Accountants Report On The Role Of Management At Tesco PLC 2014

Company Number :00445790

Executive Summary

Management Accountant Role

Introduction

Business Partners

Conclusion

References

Contents

EssentialsIntroduction Am

bitions

Executive Summary

Tesco At A Glance

Tesco And CSR

What Is Management Accounting

Historic Role of MA

Current Role Of MA

Challenges Of Implementing the

Enterprise Resource Planning Systems

Against the background of gradual economic recovery, we ask ourselves, “Is our business adapting well to the change in the business climate?” The role of finance managers and the demands placed on financial institutions are ever-changing driven by shifts in the economic dynamics. The finance sector needs to be agile, lean, strategically equipped and ready to respond to the needs of the business performance (Deloitte, 2013).

In light of Tesco’s current situation, this report will examine the role that finance business partners could play within the business environment and the impact it has on business operations and in essence, its survival. Historically, Management accountants have been seen as playing the role of ‘Bean Counters’. Regulatory body ‘CIMA’ has urged accountants to improve their image and promote themselves in business partnering roles (Singh, 2013) I will discuss what this could mean for Tesco and the challenges it would face if it were to do so.

New chief executive Dave Lewis has announced that changes in management structure are inevitable at Tesco (Davey, 2014). I will be discussing what business partnering could mean for the troubled grocer and the challenges involved implementing this model. Deloitte’s 2013 findings suggest that 91% of its respondents are looking at increasing efforts on business partnering in the next 3 years (Deloitte, 2013).

Irrespective of Tesco’s reported financial crisis I believe it is still a strong British company. I believe it has the resilience to fight the current issues and thrive once again to continue dominating it’s market share (28.6%) (BBC NEWS, 2014) (Fig 1).

Executive Summary

Tesco at a glance

Tesco is the UK’s largest

food retailer by sales, with annual

turnover in excess of £70bn. There

are 3370 stores across the UK,

which includes Metro, Express, and Extra stores.

There are Over 75 Million shopping trips each

week, served by over 500,000 work

colleagues.

Financial Group Performance 2013/14

Turnover £70bn

We provide great service toour customers by offeringthe best value fresh food, prepared in-store byour experts.We are unique because ofthe transparency of oursupply chain and our focuson traditional crafts – wedo more of what matters

Profit before tax £2.3bn

Earning Per Share 32.05p

Net Debt 813mFull Year Dividend 14.76p Sales

Measurem

entEssentials

Introduction Am

bitions

Overview

“Tesco has been serving customers for almost one hundred years. Today we serve

millions of them, every week, in different parts of the world. But now it’s time for the next

chapter in our story. We want to be the world’s most loved multi-channel retailer.

Multi-channel is the future.

And so are we.”

Growth + 0.3% *Figures based on 2013/14 financials

Since Tesco first opened it’s doors in 1919 by Jack Cohen selling surplus groceries on a market stall on the streets of Hackney, London, it has since become a leading multinational, multi million pound supermarket chain. Operations are as far as Asia, employing over have a million staff over several countries. My recent trip to Turkey was evident of how successful core values of such a large British business are being translated to stores across Europe and Asia. Such expansion has paved the way not only for satisfied shoppers but created opportunities for local people and provided an outlet for small local businesses to sell local produce thus having a positive impact on the economy. Tesco in particular has tried to source ethical sourced produce with consideration to the society at large. For example, Tesco has taken a lead role in tackling abuse and trafficking in Indian tea communities. Tesco is the first international tea retailer to partner with Ethical Tea Partnership (ETP) to address the child exploitation problem across the sector. (Bolton, 2014)

Tesco have been proud and rightly so to get stuck in to local issues and using their scale as a large retailer to help make a difference. In the United Kingdom, Tesco have recognized that children in the UK have in general fundamental gaps in cooking knowledge and as a result have invested £15m into ‘The Children’s Food Trust’ to roll out free cooking courses for children. (Theretailbulletin.com, 2014)

These are just some of the initiatives that Tesco have partaken in to show their commitment to society as a whole. ‘We make what matters better, together’. This core value reflects how Tesco stands as a business with its relationship to its customers and its place in society.

Introduction