Foundation Year Research Project on Tesco's Financial Performance

This report provides a financial analysis of Tesco, a multinational retail company, focusing on its aims, mission, and key financial ratios. It covers profitability, liquidity, efficiency, and gearing ratios to assess the company's financial health and performance. The report highlights Tesco's strategies for increasing sales, including diversification and online platforms. It concludes with recommendations for Tesco to further enhance its profitability and customer relationships, such as implementing loyalty programs and leveraging technology to understand customer preferences. The analysis aims to provide insights for investors and stakeholders interested in Tesco's financial standing and future prospects. Desklib offers similar solved assignments and study tools to support students.

Foundation Year Research
Project

Table of Content
 Brief Background information of your chosen business
 Aims and Mission statement.
 Profitability Ratios
 Liquidity Ratios
 Efficiency Ratios
 Gearing Ratios
 Conclusion and recommendations
 References

Foundation Year Research Project
Introduction
Tesco is a multinational company all over the world. It is the
third-largest retailer in the UK. Tesco is a grocery store
which sells various products. To increase their sale Tesco
uses the diversification method (Aiello and et.al., 2020).
They sell the grocery and also the petrol, clothes and many
products which increase its sale.
Brief background
Tesco is a British multinational company in the UK. It is a
grocery retail store in the UK. Its headquartered is in
Welwyn Garden city, England. It is the third-largest retailer
in the world measured by revenue. Its retail shop is the
across the world. It is the market leader in the grocery in the
UK.
Aim and objective of Tesco
• TESCO maximise its sale by doing the increase the
profit. They Increase the sale by attracting customers to
the store.
• TESCO decrease the price of products (Rosnizam and
et.al., 2020). The company cut the price and increase
their sale. This is a good initiative for the customer
attract with lower price.
• Introduce the healthiest food to their grocery customer.
This is a good initiative for the customer so that the
consumer comes to the store and purchases the product.
• Tesco aims to develop a large internet online shopping
site it gives a large number of customers and a
worldwide reputation the company.

Profitability Ratio: It is the class of financial metric that is
used to assess a business's ability to generate earnings from the
operating cost, shareholder equity, and balance sheet assets. The
profitability ratio shows how a company efficiently generate
profit and value from the shareholder. A high profitability ratio
indicates that the company doing well with fewer assets and
also high profitability shows the business efficiency (Guo and
Wang, 2019).
Liquidity Ratio: The operating ratio shows the company's
efficiency in the management by comparing it with total
operating expenses in the company. The operating ratio shows
the how company manage efficiently management. The
operating Management keeps costs low and increases the
profit. The limitation of the operating ratio it doesn’t include
the debt. The decline in the operating ratio shows that positive
sign for a company (Evans and Mason, 2018).
Efficiency Ratio: The efficiency ratio indicates how well their asset and liabilities are internal. The Efficiency ratio calculates
repayment of the liabilities, the turnover of receivables, Inventory and machinery usage, and quantity of the equity. This ratio is
used by the commercial and investment bank to track and analysis the performance (Lomoio and et.al., 2020). The Efficiency ratio
is known as the activity ratio it measures the company's short term and current performance.
Gearing Ratio: The gearing ratio is the financial ratio that compares some form of equity with debt. The gearing is the indicator of
the financial risk of the company If a company's financial debt so it can fall into financial distress. A high gearing ratio indicates the
high proportion of the debt as per the equity (Domański and Łabenda, 2020). While the low gearing ratio shows the opposite.

Conclusion
 As per the above discussion, Tesco is a British company it is the third-largest retail
company all over the world.
 The company's aim and objective are to increase sales all over the world and also use the
online shopping platform for the sale. The company use an online platform for customer
who lives in other countries and they wanted to purchase the product the Tesco.
 This report also covers the profitability ratio for the company because of the use of these
ratio investors analyse the company profit so they invest in the company.

Recommendations
 It is suggested to the organisation the company make some strategies plan for the increase
their sale.
 Tesco Company makes a relationship with the customer it increases the strength of the
Tesco and the customer spends more time in their Tesco store and purchase their product.
 Tesco spends a greater amount on the product so that the company available all products
in one store so consumers are not here and there to search for the product. Tesco's
Management system is well organised the consumer is not asked about the product.

Continue..
 It is suggested that the Tesco company increase the loyalty programme for the customer which
increase the customer strength in the company.
 Tesco company also use the technology the understand the customer preference available at the
Tesco store. Tesco sued the technology for the development of Tesco. Tesco manages the
customer trend and allocates resources and capital on the time.
 Tesco also uses the method of penetration to increase its profitability in the company. Tesco uses
also some different techniques for attracting customers they use offers and referral codes the
increase their customer strength.

References
 Aiello, L.M., and et.al., 2020. Tesco Grocery 1.0, a large-scale dataset of grocery purchases in
London. Scientific data, 7(1), pp.1-11.
 Cantley, W.L., and et.al., 2018. Functional and sustainable 3D human neural network models from
pluripotent stem cells. ACS biomaterials science & engineering, 4(12), pp.4278-4288.
 Domański, R. and Łabenda, M., 2020. Omnichannel of private label grocery products in Tesco and
Carrefour retail chains on the Polish market. Ekonomski Vjesnik, 33(1), pp.191-202.