THE BALANCE SCORECARD: TESCO STORES
The Balanced Scorecard (BSC) is a performance measurement tool that originated in the business worlds. Performance measurement is a way to track performance over time to assess if goals are being met. Organizations measure their performance to monitor how they’re doing in achieving their overall mission and goals. The BSC was originally developed as a performance measurement system in 1992 by Dr. Robert Kaplan and Dr. David Norton at the Harvard Business School. Unlike earlier performance measurement systems, the BSC measures performance across a number of different perspectives—a financial perspective, a customer perspective, an internal business process perspective, and an innovation and learning perspective. ABOUT TESCO
Tesco is Britain’s leading retailer and one of the top three retailers in the world, operating over 3,700 stores globally and employing over 440,000 people. Tesco operates in 13 countries outside the UK – Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland in Europe; China, Japan, Malaysia, South Korea, Thailand and India in Asia, and the U.S Over the years, Tesco has delivered impressive performance. While it originally specialized in food and drink, it now offers a wide range of products including clothing and consumer electronics and offers an increasing range of services such as telecoms, health, internet and other services. Tesco not only created a very successful online supermarket, it was also ranked as the No.51 in the Fortune magazine for “2008 the Global 500 Companies” and the No.30 in the Fortune magazine for “the World’s 500 Most Admired Companies”.
As per Marr, B. (2009), Tesco’s global success is that it gives customers what they want. From the web, it shows that Tesco’s success is depends on people, people who shop with Tesco and the people who work with Tesco. It expressed its values into two key values that are “No one tries harder for customers” and “Treat people how I like to be treated”. These corporate values play a key part in creating a culture where employees are motivated towards achieving breakthrough business performance. No one tries harder for customers
This value aims at to be the leader in understanding the customer’s needs and wants better than anyone else. Customers have been a key in delivering the success and growth of the Tesco Store globally. Tesco want to make customers' lives easier and better in any way it can. Treat people as we like to be treated
Tesco’s success is not only depends on people that shop with Tesco but also value people who work with Tesco. This value desires them to work as a team and create a harmony environment by trust and respect each other as well as share the knowledge and experience. Tesco believe that by having a well managed and motivated staff will aid the company in delivering the great service to its customer. No-one tries harder for customers:
Treat people as we like to be treated:- Understand customers.
-Work as a team.- Be first to meet their needs.
-Trust and respect each other.- Act responsibly for our communities.
-Listen, support and say thank you. -Share knowledge and experience. -...so we can enjoy our work.
BALANCE SCORECARD - THE CORPORATE STEERING WHEEL
With the goal achieved, and recognizing the power of goals as mechanisms for breakthrough performance improvement, Sir Terry Leahy as Tesco’s Chief Executive believe that a clear direction, a map or a compass is needed in order for Tesco to be well-established and as its strategy for growth. As a result, the management team has created the key performance indicators (KPI) to act as the compass towards it performance management. The main purpose of the key performance indicators was to help steer the company to success...
References: Marr, B. (2009) Delivering Success: How Tesco is Managing, Measuring and Maximising its Performance, Management Case Study, The Advanced Performance Institute (www.ap-institute.com).
Tesco PLC Annual Review and Summary Financial Statement 2010. Available at: www.tesco.com/annualreview2010
Tesco website (Source: tesco.com)
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