The recession had massively affected Tesco, because of the recession people had less money to spend on their shopping therefore they were spending less of their money at Tesco which lead to a decrease in sales which would mean that Tesco were getting less profit month by month as people were losing more jobs and were having even lower income. Supermarkets had to raise the prices of their products including Tesco, because of this increase in pricing people could afford less. Tesco Decided to take a grant from the government, they decided to spend this in improving their company as they were losing employees very fast due to the financial struggle. Tesco had started to employ more people to get back on their feet and get the company running normally …show more content…
A stakeholder that would be affected is the employee as they would be made redundant if the economy gets into a recession again, this would mean that employees would become unemployed and would not be able to support themselves financially or if the economy got better they would have a better chance of promotion and being able to keep the job as Tesco would have capital to pay them for their hard work. Another stake holder would be the owner because if the economy would be doing bad, they might need to take a grant which would be used to stabilise the company so that they would not go bankrupt and help pay of any debts that would need to be paid off, yet if the economy would get better they would be able to invest in their own company and also the local communities that surrounds them which would increase their customer loyalty as people would see that Tesco wants to help the local
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.
Store information provided by Tesco: Text Box: Tesco Superstore, our most frequent layout, with groceries and non-food [IMAGE] - Coffee Shop/Cafe [IMAGE] - Pharmacy [IMAGE] - Deli Counter [IMAGE] - Fish Counter [IMAGE] - Petrol Station [IMAGE] - Pay at pump Task 1 This organisation chart for Tesco Plc shows that even though the Chief Executive is in charge of Tesco Plc most decisions are still made by the Board of Directors: * [IMAGE]Tim Mason - Marketing & E-commerence Director * Davis Potts - Retail Director * Andrew Higginson - Finance Director * John Gildersleeve - Commercial and Trading Director * Terry Leahy - Chief Executive * David Reid CA - Deputy Chairman * Rowley Ager - Company Secretary * Philip Clarke - IT & logistics Director Each individual store is divided Text Box: into this organisation chart. [IMAGE] The store manager has span of control over all the deputies who have span of control of their section. When some thing needs to be done the store manager would ask his deputise who would divide the work between other workers following the chain of command. Task 2 Aims are what businesses set out to do.
Their stake is that the company provides them with a livelihood. They want security of employments, good rates of reward also, promotional opportunities. Tesco will need to have employees to run their day to day business which means that Tesco needs to make an agreement with an employee to work a certain number of hour in return the employee will earn a certain salary that they agree to get for working the hours, but the pay level of the salary will vary with the different skills and qualification a employees
will have to make sure that they get enough profit to be able to open
There was also a 25% unemployment rate that resulted in people being unable to purchase items they normally were able to pay for so most products were left on the shelf or in the inventory.
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
...may lose most of their employees which can cause these companies to collapse. Again the rate of unemployment will increase for US citizens and legal immigrants at large if these companies collapse.
In 2004 they invested £3bn revamping stores, restructuring distribution systems and upgrading IT systems as part their Business Transformation Programme which led to the development of four fully automated distribution depots costing £100 million each. There was widespread criticism over the implementation of the programme and its failure to effectively increase efficiencies. Subsequent poor sales and outrage over director bonuses / payments led to an investor revolt which ousted the then CEO Sir Peter Davis.
Inevitably business began to become greatly affected by the Great Depression. Since the stock market crashed they lost a large some on their capital. They had to cut back things like the products that had to be sold and the hours and wages of employees and even had to lay off their workers. Without consumer spending, the country saw many companies close.
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
Tesco currently has strong financial, technical, and physical resources and moderate organizational capabilities. Financial Resources -.. Tesco maintains a strong financial forecast, as shown below. Revenue growth for Top Drive segment Q3 2011 was 83.6 million. Increase derived from sales increase, operating days for rental fleet, and after-market sales and service.
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...
Many Americans suffered financially suffered from the 2008 recession, from the surge of gas prices to millions of Americans losing their jobs, and the foreclosure of homes. Many companies turned to the government for help to bail them out from going out of business and from further loses in revenue, while their expenses continued to pile up. Many Americans might wonder how a company like, Starbucks survived. Although still remaining a very successful company today, despite the adversities of an economic crises. Many individuals might look back and thank their higher power on how they survived such a difficult time. So, how did Starbucks survive?
Bibliography: Tesco Annual Report. (2013). Tesco Annual Report 2013. [online] Retrieved from: http://files.the-group.net/library/tesco/annualreport2013/pdfs/tesco_annual_report_2013.pdf [Accessed: 1 Apr 2014].
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.