Tesco and the Analysts
22/10/2014
I teach a lot of executives and they always complain that the City is so focused on the short term – the next quarter’s results, the profit made in the coming year. I usually counter by stating how much of the value of a company is not tied up in its short term performance but in its ability to survive and make normal profits in the long term. If you remove this value from any financial model, most companies look very sick and their share price over valued. So you ignore the longer term at your peril, but so many executives keep forgetting this.
I was really heartened to hear an analyst from HSBC talking about Tesco on Radio 4’s Today Programme this morning. The gist of his comment was that Tesco started to go wrong “6 or 7 years ago when they started to spend more time looking at pleasing the City rather than focusing on the needs of their customers”
Mike Bourne
Categories & Tags:
Leave a comment on this post:
You might also like…
The Implications of US Tariffs on global supply chains
US President Donald Trump's new tariff policies announced on April 2, 2025 are expected to cause significant disruptions to the global supply chains, affecting multiple sectors and countries. A simple mathematical equation uses a country’s ...
Mastering the art of revising your writing
You’ve done the research and written your first draft. Now it’s time for one of the most crucial jobs as a writer - revising your writing to ensure your reader does not have to work ...
A ‘hands-on’ take on warehouse design as part of my Logistics and Supply Chain MSc
As part of my core module for my Logistics and Supply Chain Management MSc, I had the amazing opportunity to work on a warehouse design project a few weeks ago. The problem statement for ...
Thinking about your literature review?
As part of your PhD or Master’s thesis, you will probably have to write a literature review. A successful literature review will offer an analysis of the existing research in your field, demonstrating your understanding ...
A beginner’s guide to sourcing a company beta
Beta is the measurement of a company’s common stock price volatility relative to the market. If you’re trying to find a current beta for a company there are a number of places to look. These ...
Credibility, confidence and collaborative focus: The impact of studying for a sustainability apprenticeship at Cranfield
For participants on Cranfield’s Sustainability Business Specialist Apprenticeship, it doesn’t take long for their studies to start to have an impact, with that impact ranging from personal growth and career progression, to organisational effect ...