If you wanted to set up a business making pottery you would be sensible to locate in the midlands, around Stoke-on-Trent. The cost of labour will always be more important to the business, which are labour intensive than those, which are capital intensive. A labour intensive firm is one, which needs a high number of staff- such as call centres and J-Sainsbury’s. Capital-intensive business is one where machines or technology do most of the work. Here the cost of labour is less important in the choice of location. The Cost of Premises The forces of demand and supply determine the cost of premises.
The greater the demand for premises- and the fewer there are available- the higher the cost. For that reason, premises in the city centres- especially in London- are much more expensive than the cost of premises in the suburbs or in the regions. Premises on major town centres shopping routes are always more expensive, than on secondary ” side streets”- simply because most shoppers stay on the high street. J-Sainsbury mainly has stores in major towns. Also there are high employments with surplus of skilled labours. Errol Anderson is situated at Elmgrove road, Harrow.
Errol has chosen this location, because it is close to Harrow Wealdstone tube station, so customers can use the train if their car is in repair and they don’t have another car. The second reason why Errol Anderson motors is situated in Harrow because it is close to customers. People, who live in these houses that have car problems with their car, can visit Errol Anderson Motors to get their car repaired, as he is close to them. Also Harrow is a very busy area so there is definitely going to be work to do. There are many J-Sainsbury’s stores around the UK. 60% of stores are opened in town-centres or on the edge of centre locations.
I think Sainsbury’s mainly open their stores in town-centres because it is a busy and hundreds of people come to shop and being in the town-centre people may get attracted to pop in the store. Sainsbury’s, that are open on edges of locations, are normally in big shopping complexes like Brent cross, which attract families because of free parking. Sainsbury’s that are open on the centre of locations are normally more busy as the store I have chosen which is on the town-centre. I have chosen to base my course work on the Sainsbury’s, which is on Kenton road.
I think Sainsbury’s have chosen to locate because it is very close to Kenton tube station. So for people who don’t have a car to drive there Can use the train. Also there is a bus stop right outside Sainsbury’s so customers have a choice of using the bus or train. It is on the side of a main road so everyone can see the building. There is also a big car park right in front of J-Sainsbury’s so it is convenient for people who may wish to drive there. These are some factors, which attract customers. You can see the map where you can see the store, the station and the roads.
Another reason why J-Sainsbury’s may have chosen their location is because it is on a busy road where lots of people pass by and it is on the road of a residential area so this will boost the amount of people shopping in Sainsbury’s. Sainsbury’s is the only big supermarket on Kenton road, so this means that prices of products will be cheaper than a little shop because the little shop will need to make every much profit they can so prices of products will be higher and J-Sainsbury’s can make savings by buying in bulks from suppliers. This is called economics of scale.
The location of J-Sainsbury’s was an appropriate one because there are plenty of customers, as there is a lot of family housing Kenton road is very busy and there is a train station near to. There are plenty of customers for J-Sainsbury’s. The customer/consumer buying habits is very high in this area because there are plenty of other shops for these people to shop at. This factor may have also influenced J-Sainsbury’s location. Errol Anderson picked a location just off the High street and very close to Harrow tube station. Many customers shop at the High street so Errol picked a location where there are plenty of customers.
Again the customer/consumer buying habits are very high in this area, so this may have influenced Errol Anderson Motors location. There are some common factors between J-Sainsbury’s and Errol Anderson Motors; they both picked a location where there are as less competitors as possible. When there are fewer competitors, there is more chance that the customers will visit their business and of having a more profitable business. They both picked a location where customers can visit their business quickly and efficiently; (they both picked their location very near a tube station).
Some factors are different. Sainsbury’s picked a location where there are very few supermarkets and only some little shops which will not be a threat because of the prices they will be selling the products at, whereas for Errol, it doesn’t really matter if his business is near a supermarket, as long it isn’t near other motor repairing businesses. Both J-Sainsbury’s and Errol Anderson Motor are located either in or close to residential areas, which will provide both customers and suppliers for both businesses.