You have been appointed as a Management consultant by JackoInc, a USA registered company to review the Financial Statements of Tesco Plc. JackoIncis interested in the acquisition of a substantial number of shares in Tesco Plc to add to its investment portfolio. The company has been interested in Tesco Plc for a number of years and the board has now decided that the due to the current scandal affecting Tesco plc, the share price is within its ‘buy' investment range.
The tables below have been given to you for analysis and for recommendation as to whether JackoInc should embark on its ambitious project to acquire Tesco Plc. Your main task is to review the financial statements given below, using ratios and financial analysis, explain the main issues in a report to the board of directors of JackoInc
You are only required to investigate and report on the financial statements given below, but you may consider other non financial factors such as the effect of loss of key staff members, competition, impact of investment in other sectors by Tesco Plcetc ( if you consider such information relevant, then you need to justify their inclusion in your report)
Your report should focus on the activities of Tesco Plc and not Jacko plc or their ability or inability to finance the Tesco deal.
You are required to write a management report, ON A STRICTLY INDIVIDUAL BASIS. This means no copying from other students or other published sources. The work that you submit through BREO will be plagiarism tested for copying from each other and from the internet and published sources.
Your report should be no more than 3000 words (-+10%) as if you were a management consultant writing to the board of directors.
Guides: The word count below are just rough guides
1 Background to the company - give a very brief background information about Tesco Plc, the current issues and their position in the retail industry (500 words)
2 Review of the Financial statements below- what is the essence of each of the financial statement (tables) below, what need(s) does each financial statement fulfil, explain each key ratios you have selected, giving your reasons and the effect on the overall financial statement. Please do not work out the actual ratios in the report, just the result e.g. if sales have increased by 10%, you do not have to show how you worked out the increase, just explain the impact or what the 10% increase means.1500 words
(Suggestion, pick each financial statement and comment on the relevant issues relating to each statement)
3 Explain the essence of each ratio that you have selected and briefly explain their importance (300 words)
4 Conclusion and recommendation- 500 words
Attachment:- IFR-FSA.docx