Undergraduate
Essay
Finance & Accounting
Pages 8 (2008 words)
Download 0
Section 1 will describe the business model and strategies of Tesco and find and connect evidences cited from the case, if any, and explain how they are consistent with corporate objective of maximizing shareholder wealth. Section 2 will…

Introduction

2.1 Describe the business model and strategies of Tesco by taking on strategy and discuss with evidences cited from the case how it is consistent with corporate objective of maximizing shareholder wealth.
Tesco’s business model is for the company to what matters better together as it deliver its core purpose to customers. The core retail activities of insight, buy, move and sell are what the company tries to make better as supported by its strategies, among others, of building the Tesco Brand, Leveraging Group skill and scale, operating responsively, establishing multichannel offer for customers. The financial results measure the performance on how the company was able to accomplish its strategies and objective of wealth maximization.
The business model of Tesco includes those made from the perspective of strategic choices. The strategies being used in relation to its business model including that of operating responsibly which include maintaining its good profitability, efficiency management of its assets, acceptable liquidity, balanced gearing ratio and responsive investment ratios.
As to whether the strategies are consistent with the corporate objective of maximizing shareholder wealth, it could be said that there is good amount of evidence. The results of the company’s profitability, liquidity, good Solvency , and good investment ratios provide good pieces evidence of meeting the financial objectives of the and which are consistent with the objectives of maximizing wealth of shareholders.
Making good strategic judgements has a good way to determining the company’s prosperity and building value for its shareholders over the coming decade. Building shareholder value cannot be done in instant or in short-term. It is actually long-term as it may even be sacrificing in the short-run in order to attain the ...
Download paper
Not exactly what you need?

Related papers

Finance
Although, it is practically not possible to control some forces that operate outside a business, such as availability of the capital and the world economic conditions, management need to inspire and guide internal operations in helping ensure a secure competitive position within the marketplace. Moreover, both innovation and adaptability are essential in helping gain market share, and stay…
Finance
The debt financing includes bonds, leasing, borrowings from bank and mortgages and is universally seen as the easiest and cheapest way of financing activities. It also carries a tax-deductible benefit that is an attractive source in investing activities as interest payments will be expensed out (Narayanan, 2009). It also carried a risk of debt payments and leverage which could result in decrease…
finance
standard deviation. GARCH model is used in mathematical finance for evaluating derivative securities. GARCH model works on the assumption that underlying volatility is consistent throughout the life of the derivative and do not respond in the changes of its price (Chance & Brooks, 2009. Ans-1) Six Series Co integrate In order to complete the same, we have to recognize and consider below mentioned…
Finance
investment in diversified portfolio like equity, bond, preference share, different securities etc in domestic as well as international stock market. A number of companies are attached with this investment process where the finance managers and the fund managers of the investment companies are responsible for the whole process of investment by taking into consideration the associated risk factor…
finance
Sainsburys is second in terms of market share, ASDA is third and Morrisons is fourth (with 11.8), according to Reuters Finance. But when we look into market share increase over the past two years we find that Tesco’s profit margin in 2011 was 8.47% and decreased to 8.15% in 2012 perhaps reflecting the overall decline in retail profits due to the weakened economy. It is important to note though…
coporate finance
2.1 Describe the business model and strategies of Tesco by taking on strategy and discuss with evidences cited from the case how it is consistent with corporate objective of maximizing shareholder wealth.…
Finance
The founding story shows that its founder had an inspiration from his job in the banking sector where he focused on facilitating the accessibility and establishment of attractive pricing for bank products. The founder knew that changes to improve the services in the banking industry would take long. Therefore, he had to maximize the opportunity that he had to establish a business that could…