TESCO PLC

Tesco PLC

Executive Summary

The main purpose of this paper is to select a company and conduct a report on three components. The company chosen in this paper is Tesco PLC, and the first component of the paper is comprised of the stakeholder analysis. This component will analyze the major stakeholders of the company and their interest management. In the second component, audit of Tesco PLC has been analyzed that shows the current position of Tesco and analyze the business planning models and strategies of Tesco. Tesco's financial position has also been discussed in this paper by using the decision making methods. The third component of the paper makes an analysis of investment appraisal techniques and an appraisal of manufacturing operations options.

Table of Content

Introduction to Tesco PLC7

Component 17

Introduction7

Stakeholders of the Company8

Interest of Stakeholders from the Company8

1. Shareholders8

2. Senior management8

3. Employees and workers8

4. Suppliers and contractors9

5. Customers and consumers9

6. Broader social environment and NGOs10

7. Competitors10

8. Communities10

9. Interest Groups/Activists11

10. Local, Regional and Global Authorities11

11. Principal Industry and Business Associations11

Recommendations12

Conclusion12

Component 2:12

Introduction12

External (macro-environmental) analysis13

Porter's Five Forces13

PESTLE Analysis13

Political Factors13

Economic Factors14

Social Factors14

Technological Factors14

Internal analysis15

Strengths:15

Opportunities:15

Weaknesses:15

Threats:16

BCG Matrix16

McKinsey's 7 S16

STRATEGY (Strategy)16

STRUCTURE (structure)17

SKILLS (Skills)17

SHARED VALUES (Shared Values)17

SYSTEMS (Systems)17

STYLE (Style)18

STAFF (Personal)18

Financial Analysis18

Profitability Ratios18

Efficiency Ratios19

Liquidity Ratios19

Investment Ratios19

Business Strategies19

Product, brand and positioning Strategy20

Creative Strategy20

Communication Strategy & Testing20

Customer Relationship Strategy21

Recommendations21

Conclusion21

Component 3:22

Introduction22

NPV22

Advantages22

Disadvantages22

Advantages23

Disadvantages23

Payback Period23

Advantages23

Disadvantages23

Project Assessment24

Payback Period24

Net Present Value25

Conclusion26

References27

Tesco PLC

Introduction to Tesco PLC

Tesco is a significant international retailer. As a global business, the company perceives itself as having a vital role to play in helping to minimize its environmental impacts. Although based in the United Kingdom, Tesco PLC has developed into an international grocery and general merchandising chain, employing 440,000 staff worldwide and with sales exceeding £59 billion (in the year ending February 2009). Operating income exceeded £3 billion. These figures make Tesco the largest British retailer in terms of both combined sales and domestic market share, and the third largest in the world after Wal-Mart (United States) and Carrefour (France). It is claimed that £1 in every £7 of UK retail sales goes the way of Tesco. Component 1:

Component 1

Introduction

This section gives a brief analysis on the company's stakeholders and their interest on the company. This section also gives an overview that how they can be managed effectively in the organisation.

Stakeholders of the Company

Interest of Stakeholders from the Company

1. Shareholders

The shareholder is an investor who provides capital to the company and can more or less involve in their management. Given the contribution made generates certain expectations about the behavior of the company in general and with regard to their contribution. Their interest with the organisation is to get the return from the company's shares and investments.

2. Senior management

They want to assume the management of the company and also generate certain expectations about it (Aaker, 2009, p. 137). They are perhaps the part that the company may identify itself as a relationship manager node. Their interest with the company is to gain the profit from the company.

3. Employees and workers

As the main asset of the organization and certainly one of the stakeholders closest to the organization, CSR requires ...