Financial Performance Evaluation of Tesco

Topics: Tesco, Strategic management, Supermarket Pages: 12 (3650 words) Published: April 23, 2012
This project will mainly focus on the business and financial performance of Tesco plc (a supermarket of UK) from year 2009-2011.Through this report and analysis project, we will know the detail of how the company is running and how well or badly the company performed in last 3 years. This will also help shareholders to realize whether and how their agents performed in their interests. The following main elements are included in Introduction section: * 1.1 Background and Context

-why Tesco:

Tesco is the largest food retailer in UK, operating around 2,318 stores worldwide. Tesco operates around 1,878 stores throughout the UK, and also operates stores in the rest of Europe and Asia. is a wholly-owned subsidiary offering a complete online service, including and The company also offers a range of both online and offline personal finance services. Tesco is headquartered in Hertfordshire, UK.

For the year ended 26 February 2011 Tesco PLC achieved revenues that totaled £60,931million, an increase of 8.1% against the previous year’s revenues that were £56365million, compared with UK sale growth 5.5%.Undoubltly Tesco play a key role in UK supermarket industry as well as in world supermarket industry. Also it is worthwhile to be chosen to be analyzed, to some extent it also can be imitated by other supermarket company, e.g. supermarkets in similar internal and external environment, with Tesco, other supermarkets in developing countries. 1.2 Scope and Objectives

This project will cover 2 aspects of performance of Tesco plc: business and financial performance . Business performance includes the impact of mission statement, vision and strategy, management structure on Tesco plc, SWOT and PESTEL analysis of external environmental of Tesco plc, threshold capabilities and distinctive capabilities analysis towards internal environment, and also value chain ,VRIN analysis. Financial performance mainly focus on all kinds of financial statements, it will be analysed through some key performance indicators (KPIs), such as sale growth percentage, ROCE, profit margins, assets utilizations liquidity indicators: gearing, current ratio etc. 1.3 Achievements

What I have achiveved in this project will be based on the detail information of the target company,especially the annual report of the company over last 3 years (2009-2011).At the same time a comparator will be required to compare the performance with Tesco plc. I choose Morrisons as the comparator, through the comparison, it will help Tesco plc to identify the area which need to be improved and how to improve it. 1.4 Overview of Dissertation

This project will include the following main elements:
Research: A survey will be include in this project, based on the current awareness of kinds of people to Tesco plc and Morrisons plc. The primary data will be analyzed in the business performance section, through the survey between these two companies, it will give the evidence to the last main section of this project which is Recommendation

Analysis: this is the main body of this project, business and financial performance will be analysed in detail using different business model and financial indicators. Similarly comparison between similar companies is vital in this section, especially the information based on the annual report, which include massive information I needed to strength the evidence of my arguments.

Conclusion: 3 elements will be included in this section. Summary, Evaluation and future works. Summarise the past performance of target company, Evaluate the current situation of target company, Recommend what’s future work need to implement to cover the shortage.

Recommendations: this will continue the future works in last section, but differently, the recommendation will be specific according to the weaknesses of Tesco plc, it will refer to other companies towards the improvement, other...
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