Swot analysis of Tesco plc
We all know Tesco as a food retailer, and we know that they are in constant competition with other retailers such as Sainsburys and Asda, yet we do not know much about what goes on beyond the shelves and the tills, the marketing plans and the day to day tactics that have to be devised to stay the number one food retailer in the United kingdom today.
I am going to analyse Broughton Parks Tesco and their possible competitors Swot Analysis
Firstly, four main goals, under which these particular four are Strengths:
1. Tesco is about a strong UK core business. Last year the industry saw some very marginal growth as a whole, however Tesco continued to grow beyond the market by offering better value for money and through getting cheaper.
2. To be as strong in non-food as in food. The market for non foods (such as clothes entertainment cleaning products) is worth seventy five billion pounds in the UK today. You can see through the growth of their dot.com business which now has over four hundred and fifty thousand users and is the largest grocery online retailer in the world, and through the success of tescos personal finance with over 1,5 million customers that they are making some real in roads into non foods.
3. International growth, Tesco have 30% of their stores outside the United Kingdom and plan to make it 45% by the end of next year, and will be approached through central Europe and trough Asia
4. To have the most loyal and committed staff.
Tesco as a company uses clear values to underpin what they do. Their core purpose is based on “Creating value for our customers to earn their life time loyalty?Tesco have invested one billion pounds
Tesco believe that one of they offer the best quality on a broad range of products and believe that they offer the best value. They have invested one billion pounds since 1996 on the campaign to reduce prices to customers and that continues to build as they go in to 2004. They offer outstanding customer service, every customer is offered help at the checkout. Location and convenience is another reason to choose Tesco, they have introduced a staggering 200 in the last two years that stay open 24 hours a day and they plan another 1540 new express stores, which are Tesco mini sto...
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...onsolidated balance sheet
Fixed assets £m Fixed assets
Intangible Assets 154 Intangible Assets
Tangible assets 11,032 Tangible assets
Investments 317 Investments
Total Fixed Assets 11,503 Total Fixed Assets
Current assets Current assets
Stock 929 Stock
Debtors 454 Debtors due within one year
Short term investments 225 Short-term investments
Cash at bank and in hand 445 Cash at bank and in hand
Total Current Assets 2,053 Total Current Assets
Creditors -4,809 Creditors: Amounts falling due within one year
Working Capital -2,756 Net current assets (liabilities)
Total assets less current liabilities 8,747 Total assets less current liabilities
Long Term Liabilities -2,741 Creditors: Amounts falling due after more than one year
Provisions for liabilities and charges -440 Provisions for liabilities and charges
Net assets 5,566 Net assets
Represented by Capital and reserves
Ordinary share capital 350 Called-up share capital
Share premium 2,004 Share premium
Other reserves 40 Other reserves
Profit and loss account 3,136 Profit and loss account
Ordinary shareholders' funds 5,530 Equity shareholders' funds
Minority interests 36 Minority interests
Capital Employed 5,566 Total capital employed
Online Stores Tesco wants go into other markets because they would be bringing in more customers, which are going to increase profit. They also have another aim which is to expand internationally because they already operate within the Europe. They have to set themselves new aims and objectives that are harder to achieve as it’s the expanding further.
Tesco PLC's Expansion in North Bracknell Introduction: Tesco PLC is an international supermarket not only selling high quality goods but has now also become one of the biggest job markets. As well as this Tesco has been running sub-projects to increase the level of customer care. [IMAGE] Tesco's main aims are shown by the steering wheel provided by their website (www.tesco.com). Tesco want to have good quality for value to earn their customers loyalty while still making a profit. I will be investigating the Tesco Superstore, petrol station, pharmacy and coffee shop in North Bracknell (Warfield).
Tesco is a Public limited company (PLC), which means it is owned by shareholders and it is in the private sector Also known as the for-profit sector and Activities outside the public sector organizations and businesses that provide services and products based on market demands for a cost with the purpose of producing a profit for owners and shareholders in the organisations. Tesco is the biggest employer in the UK with over 250,000 employees and over 1,800 stores.
Tesco’s objective is to be the ‘champion for customers’, and they want to achieve this by being number one in customer satisfaction. They want to grow globally and by doing this they ‘create value for customers to earn their lifetime loyalty’. Tesco is
Tesco is trying to gain as high profits as they can because company investors or shareholders might thing about investing more money in to the business because of its success and development. Tesco wants to make its investors satisfied because it may affect business future.
This is not different with the retailing industry as this is one of the largest growing companies globally. Over the past years, this market was regarded to have less concern on environmental aspects but has since attracted significant changes. In terms of capacity, productivity and revenue, Tesco PLC boasts of being the third largest retailer globally. The firm is based in UK but operates in 14 states (Profile, 2014). The company also is known for its well established social respo...
Sainsbury’s entered a joint venture with British Home Stores in 1971 to create hypermarket style stores under the brand SavaCentre. These stores reverted to the standard Sainsbury’s brand and superstore format in 1999.
This is the second part of the strategic assignment. In this report the competecies, culture and resource analysis of Tesco is presented. Furthermore in this report SWOT analysis of Tesco is presented and then two strategic options are suggested to Tesco. The strategic options suggested are then evaluated through the SAF model.
Tesco is the largest retailer in UK. It is a public limited company which sells multinational grocery, health and beauty product, household items and toys etc. Since Jack Cohen founded Tesco in London’s East End at 1919 and now it has sprouted branches in 12 countries with over 7,800 stores include franchises. Tesco hire over 530,000 employees and they serve over tens of millions customers per week. Tesco
In addition, there is a moderate presence of organizational capability. In the intangible section, Tesco Corporation has a strong presence in human, innovative, and reputation resources. Furthermore, Tesco has a valuable strong capabilities. The core competencies are key to a company’s sustainability. Tesco has a presence of a high level of capabilities. They are high in areas of design, technology, training, and research and development. In addition, Tesco has a superior presence in the area of manufacturing.
Introduction The purpose of this report is to undertake financial analysis of the position of the three major supermarket chains (Tesco plc, Morrison plc and Sainsbury plc) in the UK, using the financial tools such as Horizontal and Vertical Analysis and Ratio Analysis. The calculations done are considering the figures from the income statement and balance sheet of these three companies for the last 2 years (2008 & 2007). Doing these calculations is an effort to find out the current position and if any forecast on their performance. Tesco Plc *Interpreting the Horizontal and Vertical *Analysis The balance sheet’s horizontal analysis reveals the first worrying statistics about the company- the fact that stock level has increased by 25.84% in the year, even though net assets have increased by only 12.59%. The vertical analysis of the balance sheet again highlights the increase in amount of stock held by the company at the end of 2008 and increase in current assets. Interpreting the Ratio Analysis By looking at the ROCE* ratio it is clear that the business has not generated any higher return in the period 2007-2008. Though there is a marginal decrease in the returns (0.14% from 0.16%), however when compared with returns of other competitors Tesco plc has performed much better. Drop in asset utilisation ratio in the year 2008 indicates that the company did not use its assets efficiently to generate sales. As a result profit margin dropped down to 5.91% in 2008 from 6.21% in the year 2007. The Acid test ratio also doesn’t meet the ‘ideal’ ratio of 1:1. In other words Tesco had only 38p of quickly realisable assets to meet each £1 of current liabilities. Stock turn shows the effect of increased stock at the end of 2008 as it s...
Tesco has been particularly successful because of its powerful brand. It has a reputation for value, low prices and for being customer focused. Its brand and associations have helped the company to expand into new sectors and markets. Tesco has also been strong in public relations, advertising and building profile in catchment areas on a local level. This local approach to marketing appears to be a key driver for success. Tesco has a good range of products, including own label products. It seeks to provide excellent customer service, and ensure high levels of customer satisfaction.
Tesco’s aims are to maximize their profits as much as they can and increase their market share all whilst gaining their customers
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
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