Tesco Executive Summary

800 Words 4 Pages
Tesco was established in 1919, has become the biggest retailer in Britain, and in rank as one of the top three global retail enterprises. Tesco develops its business in 13 countries worldwide, has more than 500,000 employees, and provides services for more than 5,000 customers every week. Tesco's business covers retail, finance, gas station, telecommunications, medicine and other fields. In addition, Tesco also actively expands the online retail business popular among customers. But from the beginning of 2013, significant problems appeared in the operation and management of Tesco. In the first quarter of 2013, Tesco announced its profits declined to £2.8 billion in the former fiscal year, and its net profit fell to £124 million, which was the …show more content…
The first is the profit forecast data of the first half of 2014 hundred million pounds. But a few days later, Tesco corrected that the expected profits only 850 million pounds. Under the pressure, ex-CEO Peter Dales admitted that the company had an overstated profit of 250 million pounds, its affiliated British Food Business Department made an advanced confirmation on revenue while delaying the counting of gross accounting losses that were to be included into cost. This financial falsification case impeached and exposed by its staff, rapidly upgraded to be the greatest credit crisis since the very beginning time of Tesco. As the financial falsification case was impeached and exposed by its staff, 8 senior executives were suspended successively. And according to a comprehensive auditing carried out by Deloitte & Touche later, Tesco had a higher overstated figure, is 263 million pounds. Tesco released its first-half performance report in October 2014, the half-year sales volume in 2014 decreased by 46%, along with operating profits fallen to 937 million pounds decreased by 41% and operating revenue decreased by 4.5%. The pre-tax profits decreased by 90% compared to the year before, with earnings per share from 11.7 pence fallen to 0.07p and the falling rate high up to 99.3%. TESCO share price plunged by 5% after the performance report was released. Richard Broadbent, Chairman of the …show more content…
A case usually reported by media is the virtual shopping market promoted in Korea. Customers in Korea only need to use their phones to scan the virtual shopping market screen on the advertisement wall underground in subways, then Yougou would deliver goods to customers' houses. Some analyzes believe that the so-called "mega data business" by Yougou is just wasting investment and time without any practical significance, and it could absolutely not help Yougou increase incomes and profits rapidly.Some analyzes point out that when Yougou was focusing on using data base to classify comsumers in different groups and promote specialized sales, it ignored the most straight time period in retail industry: large-scale discount activities, which is the most effective business action to attract customers' attention and stimulate spending. In other words, some analyzes believe that the so-called "business innovation" taken by Yougou is too much, which, on the contrary, outweighs the

Related Documents