...Tesco is known to many US investors. In this analysis I will attempt to outline the key dynamics of this company and demonstrate why I consider it to be an excellent investment at the current market price. Readers should be aware that I have been a shareholder in Tesco PLC since 2006. In addition, since this analysis has been written for the Gurufocus value ideas competition there may be some unconscious element of positive bias, even though I have attempted to be objective. Therefore I would strongly advise investors to do their own further research before investing in this company. Tesco is listed on the London Stock Exchange, stock code TSCO, and is also available on the US market as an ADR, stock code TSCDY. At the time of writing this article the share price in London was 395 pence and $19.59 for the ADR in the US. The Business Tesco PLC is the largest retailer in the UK and its core business is large format stores for food and other convenience items. In addition the company offers telecoms services such as mobile and broadband to UK customers as well as financial services including household and car insurance, personal loans and credit cards. In 2009/2010 the company achieved 31% of total sales in international markets. The market cap is 31.7 billion pounds (US$51.83 billion) and Tesco is now the world's third largest retailer behind Wal-Mart (first) and Carrefour of France. In the UK it has been reported that one out of every eight pounds spent in retail stores...
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...COMPANY PROFILE Tesco PLC REFERENCE CODE: 34972414-9A41-4048-A7B6-1B0017054743 PUBLICATION DATE: 7 Feb 2013 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Tesco PLC TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Tesco PLC © MarketLine Page 2 Tesco PLC Company Overview COMPANY OVERVIEW Tesco PLC (Tesco or ‘the company’) is a food and grocery retailer. The company primarily operates in Europe and Asia. It is headquartered in Hertfordshire, the UK, and employed 519,671 people, on an average, in FY2012. The company recorded revenues of £64,539 million (approximately $103,223.7 million) in the financial year ended February 2012 (FY2012), an increase of 6.8% over FY2011. The operating profit of Tesco was £3,985 million (approximately $6,373.6 million) in FY2012, an increase of 1.7% over FY2011. The net profit was £2,806 million (approximately $4,487.9 million) in FY2012, an increase of 5.7% over FY2011. KEY FACTS Head Office Tesco PLC Tesco House Delamare Road Cheshunt Hertfordshire EN8 9SL GBR 44 1992 632222 Phone Fax Web Address http://www...
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...Strategic marketing in Tesco Plc Executive summary Tesco is one of the biggest names in retail and deals in a wide variety of products and services. By its effective marketing strategies it has been a great success and has been able to maintain its leadership position. The report aims at examining the strategic marketing of Tesco and seeks to find the ways in which it has been able to maintain its leadership position. In order to get suitable and reliable information of the operations of the company, secondary data from the company’s website, scholarly articles, reports, etc have been utilized. The report also uses various strategic analysis tools like PESTLE analysis and SWOT analysis to access the competitive position of the company and its internal as well as external environment. It has a strong leadership position in retail and its low cost strategy has been a great success to attract more number of customers. It has also operations in other countries where it has emerged successful by adapting to localization techniques. It is recommended for the organization to increase its international presence in order to derive more growth and profitability. This report highlights the strategic marketing of Tesco and the ways in which it has created a leadership position in the extremely competitive market and industry in which it operates. The market position of Tesco has also been accessed by the use of different strategic tools like SWOT analysis and PESTLE analysis. Table...
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...Module Code:SP Table of Contents Executive summary 3 1. RECENT PAST: Strategies deployed and resulting outcomes- recent Strategic development history. 4 Introduction:- 4 Strategic Development History:- 4 Growth Strategy:- 7 Organic Growth:- 7 External growth (Acquisitions):- 7 Product series Strategy:- 8 Tesco Finest Range:- 8 Tesco Average Range: 8 Tesco Value Range: 8 Store Formats strategy:- 8 2. CURRENT: Current Strategic Situation:- 9 PEST Analysis:- 9 PORTER’s Five Forces:- 11 SWOT ANALYSIS:- 13 3. FUTURE: Strategic Direction for the future:- 16 Strategic 1: Tesco should expand in South East Asian developing country:- 16 Strategic 2: Tesco should alliance with Star Bucks or Caffe Nero:- 17 Strategic 3: Tesco should introduce books section in back to school section:- 17 Strategic 4: Tesco should launch micro Tesco chain in UK:- 17 Conclusion:- 18 References:- 19 Executive summary The main purpose of this work is that to analyse the strategic growth of Tesco plc. After the brief study of Tesco’s history it has been analysed that Tesco works on many different strategies. Regarding to the growth strategy Tesco...
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...Forces Model & Value Net SWOT Analysis Adoption Of Strategies Financial analysis & Recommendation 2 2 3 4 5 6 7 8 9 10 11 Industry Overview U.K 11% of all VAT-registered businesses in the UK are retailers. 70% of UK retail is Organized and 30% is Unorganized. The retail sector generates almost 8% of the Gross Domestic Product of the UK. The retail industry employed 2.9 million people, as at the end of September 20. Supermarkets dominate the UK food retail market, with 56.0% of sales. 3 Company overview Tesco¶s is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Established in 1924. Tesco is the third-largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 4,00,000 people www.Tesco.com is recognized as the world¶s largest online grocer, with a customer base of little less than 1 million and more than 250,000 orders a week. Tesco¶s market share of UK retailing is 12.5%. 4 Company overview Tesco has moved into areas such as clothes, consumer electronics, consumer financial services, internet services, consumer telecoms and gas stations. Tesco now controls over 30% of the grocery market in U.K. As of March 2008, Tesco have a store in every postcode of the UK. 1960 1970 1980 1960 2000 5 Competitors Competitors ASDA Group Limited BP Plc Carrefour S.A. ExxonMobil Corporation The Big Food Group Plc J Sainsbury...
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...Tesco PLC Company Profile Reference Code: 1674 Publication Date: Aug 2004 www.datamonitor.com Datamonitor USA 245 5th Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: eurinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 9754 4517 f: +49 69 9754 4900 e: deinfo@datamonitor.com Datamonitor Hong Kong 2802-2803 Admiralty Centre Tower 1 18 Harcourt Road Hong Kong t: +852 2520 1177 f: +852 2520 1165 e: hkinfo@datamonitor.com ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors...
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...the retail sector. Particularly, Sainsbury’s and TESCO are the two of renowned companies in the retail sector. This report deals with the comparison and would contrast both companies’ performance in the last two years with the understanding of ratio analysis, which are considered to be a very close business match. The ratio has been chosen to show profitability. Efficiency, Liquidity, Financial gearing and investment Black, (2009). To begin with, Sainsbury’s and TESCO operate in the UK grocery sector, with both companies classed in the big-4 supermarkets. According, to the latest Kantar Worldplanel (2014) report, TESCO held 29.6% of the UK grocery market in top place, while Sainsbury held 17% of the market, holding third place after ASDA. Furthermore, both companies have business in other services, including clothing, non-food items, banking and insurance services as well as international operations for TESCO. According, to Sainsbury’s latest Annual Report (2014), total revenue (all – UK) amounts to £23.949Billion, with non- food and banking making up a much bigger proportion of sales, Sainsbury’s (2014). In comparison, with Tesco’s latest Annual Report (2014), sales from non-Uk markets represent £63.557Billion. Ratio Analysis and Key Highlights of the Report In this report, ratio analysis has been conducted to evaluate the profitability and performance of the two retail companies, TESCO and Sainsbury. In other words, this analysis will help to understand the ratios and will be...
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...A Competitive Analysis on Tesco Introduction Tesco and Sainsburys rivalry goes way back and has been going on for over decades now. Tesco was founded in 1919 by a man named Jack Cohen. Its very first store opened in 1929 by T.E. Stockwell, and in 1932 Tesco became a PLC. Sainsburys started in 1869 and is part of the “multi-national company J Sainsbury in both the UK and the USA” (2008). The main focus of this essay is analysing Tesco against Sainsburys in their performance when it comes to marketing and how well they are market oriented and sales orientated, their ability to understand customers and its consumers and also their marketing mix. Market orientation for Tesco and Sainsburys is how they as a business both choose to focus on identifying and meeting their customers’ needs whether it be stated or hidden. This is quite different to the sales orientation because with sales orientation, Tesco and Sainsburys focus on promoting sales of whatever a company supplies or makes through sales calls and marketing. Tesco tend to place a positive image on their customers through their good customer service and their quick responses to customer needs. Tesco also tend to ensure that they are offering their customers as much help as possible in and around their store. This is how Tesco uses excellent market orientation. They also do this through refurbishment in and around the store which is their way of improving their service levels. After a customer makes a purchase or refund...
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...Assessing the performance of tesco TESCO plc is a United Kingdom based group specialised in food retailing, it operates as a grocery and general merchandising chain in the United Kingdom and across the world. So far, it is the largest British retailer in term of sales and market share with, according to Thomson one banker, a total net income of £ 2,161.00 for the year 2009. It is also the third largest global retailer group in term of revenue after the American group Wal-Mart and the French group Carrefour. With a main activity of food global retailer, it has diversified his activity into clothing, home, financial services, car insurance, health, telecoms and internet services and software. However in this report we are focusing on its clothing unit which operates online. So to better know this Tesco clothes retailing, this report will bring an overview of the company and will analyse its current strategic position, the same as its fitness with the other business units. This report will also analyse the Tesco clothes retailing’s macro environment, the competitive environment, the strategic capability and also the future strategic options. Tesco clothes retailing’s brief overview: The Tesco clothes retailing company is among the biggest clothing retailer by volume in the United Kingdom as it was ranked at the third place in 2008 and had to juggle this place with Asda Direct online retailer behind Mark & Spencer and Primark (Hall, J.). Tesco clothes retailing is committed...
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.....................................................6 External factors affecting the organization...................................................................5 Macro-environmental level: Pestle analysis is applied ...............................................12 Major Changes taking place in the external environment.................................... 12 1.3.2. Industry Level: Porter five forces.........................................................................................13 2. Review of Tesco Existing Plans ................................................................................. 16 2.1. Tools to analyze the effect of current business plan............................................... 16 2.2. Position of Tesco in its current market ....................................................................... 17 2.3. Competitive Strengths and weaknesses of current business strategy ............. 19 3. Consideration of Strategic Options.......................................................................... 20 3.1.1. 3.1. Market Penetration ....................................................................................................................21 Modeling tools to develop strategic options for Tesco .......................................... 20 3.1.2. 3.1.3. 3.1.4....
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...and Background of Companies Tesco Tesco PLC is an international British general merchandise and grocery retailer and listed on London Stock Exchange as TESCO. The store was founded in 1929 and today it emerged as a world’s third largest retail store with more than 50,000 employees and 6200 stores. Tesco’s headquarter is located in Cheshunt, United Kingdom. Tesco has been functioning in 14 countries across Europe, Asia and North America. With the help of private label programme that are well established, Tesco engaged in producing high quality products. A key strategy because of that Tesco is on world’s third place in retail stores sector is that the company uses and believes in own-label brands which are well-targeted containing the up-market low-price ‘Value’ and ‘Finest’ labels. Morrison Morrisons Plc, also called Morrison Supermarkets, is the world’s fourth largest supermarket chain in the UK. It is on the list of FTSE 100 Index of companies. Morrison all over the world considered as one of best stores that provide fresh quality food products. The company was founded in 1899 by William Morrison and headquartered in West Yorkshire, Bradford, England. Along with 132,000 employees the company is functioning with approximately 500 stores counting 14 M Local Stores around the United Kingdom. The key strategy of Morrisons is the promise to offer its customers with exceptional quality, value and service. Financial Analysis Financial Overview of Tesco Tesco's share of the UK grocery...
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...Concept 3 1.2 Brief Background of Tesco PLC 3 Main Products and service range offered 4 Markets Served 5 Tesco’s Main Competition 5 1.3 Key Issues faced by industry players and Tesco PLC 5 2.0 Marketing Mix 6 2.1 Product Mix 6 2.2 Place Strategy 8 2.2.1 Current strategies used in distribution 8 2.3 Price Strategies 8 2.4 Promotion Mix 9 3.0 Technological Impact 10 3.1.1 Tesco and CRM (Customer Relationship Management) 10 4.0 Conclusion 12 Executive Summary The main objective of this report is to critically analyze the Tesco PLC’s overall operational scope based on a retailing perspective, since they are indeed the UK’s largest multiple retailer and across in Central Europe, it is the author’s main objective to study the marketing mix strategies and the components of the business as well. The technological factors as well the customer relationship management that Tesco has incorporated into their business in order to gain reputation and an established brand reputation is also what fascinated the author to conduct this research because Tesco has proven themselves in terms of the diversification of their services and the further expansion of their stores across the globe with an effective marketing strategy associated with it. Furthermore the highly advanced Information Technology and IT systems that has given Tesco a competitive advantage over the competitors on an international platform and has helped Tesco in maximizing the overall supply chain...
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...MarketLine Case Study Tesco plc Case Study How Tesco Became the UK's Largest Retailer Reference Code: ML00001-041 Publication Date: December 2011 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED TESCO PLC CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-041/Published 12/2011 Page | 1 OVERVIEW Catalyst Tesco is the largest retailer in the UK and dominates the UK food and grocery market, accounting for almost a third of all grocery sales. This case study examines the factors that have led to the growth of the company as the UK’s number one retailer. Summary In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to the rise of Tesco. The company has created a powerful brand and a number of valuable sub-brands including store, product and service brands. Tesco’s grocery product brands tend to center around a three-tier branding system, allowing the company to appeal to a mass market. Tesco has been a forerunner in the price competitive environment of the UK food and grocery market, utilizing its economies of scale to lead price wars with other supermarkets. The company has grown inorganically, buying out various independent grocers...
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...Abstract The purpose of this assignment is to critically examine the performance of two companies using Ratio analysis over the a period of five years (2008-2012), in order to recommend the best company for investment, justified by the data collected, analysed using ratio analysis and interpreted The assignment, will compare two of the largest retail outlets in th UK in sainbury and Tesco. It will show that Tesco has higher Profitability, Liquidity and Gearing ratios than Sainsbury, While in investment ratios Sainsbury exceeds Tesco. However it will also show that over the five year period Sainsbury as more consistent ratio outputs than Tesco, whom go into a steep declines in various ratios during the 2012 period. This assignment will show that Sainsbury on the basis of consistence is a better investment option, while highlighting that the ratio cannot be the only tool used in analysing comparatively the two companies. Table of Contents Introduction1 Selection of companies2 3. Ratio Analysis3 3.1 Profitability Ratios4 3.1.1Return On Capital Employed4 3.1.2 Gross Profit Margin6 3.1.3 Profit Margin7 3.2 Liquidity Ratios8 3.2.1 Current8 3.2.2 Liquidity9 3.3 Gearing Ratio10 3.4 Investment Ratios12 3.4.1Dividen Yield12 3.4.2Pric to Earning13 4.0 Critical Analysis15 5.0 Conclusion16 APPENDIX17 Bibliography Table of Tables Table 1.1……………………………………………………………..4 Table 1.2……………………………………………………………..6 Table 1.3……………………………………………………………..7 Table 2.1……………………………………………………………...
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...the company Tesco PLC that is UK’s leading grocery store. The aim of this report is to develop a three-year marketing strategy plan and a one-year tactical communication plan for Tesco. Tesco at some stage has faced difficulty hence by exploring the brand and critically analyzing its marketing strategy, I will then develop a strategy that would turn Tesco’s fortune around. 1.1. Methodology Market research for the brand has been conducted through secondary research by visiting academic websites such as Mintel, Database reports,LexisNexis Database, Business reports, Articles, Blogs and News online. 1.2. History Tesco PLC is a multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), the Republic of Ireland, Malaysia, and Thailand. Jack Cohen founded Tesco in 1919 as a group of market stalls. The Tesco name first appeared in 1924, after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. (TESCO PLC, 2015) 2...
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