Tesco 2012 Annual Report Download - page 5

Chairman’s statement
“There are many things that strike a
newcomer to Tesco. This is a business
with an unusual range and depth of
core competencies; it has outstanding
operational effectiveness; it understands
deeply what it means to orientate a
business around the customer; it is
passionate, and successful, about
developing talent from within; and
it manages a complex operating
environment with great team work.”
Nearly six months after taking over from Sir David Reid, it is
good to have this opportunity to share my perspective on recent
developments which I will do under three headings: context;
transition; and governance.
Context
There are many things that strike a newcomer to Tesco. This is a
business with an unusual range and depth of core competencies; it
has outstanding operational effectiveness; it understands deeply what
it means to orientate a business around the customer; it is passionate,
and successful, about developing talent from within; and it manages
a complex operating environment with great team work.
It is also a business that is not afraid to learn and change, capacities
perhaps more than any others which are essential to long-term growth.
In this respect there are three areas in particular worth identifying.
First, Tesco is a business with significant strategic optionality. It has
expertise and capital, human and financial, that can be leveraged
in different geographies, in different sectors of retailing and through
new and different channels, notably of course the internet. The
development of these opportunities can make Tesco a stronger
company and benefit the UK as a whole. And with such opportunity
also comes responsibility – to ensure that the trade-offs between
different investments are reached in a disciplined way; and that
the optimum balance is struck overall between current returns and
future growth.
Second, as the business grows internationally, it is important not only
that we explain ourselves to the world but also that we listen and see
ourselves as others do. Since arriving at Tesco last year I have visited
many different parts of the business around the world, met many of
our staff, talked to shareholders, suppliers, commentators, community
leaders and to customers. This is the broader context of our business
to which we need continuously to relate, openly, honestly and
constructively for the long-term benefit of our business.
Third, I have been impressed by the skills, commitment and values held
by the people who work at Tesco and all of whom not only contribute to
its success but make the company what it is. They are a great team and
all those with a stake in Tesco have reason to admire and be grateful for
their efforts. I would like to thank them, on behalf of the whole Board,
for all that they do.
Transition
This has been a year of transition.
Philip Clarke took over as Chief Executive at the beginning of the year
and he has been shaping both the organisation of the business and the
management team which inevitably, after a long period of stability, are
entering a period of change and development. This work takes time but
is essential to our future as a strong and profitable company.
All successful companies go through periods of transition. Indeed,
the capacity to change and develop over time is fundamental to truly
world-class companies. The critical issue for those responsible is to fully
acknowledge the need for and to manage change in a measured and
timely fashion when it is called for.
Sir Richard Broadbent
Chairman
Scan here to hear more
from Sir Richard Broadbent,
or visit www.tescoplc.com/
ar2012/chairman
Tesco PLC Annual Report and Financial Statements 2012 1
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
OVERVIEW
Chairman’s statement