Finance in Tesco Essay - 2612 Words

Liquidity plays an important role in the success or failure of business. In UK, 75-80% businesses collapse not because they are unprofitable but because of liquidity. For running a business successfully, plans have to be prepared to cope with the changing needs and these must be capable of modification. It is not good to wait until the end of the financial year to discover that the plan started to go wrong 11 months ago. For this purpose managers need information quickly, accurately and this information must reach to the concerned persons directly. They require financial analysis carried out weekly or monthly at least. Availability of funds is prerequisite to start any business. Most important sources of funds available to the†¦show more content†¦So these term loans can be quite reasonable and flexible as to conditions. Long term loan can be achieved in the form of debenture which is in fact a document stating the number of units and due dates to be repaid. * Loan notes These are the form of Loans as they are divided into units usually to be traded on Exchange. Their values change according to the business promotion and change in interest rates. In UK and USA these are known as bonds. Tesco Plc For the current assignment I am going to select Tesco Plc. That small business started in 1919 is become Europe’s largest grocery known as TESCO Plc. Tesco stores (holdings) were re-established in 1981 known as Tesco Plc. They popularized their slogan ‘Every little helps’ and they introduced a new value range in after 1991 (Tesco 2010). With the start of new Century, with the increasing trend of online shopping Tesco started its website and provided its customers with online shopping facilities and expanded its business on international level such as United States, China, India, South Korea, Japan, Turkey, and Czech Republic. Company provided a variety of products to get more popularity, for example, Tesco broadband, personal finance, clothing, Tesco Direct involving home furnishing and products, and music download industry (Tesco 2010). 2.1 A Rationale for Choice of Tesco The reasons for the selection of Tesco are recentShow MoreRelatedEssay about The Finance Department of Tesco773 Words   |  4 PagesThe Finance Department of Tesco Tesco started of as a soletrader, its finance functions were carried out by Jack Cohen. A finance function is to raise enough finance to be able to afford to carry out the business, also to cost and price the product. Now as tesco is a larger PLC (public limited company) its functions are carried out by departments were the finance director is responsible for, Mr. Andrew Higginston. The finance department based at tescos is now the centralRead MoreInternal And External Sources Of Finance For Tesco P4978 Words   |  4 Pagesï » ¿Internal and external sources of finance for Tesco Internal sources of finance (Tesco) Retained earnings: A source of finance used by Tesco is retained earnings. Tesco re-invest a certain percentage of their end of the year profits back into Tesco, so they can improve it. Each year Tesco decide how much money they re-invest, this depends on the profit they make. Fixed assets: Another type of an internal source of finance for Tesco is fixed assets. Fixed assets are an asset that is not consumerRead MoreHow functional areas link1130 Words   |  5 Pageswithin Tesco. The functional areas in any business can’t work alone; they must interact with other departments and have good communications within them. Most functional areas in Tesco deal with external people or organisations, these are called external links. For example, suppliers, which are usually contacted by the purchasing or production function to make orders; the RD department then contacts specialist suppliers and research if the products they offer are of good quality; the finance departmentRead MoreTescos Functional Areas1270 Words   |  6 PagesTesco’s key functional areas Functional areas In all companies there are many different tasks which need to be carried out regularly, in order for the business to reach its aims and objectives. Stock needs to be brought, the bills and finances need to be controlled, and customer service issues dealt with and so on. In a small organisation one or two people may do all the jobs, whereas in a large organisation people have to be specialized in many different individual tasks. In a large companyRead Morebusne1365 Words   |  6 PagesDue 7/02/2014 Aim The aim of this report is to analysis a case study about an organization called Tesco. In this analysis, I will discuss the purpose of the key business function in the organization. Furthermore, I will analyze the power-grid interest of Tesco’s stakeholder. In addition, I will analyze the key issue in the managing stakeholder. Finally, I will show a SWOT analysis of Tesco. Introduction The business industry is getting wider and competitive. According to HannaganRead MoreBtec First Business -Unit 1 P41654 Words   |  7 PagesHuman Resources †¢ Finance †¢ Distribution In task 3 I will be explaining how 4 functional areas have a role in the aims and objectives of Tesco. Tesco is a business that always wants to make profit as an aim. The marketing department will go out and see what consumers are looking for, it might be child toys or adult electronics, and then the sales department will go and increase prices or sell more of the products. Profit can link to the functional area: finance. To be able increaseRead MoreTesco1411 Words   |  6 Pagesdescribe the contribution of the key business functions to the changes implemented in the organization. (Finance, Marketing, Operations, and Human Resources). Also, it will explain the key stakeholders of the organization and the key issues in managing stakeholders. Furthermore, it will include a SWOT analysis and a Power and Interest Matrix about Tesco. Business functions In the case study of Tesco, it is stated that they will appoint more staff to win their customers back. This step is related toRead MoreTesco s An Online Retailing Service1630 Words   |  7 PagesIntroduction Tesco PLC is a multinational corporation that sells food and non-food products to consumers. Being one of the largest food retailers in the world (Brand Finance, 2014). It now operates over 7,599 stores that include franchises. With over 500,000+ employees worldwide in 12 different counties, that includes the UK, Czech Republic, Hungary, Ireland, Poland, Slovakia, Turkey and Poland in Europe, along with India, Malaysia, China, South Korea and Japan in Asia (Tesco, 2014). Tesco was foundedRead MoreEvaluation Of The Appropriateness Of Business Information1040 Words   |  5 PagesAn evaluation of the appropriateness of business information used to make strategic decisions. TESCO: Finance: Finance function includes keeping the records of financial activity, for example, sales made by the business. It provides managers with information that they can use in decision making, for example, the cost of creating products. The chief accountant supervises the work of the accounts department. The managers need to be constantly aware. Accounts can be divided into two sections:Read MoreQuestions On Sources Of Finance1696 Words   |  7 PagesIn this assignment, four different sources of finance preferably two short term and two long term sources of funding will be discussed and identified. Secondly, it will also talk about and select to non-financial companies listed on the London Stock Exchange and will find their most current financial statements based on the last 5 years. I have selected Tesco and Sainsbury’s as my two non financial companies. Thirdly, I will then define and converse the pros and cons of each source of funding and