Tesco PLC is a British multinational grocery and general merchandise retailer headquartered in Welwyn Garden City, Hertfordshire, England, United Kingdom.It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK (where it has a market share of around 28.4%), Ireland, Hungary, Malaysia, and Thailand.
2. TESCO OVERVIEW
Tesco was founded in 1919 by Jack Cohen from a market stall in
London’s East End.
Tesco is a global grocery and general merchandise retailer
headquartered in Cheshunt, United Kingdom.
It is the third-largest retailer in the world measured by revenues
(after Wal-Mart and Carrefour) and the second-largest measured by
profits (after Wal-Mart).
It has stores in 14 countries across Asia, Europe and North America
and is the grocery market leader in the UK (where it has a market
share of around 30%),Malaysia, the Republic of Ireland and
Thailand.
Originally specialising in food and drink, it has diversified into areas
such as clothing, electronics, financial services, telecoms, home,
healthcare, dental and pet insurance, retailing and renting DVDs,
CDs, music downloads, Internet services and software.
Tesco also operates a grocery home-shopping service, as well as
providing consumer goods, telecommunications and financial
services online.
10. CASE- TESCO SCANDAL (THE PERILS
OF AGGRESSIVE ACCOUNTING)
Tesco share price plunges
Tesco has been found to have overstated it profits by £263m after revenue
recognition irregularities were spotted in its half-year results, with regulators
including the Financial Conduct Authority (FCA) set to decide on a suitable
punishment.
The supermarket originally predicted its half-year trading profit would be
around £1.1bn, but this figure has now been cut back by £263m – originally
£250m. Tesco has subsequently launched a review of the figures to find out
why its first half profit prediction was so inflated.Tesco said it discovered the
overstatement of its figures, made as part of a 29 August profit warning,
during its final preparations for its latest interim results, released in late
October.
It asked Deloitte to undertake an ‘independent and comprehensive’ review,
which it said involved the accelerated recognition of commercial income and
delayed accrual of costs. The grocery chain’s usual auditors are PwC.
Deloitte has completed its investigation and found that profits were overstated
by £118m in the first half of this year, by £70m in the 2013–14 financial year
and by £75m before that.
11. Tesco share price plunges after
Accounting Scandal(Fear-Behavioral
Psychology )
Tesco shares dropped sharply at the open, down 4.5
percent in the first minutes of trading.