...01 Technical takeovers, and managing relevanT To acca QualificaTion paper p3 1 Market growth, for example, by taking over a competitor. This could produce synergy through economies of scale and efficiency gains, and can decrease the threat from competitors. Both of these should help to increase shareholder wealth. There is, in theory, relatively little risk as the company is staying on its home territory which it knows well, but see the information about the Morrison’s – Safeway merger on page 6. 2 Market development and product development. Takeovers and mergers can give rapid access to new markets and to new product lines. There is some greater risk present because new areas are being explored and there is asymmetry of information insofar as the sellers of companies in these new areas usually know more than the buyers. However, it can be appreciated that these categories of takeover can allow a company to expand globally and to present more comprehensive product ranges, thereby allowing the possibility of increases in shareholder wealth. One of the main drivers behind the recent bid for Cadbury by Kraft was the access Cadbury has to many overseas markets, such as the rapidly developing economies of countries like India, Brazil and Mexico where Kraft had poor penetration. 3 Diversification. Both products and markets change and inevitably there is a greater risk that things will go wrong. Diversification has to be divided into two categories: ¤ Related diversification...
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...1.0 introduction 1.1 reasons for choosing this area of study I have chosen topic 8 i.e. the evaluation of business and financial performance of an organisation over 3 year period. The reason behind my choice is that it gives me a platform to analyse the financial performance of a public limited company. This would enhance my analysis skill of practical world and help to develop on my weaknesses. I have done the ratio analysis on fictitious company set by different authors but never had an opportunity to apply them on a real life scenario. 1.2 Reasons for choosing the organisation I have decided to choose Tesco plc for this research and analysis project .Tesco plc is the largest retailer in the UK and third largest in the world behind Wal-Mart and Carrefour. According to TNS Worldpanel over £1 in every £7 (14.3%) of UK retail sales is spent at Tesco. (http://en.wikipedia.org) .Tesco has largely contributed to cut spending on our daily needs. It has wide ranges of services and products which would help me to analyse different aspect of the business. Its growth in the international market is quite significant and it has became a threat for Wal-Mart and Carrefour as a international rival .Therefore I found Tesco to be the best choice compare to other supermarket retailers. Comparison I will compare the performance of Tesco plc with j Sainsbury plc. They are both listed in the London stock exchange. J Sainsbury plc is the third largest retailer in the UK with a market share...
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...An Ordering System For Prima Continental Bakery. This chapter provides a brief look at the history of the stakeholder, background to the problem and the problem statement. The stakeholder in question is Bradford based Prima Continental Bakery. The company was founded 1952 by John Paciej and has been passed down through the generations, with the current owners being Henry Szepler and a silent partner. The business expanded rapidly distributing its goods to major food retailers in the West Yorkshire region, which included major supermarket chain Wm Morrison. But recently the business has seen a down turn in revenue due to aggressive competition from major supermarkets including Wm Morrison, who ended their relationship with Prima Continental Bakery and started to produce goods in store. Due to the increase in competition Prima Continental Bakery reviewed its business strategy and decided to focus more on its core business which is sandwich shops in the West Yorkshire, with emphasis being placed on producing hand made continental bread and baps. Recent financial data shows the business is making a turnover of around half million pounds, which shows its in a strong financial position to cope with co mpet ition fro m the major supermarkets. Background to the problem statement Prima Continental Bakery currently produces a range of products which can be categorised under the terms confectionary and bread. There is a total of 21 products ...
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...In this task I am going to identify some of the competitive factors in the retail environment Tesco faces and the internal and external changes they need to face. I will also identify the competitors of Tesco, their market position, barriers to entry and new retailing concepts. The aspects of government policy concerning planning guidance for new store locations, specifically the influence of Planning Policy Statements. Lastly I will explain the retailer's way of working which may be determined by government. Tesco's competitors are Sainsbury's, Asda and Morrisons. These stores constantly battle against each other for the biggest market share. The reason why Tesco competes with other stores is because they all sell the same or similar products so they all compete through best offers and low prices. They don't let other new businesses get in their way, therefore Tesco has been spending large amounts of money on the development of their existing infrastructure. They compete on things like who sells their products for the lowest prices. For example, because they are such a large company Tesco can always negotiate the best competitive prices with their suppliers and their own brand product manufacturers when compared to small food chains. If a new technology is introduced it will affect Tesco's performance. Because their present employees will have to either learn how to operate the new systems or leave the job. Tesco doesn't want to lose their employees because they are walking...
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...as a fundamental part of the retail industry, that leading the food retailing (Shitti et all, 2006, P.94). The supermarket sector has an essential influence on the retail industry. The UK supermarket sector is led by few companies, Tesco, ASDA, Sainsbury, Safeway, Morrison and Co-op Group that control over 50% of grocery retail. A shift in consumer lifestyle has changed retail industry to offer a diversity of services. (Agriculture and Agri-Food Canada)) The UK grocery has been classified with a wide range of formats including Hypermarkets, Superstores, Discounters and Convenience stores. Generally, food retailers were developed from a highly simple source then they established a sound successful business, interspersed by failure (Williamson et al. 2004). The UK competing supermarkets in the retail industry are; 1. Morrison The supermarket was established in 1899 by William Morrison. In 1962, he purchased the Victoria Supermarket out of town. The growth of Morrison went steadily to increase their stores from 45 in 1990 to 81 in 1996 located in towns that close to main roads. It has been regarded as a leader in Sale-Based Ordering (SBO). Customers consider Morison chains as price competitive. Morrison is considered as the pioneer in feature of Market Street 2. Tesco It is classified as the market leader in grocery retailing that reached 545 outlets by 1996 guided by formula ‘pile it high, sell it cheap’. Tesco had two SBO systems, one for fresh food and...
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...Name- MD. Jihan Iftikhar ID- 129106944 Strategic management Sainsbury’s Plc is UK’s well known supermarket chain with a history of 143 years. The supermarket chain is among one of the UK’s largest retailers which was originally founded back in 1869 by John –James Sainsburys and his wife Mary Ann Sainsburys. (www.Sainsburys.co.uk) In the current global recession , UK’s economy is severely affected and resulting inflation means that the survival of business has become a prominent challenge. The recent scenario in retail industry portrays a clearer image as companies like –comet, J-harris & Sons, JJb sports, Barrats etc had to close down their business’s. However even in these tough environment Sainsbury’s operates over 1000 stores and employs around 150000 people. The Company announced increase in profit and plan to open new stores in upcoming year. It is easy to understand that profitability lies on the underlying strategy of the organisation. In the case, the strategy formulation the strategy formulation can be captured by the framework that is provided by Michael Porter (Professor in Harvard University). The framework is known as Porters 5 forces which shapes the main strategy and gives outlook of any Company such as Sainsbury’s current business situation. This tool analysis includes 5 steps which determine the competitive power in a business situation which are: 1) Supplier power: - Sainsbury’s plc...
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...Module Assignment One 1.0 Introduction to the assigment - Morrisons The supermarket chain to which this report refers to is ‘Morrisons’; this is considered to be one of the big four supermarket retailers in the country and since its creation in 1899 has grown from strength to strength. Morrisons is a family run empire that first started as an egg and butter merchant in Bradford, as times progressed its first supermarket was opened in 1961 (also in Bradford), throughout the 1970s and 1980s the company diversified into distribution of stock, and in 1999 its 100th year of trading it also opened its 100th store. In 2000 its first store opened in Wales, and in 2004 they branched into Scotland. “The OFT said the big four supermarkets - Tesco, Asda, Sainsbury's and Morrisons - had built up their dominance of the food retailing business over the past six years.” , A sign of the times was when the company took over the Safeway’s Group ‘creating the UK’s fourth largest supermarket group’. At present there are more than 360 stores; several factories, distribution centres and head office administrative posts across the country employing over 130,000 staff and welcoming around 10 million shoppers each week; their mission statement is ‘to deliver the very best for less’ . 2.0 A review of the macro environment of Morrisons ‘Macro environment relates to the larger forces that have an impact on society as a whole and not just on one or a few organisations…the company’s macro-environment...
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...Sainsbury: J Sainsbury PLC was founded in 1869 and incorporated in 1922, London. For the past 140 years, the company grew rapidly; today it is one of the “big four”# supermarket chain in UK. It currently sorely operates in UK and employs about 150,000 people. Its cooperation business is composed of four areas, which are supermarkets, online business, property market and banks. The Sainsbury supermarket operates a total of 890 stores comprising 547 supermarkets and 343 convenience stores around the UK. The stores are pride of providing health, safe, fresh and tasty food to its customers. It also jointly owns Sainsbury’s bank with Lloyds Banking Group and has two property joint ventures with Land Securities Group PLC and the British Land Company PLC. Its total revenue (excluding the value added tax) in Fiscal Year (FY) #2010 was £19,964 million, which increased 5.6% from the last year. The underlying profits before tax grew to £610 from £519 million. The basic earnings per share increased 93.4% to 32.1 pence from 16.6 pence. Food retail industry in united kingdom: In 2009, the value of United Kingdom food retail industry increased by 3.1% to reach $186.1 billion. According to forecast for 2014, the United Kingdom food retail industry has a value of $219.4 billion, and increase of 17.9% since 2009. The compound growth rate of the industry from 2009-2014 is predicted to be 3.4%. With a market share rose to 16.5% over the 12-week period, from 16.3% a year ago according...
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...Report on Business Decision Making ( Prity) INTRODUCTION Because of the globalization everyone can do business wherever find profitable place or location, for technological development it become easier and accessible to do business one corner from another corner of the world. Although there is lots or benefits for technological advancement, for operating every business in every place there are some problem also. So for effective business organization should plan for their project. For market research, Abacus Research and Analytics (ARA) a research institute, this institute is going to do a research on consumer behaviors and attitudes towards Food Discount in Retailing by Wm Morrison in Greater London for providing the customer better services. This research will help the organization to take correct and concrete decision for the improvement of customer service for customer satisfaction. Amicus company ltd., Royal company ltd., and . Every company has some problem to operate business although these companies located in good places. These companies want to acquire customer satisfaction by improving customer services. So for better improvement in customer services, Abacus Research and Analytics (ARA) is doing a research for taking correct decision. Abacus Research and Analytics (ARA) collect their information from primary and secondary sources which are authentic as well as accurate, and necessary tools which are relevant to this research used to analysis and calculating data...
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...Because the Office of Fair Trading (OFT) has said that the UK's four biggest supermarkets, Asda, Tesco, Morrisons and Sainsbury's, colluded with dairies to keep the price of milk and other dairy goods artificially high between 2002 and 2003. The watchdog says that consumers ended up paying £270m over the odds for milk, cheese and butter as a result of the price-fixing deal. It has added fresh impetus to the argument that the UK's supermarkets have become so big that they are able to dictate to suppliers and customers alike, with decisions on how much consumers should pay being decided by a small group of executives. Their size allows them to have a huge power over their suppliers. Supermarkets have been accused of squeezing their suppliers to sell their produce for tiny profits, leading the National Farmers' Union to suggest that some suppliers lived under a "climate of fear and oppression". And while market watchers were reporting an upward trend in food prices this summer, Asda was introducing the £2 chicken. Suppliers were soon crying that they could not keep production costs down. It's not just domestic producers who are feeling the pinch from the hard bargaining driven by supermarkets. A report by Action Aid published earlier this year said that in order to deliver low prices to consumers, workers for supermarket suppliers abroad were receiving poor wages, job insecurity and were being denied basic human rights. It said that women in particular were suffering as a result...
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...TESCO implement a clear cost leadership strategy, as market leaders they benefit heavily from economies of scale. The introduction of their own brand allowed the company to cut their costs and increase their profit margins. Tosco's current strategy is very much one of growth. Depend on the feature aimed at the high street consumer TESCO offering different categories shop and services- In ‘'Tesco's Extra'' stores here are over 15,000 of their own brand products. Customer can buy any product in cheaper price. "Tesco Extra" stores, selling not just food, like other supermarkets but material products such as kitchen accessories, entertainment items such as televisions and VCR players and CDs, magazines and cleaning products. "Tesco Metro" was introduced. This was a feature aimed at the high street consumer while offering the benefits of a large supermarket. "Tesco Express" in essence a petrol station with a small Tesco store onsite. This offered customers convince products i.e. bread, milk and essential grocery items. Tesco Direct - The recent interim results show how Tesco's non-food products have made good progress. Tesco's Direct will offer the vast range to anyone with computer access. Telecommunications - Tesco launched an ISP service back in 1998, but have invested more heavily in this field since 2003. Tesco's mobile is in an association with O2 and their ADSL package with NTL. Their most recent example of differentiation is the “Tesco Internet Phone”, which is an innovative...
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...Keeping things simple Annual report and financial statements 2010 Contents and introduction ConTenTs The DIreCTors’ reporT AnD busIness reVIeW 1 Highlights 2 Chairman’s statement 4 Strategic review 4 Business review 5 Market overview 6 Our strategy 8 Key Performance Indicators 10 Our business model 12 Risks and uncertainties 14 CSR/Today 16 Our people – Values in action 18 Performance review 18 Operating review 23 Financial review 26 Governance 26 Board of Directors 28 Corporate governance report 32 Directors’ remuneration report 41 General information FInAnCIAL sTATemenTs 43 Group financial statements 43 Directors’ statements of responsibilities 44 Independent auditors’ report 45 Consolidated financial statements 45 Group accounting policies 50 Consolidated statement of comprehensive income 51 Consolidated balance sheet 52 Consolidated cash flow statement 53 Consolidated statement of changes in equity 54 Notes to the Group financial statements 75 Company financial statements 75 Company accounting policies 77 Company balance sheet 78 Notes to the Company financial statements InVesTor InFormATIon 86 Five year summary of results 87 Supplementary information 88 Investor relations and financial calendar Our business We are the UK’s fourth largest food retailer by sales with an annual turnover in excess of £15bn. We have 425 stores across Britain, ranging in size from 10,000 to 40,000 square feet. Over 10m customers visit our stores each week served by over 134,000 employees...
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...possible threats to Tesco. Examples of possible financial threats are fluctuations in the stock market and tax increases. Remember, if the objectives of Tesco are not threatened by these factors then they are not threats. But, as most companies would be worried about a tax increase, a general, continuing objective might be to decrease the tax burden. Other objectives may take precedence, and make the tax threat insignificant (for a period). The biggest, most obvious, threat is: * Online and offline innovation by other supermarkets aimed directly at taking customers from Tesco. Examples of specific threats that might affect Tesco in the future, are shown in the left margin. The biggest threat is probably that of takeover, like the Morrison group purchasing the Safeway chain or Asda being taken over by Walmart. Opportunities for Tesco Now consider the O in SWOT. There are many great opportunities in the online arena, so many that Tesco needs to decide its main objectives before pursuing particular opportunities. Tesco has already had many online...
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...FOUNDATION TO BUSINESS STRATEGY ALDI ALDI is one of the world’s leading grocery retailers with more than 7,000 stores across 70 countries. The company originates from Germany, where it was founded in 1913 as one of the first retailers to offer self-service. Since opening its first store in 1913, ALDI has established itself as a reputable retailer operating in international markets including Germany, Australia, UK, and the U.S. What distinguishes ALDI from its competitors is its pricing strategy without reducing the quality of its products. In fact, in some cases ALDI’s products are 30% cheaper than those offered by its competitors. ALDI can do this because the business operates so efficiently. ALDI has operated in the UK since 1990, and now has over 500 stores in the UK and Ireland employing in excess of 20,000 people. ALDI’S POLICIES: ALDI does not have a clear defined Vision and mission statements, however it has clearly defined policies based on which it could create its competitive position in the market. ALDI’S Policies are based on ‘What if a grocery store challenged the typical retail business model?’ALDI’s business model enables to provide the customers the highest quality products at the lowest possible prices. This value stems from the numerous efficiencies and innovations instituted at every level of ALDI’S operation. The following are the cost saving strategies that ALDI adopts: * Customers bring their own bags or buy our reusable bags to save money ...
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...shopping more pleasant,’ or for some, even ‘a joy’. Click on each supermarket's name in the table to discover more about what its shoppers thought of it, and find out which own-label products from that supermarket have achieved our Which? Best Buy recommendation. Top supermarkets for shopping in store In-store supermarkets | Supermarket | Range of products | Quality of own-label products | Quality of fresh products | Value | Staff helpfulness | Customer score (%) | Waitrose (640) | | | | | | 75 | Aldi (638) | | | | | | 69 | Marks & Spencer (641) | | | | | | 69 | Lidl (638) | | | | | | 67 | Iceland (640) | | | | | | 66 | Sainsbury's (637) | | | | | | 63 | Asda (642) | | | | | | 61 | Morrisons (639) | | | | | | 60 | Tesco (641) | | | | | | 59 | Co-op (641) | | | | | | 57 | Overall sample size 6,590 | | Using the table Star ratings: These range from one to five – the more stars the better. Customer score: This is based on a...
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