Financial Management: Tesco Case Study

Financial Management

Table of Contents
INTRODUCTION...........................................................................................................................3
REPORT..........................................................................................................................................3
Background of company .............................................................................................................3
Definition of FM .........................................................................................................................3
Objectives or significance of FM ................................................................................................3
Elements of FM ...........................................................................................................................4
FM strategies ...............................................................................................................................5
Different Financial Statements. ..................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
The present study is based on Tesco, a leading retailer in the UK operating in grocery and
supermarkets. Furthermore, the report throws deeper insights towards the meaning, importance
and the objective of financial management. Moreover it involves an elements and the strategies
of the financial management.
REPORT
Background of company
Tesco is seen as largest or leading British retailer and is called as the world's third
grocery retailer with an outlet across Asia, USA and Europe. The business has been started in the
year 1919 along with one man named as Jack Cohen, selling the groceries from the stall in an
East End of the London. It has been identified that he earned the profit on the first day valued as
£1 and the revenue of £ 4. Tesco has expanded its business on global level since early 1990s
with an operations in the more than 11 countries across the world. Tesco has diversified its
business into different range like books retailing, furniture, clothing, petrol, financial services,
toys, internet services and electronics.
Definition of FM
Financial management is seen as an integral part of an overall management and is
concerned with duties of the financial manager within the business organization (Ward and
Forker, 2017). Different authors had provided for different definitions of the financial
management that are as follows-
In accordance to solomon, financial management is mainly concerned with effective
and efficient use of an essential economic resources namely as capital funds.
As per S.C. Kushal, financial management deals with acquisition and optimum use of
the funds in the business so that larger profits could be generated.
In view of Howard and Upton, FM refers to an application of the managerial principles
towards the area that involves financial related decision making.
Objectives or significance of FM
The primary or foremost objective of FM is to ensure adequate and routine supply of the
funds to the business with ensuring appropriate and adequate returns to shareholders that will
depend on the earning capacity, expectation of shareholders and market price of shares (Mao and