Tesco Financial Analysis

3. A Financial Analysis of Tesco

3.1. Specification of the Purpose of the Analysis

The purpose of this analysis is to assist interested stakeholders to make sound decisions on investments, objectives and overall strategies with regards to the financial analysis. The data presented in this report even though is past may assist stakeholders to distinguish the operational strengths and weaknesses of Tesco as well as its financial soundness.

3.2. The Interested Stakeholders of the Analysis Report and their likely Decisions

For the purpose of this assignment, I will consider three principal ‘’clients’’ of Tesco’s analysis; Management of Tesco will need the analysis report to ascertain the financial performance and

By putting its customers on top priority and delivering to their needs and expectations has earned Tesco their loyalty. Programs such as ‘’Click & Collect’’ points of sales across UK and the ‘’Clubcard’’ reward system has allow Tesco to access the needed information on customers and strategized ways to serve them better. Tesco supply system is well designed in linking existing shops with its online platform ‘’Tesco.com’’. Even though Tesco competitors are also online, the design of good user interface which allow customers to personalize online shopping experience has retain its customers. This has helped Tesco to improve its performance on different

In Central Europe, employment levels and consumer confidence has started to rise after a stretched period of economic stress, low levels and real income are starting to benefit from lower inflation, but household spending is yet to increase considerably.

In Asia, even though some economies are quickly growing, some were impacted by the recession in 2013-2014 which saw consumers stressed with huge debts such as Thailand. Furthermore, consumers’ confidence was affected by Thai political unrest during 2014. In South Korea even though consumer confidence is high, household debt reached a record level. Inflation in Malaysia has affected consumer confidence coupled with low wage growth and proposed sales tax by the government. Population wise, Tesco has been affected.

Ageing and household size are falling across various markets. For example, in Asia, 50% of South Korean households are either one or two people, same in Thailand. This is due to rapid urbanization especially among the youth. This has led to preference in convenience shopping. All these factors and demand for agricultural products pose a risk to global food security and calls for the need of developing viable supply chains (The World Bank, 2015).

3.7. Strategic issues of Tesco with SWOT