TESCO PLC: Analysis of Financial and Business Performance Report

This report presents an inquiry-based project analyzing the financial and business performance of TESCO PLC within the context of current retail industry trends. The report begins with an overview of the retail sector in the United Kingdom, including key statistics and emerging trends such as the shift to online shopping and the impact of Brexit. It then focuses on TESCO PLC, examining its operations, strengths, weaknesses, opportunities, and threats through a SWOT analysis. Primary research was conducted to gather stakeholder perspectives. Secondary research provides further insights into TESCO's strategic performance management. The project's aim is to assess whether shareholders are adequately rewarded for their investments. Based on the analysis, the report offers recommendations and an action plan for TESCO to enhance its performance and navigate challenges, concluding with a focus on technological advancements and market strategies. The report also includes references to books and journals supporting the research.

Inquiry Based
Learning

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Trends in retail industry..........................................................................................................3
Aim of the report....................................................................................................................4
Objectives of the project.........................................................................................................4
Primary investigation:............................................................................................................4
Recommendations..................................................................................................................7
Action Plan.............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals.................................................................................................................9

INTRODUCTION
This report is based on a specific business organisation that is TESCO Plc. The main aim of
the report is to analyse the financial performance of the company and also it is going to feature
the most important objective of an organisation i.e. the shareholders (Duran and Dökme, 2016) .
The report is going to investigate whether the shareholders are adequately rewarded or not taking
into consideration all the risks and investments.
MAIN BODY
Trends in retail industry
As per the Retail Economics, total value of £394 billion in terms of sales comprises the
whole retail industry of United Kingdom. Also, if we talk about the number of employees
working in the retail industry of United Kingdom it is carrying a number of around 2.9 million.
The proportion of consumer spending that goes into retail sector is one-third, which means that
this sector has a powerful influence on the growing economy of United Kingdom. In 2019 the
industry has done a online sales of approximately 19%. The growth percentage of different
products and services offered by various organisations is 3.4%. Along with this the number of
VAT dealers registered in United Kingdom is around 2,09,000, this is the figure of 2019. And if
let’s discuss about the supermarkets and retail outlets the number is 3,06,650. The total retail
generated is 5% of the total GDP. If the average annual growth of online retail sales in 2019 is
talked about, it is approximately 10%. Last but not the least the company which helped in
increasing the online sales upto 324% was the Big Four Supermarkets and some other well-
known retailers.
Now let’s talk about the challenges faced by retail industry, it is believed that the retailers
were facing many changes which can be said as the trends of retail industry. The primary and the
foremost trend that the industry saw was the shift in consumer’s preference from offline to online
shopping. The nature of spending also changed, the consumer has now become more cautious
which led to uncertainties in the economy. This also led to concerns for business environment.
Brexit was another major challenge faced by the retail industry, where the United Kingdom
faced no-deal Brexit that too twice. This impacted the demand of various goods and services
during the festive season. This situation could be termed as the situation of political instability.

Also, it is mentioned that 2019 was the worst year in records for the British retail industry
because the sales in this period fall for the very first time in last 24 years. The current market
trends prevailing in the international market are summed up below:
Prioritising experiences over shelf space: Now-a-days most of the business organisations
are using the latest technologies including the artificial intelligence. This is basically done to
attract the customers towards them because customers are now becoming technology friendly
and are always connected to the internet which makes their lives easier.
Taking online brands offline in creative ways: Many business organisations that were already
dealing in the online marketing of their products are now ready to open their physical stores in
different parts of the country or in the areas where their business has already been expanded. By
doing so the businesses are trying to build a faith amongst its customers that what is being shown
to the customers online is as same available at the offline stores as well.
Analysis of the organisation
TESCO PLC, one of the famous and well known British multinational groceries and
general retailer and also it is one of the largest organisations dealing in this line of business.
TESCO offers its customers with high quality products and services at reasonable prices. This
organisation was founded in the year 1919 by Jack Cohen. Its headquarter is situated at
Hertfordshire, England, United Kingdom. TESCO is the third largest retailer when measured in
terms of gross revenues. But when measured in the terms of revenues it acquires ninth position
all over the globe.
Aim of the report
A study on TESCO PLC, analysing the financial and business performance of the
company.
Objectives of the project
To analyse whether the shareholders of TESCO are being rewarded adequately for their
risks and investments done in the organisation.
Primary investigation:
The primary information was collected from various stakeholders of TESCO.
Information was gathered from 50 respondents. With the information collected it was interpreted
that no major changes are required to be done in the organisation but if some of the changes are

incorporated in the company and certain strategies are developed, it will act in the betterment of
both the stakeholders and the organisation’s well-being..
Swot Analysis
Strengths:
 The main assets of an organisation are
its employees, highly skilled trained
workforce are developed through
training and effective learning
programs. TESCO is employing
enormous assets for bringing
advancement in its workforce because
it understands that “to win in the
marketplace it is important to win in the
workplace.”
 Reputation of developing new and
innovative products (Lazonder and
Harmsen, 2016).
 Organisation has achieved an high level
of consumer loyalty through its highly
devoted client relationship executives
office. It is ready to create a great brand
value among its clients.
Weaknesses:
 The inventory level is high which
affects the cash flows of the company.
It raises the cash flow which makes it
difficult to put the resources into other
productive channels. This will affect
the long haul development of the
company.
 It is unable to blend firms with diverse
work cultures. Though TESCO has
given fruitful results in incorporating
SME’s but it is not effective at
incorporating organisations which have
distinct work culture.
 The net contribution percentage and the
proportion of productivity of TESCO is
below the business normal.
Opportunities:
 An increase in the consumer spending
and positive monetary upticks can be
achieved with some development in the
business. It can prove to be a welcome
door for TESCO which will help it in
increasing its client base and an
increment in its overall position in the
industry.
Threats:
 The organisation has to confront
various laws prevailing in different
markets. Since the environment is
dynamic these laws can change anytime
which may prove to be futile for
TESCO.
 Since last few years organisation has
produced products which are reverse

 New customers could be welcomed
through online channels. Over the last
few years the cash has been channelised
more in the online business. This trend
can open doors for TESCO if it realises
and analyses the needs of its clients and
changing a bit of its operations as per
the needs of its customers and serving
them better. For this TESCO needs to
perform an investigation and utilize that
information for the same.
 As TESCO is a global organisation and
it has already expanded its business in
various countries, so it knows the best
ways to expand its business and the
cost associated with the expansion
could be low (Moseley and Connolly,
2020).
reactions of what the competitor has
done in the market. But if the company
piles up the stock of these new products
it isn’t normal which can lead to high
and low business swings (Husni,
2020).
 Changing the consumer preferences
towards the online platform could
prove to be a risk to the physical stores
founded.
Secondary Investigation:
According to secondary research it can be identified that TESO has used strategic
performance management framework very effectively and is also known as Corporate Steering
Wheel. This has helped company to make every person related to the organisation and all the
plans to work towards the vision of the business, and that has helped to manage and deliver the
strategy in best possible means. TESCO, analyses all the advantages and disadvantages that may
arise by implementing the strategies so it does not has to face any problem in future (AKTAMIŞ,
HİĞDE, ÖZDEN, 2016).
It is important to keep the cases up to date and be ready to face any challenge if arise to
get high performance rewards. The time when the needs are changes, company should change
the idea that was working. The four key pints that come under TESCO’s unique Steering Wheel

are Finance, customer, people and operations (O'Connor, Jeanes and Alfrey, 2016). All these are
of vital importance to the organisation and they focus on them to achieve the goals and
objectives effectively. It is essential to manage finance and to research about the needs and wants
of people to serve them in best possible ways.
The operation has another four objectives that are mentioned below:
1. Customers love to shop
2. Working is an easy task for the employees.
3. The organisations should produce at cheap prices that are affordable.
4. The way employees operate in organisation is safe and secure.
Recommendations
After making the above report it can be concluded that, TESCO should use technological
advancement to serve its customers all around the world as now all the customers are updated
and technology friendly. So to compete in the market and serve them better it is time to focus on
latest technology. Like the online website show portfolios of goods and services they offer make
it easy for customers to select among them. It is the time and need for TESCO to do the same

and attract more and more customers. As it has to serve the world and become leader of retail
industry not only in UK but globally, the company should study the trends on regular basis and
should understand the threats and opportunities that may arise and get prepared for them be
successful and establish a brand name in the market.
Action Plan
Selecting the best possible manages advertising condition can help in taking the suitable
choice. The selected item ought to be good and in favour and accordance of the customers that
should fulfil the requirements of the customers. The condition of host nation should be analysed
and the item should not be costly nor of low quality and should take care of the conditions.
Through surveys the estimation report can be formed. In the starting phase rebate and offers are
just to attract the customers (Kalsoom, and Khanam, 2017). This will make a powerful
evaluating procedure. The new stores should be built in the fragmented area. The brand should
create a good image and the clients are centring about limited time blend. TV and online media
can be used as the source to spread awareness about TESCO.
CONCLUSION
It can be concluded from the above report that the Retail industry is rapidly changing and
adopting the latest trends to survive in the market, they are taking various changes time to time
and making modification in goods and services to carter the needs and wants of the customers in
a better way. For organisations like TESCI it is important to make effective strategies that help to
compete them with the competitors and increase the sales of the organisation and making profit’s
better than the direct rivalry. The action plan should be made with focus and ought to be
accomplished to gain positive market image and make customers aware about the brand.

REFERENCES
Books and Journals
AKTAMIŞ, H., HİĞDE, E. and ÖZDEN, B., 2016. Effects of the inquiry-based learning method
on students’ achievement, science process skills and attitudes towards science: A meta-
analysis science. Journal of Turkish Science Education, 13(4), pp.248-261.
Duran, M. and Dökme, İ., 2016. The effect of the inquiry-based learning approach on student’s
critical thinking skills. Eurasia Journal of Mathematics, Science and Technology
Education, 12(12), pp.2887-2908.
Husni, H., 2020. The Effect of Inquiry-based Learning on Religious Subjects Learning
Activities: An Experimental Study in High Schools. Jurnal Penelitian Pendidikan
Islam, 8(1), pp.43-54.
Kalsoom, Q. and Khanam, A., 2017. Inquiry into sustainability issues by preservice teachers: A
pedagogy to enhance sustainability consciousness. Journal of cleaner production, 164,
pp.1301-1311.
Lazonder, A. W. and Harmsen, R., 2016. Meta-analysis of inquiry-based learning: Effects of
guidance. Review of educational research, 86(3), pp.681-718.
Moseley, A. and Connolly, J., 2020. The use of inquiry-based learning in public administration
education: Challenges and opportunities in the context of internationalization. Teaching
Public Administration, p.0144739420935971.
O'Connor, J., Jeanes, R. and Alfrey, L., 2016. Authentic inquiry-based learning in health and
physical education: a case study of ‘r/evolutionary’practice. Physical Education and
Sport Pedagogy, 21(2), pp.201-216.

Appendix
Questionnaire
Questionnaire
Name:
Address:
Mobile Number:
Q1. Do you have knowledge about Tesco’s performing in today’s retail
market?
Frequency
a) Yes 42
b) No 8
Q2. According gto you, is Tesco understanding the current market trends
and is changing their way of conducting its operations for the better
performance?
PORTFOLIO
Frequency
a) Yes 30
b) May be 10
c) No 10
Q3. Do you agree that TESCO is giving enough to their stakeholders and is
delivering the best return on investments?
Frequency
a) Yes 30
b) No 20

PORTFOLIO