TESCO

Tesco Company in UK



Table of Content

INTRODUCTION1

Background of TESCO1

Mission2

Vision of Tesco2

Value of Tesco2

FINANCIAL ANALYSIS3

Profitability Analysis4

Leverage Ratios6

Assets Management7

Investors Ratio8

COST STRUCTURE BENCHMARKS9

Profit9

Costs10

BALANCED SCORECARD TO EVALUATE THE PERFORMANCE OF THE TESCO11

Consumer Sentiment index12

Percentage of Services Conducted online and Grocery Wholesaling12

Inbound trips by non-UK residents13

RECOMMENDATION AND CONCLUSION16

REFERENCES18

APPENDIX20

Tesco- Financial Analysis

Introduction

Background of TESCO

Tesco is one of leading food retailer in Ireland and United Kingdom with the 2715 stores in the country. Tesco founded by Jack Cohen in 1919 located at East London. Company's management was moving forward by two key people they are Sir Terry Leahy -Chief Executive and David Reid - Chairman (Anthony S. & Marcia M. 2005, pp. 14).

Tesco's plc has an ultimate product ranges those are Groceries, Telecoms, Financial service and Consumer good. The total Revenue of the company in 2011 is £ £60,931 million, and operating income was £3,811 million in 2011. Tesco's net income is about £2,655 million; all these figures are of FY2011. Over all have the approximate + 440,000 employees' worldwide and nearly 2300 stores up to the financial year of 2009. Tesco has some subsidiaries' like Tesco Ireland limited; Tesco Store limited and Tesco Personal finance are the main business lines.

Tesco operates in Europe, Asia, US, Tesco Bank along their operation in UK. Tesco involved in the online services, as well. Its online channels that offer retailing services are www.tesco.com and Tesco Direct. Grocery retailing services offer through (www.tesco.com) while the general clothing, merchandizing, electrical are offered through Tesco Direct.

The Tesco stores and Phone shops operated through Tesco Telecom across UK. However, Tesco telecom also controls Tesco Mobile which is the, network of virtual mobile in UK, Ireland and Slovakia. The presence of Tesco is also in the International calling card market. Furthermore, Tesco has been involved in the operation of dunnhumby which provide consumer insight, market related research. Moreover, dunnhumby also supports the Tesco Clubcard. Likewise, these services are also offered to the external clients. Recently Tesco operates in the food retail sub-industry, 95% of revenues generated through their food products. Their main competitors are Wal-Mart, Sainsbury's, Morrison's, Safeway, and Whole Foods (www.tesco.com).

Mission

Tesco's mission is to generate worth for consumers to gain their loyalty for the life time. Tesco's success is reliant on the customers and the people, the customers who do the shopping and people who are working with them. Customers are likely to return if they like what Tesco is offering them, and shop again with them. If the team finds what Tesco reward them, team work more hard to help customers.

Vision of Tesco

The vision of Tesco focused on the value they should receive by their customers, the communities they are serving, their staff and shareholders. Hence, with this value company can be a growth company. Furthermore, Tesco wants to be an innovative and modern company who wants to win the customer trust through their skills and applying these at globally, as well. Moreover, they want to be highly valued business across the globe. Tesco want to diversify their business and wanted to ...