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Tesco Company Annual Report - Coursework Example

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Tesco Company Annual Report

It is evidently clear from the discussion that Tesco Company was started in the year 1919 from a market stall in East End England by Jack Cohen. The company experience growth and expansion to the Tesco known today, which operates in 12 countries in the world with a number of stores in these countries. It deals with a variety of products including household goods, freshly baked products, and groceries. The company also has a share in the service industry through Tesco bank. The diverse products and services contribute positively to the success of the company through diversifying investments so that when one sector is not performing very well another sector is making up for the difference. With a worldwide market through its various branches, Tesco has grown to be the leading retail outlet in the world. Not all information in a financial report of every company is financial; there are some theory and explanations giving an overview of the company without using the financial figures. Key performance indicators divert the attention from the profit earned and focus on the firm’s performance in terms of meeting their goals and objectives. These indicators measure the success of the firm and the potential of the firm to grow in future, this is very important to an investor interested in investing in the firm. They include customer satisfaction that is reflected through repeat purchases and referral of new customers to the store. Tesco is not an exception to this and it has measured the key performance indicators of the firm and availed the information in the annual financial report. Tesco has managed to retain 70% of their loyal customers from the previous year while acquiring 29.1% of the loyal customers in the previous year as new loyal customers. 59.7% of the loyal customers have shopped through various channels, indicating customer loyalty to the firm and the importance of the various channels to customers. Demand for branded Tesco products is also increasing with 64.3% of the loyal customers shop for Tesco branded products. In general, all these clients show love for the firm indicating the bright future of the firm with a good customer base in currently and in the future. ...Show more

Summary

This article will explore Tesco company Annual report under the following divisions: relevant non-financial information in the report; important happenings since the publication of annual report; the meaning of the 2014 audit report for investors…
Author : euna16
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