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