Btec Business Level 3 Unit 9 P1

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n this task, I have £15,000 to invest in a publicly listed company and will monitor the performance of my investment. I will be analysing the progress of my share and at the end will be deciding whether I would like to keep or sell my share. The FTSE 100 is the share index of one hundred companies with the highest market capitalisation and are listed on the stock exchange. I will be conducting my Stock Market report using Tesco. Tesco is a 'british multinational grocery and general merchandise retailer' (Wikipedia,2018)and is one of the biggest supermarkets in the UK. The reason why I have chosen Tesco over it's competitors like Sainsbury's and Asda is because Tesco 'is the best performing big supermarket in the latest sales figures'(Gwynn,2017). …show more content…

Tesco is an organisation which focuses on customer needs and understands that customers needs are ever changing therefore they always adapt to them and shows why they are at the top. This makes customers want to visit more often and as a result boost's Tesco's sales figures. These excellent sales figures would give me a good return on my …show more content…

The advantage of branching out makes more people aware of the organisation however political factors such as tax rates and legislation could have a huge impact on their performance. In 2011, 'the government had increased the VAT rate from 17.5% to 20% in order to boost tax revenues to cut its deficit' (BBC,2011). The increase in VAT meant that consumer spending drastically decreased. This had an effect on Tesco as it's a general merchandise retailer, it affected their revenue. Because Tesco's sales are their main source of income, it had a huge effect on their profit figures. Economical Economical factors are one of the main concerns for Tesco because they are likely to influence things like profits and costs. It is really important that Tesco are aware of any changes made so that it does not affect them. Regardless of Tesco branching out to different countries, they are very dependant on their UK Market and have a 'market share of 27.9% to the total market' (Neilan,2018). One of Tesco's key strategies is branching out to different countries and has worked out very well for them. If a recession hits the UK, consumers have a decline in disposable income. This gives them less to spend and have to buy cheap alternative products. Tesco went the step further in advertising its value goods rather than the branded goods in times like this. This method is effective as it will still stimulate

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