Tesco - Management and Financial Information for Decision Making
MANAGEMENT AND FINANCIAL INFORMATION FOR DECISION MAKING
MANAGEMENT AND FINANCIAL INFORMATION FOR DECISION MAKING
Maria del Mar Sanchez: 10044329
Tutor: Geraint Evans
Maria del Mar Sanchez: 10044329
Tutor: Geraint Evans
Contents INTRODUCTION 2 INTERNAL AND EXTERNAL USERS 3 Customers 3 Competitors 3 Shareholders² 4 Managers 4 Suppliers 4 Employees 5 OBJECTIVES 6 Maximize shareholders wealth 6 Growth 6 Satisfaction 7 Profit maximization 7 Maximize sales 7 Ratios Analysis 9 Return on Shareholders’ Funds (%) 9 Return on Capital Employed (%) 10 Stock Turnover (x) 11 Current and liquidity ratio (x) 12 Gearing (%) 12 BUDGETING 14 CONCLUSION 17 REFERENCES 18
INTRODUCTION
In 1919 Jack Cohen founded Tesco in the East End of London, selling groceries in a market stall. Nowadays, Tesco operates in 14 markets across Europe, Asia and North America; they are in United kingdom, Czech Republic, Turkey, Ireland, Poland, Slovakia, Hungary, India, China, Thailand, Malaysia, Japan and South Korea.
Tesco is one or the world’s largest retailers employing over 492000 people and serving millions of customers every week. The organization has lived huge changes since the company was founded, for example opening different markets and sectors.
Their vision is to be highly valued by the customers they serve, the communities in which they operate, to be loyal to their committed staff and shareholders; to be a growing company; a modern, innovative and winning locally, applying their skills globally. (Tesco webpage)
This paper will develop the analysis of the internal and external users of Tesco and the importance of the financial information for their key decision-making, a critical discuss of the primary objective and four secondary objectives, the areas of strength and weaknesses by using appropriate ratios and the importance of the capital budgeting within Tesco.
INTERNAL AND EXTERNAL USERS
Customers
MANAGEMENT AND FINANCIAL INFORMATION FOR DECISION MAKING
Maria del Mar Sanchez: 10044329
Tutor: Geraint Evans
Maria del Mar Sanchez: 10044329
Tutor: Geraint Evans
Contents INTRODUCTION 2 INTERNAL AND EXTERNAL USERS 3 Customers 3 Competitors 3 Shareholders² 4 Managers 4 Suppliers 4 Employees 5 OBJECTIVES 6 Maximize shareholders wealth 6 Growth 6 Satisfaction 7 Profit maximization 7 Maximize sales 7 Ratios Analysis 9 Return on Shareholders’ Funds (%) 9 Return on Capital Employed (%) 10 Stock Turnover (x) 11 Current and liquidity ratio (x) 12 Gearing (%) 12 BUDGETING 14 CONCLUSION 17 REFERENCES 18
INTRODUCTION
In 1919 Jack Cohen founded Tesco in the East End of London, selling groceries in a market stall. Nowadays, Tesco operates in 14 markets across Europe, Asia and North America; they are in United kingdom, Czech Republic, Turkey, Ireland, Poland, Slovakia, Hungary, India, China, Thailand, Malaysia, Japan and South Korea.
Tesco is one or the world’s largest retailers employing over 492000 people and serving millions of customers every week. The organization has lived huge changes since the company was founded, for example opening different markets and sectors.
Their vision is to be highly valued by the customers they serve, the communities in which they operate, to be loyal to their committed staff and shareholders; to be a growing company; a modern, innovative and winning locally, applying their skills globally. (Tesco webpage)
This paper will develop the analysis of the internal and external users of Tesco and the importance of the financial information for their key decision-making, a critical discuss of the primary objective and four secondary objectives, the areas of strength and weaknesses by using appropriate ratios and the importance of the capital budgeting within Tesco.
INTERNAL AND EXTERNAL USERS
Customers
References: 5. http://www.talkingretail.com/news/industry-news/customer-numbers-up-but-sales-down-at-tesco H.Wallop (2011) Tesco is Europe’s biggest private sector employer Julia Finch (2009) Tesco increases market share. Available at: http://www.guardian.co.uk/business/2009/nov/10/tesco-waitrose-win-market-share (Accessed: 19 Nov 2011) Sounds Foundation