TESCO plc - Case Study

In 2014, Tesco faced significant financial challenges, including declining profits and increasing competition. Who was the CEO responsible for revitalising the business and restoring profitability?

• Dave Lewis

• John Smith

• Tim Cook

• Mary Brown

What was one of the key financial metrics used by managers to guide decisions?

• Operating profit margins and cash flow forecasts

• Employee satisfaction scores and annual leave balances

• Number of products launched and marketing slogans

• Office decor themes and cafeteria menu choices

Success Story: Tesco successfully turned around its financial performance by improving cost efficiency and optimising resource allocation. Tesco reported a return to profitability within a few years and saw an increase in market share.

• True

• False

What were two main challenges Tesco faced during its turnaround?

• Internal resistance to operational changes and strong competition/changing consumer behaviours

• Lack of available technology and insufficient funding

• Overexpansion into non-food sectors and lack of brand recognition

• Limited product range and poor supplier relationships

What proved essential for overcoming challenges and achieving success at Tesco?

• Adapting strategies based on financial insights and market conditions

• Ignoring market trends and focusing only on tradition

• Reducing investment in technology and innovation

• Relying solely on past successes without change

According to the passage, applying financial acumen through cost management and performance analysis can lead to what?

• Significant business improvements.

• Increased employee turnover.

• Decreased market share.

• Higher tax liabilities.

Why is financial acumen crucial for managers?

• It empowers them to make informed decisions, optimise resource allocation, and drive organisational success.

• It allows them to avoid all financial risks entirely.

• It ensures they never need to consult with finance professionals.

• It guarantees immediate profit increases without effort.

Which of the following is NOT mentioned as a benefit of managers understanding key financial metrics and concepts?

• Improved strategic planning

• Enhanced problem-solving

• Increased product variety

• Contribution to overall business performance

Continuous learning and collaboration with finance teams can help managers achieve both organisational growth and career advancement.

• True

• False