Finance Report: Analysis of Tesco's Financial Reports and Expansion

This report offers a comprehensive analysis of Tesco's financial position, organizational structure, and expansion journey. It begins with an introduction to finance and its importance in business, using Tesco as a case study. The report delves into Tesco's company structure, highlighting its functional organizational structure and management hierarchy, detailing how these structures facilitate its operations. It explores Tesco's financial reports, examining its expansion journey, key financial metrics, and revenue sources. The analysis also considers the challenges Tesco faces, including competition, economic downturns, and the impact of events like Brexit and the COVID-19 pandemic. The report concludes by emphasizing the crucial role of financial planning and effective organizational structures in achieving business success, particularly for public corporations in the UK. References to relevant academic sources are included to support the analysis.

FINANCE FOR PROFESSIONAL
ENGINEERS
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
COMPANY STRUCTURE.............................................................................................................3
FINANCIAL REPORTS OF TESCO...........................................................................................4
EXPANSION JOURNEY...............................................................................................................4
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................6
INTRODUCTION
Finance is the essential part and resource of every business organization. Managers use
effective financial resource in order to attain success of their business organization. In order to
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understand the concept of finance, Tesco has been taken. It is one of the largest retail
organizations of the world and one of the most famous corporation of Britain. It was started in
19119 with providing grocery service though their supermarket chain .The target market area of
the organization have large range .In this report, a brief summer of Tesco has been define and
use and importance of organization structure, us ob Tesco .This report also based on the analysis
of cash flow and financial statement of the organization to the bass of which finding has been
determine. This report also includes about how Tesco earn reduce from it operating activities’.
COMPANY STRUCTURE
Tesco is one of the most popular public corporation of United Kingdom , this organization
will help in increasing the percentage of GDP and provides employment and enhance the
capital market of UK within the world economy. The management department has build
effective organizational structure of this organization.
Organizational structure: This is prepared to define how business entities allocate
their task, activities and resources in order to achieve organizations predetermine goal.
There will be many yes of organization structure. Tesco follow functional organizational
structure. Because it focuses on various departments and it operates many business activities
win market area. They use this type of structure because they have multiple of business
activities though which their earn revenues. This structure depict that Tesco need to manger
all the stores, department and of different region and countries and manger their workforce
though effective they thus functional structure provides benefits to them. This chart show
hat for handling all the countries market they hire regional manager at top position which
take place in management structure in lower level of management. They select store
management and he personal supervise all the food trading, non food training, personal
manners (Elazouni and Abido, 2014).
Managerial structure: The organization follows systematic management structure. They
used traditional hierarchy structure of management. They follow op to down structure
according to which there will be 3 level of the managerial structure. In top level of
management president of the company, CEO, CFO, and other non executive directors are
hired at top position. They formulate objectives and plans for business organization. In top
level 9 more communities’ directors also take place.
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Middle level: This level of organization structure is provides linkage between ground level
and top level of the organization. At level vice presidents and assistance mangers have been
taken their place. They provide funds and organize all the policies and strategies formulated
by top level of Tesco.
Lowe level: At this level regional mangers take place. They work and formulate policies for
stores department and supervise the work of their workforce. They provides link between
works and mangers they share problems of the workers to the middle level of managers.
Success of the organization depend on how effectively all theses structure mangers
coordinate between all the structure mangers (Elazouni and Abido, 2014).
Tesco follow functional organization structure because they have many lays business
operation and it is second largest corporation of Britain, which deals in supermarket due to
large target market area of range function structure helps in managerial the specialise, team
members will be liable to report only one manger which maintains coordination among the
organization and resources are used effected there will be no conflicts regarding duty and
responsibilities thus they use it to effectively run their business cycles within the
organization.
FINANCIAL REPORTS OF TESCO
EXPANSION JOURNEY
Tesco is one of the trading business retail business corporation of London. It deals with
groceries and general retail goods and services of the business. The organization was striated in
1919 , in Hackney London by Jack Cohen. They started market stalls . The name Tesco has been
combination of Jack Cohen and Stockwell with whom Jack purchased shipment of tea. The first
shop of the organization was open in 1931 in Barnet. The organization is expended their business
rapidly and listed in London Stock exchange in 1947.In 1950 they open this first supermarket
which is situated in Maldon. The organization expand their business activities in 1950 and 1060s.
At the time they acquire many retails shops they purchase, Williamson shops, Phillies shops, .
The main motive of the Jack founder of the Tesco is to that according to hem they cannot expend
their if they sell their goods an services within the local market thus in order to expand their area
the need to acquire more retail shops and cafe. In order to expand their organization and beat its
rivalry company Salisbury they took and acquire supermarket in order to maintain their position
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in the market they introduced new and innovative products and services to their customers. They
started loyalty card and club card activities in 1995 and internet shopping services. The
organization run their business cycles in Netherland, Chilli , Northern inland in 1998,. They also
started campaigned .They started dealing in financial service also. Now they are supply chain of
supermarkets, hypermarket superstores a convinces hopes in all over the world. Their market has
to be expand in Ireland, India, Malaysia, Thailand Poland and Hungry and America. Net income
of the Tesco is more than 1,32 billion and they have more than 7000 shops within the world.
Tesco has 5 subsidiaries though which it gerante income. It includes, Tesco Stores, Tesco banks,
Tesco mobile, and Tesco Ireland. Tesco is the second largest public organization which
generates higher profits. The organization able to gerante profits because of their effective
managerial policies. The organization offers multiple screeds. The company gerante its income
through its shares .It invest in insurance, food mobile, clothing, optician and all the supermarket
SRFVIE . It has 30 % market share in the UK (Bergsten, Engelbrecht, and Kågesten, 2015).
Main purpose of the Tesco is to earn and maximize its share by provide full disaffection to its
customers. They provide its goods and series at cha price rate. Tesco generate its sources of
fiancé by issuing shares in market , and it grant loan from bank of England more over it also
issue debenture. The company invest in securities market. The main source of its income it the
revenue for its operating business activities. The company earn its income continuous until eh
rescission rate comes in Britain market. But the company able to maintain its position in the
market. The company profits effect after the BRIXIT agreement as its revenue main source are
focused in to European countries and its main workers are based in the. They workers belongs
from European countries that place this affect the agreement their cost of human resource
increase with increment in the cost of manufacturing and distributing products and services of
the organization. The main barriers of the Tesco faces is that the organization operate its business
in government sector at present time various supermarkets are established even local people
provides grocery products at low cost. Its rival Sainsbury also enhancing its business. Due to the
rescission period and the latest Brixit agreement the economy of the UK decline and it directly
affect on the organization. Even at the present time organization also suffers from CORONA
pandemic thus due to location its revenue in 2020 goes down and the sales rate in upcoming
years also not inhaling high rate.
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CONCLUSION
From the above analysis it has been concluded that financial position play effective role in every
business organization. Specially for investors , they analysis the financial statement of the
organization before investing in the business. Business corporation formulate organization
structure though which they are able to allocate their resource and business activities’ in effective
way it provides guideline to the businessman for in order t achieve their organizations goal. In
the UK public s organizations use effective organization structure .IT will help in maintaining
coordination between employers and mangers. They also use prepare financial report though
which the can able to recognise their performance of can activities and performed of financial
another resource of the organization. Success of the business orgniatin totalt depand on efectvely
they uses their financial resource and built effective strategies and plan in order to attain their
goals.
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Elazouni, A. and Abido, M.A., 2014. Enhanced trade-off of construction projects: Finance-
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Bergsten, C., Engelbrecht, J. and Kågesten, O., 2015. Conceptual or procedural mathematics for
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