The theme of this report is to review as to how an organization has to maintain its focus to remain stable in an environment where there is recession. The document examines the different sources of capital and measures as to how to maximise and survive using the loan capital. It is very important for organizations in recession to concentrate as to how to have a financial strategy and strong cash flow management techniques to survive in the short and long run. Further this document examines as to how to maintain confidence in context of share holders and loan providers.
Introduction
This report focuses on evaluating Tesco’s sources of funds using suitable financial theory. As the first step the report will list and brief the main sources of funds and these would be analysed using relevant financial ratios. In addition Tesco’s financial strategy and corporate strategy also would be evaluated using the corporate life cycle theory. Most of the information would be gathered using secondary data mainly: Annual Report[the recent five years], Investor review report , Research Essays and other sources of information. The main fundamental theme is to evaluate the different sources of finance and the current prevailing financial strategy and recommend a suitable financial strategy that would support and increase the growth in the next few years.
Organization Background
Tesco started almost around 1920s and the company has expanded in UK and almost around the world where the company trades in China and India. Tesco has established it’s name as the prime retailer in selling food and other consumer products but the company has expanded into other areas like insurance , banking , mobile business and selling electrical and other energy products like solar cells. Currently Tesco wants to maintain it’s growth strategy considering the following key factors: 1) Maintain and establish the brand name as Tesco across UK as the largest...