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…
Protected: Is airport retail digital transformation just another example of “Shiny-Object Syndrome”?
This content is password protected. To view it please enter your password below: Password:
Wellbeing activities at Cranfield
Attending to your mental and physical wellbeing whilst at Cranfield is key to creating the ideal environment for academic success. There will be times for us all when the mind needs peace and the ...
Jubilee weekend opening hours for Library services
Library services will change over the weekend of Thursday 2 until Sunday 5 June for the Queen's Platinum Jubilee. Kings Norton Library and Management and Resource Centre (MIRC) Both library spaces will be open for ...
‘Meet the bees’ tour May 2022
When I started working at Cranfield University in March 2021, a couple of the things that I really liked were the amount of green spaces and their dedication to become more environmentally friendly. I’ve never ...
Introducing…. Orbis BankFocus
For anyone researching the financial sector, Orbis BankFocus is a great place to start, providing financial and company data for finance institutions and companies. The service allows you to search for a single company or ...
Me, myself, and anxiety
Then and now I remember the moment very well – I was sat at a desk talking to my boss, pointing out the key elements of a strategic plan. I was in quite a stressful ...