Intro

Tesco, UK’s number one and world’s fourth retailer was floated on the stock exchange in 1947. The main competitor is Sainsbury and took over their position to the first in 1995. They launched a home shopping service in 2000, by focusing on the increased number of online shoppers. Tesco is using diversifying strategy in their business into the various areas like mothercare, electrical products, sports wears etc. The increased demand for the foreign goods among the Chinese people lead Tesco to invest around 2 billion pound in the Chinese market were the big companies like Carrefour and Wal-Mart is already invested and it will be a challenging task for them to compete with these big firms as well as with the traditional Chinese supermarkets. The main competitor of Tesco is Sainsbury which is Britain’s longest standing major food retailing chain. They have nearly 170 supermarkets in United States operating under the name of Shaw’s and Star Market. They are running a bank within the store, were it is a joint venture with the Bank of Scotland. After take over the position by Tesco, Sainsbury dropped to third position. Tesco’s slogan reveals their quality of services “Every Little Help”, which means they are giving more importance to their customers. They believe, if their service is satisfied by the customers, they will come again for the purchase. In this year Tesco opened the world’s first zero-carbon supermarket in Cambridgeshire and opened their first Lifespace mall in china. They were the official supplier for the England team for the last football world cup which reveals their quality goods and services towards their consumers. The first question is handled by Faisal Anwar which is financial ratios of the company. Second section done by Nithin Chempakathinal Rajendran, that is related to the stock market flexibility and the main news items. The third part is handled by Nasir Mushtaq which is related with the sharp change in the stock market had influenced the financial stability of the company. Fourth section is done by Ghulam Dastgir related with Compare and contrast the financial status of the company with one of the competitors. The fifth question is handled by Muhammad Ahsan Saeed that is related with compare and contrast the stock market flexibility with one of the competitors and the last question is done by Kingsley Evans which is share change in the stock market had influenced the financial stability of the competitor. As a group we helped the group members to work with the Reuters 3000xtra as well as with the fame and to collect the data. We exchanged our ideas related with the introduction part and the executive summary and exchanged the raw data those who wanted to complete their area of work. The reason to take the company Tesco as our assignment, it is the world’s number third and UK’s number one retailer were their operations is different sectors and in different countries. The sales revenue is increased to £62.54 billion by February 2010, which indicates the growth in their business as well as the demand of the share in the UK market. They are holding 30-31% of the UK market share which is more than any retail company in UK. The diversification strategy which Tesco is using seems to be positive which helped to expand their business in various sectors as well as in various countries. So we decided to take Tesco as the main company and Sainsbury as the competitor to complete this assignment by analysing their ratios, stock market details, share price and the news reported in various websites.