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A Comparative Analysis Of Tesco Sulc Vs. Morrison's Plc

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Contents Introduction 3 Analysis 4 Appendix 8 Conclusion 10 Bibliography 12 Introduction Our aim when assigned this research was to complete a comparative ratio analysis between two chosen companies. My group and I chose Tesco Plc and Morrison’s Plc which are two leading supermarkets. We were able to complete our research by collecting our data from trusted sites such as FAME database and by downloading the latest annual reports and accounts from their websites. Tesco Plc was founded in 1919 by Jack Cohen in London and is a publicly listed company. It is the third largest global retailer based on revenue and second largest company based on profit. They currently have around 6351 stores over 3 continents and employee over 470,000 people. In 2012, they generated about £72.035bn in sales. Their companies aim is " to be the most highly valued business by: the customers we serve, the communities in which we operate, our loyal and committed colleagues and of course, our shareholders." (Tescoplc.com, 2014). On the other hand we have Morrison’s which is also a publicly listed company it was founded in 1899 in Bradford, West Yorkshire. The company was founded by William Morrison’s. In comparison, to Tesco it is the UK's fourth largest company and has over 400 stores nationwide. They employee over 134,000 employees with over 9 million customers that shop in Morrison’s each week. "We aim to build responsible and sustainable values into our business and the products we sell." (Morrisons-corporate.com, 2014). I will also be comparing selective ratios with Sainsbury's financial data to get a better understanding of each company’s performance in the industry. Ratios show the relationship between two figures that are calculated from infor... ... middle of paper ... ...launched a 3 year programme to deliver quality goods and maintain a strong value perception. Since the start of the programme 5000 new products have been launched as well as four new brands. Finally, I will be discussing brand awareness and company profile. In 8 markets Tesco Plc is placed 1st and 2nd for their customers who do over 50% of their shopping with a single retailer. Tesco's own brand is responsible for 38% of its sales. These include Tesco's finest, everyday value, its own venture brands and its unbranded stock such as produce. Tesco mobile and bank are not taken into consideration when collecting these figures. Morrison’s Plc suffered in 2011 as consumer confidence was quite fragile and continued to be challenging 2012. There are 6.6 million households that don’t have a Morrison’s in close proximity which is where they are targeting their growth.
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