Preview

Non Financial Factors

Best Essays
Open Document
Open Document
2496 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Non Financial Factors
TABLE OF CONTENT

INTRODUCTION 1
TESCO’S RATIO ANALYSIS 2
SUMMARY TESCO’S RATIO 13
COMPARATIVE ANALYSE – Tesco’s Vs Marks and Spencer’s________________ _______14

CRITICAL ANALYSIS OF TESCO PLC__________________________________________ 21
CONCLUSION ?
BIBLIOGRAPHY ?

APPENDIX 1 –TESCO’S PLC
APPENDIX 2- MARKS AND SPENCER’S- CONSOLIDATED STATEMENTS

I-Introduction
This report will evaluate the financial performance of Tesco’s and comparing it to Marks and Spencer’s has the purpose of evaluating the company 's worthiness as investment. As a well knowing company around the world and having an important background in the retail environment Tesco’s is one of the largest supermarkets in the world. Present in 14 countries around Europe, Asia and North America. Tesco’s is always dealing in the financial world, providing also bank and insurance services.

‘Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Over the years our business has grown and we now operate in 14 countries around the world, employ over 500,000 people and serve tens of millions of customers every week. We have always been committed to providing the best shopping experience. Today we continue to focus on doing the right thing for our customers, colleagues and the communities we serve.’ (Tesco 2012).

The first section of this report, which is the main body, will use financial statements from 2010, 2011 and 2012, along with standard financial ratio analysis to develop a clear picture of Tesco’s financial performance comparing to the competitor.
The second section includes a comparative analysis of the competitor strategy and also a conclusion on the performance and health of Tesco PLC based on the years 2010, 2011 and 2012.
The third section, presents a critical analysis containing the non-financial factors and risks impacting on the future of Tesco PLC.

II-Tesco’s ratio analysis: Ratio Analysis simplifies the financial statement



Bibliography: London Stock Exchange (2012). Tesco PLC ORD SP. London Stock Exchange (2012). Marks and Spencer Group PLC ORD 25P. Available at:http://www.londonstockexchange.com/exchange/prices/stocks/summary/fundamentals.html?fourWayKey=GB0031274896GBGBXSET1 Mark and Spencer (2010)-Annual Report and Financial Statements. Available at http://corporate.marksandspencer.com/documents/publications/2010/annual_report_2010 http://corporate.marksandspencer.com/documents/publications/2011/annual_report_2011 http://corporate.marksandspencer.com/documents/publications/2012/annual_report_2012 (Yahoo Finance, 2012) http://www.bizmove.com/finance/m3b3.htm APPENDIX 1 APPENDIX 2 APPENDIX 1 APPENDIX 2

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Tesco plc is not in a secure financial position. Improvements in every aspect of the business are necessary in order to survive in such a competitive market. The main areas of reform in the company are its liquidity and profitability position, as well as…

    • 69 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Tesco Coursework

    • 11594 Words
    • 47 Pages

    As part of my Applied Business GCSE, Unit 1 Controlled Assessment I have chosen to study Tesco’s. Tesco Plc is a global grocery and general merchandising retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia and Thailand.…

    • 11594 Words
    • 47 Pages
    Better Essays
  • Good Essays

    As Tesco is a profit-based business, it maximises their sales and profit, expanding to maintain its competitiveness in addition to outshining competitor. It also focuses on providing shareholders with progressive returns on their investment improving profitability through investment in efficient stores and distribution depots, in productivity improvements and in new technology, developing the talents of its people through sound management and training practices, while rewarding them fairly with equal opportunities for all. Another objective of Tesco is working closely with suppliers to build long term business relationships based on strict quality and price criteria, participating in the formulation of national food industry policies on key issues such as health, nutrition, hygiene, safety and animal welfare and supporting the well-being of the community and the protection of the environment.…

    • 3010 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    The purpose of this report is to conduct a comparative ratio analysis of the financial statements of J. Sainsbury PLC and Tesco PLC for the year-ending 2013. The financial information that is provided from each company’s annual report and the comparison between them will help possible users of this analysis to understand not only the differences between these two companies but also each company’s weaknesses and strengths. Below, the profiles of the two companies will be referred as well as eight accounting ratios for each company will be presented in order to have the appropriate financial information to analyse. Furthermore, the possible users of this analysis will be identified and all their differing information requirements will be mentioned. Finally, there will be provided a short discussion on the importance of supplementing financial analysis with non-financial considerations and a general conclusion will be made which will contain a summary of the main findings of this report.…

    • 2657 Words
    • 14 Pages
    Powerful Essays
  • Best Essays

    Tesco Plc (2011) states, that the retail industry is a highly competitive environment. Tesco competes with a wide variety of retailers of varying sizes and faces increased competition from UK retailers as well as international operators in the UK and overseas. Failure to compete with competitors on areas including price, product range, quality and service could have an adverse effect on the organisations financial results. Tesco aims to have a broad appeal on price, range and store format in a way that allows them to compete in different markets. There is a risk that Tesco may not deliver their stated strategy in full, particularly since, like all retailers; the business is susceptible to economic downturn that could affect consumer spending.…

    • 2350 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Tesco want to expand locally, internationally, in non-foods and retailing services (Tesco Personal Finance). Tesco’s success depends on people; the people who shop with them and the people who work with them. If their customers like what Tesco offer then they are more likely to come back and shop their again. If the Tesco team find what they do rewarding they are more likely to go that extra mile to help their stores.…

    • 2807 Words
    • 12 Pages
    Good Essays
  • Good Essays

    As Tesco is a profit-based business, it maximises their sales and profit, expanding to maintain its competitiveness in addition to outshining competitor. It also focuses on providing shareholders with progressive returns on their investment improving profitability through investment in efficient stores and distribution depots, in productivity improvements and in new technology, developing the talents of its…

    • 3095 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    P1 Unit 12 Business Analysis

    • 10672 Words
    • 43 Pages

    Tesco has a well established and reliable strategy for growth, which has allowed them to strengthen their business and drive expansion into new markets. The underlying principle for the strategy is to expand the range of business to allow them to deliver strong sustainable long-term growth by following the customers into large expanding markets such as financial services, non –food and telecoms and new markets abroad, initially in central Europe and Asia, and more recently in the United States.…

    • 10672 Words
    • 43 Pages
    Powerful Essays
  • Powerful Essays

    Morrison’s

    • 1527 Words
    • 7 Pages

    There is no doubt that the income statement and balance sheet are the most fundamental components of financial statement, which can provide much information. As for the former, it summarizes the company’s operating performance, which records the revenues, expenses and shows the flows of the company over the reporting period, while the balance sheet gives a snapshot of a firm’s assets and liabilities at a precise point time. Taking the specific companies as an example, both items can be argued as the evidence for Morrison’s and Safeway to illustrate its current financial position and the trend of profit performance. The Morrison’s supermarket, which is the fourth largest chain of supermarkets in the United Kingdom. Before 2004, locations of Morrison’s store primarily focused in the northern England, while Safeway supermarkets chain was mainly located in Scotland and the South of England, which owned over 480 stores. As one of the leading retailers in the UK, Morrison’s acquired Safeway in 2004 and now has over 420 superstores across the UK. This essay will evaluate the income statement and balance sheet particularly by analyzing the case of Morrison’s including the acquisition of Safeway, then I will demonstrate my recommendations in the conclusion.…

    • 1527 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Tesco Aims and Objectives

    • 1396 Words
    • 6 Pages

    Tesco is now a very successful retailer in the UK. Also, it is the second-largest retailer in the world measured by profits and third-largest retailers in the world measured by revenues. Which it is the business that I have selected to carry out my investigations.…

    • 1396 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Ansoff Matrix of Tesco

    • 566 Words
    • 3 Pages

    As part of our study let’s analyze Tesco with the help of Ansoff Matrix. The matrix analyze a company based on two aspect ‘market’ and ‘product’. Based on this there are four part, they are :…

    • 566 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Corporate Strategy of Tesco

    • 4104 Words
    • 17 Pages

    The company that our group has chosen to analyse is Tesco. Tesco was founded in 1919 by Jack Cohen who began his new venture by selling surplus groceries from a stall in the east end of London; One his first day he made £1 profit and £4 of sales (Tescoplc.com [history]). Tesco has come a long way since then and is now one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. Not only has Tesco managed to monopolise the food sector, they have also diversified into a number of other sectors, some of which being insurance, mobile networks, clothing, and electronics. However, this report shall have a focus of the food sector in the United Kingdom.…

    • 4104 Words
    • 17 Pages
    Best Essays
  • Better Essays

    Tesco Culture

    • 1555 Words
    • 7 Pages

    * Assess the vantages of the organization which is found to be highly diversified in Tesco…

    • 1555 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Marks and Spencer Group (M&S) is the premier retailer in clothing, foods and home ware within the United Kingdom. The company’s commitment to quality, value, service, innovation and trust is a key contributor to their success as a high street retailer in the UK. Their current core UK operations centre around three divisions, food, general merchandise (including clothing and home ware), and the financial services industry. Therefore Tesco plc is the prime UK retailer to analyse and compare growth, financial performance and the financial status of M&S Plc in line with other competitors within the same industry.…

    • 3962 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Unit 4 P2

    • 627 Words
    • 2 Pages

    This task is part of p2 where I will be writing a brief written report on the financial performance of Tesco. The information I have obtained is from the Tesco annual report 2012-13 which I obtained online through the Tesco site.…

    • 627 Words
    • 2 Pages
    Good Essays