Report and Accounts for Tesco PLC Essay Example | Topics and Well Written Essays - 1000 words

Report and Accounts for Tesco PLC - Essay ExampleThe report provided shows an insight of supermarket sector, the tenseness majorly being on the analysis of its finances, competence, resources and culture. There are two options on future strategies that are suggested regarding financial strategies.This company is amongst the biggest in the globe, vested in operations in approximately 2,318 outlets and has employed over 320,000 employees. It also offers function only via its subsidiaries. The United Kingdom is its largest market, in which it runs in four ways superstore, extra, express and metro. The firms own labels of products are categorized under three levels inclusive of normal, finest and value. The firm makes sales of approximately 40,000 products of food inclusive of clothing and some other lines that do not deal in food stuff. Apart from convenient products, many stores contain gas stations, making them amongst the largest independent retailers of petrol in Britain. Other se rvices offered by Tesco include personal finance. The main reason for the success of Tesco is the various products they deal in, popular products and the brand preferences. Furthermore, Tesco operate online sales of product which has seen them expand internationally and get customers all over the world. There are reasons as to why Tesco is customers favorite store in the UK. Tesco have got a well analyzed great structure which supports the growth of business plan with consideration of their expertise in financial system and cash management. Financial Analysis In Britain, Tesco services offered by this firm are via Tesco bank. The main products offered are inclusive of mortgages, credit cards, savings accounts, and loans. They also offer insurance services like insurance on cars, run low and life. The awareness of these services is boosted by their website and leaflets given out in their stores. Tesco generated a profit worth 130 M pounds in 2007 which rated the value of shares at 66 M pounds. The impact that this move created towards the sector of finance brought diversification to the brand of Tesco. It also provided for growth opportunities in the external retail sector.In 2008, announcement was made on of purchase of 50% of its shares. In the year 2009, Tesco Finance changed to a bank. Other financial service was the intent to buy Dobbies Garden. This enterprise owns 28 gardens, almost fractional in the UK. In 2007, the deal had been sealed by BODs of Tesco on receivership of 53% of shares meeting the conditions that were set. This led to Tescos shares rising to 65% and in 2008, the acquisition was to the full met. Tesco commenced selling of petrol in the year 1974.The main sources of finance for Tesco plc is long term debts, retained profits, commercial paper, leases, issues and bank borrowings.By the year 2006, Tesco was rated fourth biggest retailer after(prenominal) Carrefour, Wal-Mart, and Home Depot. In 2007, this firm managed to jump Home Depotd ue to the sale of division of Depots professional supply and fall in value of US dollar on Britain pound. Immediately behind was Metro which may also make its way ahead in case the euro becomes stronger against pound. Though, Metro has its sales inclusive of wholesale turnover in terms of billions and its turnover in regard of retail is less than that of Tescos.Instead of Tesco increasing its revenue by way of increasing its leverage, they pay back