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Module Financial Statement Analysis Of Sainsbury's

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Assignment Module Financial Statement Analysis 1. Introduction to the company and its role within the wider international market; including competitors and current market conditions that may impact on its financial performance. Tesco plc is a British multinational grocery and these days the third- largest retailer worldwide in terms of revenues, operating in 14 countries across Europe, Asia and Nord America.The retailer was founded in 1919 and operated exclusively within the UK until the early 1990s when it started diversifying geographically. Tesco in its early years only offered foods and drinks in its stores but then successfully diversified its product range to electronics, books, household appliances, clothes, financial services …show more content…

▪ “Range and quality”: The retailer plans to focus more on its value range, e.g. Tesco Finest to remain competitive compared to Sainsbury’s which has launched its value range ‘Taste the difference’ very successfully. ▪ “Brand and Marketing”: Compared to its competitors Tesco spends a tremendous amount of money on its marketing and advertisement. This strategy remained relatively unsuccessful as the slogans the retailer uses do not make clear what it stands for. Sainsbury’s being very successful with hiring the popular cook Jamie Oliver for its advertisement is only one of the reasons Tesco wants to focus on clear marketing messages and a modernized advertisement. ▪“Clicks and Bricks”: As a last point Tesco want to put a focus on its offer to pick up parcels in its stores. Hence the internet shopping is still growing it is very convenient for customers to pick up their parcels in one of the local shops. Before the start of the campaign only 770 of Tesco’s 2,700 stores in the UK were offering this service which Tesco wants to expand. Tesco started working on this plan from April 2012 on. The plan involved the investment of £1bn and led to a drastic dropdown in profits for the year 2012, compounded by the general slowdown in sales in the UK. Within the first 6 months 2012 Tesco’s profits in the UK were down more than 12.4 % at £ 1.1 bn. Internationally, Tesco is especially struggling

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