Accounting and Finance for Non-Specialists

Accounting and Finance for Non-Specialists (TESCO PLC

2006

Chapter I

Tesco PLC is a recognized leader of the UK and European retailing industry with dynamics of growth exceeding any possible expectations Being founded in 1924 , Tesco is now becoming a global retailer with operations and aggressive expansion not only in Europe but also in Japan , Malaysia , South Korea , Taiwan , Thailand , Turkey and China growing their international network by the end of 2005 to 554 stores (Tesco , Investor 's FAQ , 2005 . From 1970s till the present moment Tesco has been opening superstores

building a national network , to which they are adding every year (Tesco , Inside Tesco , 2005 . In the United Kingdom alone , Tesco has 1 ,780 stores with 24 .2 million square feet of sales area (Rohwedder , C1 , employing staff of 353 ,000 individuals Taking into consideration the company 's size , its dynamics of development and global ambitions , proclaimed company 's mission seems to be logical : to create value for customers to earn their lifetime loyalty (Tesco , Inside Tesco , 2005 . The company employs its slogan Every Little Helps ' to obtain customer loyalty and sustain its competitive position in the UK retail market . Tesco describes its core purpose and main commitment in one statement : The way we work is how we deliver Every Little Helps to make Tesco a better place to shop and work in . We use simple processes so that shopping is Better for customers , Simpler for staff and Cheaper for Tesco (Tesco , Inside Tesco , 2005

The key to understanding Tesco 's success is in company 's effectiveness to match their objectives with available resources . For instance , in its business Tesco PLC relies on four pillars , namely strong UK core business , non-Food business , various retailing services , and international expansion . In implementing its strategy to UK core business , Tesco utilizes its unique retailing operating strategy . Tesco has a variety of different store layouts : the Tesco Extra hypermarket style stores provide a wide range of food and -food products they are generally large out of town supermarkets , some of which are open twenty-four hours . The Tesco Express stores combine a petrol filling station with a local convenience store . The Tesco Metro chain is on a national scale and is a series of small high street stores . Tesco Direct , a culmination of Tesco 's online shopping approach is now the largest grocery home shopping business in the world , and has a 65 share of the United Kingdom 's Internet grocery market . It operates nationwide and has been very helpful in drawing in new customers to their customer base , as 40 of shoppers prior to using Tesco Direct , were not customers of Tesco . Tesco has been able to broaden its customer base , and make its stores more attractive to a wider range of customers by diversifying the products offered to its customers

Tesco 's strategic logistics is another company 's key resource which enables it to occupy the leading position , which is about 30 of UK retail market share (Rohwedder , C1 . From the practical...