The Measures that Can Be Used for Reviewing the Performance of Tesco

The Measures that Can Be Used for Reviewing the Performance of Tesco. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Gross along with net profit margin and market share acts as effective financial along with resource-based performance measures, through which the overall performance of the companies such as Tesco can be determined. Theoretically, the net profit margin depicts the ability of the management to control and meet the needs of indirect costs. It also reveals the suitability of businesses to perform effectively in the future. In this regard, the net profit margin should be higher in order to depict a better future profitability and performance index (Needham & Dransfield, 2000). For instance, the financial performance of Tesco can be determined or measured with the assistance of certain financial statements that prepare by the company on an annual basis. It has been apparently noted that the company prepares different financial statements in order to measure the performance of the Group in a suitable manner (Tesco PLC, 2013). In this regard, it can be apparently observed that the net margin of the company decreased substantially in the year 2013 as compared to the year 2012. This can be justified with the help of the following table.

As per the above table, it can be clearly understood that the gross margin of Tesco declined in the year 2012 as compared to the year 2013 due to excessive costs incurred by the company while selling it various products or services to the worldwide customers. It is worth mentioning that the financial, as well as the resource performance of the company, can also be evaluated based on market share.&nbsp.It is obvious that a company controlling a greater portion of market share is generally considered to be quite bigger and most significantly more competitive in comparison with others. The market share ratio will certainly aid the company in acquiring a better understanding of the profit potentialities and turnover from different business market segments.

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