Tesco Personal Finance Case Study Example | Topics and Well Written Essays - 4000 words

Tesco Personal Finance - Case Study ExampleThis acquisition of Tesco over the 50% stake of RBS coming as a look challenge for the high street monetary institutions which currently are on the stormy side of the economic recession tide and presently are in-waiting for the bank charges decision by the High Court.The acquisition will help Tesco to make its expansion from monetary services that revolved around an assortment of popular financial services and products to all-embracing-fledged retail banking crannying more preference, innovation and value to customers and better returns to its shareholders. It is a part of Tescos strategy through which Tesco will be equal to(p) to further enhance its growth in the services market sector that includes telecoms and internet/home shopping as well. According to Tescos estimation for the year 2008, by taking the full ownership of the TPF, Tesco would be able to increase its annual profits to 1 billion from 240 million (News Release, 2008). This acquisition clearly reflects that Tesco has identified significant scope for further possible developments and advancements in the financial sector which is itself a very extensive and a dynamic sector. Hence by taking the full ownership, Tesco will be better equipped to be able to exploit the prospective offered by the TPF in the more basic version of banking. This second half(a) of the paper examines the strengths and weaknesses of Tesco hence offering an analysation of the resources and capabilities that Tesco can muster up to compete effectively and develop TPF into a full service retail bank qualification a success of full- fledged consumer banking. Tescos Expansion to Full Service Consumer BankingOn the acquisition of RBS stake and TPFs expansion into full- fledged retail banking in the coming years, Sir Ted Leahy, the COE of Tesco plc reflected, As consumers look to make every pound work harder it is a good time for Tesco to expand its presence (BBC, 2008). The phrase good time refers to the current financial turmoil, which in recent times has revealed the shaky foundations of many a high profile financial institution, and ironically has presented an opportunity for TPF to move into full service banking. As a result of the financial depression many of the TPFs would be competitors will be at their weakest, hence competition that will be on offer will also be comparatively less.In order to make the expansion into the more core-sphere of banking, the management of Tesco will need to rally up their strengths comprising its assets and resources secern with the current financial trends the opportunities or threats presented by it and also realise their own weaknesses and accordingly create business objectives and strategies which will allow the optimum use of resources and strengths, uttermost exploitation of opportunities, stablisation of threats and minimisation of weaknesses and other draw backs for the overall success Tescos expansion endeavor. For the present short time frame, Tescos strategic objective for the future development of TPF is to continue the horizons of the existing financial services rendered by TPF, which includes services and products like savings accounts, credit card accounts and insurances and moreover increase its presence in the Tesco stores. However, on