Tesco 2012 Annual Report Download - page 12

To build our team so that we create
more value
Strengthening our management
This time last year we were in the early days of some of our new
management structures. I had just introduced a matrix structure
throughout Tesco with CEOs for each of our key business areas – the
UK, Asia, Europe, and the US – supported by integrating functions,
such as Property, Human Resources and Marketing. I am very pleased
with how this structure has bedded in and expect to see even greater
value creation as a result.
The introduction of a dedicated UK Operating Board has enabled
greater focus at home and given the importance of the changes
we are currently making for customers, I have recently decided to
assume direct responsibility for the UK business during the process
of its renewal.
I have continued to strengthen both the Executive Committee and our
senior management teams through the last year, drawing on our deep
pool of internal talent.
We have also been fortunate to welcome our new Chairman, Sir Richard
Broadbent, following Sir David Reid’s decision to retire. I want to thank
David for his lasting contribution to Tesco over 26 years on our Board
and, on a personal level, for all the help he has given me in settling into
my role as CEO.
Building the Tesco team
We will create 20,000 more jobs in the UK over the next two years and
many more around the world
Tesco’s most important asset will always be its people, who live by
our Values to do their very best for customers. Many of our plans for
the coming year are built on investment in our people. We employ more
than half a million people across the globe and this will continue to
increase, with plans to create an additional 20,000 jobs in the UK alone
in the coming two years and to continue to grow our teams around the
world. It is the quality, commitment and dedication of our people that
gives me so much confidence that we can and will achieve our plans
for the years ahead.
Delivering higher returns
In April last year we set out a target to increase our already good
level of ROCE to 14.6% by 2014/15. We improved ROCE from 12.9% to
13.3% in 2011/12. Although it is likely that we will see a small reduction
in 2012/13 as a result of our UK investment plans, we continue to see a
number of opportunities to drive returns and we still expect to deliver
our targeted increase to 14.6% by 2014/15.
Doing the right thing
I am confident that we are ready to tackle whatever challenges lie
ahead. The decisive action that we have taken in the past year and
the management changes which have reinvigorated the Tesco team
have laid the ground for the future; a future where we will make sure
that our capital and our talent are put to work where it benefits most
our customers and hence our shareholders. We have and will continue
to focus on doing the right thing for customers, for communities, for
staff, for the business and for our shareholders.
Philip Clarke
Chief Executive
Chief Executive’s review
8 Tesco PLC Annual Report and Financial Statements 2012