After the end of every year, major companies produce an annual report to show shareholders or poteintial investors their performers for the year. Throught this report, the company is able to plan and set goals for the next trading year. Therfore, allowing them to identify their weakness and streanght.
The purpose of this report is to analyse Tesco’s annual report. The reoprt consist of a sypnosis of Tescos, describing what it does where it does it, how many people it employs and whether it is growing or declining. It also consist of the main accounting policies used by the company; analyses of its financial performance for four years. It also shows the ratios for the performance analyses.
1Sypnosis of Tesco:
Tesco was founded in 1919, by Jack Cohen, after serving in the Royal Flying Corps during the First World War. 21-year-old Jack decided to invest his service man's gratuity of L30 in NAAFI surplus groceries to sell from a stall in the East End of London. His first day's turnover was L4, and his profit L1. His business has been growing up successfully.
•The first shop opened in 1929.
•The first warehouse opened in 1934.
•The first 100 branches by 1939.
•Tesco comes to Central Europe in 1994.
1.1 What it does:
Tesco’s core purpose is to create value for customers to earn their lifetime loyalty (CSR GLOBAL 2011). Therefore its success depends on the people shops with them and the people who works for them. This is why Tesco go the extra mile to make sure that what they do is rewarding using the following values as their ke values: •No one tries harder for customers, and
•Treat people as we like to be treated.
In addition to its purpose, Tesco focus on education, public health, sporst and environment. By this, they support chldren with speech and language difficulties in partnership with “I CAN”. It also offer scholarships and esterblish community centres. Tesco Charity Trust dedicates 1% of pre-tax to good causes and In terms of environmentl protection Tesco has intergrated its coorate responsibility in its environmental management including topics such as emission, resources, waste and recycling etc.
1.2Where it does it
Tesco is a multinational company with 4,811 number of locations including China, Japan, Malaysia, South Korea. Thailand, India, Czech Republic, Hungary, Poland Slovakia, Turkey, Republic of Ireland, France, United States and United kingdom. Europe’s region excluding Unite Kingdom occupies 29.5% of Tesco Stores, Asia occupie 33.8%, United States occupies 1.5% while United Kingdom being the largest occupies 35.1%.
1.3.How many people it employs
Tesco is yet, one of the world’s largest retail store. Its Asia region (i.e South Korea, Thailand, China, Malaysia and Japan) employs a total number of 94,241 people. However, in India, Tesco has a exclusive franchise agreement with Trent, the retail of the Tata Group. The European region excluding the United Kingdom employs a total number of 86,576 people; the Unites States region emplys a total number of 3,246 and the in the United Kingdom, Tesco employs a total number 287,669 people. In total, Tesco emplys a total number of 472, 000 people worldwide.
1.4Is it growing or declining
is Tescos growing or not? For of all, this is a multinational company, it is a Public Limited Company and anyone can buy shares or invest in it. Since 1998 Tescos has grown and it has become one of the largest probably the largest retail campny in England. This is because Tesco meet the needs and expectation of customers by providing a wide range of food quality products at very competitive prices. Tesco’s employees are very approachable and knowledgeable to their customers and they do their best to support customers so that customers return. Tesco has sufecient loyal customers which allows them to meet their targets. In addition Tesco desire to put together a long term relationship with...