Legislative Factors

ges that have subsequently been adapted, distressing affairs with both consumers and suppliers.

Legislative Factors

Government legislations and policies have a direct impact on the performance of Tesco. For instance, National Minimum Wage Act 1998 prohibits the employers from recruiting workers or employees less than a given hourly, daily or monthly rate. Minimum wage across the United Kingdom, currently £6.08 per hour for workers aged 21 years and older, £4.98 per hour for workers aged 18-20 (www.wekipedia.com).

Conclusion:

After doing a painstaking research work and a methodical analysis of Tesco plc, I considered myself in a position to conclude my research project.

Despite the downturn in UK and world's economy, Tesco has been very flourishing in the past few years and continues to enjoy a good market share in food business although it experience a decline in its non-food business in 2011 due to rising fuel prices. Having more than 100 years of business experience, Tesco earns great respect and benefits from its loyal customers. This has helped the company to stay profitable and keep a positive position even in its troubled times. Things are still looking encouraging for company even though recession has done much harm to the economy and the businesses in general.

The Ratio analysis performed on the Tesco has produced mixed results. The company has witnessed an improvement in its return on investment rations rising from 12.1% in 2010 to 12.9% in 2011 which is a massive increase due to improved working capital management.However its total share holders returns dip from 9.6% in 2010 to 6.5% in 2011. The EPS also rose from 31.66p in 2010 to 35.77p in 2011 which mean that investor's confidence level has grown up in Tesco and continues to grow.

Tesco has built a trustworthy relationship with their customers over the year which is evident in the loyalty that they have shown in return. Company has launched some great new 21