Tesco: sale and leaseback
Read the article Tesco funds more expansion abroad with $570m sale and leaseback deal and then have a go at the questions below. You can either read the article in the window below, or follow the previous link to open the article in a new window.
Tesco has a long history of using sale and leaseback as a source of finance to fund its global expansion programme. Read more from the articles below to help answer the questions.
Define the terms 'sale and leaseback' and 'joint venture'.
Explain why Tesco has chosen to enter a joint venture to sell and leaseback a number of their stores.
Examine three other sources of finance that Tesco could have used instead of sale and leaseback to fund their international expansion plans.
Discuss the advantages and disadvantages of using sale and leaseback to fund further international expansion for Tesco.
With reference to the Ansoff's Matrix, analyse the strategic growth options that Tesco have chosen to pursue.