Tesco and The Horsemeat Scandal - 1413 Words

Introduction This essay attempts to critically evaluate Tesco with regards to the Horsemeat Scandal. The aim is to critically asses this event through the application of theories and readings. A brief background on how the scandal arose will be provided. Key question that must be asked are did Tesco misbehave at all? And if they did, how could they have been able to justify their actions to themselves? According to Cooper and Owen (2007) accountability is a somewhat unclear term. This is not because the exact definition of being accountable ‘required or expected to justify actions or decisions; responsible’ (Oxforddictionaries.com, 2014) is hard to understand, it is because the question still remains as to whom is the accountable person†¦show more content†¦This is evident as if people had known there was horse in their beef products the whole scandal would not have occurred. Information asymmetries can arise in three ways through hidden characteristics, hidden intentions and hidden actions (Mishra, Heide and Cort, 1998) (Wiese and Toporowski, 2013). Hidden characteristics (otherwise known as adverse selection) and hidden intentions (otherwise known as moral hazard) are the two most problematic to customers, as they cannot easily evaluate the object that is being exchanged. Hidden characteristics can be managed through signalling, screening and self-selection (Mishra, Heide and Cort, 1998) (Wiese and Toporowski, 2013). Tesco used signalling through the Bord Bia quality assurance scheme (Tesco.ie, 2014). Screening by offering food samples in store as testers and self-selection was not clearly identifiable as being used by Tesco. Hidden intentions are harder to identify from a third party perspective. In Tesco’s annual report you can see that they incentivise their managers by requiring senior managers to hold shares with a value of one times their salary (Tesco Annual Report, 2013, p49). This works to align the management with shareholders wants and needs but not necessarily with stakeholders’ as managers may cut corners with quality to decrease costs and increase profits. So when an agencyShow MoreRelatedInternal And External Factors That Affect The Companys Future Prospects1289 Words   |  6 Pagesfinancial performance, and share price of Tesco. Discussion Taking into consideration of analysis from Part 1 of the assignment, it can be said that Tesco’s financial position in 2015 is not good at all since it is paying-off its liabilities from the little profit that is gained. On the other hand, from the statistical portal of 2015, it is found that Tesco is still on highest position among the UK’s top grocery supermarket. This aspect shows that Tesco is still popular among its loyal customersRead MoreB122 TMA01 Macro environment1326 Words   |  6 Pagesï » ¿ TMA01 B122 An introduction to retail management and marketing Mathew Dean PI: C8594876 Tesco: Macro-environmental forces analysis report Contents Page Pages Executive summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 Part 1 a) Retail business and the sector it operates†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 b) PEEST i. Political†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦........................... 4 ii. Economic†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 iii. Ecological/physical†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreCorporate Social Responsibility ( Csr ) Is Becoming An Ever Increasing Part Of Business Strategy1966 Words   |  8 Pageseconomy and the environment. This essay will look at TESCO s use of CSR and assess whether they use it genuinely for the improvement of society or uses it as another means to increase profitability. I will be looking at three of Tesco s KPI s; relation with supplier, retention of customers and colleagues satisfaction to work and shop at Tesco, to assess their CSR policy. The building of a trusted relationship with their suppliers is one of Tesco s KPI s which relate to CSR., One way in which theyRead MoreCorporate Social Responsibility Of The Uk Retail Food Sector1621 Words   |  7 Pagesof a worst case scenario for the UK retail food sector was the 2013 fraudulent horsemeat scandal which stirred up debate as it became widespread. This had a devastating impact on the food industry as sales declined because consumers became sceptical about food products they were consuming. As pinpointed by the BBC (2013), ‘more than half of UK consumers changed their shopping habits as a result of the horsemeat scandal.’ The majority of consumers bought their meat from local butcheries and farms forRead MoreThe Financial Performance Of Tesco Plc1467 Words   |  6 Pagesperformance of Tesco PLC over the past 5 years (2010 to 2014). Background Company Information Tesco was founded in 1919 by Jack Cohen, he originally started up his business as a market stall selling surplus groceries in the East End of London. The company is now not only a grocery store but also a general merchandise retailer, selling clothes, furniture, electrical items and wide range of other products and services including Tesco Bank, Tesco Mobile, and Blinkbox video on demand service. Tesco currentlyRead MoreCorporations And Corporate Social Responsibility1140 Words   |  5 Pages 1978). For example, Sunbeam, which is a manufacturer of small backyard and kitchen appliances had an accounting fraud in 1996 due to Dunlap, A. J. who is the CEO at Sunbeam corporation overstated revenue by  £62 million almost 33% of sales. This scandal caused Sunbeam filed for bankruptcy in 2001 because they can not cover the huge accounting fraud (BBC, 2005). Moreover, CNN NEWS (2001) also reported that Dunlap as a president was dismissed from Nitec Paper Corporation in 1976 and confronted withRead MoreQuestions On Comparing Tesco And Tesco2259 Words   |  10 Pages8 10. Apendecies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.10 â€Æ' Farhad Hussain Financial Accounting and Analysis David Oakes 3300902 Coursework November 2014 Comparing Morrison and Tesco 1. Introduction I will be conducting an analysis of two companies, Morrison Supermarkets PLC and Tesco. The analysis will include a selection of accounting ratios comparing both companies performance using the financial statements provided on each brands website. I will also be commenting about factorsRead MoreEssay on Tesco Csr Responsibilities2160 Words   |  9 Pagestheories are most suitable for the analysis of responsibilities in regards of different issues. Tesco 1._________________________________ i) Honest disclosure of source and quality of food The recent horsemeat hiccup has created a lot of angst towards Tesco and the quality of their food. Accusations of profit-seeking greed and thoughtless supplier sourcing are rife with the scandal gracing the headlines of most major UK newspapers and TV programmes. You could say the problem has goneRead MoreHow The Pre Tax Loss Will Impact Key Stakeholders Of Tesco s Plc1764 Words   |  8 PagesFirst, it will give explanation of stakeholder theory. Secondly, it will explain plc as a legal structure and explore the background of Tesco. Then, it will analyse how the pre-tax loss will impact on three internal key stakeholders and on three external key stakeholders of Tesco. Finally, it will talk about the reasons of the worst results and discuss whether Tesco can become profitable again. Stakeholder theory is defined as a conceptual frame structure of business ethics and organizational managementRead MoreLeadership And Management Roles And Leadership1642 Words   |  7 Pageshave lot of competitors fighting for the same target market, this will lead to price wars, and will cost the company in the long-run (Porter, 1985). When we examine Morrisons’ competitors, we have Tesco, Sainsbury’s and Asda. Although, a direct competitor, we do see they have different strategies. Tesco would encompass everything, they sell clothes, insurance, and stores tend to be bigger. Sainsbury’s approach would be more high-end market quality, targeting the more opulent consumer; Asda on the

Grocery store free essay sample

The two meals that I have chosen are breakfast and dinner. We will discuss breakfast first. This morning I had two fried eggs with salt and pepper, a piece of toast with blackberry jam, and a diet coke. The origins of the Kroger brand eggs and the Kroger brand black pepper were from Cincinnati, OH, the Morton’s kosher salt is from Chicago, IL, the Nature’s Own bread was from Thomasville, GA, the Kauffman’s blackberry jam was from Montezuma, GA, and the Diet Coke was from Atlanta, GA. For dinner I made Purdue chicken breast with salt and pepper, Kroger brand name frozen green beans and roasted potatoes. The origins of the Purdue chicken came from Salisbury, MD, the Kroger brand name greens beans were from Cincinnati, OH. The potatoes I’m not sure were they came from because I normally just by two or three individuals potatoes. But I would like to assume since Kroger name brand products seem to come from Cincinnati, OH I would like to say the potatoes were distributed from Ohio but more than likely grown in Idaho. If you haven’t notice already, all these items for breakfast and dinner were purchased from Kroger except the blackberry jam that I bought Yoder’s Marketplace in the Amish country in Montezuma, GA Trying to find out how these different companies take the product from the farm to the table was a little difficult but I was able to get some information on the process. According to the How Products Are Made, the process of chicken farming for slaughter is fairly the same a crossed the nation. When the chicken is at its peak of growth, the chickens are sent to the slaughterhouse where the byproducts processing occur. The carcasses are then in the process of the meat being removed. It then goes to the meat product wholesale stage. It is then refrigerated in warehouses and then sent to the grocery store. When it came to the eggs, farmers or automates gathering belts collect the eggs from the nest. The eggs are then washed, which sanitizes the eggs and remove the â€Å"bloom†, a coating the hens’ body applies when she lays the egg. The eggs are then sent through a candling process that inspects the interior for cracks and quality. This is when the eggs receive their grade. The grades are classified as AA, A, or B. The eggs are then sorted and packaged according to size. The eggs are then shipped and within approximately three days they reach the store. When comes to vegetable they seem to be processed all the same way. The vegetables then are harvested by machinery operated by farmers in the field. Each type of vegetable is harvested by different machinery. Most of the time after they are harvest they go through a washing process and stored properly. When it comes to frozen vegetables they go through a flash freezer that freezes them in a matter of minutes and then are packaged and sent to the store. Coca-Cola in Atlanta, GA manufactures diet coke. The process in which they go about it is hard to find. But like most manufacturing companies, they start by mixing all the ingredients together, package and ship. One of the benefits of a global market would be more specialization. Global markets would be able to use the best products and services from qualified parts of the world at a decreased cost. With more specialized products on the market; the consumer would have more options and choices at their disposal. In short term and long term will result in greater products for the consumer and it would be less expensive for the businesses. Another benefit of a global market would more competition. Competition is good. Since consumers have a wide range of products and services to choose from, then companies would compete to have the best product or service. In the short term consumers will not have to settle for what the local market is offering. In the long term companies will become more innovative in order to be the best. One of the negative impacts would be that it could become a financial and operational challenge local producers because they will have to come up with new ways to deliver products and services at decreased prices. In short term it is benefitting the consumer by paying less for a product or service. In long term local producers could be forced to shut down their business that would mean less employment for those local workers. Another negative impacts would be that the global market could result in low quality of products or service. When hiring foreign one cannot always count on the work or services. There is less monitoring of their work, which in turn can create poor quality products or service. In long term business could lose money because of the poor quality of products or service. â€Å"Think Globally, Act Locally†. This phrase could have many meanings but for me it seems very simple. When companies do business internationally, which can be good for the economy, the company still needs to think about having their roots in the local market. For instance, here in GA the grocery stores sell collard greens, pig feet and pickled everything. I’m originally from Chicago and these weren’t apart of my grocery shopping experience. A business may have several locations across the world but you need to appeal to the local market. I would have to say that the research I did has changed the way I would choose goods in the future. I didn’t really think too much about the global market before this assignment. I try to buy locally from the farms in GA. I think the produce that is grown down the street taste fresher. But when it comes to things that aren’t made locally I buy them from the grocery store. I would like to find more information on local grocery stores in my area and see how that part of the business works. I think sometime we forget that there is a huge process from the farm to the shelves. References Basu, Chirantan. Pros and Cons of Global Marketing. (n. d. ).