Report Essay Example | Topics and Well Written Essays - 1750 words - 5

Report - Essay Example With this concern, the report intends to examine the measures that can be used for reviewing the performance of Tesco. In this regard, various performance measures relating to finance along with resource, customer satisfaction indicators and innovation along with market development will be discussed. Gross along with net profit margin and market share acts as effective financial along with resource based performance measures, through which the overall performance of the companies such as Tesco can be determined. Theoretically, the net profit margin depicts the ability of the management to control and meet the needs of indirect costs. It also reveals the suitability of businesses to perform effectively in future. In this regard, the net profit margin should be higher in order to depict a better future profitability and performance index (Needham & Dransfield, 2000). For instance, the financial performance of Tesco can be determined or measured with the assistance of certain financial statements that prepare by the company on an annual basis. It has been apparently noted that the company prepares different financial statements in order to measure the performance of the Group in a suitable manner (Tesco PLC, 2013). In this regard, it can be apparently observed that the net margin o f the company decreased substantially in the year 2013 as compared to the year 2012. This can be justified with the help of the following table. As per the above table, it can be clearly understood that the gross margin of Tesco declined in the year 2012 as compared to the year 2013 due to excessive costs incurred by the company while selling it various products or services to the worldwide customers. It is worth mentioning that the financial as well as the resource performance of the company can also be evaluated based on market share. It is obvious that a company