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…
Formula 1 was the dream and Cranfield was the conduit
I still remember the exact moment Formula 1 (F1) got its hooks into me. I was in my first year of an aerospace undergraduate engineering degree when I watched a video about the sport ...
Introducing Barrington Library
Welcome to all our new students! Barrington Library supports all the students and staff at Cranfield Defence and Security on the Shrivenham site. We are looking forward to meeting you all soon, in person or ...
About to start your journey at Cranfield? We’re here to help!
Congratulations on accepting your offer to study at Cranfield! If you’re keen to get a head start before your course begins, our Library Services team is here to support you every step of the way. ...
Bank holiday hours for Library Services: Monday 31 August
Library Services staff will be taking a break on Monday 31 August for the bank holiday. You will still be able to access all the resources and help you need via our library website. The 24/7 ...
The real cost of studying in the UK – what international students need to budget for
Moving overseas to pursue a postgraduate degree is one of the most exciting investments you can make in your future. It's also one of the most significant financial commitments you and your family will ...
Seven things you should definitely prepare for before studying at Cranfield University
You're thinking about Cranfield. Maybe you've done the virtual tour, read through the course pages, spoken to the course director or attended a webinar. Now, you're trying to figure out what life here is ...