Case Description In 2016, Tesco PLC, a leading U.K. retail chain, had undergone tremendous financial turmoil. Profitability had been decreasing since 2013 with heavy losses registered during fiscal year (FY) 2014/15. Net profit had decreased by 304 per cent from 2012 to 2015. However, after the appointment of a new chief executive officer in 2014, Tesco managed to register a net profit of GDP138 million in FY 2015/16: an astonishing turnaround. Evidently, Tesco was recovering from its losses, but the share price of the company had fallen by more than 20 per cent from 2015 to 2016. What course of action would enable Tesco to maintain and improve its value for shareholders? What areas should the chief executive officer focus on in order to change Tesco's financial performance?
Learning Outcomes 1. Understand the retail trends of the supermarket industry 2. Identify the challenges of Tesco 3. Understand and apply various financial assessment tools and techniques 4. Prepare and review the best course of action for Tesco going forward
Duration : Up to 120 Mins
Min Participants : 10 Max Participants : 24
Keywords : Ivey, Tesco, Retail, Business Management, Turnaround, Financial Analysis
