We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Tesco Personal Finance - Case Study Example

Comments (0) Cite this document
Tesco Personal Finance that was set up in 1997, as a joint venture between Tesco and the RBS. From a strategic perspective the TPF was established to draw on the Royal Bank of Scotland's financial expertise while using the Group's stores and online resources as a medium to recruit and cater financial services to the customers at low-cost…
Download paper
Tesco Personal Finance
Read TextPreview

Extract of sample
Tesco Personal Finance

This acquisition of Tesco over the 50% stake of RBS coming as a direct challenge for the high street financial institutions which currently are on the stormy side of the economic recession tide and presently are in-waiting for the bank charges decision by the High Court.
The acquisition will help Tesco to make its expansion from financial services that revolved around an assortment of popular financial services and products to full-fledged retail banking offering more preference, innovation and value to customers and better returns to its shareholders. It is a part of Tesco's strategy through which Tesco will be able to further enhance its growth in the services market sector that includes telecoms and internet/home shopping as well. According to Tesco's estimation for the year 2008, by taking the full ownership of the TPF, Tesco would be able to increase its annual profits to 1 billion from 240 million (News Release, 2008).
This acquisition clearly reflects that Tesco has identified considerable scope for further possible developments and advancements in the financial sector which is itself a very extensive and a dynamic sector. Hence by taking the full ownership, Tesco will be better equipped to be able to exploit the prospective offered by the TPF in the more basic version of banking.
This second half of the paper examines the strengths and weaknesses of Tesco hence offering an analysation of the resources and capabilities that Tesco can muster up to compete effectively and develop TPF into a full service retail bank making a success of full- fledged consumer banking.

Tesco's Expansion to Full Service Consumer Banking
On the acquisition of RBS stake and TPF's expansion into full- fledged retail banking in the coming years, Sir Ted Leahy, the COE of Tesco plc reflected, "As consumers look to make every pound work harder it is a good time for Tesco to expand its presence" (BBC, 2008). The phrase "good time" refers to the current financial turmoil, which in recent times has revealed the shaky foundations of many a high profile financial institution, and ironically has presented an opportunity for TPF to move into full service banking. As a result of the financial depression many of the TPF's would be competitors will be at their weakest, hence competition that will be on offer will also be comparatively less.
In order to make the expansion into the more core-sphere of banking, the management of Tesco will need to rally up their strengths comprising its assets and resources identify with the current financial trends the opportunities or threats presented by it and also realise their own weaknesses and accordingly create business objectives and strategies which will allow the optimum use of resources and strengths, maximum exploitation of opportunities, stablisation of threats and minimisation of weaknesses and other draw backs for the overall success Tesco's expansion endeavor.
For the present short time frame, Tesco's strategic objective for the future development of TPF is to broaden the horizons of the existing financial services rendered by TPF, which includes services and products like savings accounts, credit card accounts and insurances and moreover increase its presence in the Tesco stores. However, on ... Read More
Cite this document
  • APA
  • MLA
(“Tesco Personal Finance Case Study Example | Topics and Well Written Essays - 4000 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/274890-tesco-personal-finance
(Tesco Personal Finance Case Study Example | Topics and Well Written Essays - 4000 Words)
“Tesco Personal Finance Case Study Example | Topics and Well Written Essays - 4000 Words”, n.d. https://studentshare.net/miscellaneous/274890-tesco-personal-finance.
  • Cited: 0 times
Comments (0)
Click to create a comment
Philip is 52 years and Belinda are 45 years, and they are blessed with two children: Barry aged 14 and Gavin aged 12. Philip is employed in IT role by a local authority where has worked for the past 12 years while Belinda is s state primary school teacher.
8 Pages(2000 words)Essay
Tesco Competitive Strategy
In the present states of activities, the war on terror state of global and changing consumers' pattern it has become necessary for companies to be more responsive in their activities and operations to customers and other stakeholders (Bowlby 2001). Wonglimpiyarat, (2004).
6 Pages(1500 words)Case Study
Strategic Direction of Tesco
As a retailer, the stores serve a large number of communities in which customers and staff live and work.] http://www.tescocorporate.com/page.aspxpointerid=3B3A4B25C27741408604630168DAE624 Tesco operates internationally. Every week over 400,000 staff serve over 30 million customers in 13 countries playing an important role in creating employment, fostering skills and generating economic development.
15 Pages(3750 words)Case Study
UK Retail
The slowdown of the industry is generally attributed the continuing deceleration of the Chinese economy as well as fluctuations in energy prices that affected related industries (Awbi, 2006a; Tesco expands in Japan, backtracks on China, 2006). However, indicators by the second half of 2006 have indicated that earlier projections in 2004 may still be achievable due to market growth in India, Russia, South America, and Eastern Europe though US markets remain subdued in comparison (Markets Ready For Liftoff After Positive Economic Reports, 2006; Awbi, 2006a).
12 Pages(3000 words)Case Study
Economic Background of Tesco
In 2001 Tesco occupied 15.6% of the UK grocery retail market and was the market leader by 6%. Tesco's enormous share is still growing: by September 2004, it had increased to a massive 28%, around 12% more than its nearest market rival, Asda. If we include Tesco's share of the convenience store market (considered a separate sector by UK competition authorities) in this figure, Tesco could be said to control 34% of the grocery market.
6 Pages(1500 words)Case Study
Tesco Plc in a Social Perspective
Gone were the days when the main concern of the customer is price and quality. In an industry where merchandise displayed on counters is almost treated as homogenous, companies are pressured to differentiate themselves through other means such as value-added services (Kotler 2005).
10 Pages(2500 words)Case Study
The Business Environment of Tesco Plc
The phenomenal success of Tesco as a retailer is recognised even in the global arena. The company is named the world's third largest retailer lags behind Wal-mart in terms of global sales while staying ahead of other retail giants like Carrefour, and Home Depot (Tesco Plc 2008).
6 Pages(1500 words)Case Study
Tesco Personal Finance
Hall, J., (2009), “Tesco to launch bank branches and current accounts”, Telegraph.co.uk, retrieved online, 4th April, 2009, from:
16 Pages(4000 words)Case Study
Managing your personal finance
This amount can be used to cover the mortgage expenses of Belle that she had put in place to reduce mortgage term insurance cover for value of $760,000 for next 18 years at discount rate of 2 percent. This is because the
3 Pages(750 words)Case Study
Personal Finance
Property insurance should remain as it is however the Lane’s should consider risk sharing for other utilities of high value such as home
5 Pages(1250 words)Case Study
Let us find you another Case Study on topic Tesco Personal Finance for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us