Business Strategy
Peter Short
Business Strategy
3/22/2013
Stevie Nicola Smith – BA (Hons) Business Studies
This report of is to develop an understanding of the mission and objective identification and the role of the stock exchange. Offering an insight into the implementation of strategy within an organisation and the role it plays. The report will concentrate on a FTSE 100 company; the company this report will look at is Tesco Plc.
Peter Short
Business Strategy
3/22/2013
Stevie Nicola Smith – BA (Hons) Business Studies
This report of is to develop an understanding of the mission and objective identification and the role of the stock exchange. Offering an insight into the implementation of strategy within an organisation and the role it plays. The report will concentrate on a FTSE 100 company; the company this report will look at is Tesco Plc.
Introduction
As a consultant working for Tesco Plc this is a report to investigate Tesco’s current situation and make recommendations for future strategic decisions. The investigation will analysis two parts of the; Business Ethics/Corporate Governance and Strategic Position Analysis.
Tescos current capital market share price is 372.05p +4.45p +1.21%
Trade time: 16:29 05 Mar 2013 REF and has a market capital price of £29.9674 bn
Tesco currently hold a healthy position in the stock market and it currently ranking number 19 in the FTSE 100.
Being in the FTSE 100 has its advantages as all the companies in the FTSE 100 are deemed to be profitable companies which identifies them as much sought after companies which not only private investors, trust and venture capitalists would seek to invest in, as they know that there is more of a possibility that their investment will give a good return. In turn this raises the share price improving the overall value of Tesco. This is beneficial to the company and allows and facilitates potential to grow and expand. A company positioned in the FTSE 100 has a status and are often in the public eye and publicized as being one of the most valuable businesses on the London Stock Market, which can only be good for Tesco.
The role of the Stock Market enables companies to source finance from external investors, it provides a platform for companies to sell shares in a regulated area and people can invest their money safely. The stock market allows investors to make informed decisions providing information on the company’s financial performance and the fluctuation of share prices.
Tesco’s current position
“We are one of the world's largest retailers with operations in 14 countries, employing almost 520,000 people and serving millions of customers every week”
£72.0bn - Group sales
+7.4% - Group sales growth
£3.8bn - Group profit before tax
+5.3% - Group profit before tax growth
+1.6% - Underlying profit before tax
+2.1% - Underlying diluted earnings per share
14.76p - Full year dividend per share
“Our vision is for Tesco to be most highly valued by the customers we serve, the communities in which we operate, our loyal and committed staff and our shareholders; to be a growth company; a modern and innovative company and winning locally, applying our skills globally.” www.tescoplc.com - Year Ending 2012 Please See Appendix for Tesco Plc mission statement. PESTLE Analysis of Tesco Plc Political: Tesco is now a worldwide organisation operating throughout Europe in 6 countries (Ireland, Hungary,Czech republic , Slovakia, turkey and Poland) and also throughout the far east in 5 countries (South Korea, Thailand, Malaysia, japan and Taiwan. The legislation in these countries differs and this can influence the way Tesco Operates, one of these influences is the European Union and there are interested in how Tesco is performing. Employment legislation has to adhered to throughout Tesco’s organisation as the government encourages employers to offer jobs to a range of people. Tesco has a