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. …show more content…
169). Profit margin ratio shows how much of the companies money is being converted into profits, this is useful when comparing companies in similar industries. Tesco Plc has a profit margin of 3.02% whereas Morrison Plc has a percentage of 4.85%. This data collected indicates that Morrison Plc has a higher percentage and a difference of 1.83%; this also shows that it is a more profitable company which has more control over its costs. The return on capital employed ratio is used by equity shareholders to research profits which can be used to pay dividends to the equity shareholders. It is used as a useful metric for comparing probability across companies based on the amount of capital used. Tesco have a percentage of 12.70% and Morrison’s have a percentage of 9.60%. In order to assess the industry, the return on capital employed ratio for Sainsbury's is 11.20%; this shows that out of the three companies Tesco Plc has the highest percentage. This shows that Tesco Plc does a better job of deploying its …show more content…
However, in terms of profitability ratios both companies have their high and lows. Morrison’s are more profitable; however Tesco’s are doing a better job of deploying capital although it has decreased by 2.0% from the previous year. In terms of financial management ratios, Tesco seems to be doing well compared to Morrison’s showing good management of operating assets and the ability to meet short term financial obligations. Although Tesco’s seem to be doing slightly better than Morrison, they both seem to be struggling in regards to liquidity as they are not in a strong position to pay off their current liabilities by disposing of their current assets. In terms of gearing ratios, both companies have their highs and lows once again however Tesco are at a lower risk of insolvency but lenders feel more assured by Morrison’s continued interest payments as they have the financial strengths. Tesco’s gearing ratio has remained relatively flat over the last five years showing that they are in a stable debt position while their investment in assets is growing
Tesco PLC's Expansion in North Bracknell Introduction: Tesco PLC is an international supermarket not only selling high quality goods but has now also become one of the biggest job markets. As well as this Tesco has been running sub-projects to increase the level of customer care. [IMAGE] Tesco's main aims are shown by the steering wheel provided by their website (www.tesco.com). Tesco want to have good quality for value to earn their customers loyalty while still making a profit. I will be investigating the Tesco Superstore, petrol station, pharmacy and coffee shop in North Bracknell (Warfield).
will have to make sure that they get enough profit to be able to open
The two companies that I will be comparing in this project are McDonalds and Wendys. Both of these companies are competitors in the same industry. I am using the information from their 2005 Financial Statements.
For instance, Primark 's products offer customers clothing as a base product, of witch actual benefits are being to be cheap and trendy, and they may have some return policy as augmented benefit in case of defects. Each product may be realised following a new product development process to improve its success rate (Harris and Schaefer, 2015, p.43-47).
Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously improve the overall quality of our design, manufacturing, administrative, and support organizations.
Marks & Spencer is one of the UK's foremost retailers of clothing, foods, homeware and financial services, boasting a weekly customer base of 10 million in over 300 UK stores. Marks & Spencer operate in 30 countries worldwide, and has a group turnover in excess of £8 billion. It has specific values, missions and visions. It’s main vision is ‘to be the standard against which all others are measured’, it’s main mission is ‘to make aspirational quality accessible to all’, and it’s main values are quality, service, innovation and trust. (www.marksandspencer.co.uk).
Tesco has been particularly successful because of its powerful brand. It has a reputation for value, low prices and for being customer focused. Its brand and associations have helped the company to expand into new sectors and markets. Tesco has also been strong in public relations, advertising and building profile in catchment areas on a local level. This local approach to marketing appears to be a key driver for success. Tesco has a good range of products, including own label products. It seeks to provide excellent customer service, and ensure high levels of customer satisfaction.
Along the years, the company has been coming up with new and better products that has defferintiated from the rest based on its own methods and recipes.
Sainsbury’s is the most trusted ‘own-brand’ among supermarkets. Almost half of all shoppers placed ‘high’ trust in Sainsbury’s own products (47%) compared to 27% for Tesco, 17% for Asda and 15% for Morrison’s. Research carried out with 1,000 consumers in August 2008.
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
[1] Aaker, D.A. and Jacobson, R. (1996) Building Strong Brands. New York: The Free Press.
Sainsburys Analysis and Recommendations Management Styles There are three main types of management styles. These are autocratic, consultative and democratic. Autocratic ---------- The autocratic management style is one where the manager is used to give instructions.
[a] company may have a unique vision, a superior product, strong management and an efficient distribution system – yet if it is not able to convey the core benefits of the brand to its target audience it will ultimately fail. [5]
The second step deals in creation of proper brand meaning through powerful and unique brand connection with the customers. The third step involves invoking positive brand response while the fourth one involves engaging the customers so as to build a brand affiliation aimed at enhancing active brand loyalty. However, some building blocks are requisite in order to achieve these steps. These...
...leader in its selected markets through creativity and superior customer service. The Group is continuing to focus many efforts to expand its presence in global food and ingredients markets and its consumer foods businesses in Europe and abroad.