Inquiry Based Learning: Tesco Plc's Financial Performance and Rewards

This report provides an analysis of Tesco Plc's business and financial performance, focusing on whether the company's shareholders are appropriately rewarded for their investments and the risks they undertake. The report begins with an introduction to the retail industry in the United Kingdom, highlighting key statistics such as total sales, employment figures, and the growing importance of online retail. It then examines the challenges faced by the retail sector, including shifts in consumer behavior, economic uncertainties, and the impact of Brexit. The report then introduces Tesco Plc, describing its history, market position, and the aim of the analysis, which is to assess the company's financial performance and the rewards provided to its shareholders. The report references key sources, including reports from Retail Economics and articles discussing the performance of the UK retail industry, and the challenges faced by major retailers like Tesco.

Inquiry Based Learning
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Table of Contents
Introduction......................................................................................................................................3
Aim of this report........................................................................................................................3
Objectives of project...................................................................................................................3
Retail trends.....................................................................................................................................3
References........................................................................................................................................5
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Introduction
Present investigating report is specifically based on a particular business organisation i.e.
Tesco Plc. Basically, this assignment is going to be enclosed with financial performance of a
company and also it will consider a particular objective which is shareholders of this
organisation are specifically rewarded appropriately or not with all the risks that are taken into
consideration and investments as well.
Retail trends
According to Retail Economics, (2020), retail industry of United Kingdom consists of a
total value of £394 Billion in terms of sales (2019). Including this, if it is talked about employees
that are working within the United Kingdom's retail industry then it is carrying the numbers of
around 2.9 million. Also, Proportion of consumer spending that goes through retail is 1/3, which
means this sector is considering one of the powerful influence over United Kingdom's growing
economy. On the other hand, online proportion of retail sales done by this industry in the year of
2019 is approximately 19%. Also, growth percentage of retail sales of different products and
services offered by different business organisations and more has performed is approximately
3.4%. Away with this, total number of VAT-registered retailers within United Kingdom is
around 209,000 (2019) also, if it is talked about the retail outlets and supermarkets then these
numbers are 306,650. Also, amount retail generates of total GDP (GVA) is around 5%. Including
this, it is said that average annual growth of online retail sales in 2019 was approximately 10%.
Lastly, online sales of retail industry due to Big Four Supermarkets and other famous retailers
has helped in rising three fold in the last 10 years which is around 324%.
On the other hand, if it is talked about retail industry challenges, then it is said that due to
this, retailers were facing different changes, which can be considered as trends. The primal trend
that came in front in this industry is shift of consumer's mindset from offline shopping to online
where customers also changed their spending nature (much more cautious) as well, which
triggered number of economic uncertainty along with the concerns about business environment..
Away with this, major challenge that was faced by retail industry was Brexit, where twice
United Kingdom faced the prospect of a no-deal Brexit. This impacted upon demand of different
products and services within the festive period (end of 2019). Therefore, this particular situation
can effectively be considered as a situation of political instability. Also, it is said that 2019 was
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the worst on record for British retail industry, with sales falling for the first time in 24 years as a
dire performance on the high street dragged down the sector.
Analysis of the organisation
TESCO PLC, is one of the famous and largest British multinational groceries and general
retailer, who is offering customers with high quality products and services at lower prices.
Basically, this organisation was found in the year of 1919 by Jack Cohen and headquartered at
Hertfordshire, England, United Kingdom. This organisation is said to be third-largest retailer in
terms of world measured by gross revenues. Along with this, if it is measured in the terms of
revenues then this company is coming on ninth-largest retailer in all over the globe.
Aim of this report
 To analyse the business and financial performance of a company. A study on Tesco Plc.
Objectives of project
 To identify if, Tesco Plc's shareholders are properly rewarded for their investments, risks
they have taken or not.
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References
Books and Journals
Online
UK RETAIL STATS & FACTS. 2020. [Online]. Available through:
<https://www.retaileconomics.co.uk/library-retail-stats-and-facts>.
UK retail industry suffered worst year on record in 2019. 2020. [Online]. Available through:
<https://www.theguardian.com/business/2020/jan/09/uk-retailers-suffer-worst-year-
record-job-cuts-store-closures>.
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