Sources of finance, financial documents, budget and pricing strategy of Tesco

PROJECT

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
CASE STUDY.................................................................................................................................1
1. Sources of finance of Tesco.....................................................................................................1
2. Examples of financial documents............................................................................................1
3. Budget employed by the company..........................................................................................3
4. Pricing strategy of the company..............................................................................................4
REFERENCES................................................................................................................................6

CASE STUDY
How they get their finance organised?
It has been analysed that Tesco is getting their finance organised by making use of phone,
mobile, insurance etc. This has assisted them in reducing the errors while recording the financial
transactions.
Explain what kind of budget is been employed.
During the year, significant progress was made on the rollout of the finance transformation
programme, with projects being delivered on time and within budget.
Company pricing policy
The company is making use of differential pricing strategy so that high amount of profits can be
used.
1. Sources of finance of Tesco
Every business requires finance for establishing as well as running the operations of
business successfully. it is the duty of financial managers to procure funds for the organisation.
They have to analyse different sources from which funds could be raised. it has to choose the
financial source that is most beneficial for the company. There are various sources of finance
available to company but, it is essential that most favourable source has been chosen by the
managers. Sources of funds used by the Tesco are
Equity
It is the most commonly used source for raising finance by the companies. Company can
raise funds from public by offering shares of the company which is holding in ownership in
proportion to the shares held. There are different classes of shares issued by Tesco (Bellavitis
and et.al., 2017). Company is not required to pay any fixed amount but only share in profits if
earned.
Bonds
Company can issue bonds for raising funds at fixed coupon rate. in this company is
required to pay interest every year. Tesco has also raised funds by issuing bonds of different
maturity period at different coupon rates.
Bank Loans
It is also highly used by the businesses for raising capital. Bank loans are granted on a
specified security or by creating charge against assets. Loans are provided after analysing the
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