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Tesco Performance Analysis Through Different Financial Statements and Brand Values

   

Added on  2021-02-19

16 Pages3357 Words383 Views
Individual Report

Table of ContentsEXECUTIVE SUMMARY.............................................................................................................3INTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3Current challenges faced by the UK businesses.........................................................................3Tesco performance analysis through different financial statements and brands values.............6CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10APPENDIX....................................................................................................................................12

EXECUTIVE SUMMARYTesco is the third largest retail industry in UK which provides various products and services toits customer like supermarket, superstore, hypermarket and convenience shop. It also facesvarious challenges due to economical, political, social, technological, environmental changes. Itaddresses the challenges in the market through the SWOT analysing by evaluating its ownstrength and different opportunity area. Tesco analyses the performance by analysing the ratiosthrough the financial statements like balance sheet, income statements, cash flow etc. Tescofollow the various ethical aspect such as address the environment issue. The popularity of Tescoalso spread to its supermarket chain. It operates 7000 retail store in all over the world whichprovide different market to enhance the brand image. The report provides a brief about thevarious challenges faced by the company and different ways to overcome its challenges.INTRODUCTIONTesco is the third largest retail industry in UK which deal in groceries and householditems. It provides various products and services to its customer like supermarket, superstore,hypermarket and convenience shop etc. It expands it business from 1990 by starting its operationin various other countries of world. The report highlights the various challenges faced by theorganization I the UK nations and different ways to overcome the challenges. UK is developedcountry but it faces several challenges due the change in the external and internal environment orchange in technology. The report explains the ways to overcome this challenges like usingeffective promotional and managing strategy. The report explains the challenges and ways toresolve the challenges through various forms of graphs, statistical data and number and bydifferent examples etc. It helps to explain the challenges of UK business with various financialdata like income statements, financial result, cost etc.MAIN BODYCurrent challenges faced by the UK businessesUK is a developed company which provides various growth aspect to the differentbusinesses to expand their business in different countries and take the advantages of technology,globalization, competitive advantage etc. still they have to face various challenges in the marketlike cross border trade, construction regulation, technology advancement, British culture andenforcing contracts (González-Benito, Martos-Partal, and Fustinoni-Venturini, 2015).3

Tesco is the one of the leading company in UK. It also faces various challenges due toeconomical, political, social, technological, environmental changes. PESTLE analysis of TescoPolitical changes : Tesco operate its business in different country. The politicalenvironment are different from one country to another country. For example The politicalenvironment of UK support the business of Tesco whereas in other country like Korea, India andJapan the various legislation, tax rates restrict Tesco to expand their business with variousproduct line or brands. Economic changes : The economic factor include the purchasing power of population,labour cost, inflation rate etc. The increasing inflation rate in Asian countries affect the businessof Tesco. It forces Tesco to provide its product at lower cost which ultimately reduces theirprofit. They also have o face the challenges like the change in increasing rate. Increasing interestrate and borrowing cost increases the cost and reduces the profit of Tesco (Meyerding, 2015, ).Social change : Tesco also face social challenges like change in consumer taste andpreferences, demand and supply of goods and services etc. Change in customer taste and buyingbehaviour reduces the market share of Tesco and force Tesco to improve its market strategy andproduct which increases its cost.Technology change : Advance technology in industry brings various challenges forTesco like it increases the competition in market, improve the competitor products and servicesand operational functions. The technology brings the various opportunity but the lack ofknowledge of employee creates the barriers in communication and transfer of product to thecustomer.Legal changes : The change in legislation, country rules and regulation affect thebusiness of Tesco. For example India provides various tax rebates to the multinational companylike Tesco to expand their business but the various country such as Japan and US have restrictedlegislation regarding the entrance of company in the market (Hammad, 2015).Environment changes : The change in environment like increasing pressure to addressthe environment issues such as reducing plastic begs, carbon emotions etc. and use the strategyoperational work which support the welfare of society. For example UK force Tesco to reducethe carbon footprints. Different measures to overcome challenges4

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