Analysis

Financial Analysis

FINANCIAL ANALYSIS

Introduction

Tesco is one of Britain's leading food retailers and has 586 stores though out Great Britain. From 1992 Tesco has grown greatly and has increased its market share from 10.4% to 15.2%. This increase in customers has also given Tesco a large amount of profit.

Tesco has 164,500 shareholders. Tesco's profit is about 505 million pounds after the tax has been deducted; about 50%of this is then distributed to the shareholders as dividends. The rest roughly 250 million pounds is held back for investment in stores and improving services for the customers. The average shareholder holds between one and one thousand shares, but also a large amount of shares are held by banks, pension funds and building secrets. Tesco's share prices have risen since February 1997 when it was 349p to 586p on the 21st April 1998. The shares have peaked a high price of 603p. With this growth Tesco's is now the largest super market chain.

Tesco has a wide of operation and wants every one to buy their products. This is though as it is normally people who have moved out of their parents home and have accommodation of their own. Tesco's aim is to get full time loyalty from their customers and to carry on increasing the value of their goods for the customers. They want to under stand and respect their customers better than other supermarket chains. Their staff is very important to them so they aim to please their staff for Tesco's values and also to realize their large contributions in to Tesco's empire. To increase life for customers Tesco's are all ways ready to take sensible risks to improve this. They also want to make life better and costumers shopping experience more enjoyable in no way other competitive company scan, they will do this through using there bring people who work for them and also using technology, intelligence and sales this all should help increase better value. Tesco have also introduced a range of financial services this was started in 1997. This includes newly started pensions, investment screams, insurance and credit cards. See back for information investment Tesco's.

Tesco's objectives of product promotion is to give a large and relevant range of product promotion in all of their stores. This then should be both relevant to both the customer and the product. They aim to differentiate their market and they try to make the promotion strategy applied to the market they are aiming at. For example they would aim chicken shaped as rabbits at the parents with young children and not the elderly and retired population. They aim to operate a long side their normal goods a W.I.G.I.G strategy. Which is a set of one-off promotions, it stands for "When Its Gone Its Gone." Which are when Tesco sell leading and expensive brands such as Calvin Klien, but they sell these goods at very completive prices. They only have a limited number throw so it is once they are gone they are gone, most ...