Management : Analyse the Business of Tesco and Sainsburys Plc

Running head: MANAGEMENT
Management
Name of the Student:
Name of the University:
Author’s Note

MANAGEMENT
1
Table of Contents
Question 1........................................................................................................................................2
Introduction..................................................................................................................................2
Financial Ratio Analysis..............................................................................................................3
Recommendations........................................................................................................................9
Question 2......................................................................................................................................10
Requirement i.............................................................................................................................10
Requirement ii...........................................................................................................................10
Investment Appraisal Techniques..............................................................................................10
Question 3......................................................................................................................................11
Bibliography..................................................................................................................................14

MANAGEMENT
2
Question 1
Introduction
The main purpose of the assessment is to analyse the business of Tesco and Sainsburys
Plc for the purpose of ensuring that the financial position of the business and also analyse the
performance of the business considering five-year analysis. The analysis would be including key
financial ratios which is related to the businesses demonstrating the profit generating capacity of
the business. The analysis would be also providing appropriate recommendations for the purpose
of ensuring that the management is able to make improvements in the operational structure of the
business. The key areas which are considered for the purpose of analysis is also considered to be
important so that overall efficiency is maintained in the operations of the business.
Financial Ratio Analysis
Profitability Ratios
The business and Tesco and Sainsbury Plc are considered to be close competitors and
both the business also belongs to the same industry. The analysis of the profitability is
considered to be an important estimate as the potentials look into this aspect primarily for the
purpose of making decisions whether to make investments in the business or not.

MANAGEMENT
3
Figure 1a: (Profitability Ratios for Sainsbury’s Plc)
Figure 1b: (Profitability Ratios for Tesco Plc)