Interpretation of accounts Assignment Example | Topics and Well Written Essays - 2000 words

Interpretation of accounts - Assignment Example It is a growth company that has been continually expanding organically, except for a few strategic cases that involved buying out existing retailers in the certain foreign markets. (Tesco website) In July 2009, the company has been under fire since the consumer watchdog, the Office of Fair Trading, claimed to have gathered new evidence that pointed towards Tesco’s involvement in fixing the prices of milk, butter and cheese. This investigation has begun four and a half years ago and the issue had slipped the public’s notice until recently when this development came about. (Ridder 2009) Unlike Tesco, J Sainsbury plc already owned that it was indeed an accomplice in the dairy price-fixing scheme that caused the public shoppers to be overcharged by  £270 million (Ridder 2009). Setting this unbecoming matter aside, Sainsbury has not ceased to focus on establishing its brand based on the goodwill that emanates from their consistency in providing â€Å"healthy, safe, fresh and tasty food.† Like Tesco, Sainsbury has managed to have a profitable year in spite of the adverse impact of the significantly lowered consumer confidence and average spending capacity in UK. As the country’s third largest grocery retailer, Sainsbury is currently not keen on expansion plans. It is, instead, set on further improving its operational efficiency to be able to report increasing profits even if the economy fails to improve this year and the next. Having been operating for the last 140 years, Sainsbury can rightfully claim to have an extensive client base that has been loya l not only to the company’s food stores but also to its subsidiary bank that offers savings and loans packages. (Sainsbury website) Based on above tabulation, Sainsbury’s operations turn out to be more manpower-intensive than Tesco’s. Sainsbury has in its employ an average of 123 people for each store, while Tesco has 109. Needless to say, the latter has the