Tesco

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Tesco- Nature of Business, Ownership, Structure, Services & Markets

BUSINESS

Tesco is one of the world's leading international retailers. The company first used the trading name Tesco, in 1929, it has since expanded from food retailing to different markets and sectors like insurance, telecom, online services, clothing, consumer electronics, consumer financial services, fuel, budget software etc.

The principal activity of the Tesco group is food retailing and it has over 2,500 stores worldwide.

Year of
entryNumber of
storesSales area
(million sq ft)Planned store
openings
2006/07
(inc acquisitions)
UK1,89725.9124
________________________________________
Czech Republic 1996352.550
________________________________________
Hungary1994874.322
________________________________________
Poland19951054.839
________________________________________
Rep. of Ireland 1997912.18
________________________________________
Slovakia1996372.312
________________________________________
Turkey200380.622
________________________________________
China2004393.512
________________________________________
Japan20031110.311
________________________________________
Malaysia2001130.94
________________________________________
South Korea 1999624.132
________________________________________
Thailand19982196.8180
________________________________________
2,71058.7516
________________________________________
(correct to end of last financial year - 25 Feb 2006)

OWNERSHIP

Tesco PLC is a publicly owned company its major shareholders as of 2004 were

1. Barclays Global Investors (3.82%)
2. Legal and General (2.79%)
3. Schroder Investment Mgt Ltd (2.87%)
4. State Street Global Advisors (2.73%)
5. Axa Investment Managers (2.63%)
6. Threadneedle Investments (2.33%)
7. Scottish Widows (2.08%)
8. M & G Investment Mgt Ltd (1.99%)
9. Morley Fund Management (1.88%)
10. UBS Global Asset Mgt (1.73%)

STRUCTURE

Tesco's Board comprises six Executive Directors and seven independent Non-Executive Directors, in addition to the Non-executive Chairman:

David Reid
Non-executive Chairman
Sir Terry Leahy
Chief Executive
Richard Brasher
Commercial and Trading Director
Philip Clarke
International and IT Director
Andrew Higginson
Finance and Strategy Director
Tim Mason
Group Marketing Director and Chief Executive USA
David Potts
Retail and Logistics Director
Rodney Chase CBE
Deputy Chairman and Senior Non-executive
Charles Allen CBE
Non-executive Director
Karen Cook
Non-executive Director
E Mervyn Davies CBE
Non-executive Director
Dr Harald Einsmann
Non-executive Director
Ken Hydon
Non-executive Director
Carolyn McCall
Non-executive Director

Lucy Neville-Rolfe CMG
Executive Director Corporate and legal affairs

The structure of the Board and the integrity of the individual Directors ensure that no one individual or group dominates the decision-making process.

SERVICES & MARKETS

Tesco provides various services to its customers besides food retailing, these services include :

•Life insurance
•Home insurance
•Instant travel insurance
•Instant breakdown cover
•Personal finance
•Telecom
•Personal shopper
•Deliveries
•Electrical goods
•Home entertainment
•Clothing
•Health & beauty products
•Stationary
•Kitchen utensils
•Soft furnishing
•Seasonal goods like barbeques and garden furniture
•Broadband connections
•Fuel

Today Tesco has stores all over the world including Czech Republic, Hungary, Poland, Ireland, Slovakia, Turkey, China, Japan, Malaysia, South Korea and Thailand and it employs more than 450,000 people worldwide.

PESTEL Analysis

PESTEL analysis stands for "Political, Economic, Social, Technologica, Legal and Ethical analysis. It describes a framework of macro environmental factors used in environmental scanning.
Political Analysis...
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