This document discusses the role of management accountants at Tesco PLC in 2014. It provides an introduction to the topic and outlines the historic role of management accountants as "bean counters" versus their current role as business partners. The document examines how finance managers and accounting functions must adapt to changing business environments. It also explores the challenges Tesco may face in implementing a business partner model for its management accountants and utilizing enterprise resource planning systems.

1. Accountants Report On The Role Of Management At
Tesco PLC 2014
Company Number :00445790

2. Executive Summary
ManagementAccountantRole
Introduction
BusinessPartners
Conclusion
References
Contents
EssentialsIntroduction
Ambitions
ExecutiveSummary
TescoAt A Glance
TescoAnd CSR
Tesco’scurrentclimate
Aimof Report
What Is ManagementAccounting
HistoricRole of MA
CurrentRole Of MA
ChallengesOfImplementingthe
BusinessPartner Model
Enterprise Resource Planning
Systems
Againstthe backgroundof gradual economicrecovery,we
ask ourselves,“Isourbusinessadaptingwell tothe change
inthe business climate?” The role of finance managersand
the demandsplacedonfinancial institutionsare ever-
changingdrivenbyshiftsinthe economicdynamics.The
finance sectorneedstobe agile,lean,strategically
equippedandreadytorespondtothe needsof the
businessperformance (Deloitte,2013).
In lightof Tesco’scurrentsituation,thisreportwill examine
the role that finance businesspartnerscouldplaywithin
the businessenvironmentandthe impactithas on
businessoperationsandinessence,itssurvival.
Historically,Managementaccountantshave beenseenas
playingthe role of ‘BeanCounters’.Regulatorybody
‘CIMA’has urgedaccountantsto improve theirimage and
promote themselvesinbusinesspartneringroles(Singh,
2013) I will discusswhatthiscouldmeanforTescoandthe
challengesitwouldface if itwere todoso.
New chief executiveDave Lewishasannouncedthat
changesinmanagementstructure are inevitable atTesco
(Davey,2014). I will be discussingwhatbusinesspartnering
couldmeanfor the troubledgrocerandthe challenges
involvedimplementingthismodel.Deloitte’s2013 findings
suggestthat91% of itsrespondentsare lookingat
increasingeffortsonbusinesspartneringin the next3
years(Deloitte,2013).
Irrespective of Tesco’sreportedfinancial crisis Ibelieve itis
still astrong Britishcompany.Ibelieveithasthe resilience
to fightthe currentissues andthrive once again to
continue dominatingit’smarketshare (28.6%) (BBCNEWS,
2014) (Fig1).
Michala Kochrdová Lamac Hypermarket, Bratislava.
Executive Summary

3. Tesco at a glance
Tesco is the UK’s largest
food retailer by sales, with annual
turnover in excess of £70bn. There
are 3370 stores across the UK,
which includes Metro, Express, and Extra
stores.
There are Over 75 Million shoppingtrips
each week, served by over 500,000 work
colleagues.
Financial Group Performance 2013/14
Turnover £70bn
We provide great service to
our customers by offering
the best value fresh food,
prepared in-store by
our experts.
We are unique because of
the transparency of our
supply chain and our focus
on traditional crafts – we
do more of what matters
Profit before tax £2.3bn
EarningPer Share 32.05p
NetDebt 813m
Full YearDividend 14.76p
SalesGrowth + 0.3%
*Figures based on 2013/14 financials
MeasurementEssentialsIntroduction
Ambitions
Overview
“Tesco has been serving customers for
almost one hundred years. Today we serve
millions of them, every week, in different parts
of the world. But now it’s time for the next
chapter in our story. We want to be the
world’s most loved multi-channel retailer.
Multi-channel is the future.
And so are we.”

4. Tesco,
28.6%
Asda,
17.4%
Sainsburys,
16.5%
Morrisons,
11.1%
The 'Big Four' Market Share
Introduction
Since Tesco first opened it’s doors in 1919 by Jack
Cohen selling surplus groceries on a market stall on
the streets of Hackney, London, it has since become
a leading multinational, multi million pound
supermarket chain. Operations are as far as Asia,
employing over have a million staff over several
countries. My recent trip to Turkey was evident of
how successful core values of such a large British
business are being translated to stores across
Europe and Asia. Such expansion has paved the
way not only for satisfied shoppers but created
opportunities for local people and provided an
outlet for small local businesses to sell local
produce thus having a positive impact on the
economy. Tesco in particular has tried to source
ethical sourced produce with consideration to the
society at large. For example, Tesco has taken a lead
role in tackling abuse and trafficking in Indian tea
communities. Tesco is the first international tea
retailer to partner with Ethical Tea Partnership
(ETP) to address the child exploitation problem
across the sector. (Bolton, 2014)
Tesco have been proud and rightly so to get stuck in
to local issues and using their scale as a large
retailer to help make a difference. In the United
Kingdom, Tesco have recognized that children in the
UK have in general fundamental gaps in cooking
knowledge and as a result have invested £15m into
‘The Children’s Food Trust’ to roll out free cooking
courses for children. (Theretailbulletin.com, 2014)
These are just some of the initiatives that Tesco
have partaken in to show their commitment to
society as a whole. ‘We make what matters better,
together’. This core value reflects how Tesco
stands as a business with its relationship to its
customers and its place in society.
* Figure 1 as of 8th
April 2014
Tesco takes the stance that it is an in fact a
responsible corporate citizen. Tesco uses its
scale to try and do good and give back to
the community.
Introduction