What is leading to Tesco’s global success is that it gives customers what they want. Sir Terry Leahy, Tesco’s Chief Executive, puts it in simple terms when he says “Let me tell you a secret, the secret of successful retailing. It’s this: never stop listening to your customers and giving them what they want.” Tesco makes it very clear that its philosophy, which is captured in the phrase ‘Every Little Helps’ is more than just words or a marketing slogan.
In May 2011 the new CEO of Tesco PLC, Mr. Philip Clarke set a seven part strategy for the company’s growth and vision towards the future.
1. To Grow the UK core:
UK is the largest business in the group and a key driver of sales and profit. This involves making a financial commitment of £1billion to improve the shopping experience of the customers which will involve significant revenue and capital investment. This will consequently deliver performance for shareholders.
2. To be an outstanding International retailer in stores and online:
In 1997 the international businesses of Tesco made 1.8% of the group profits. But in 2010/2011 they represent 30% of te group’s profit. They are either number one or number two in 8/12 markets outside UK which means they are working to be an ‘Outstanding International Retailer in stores and online’.
3. To be as strong in everything we sell as we are in food:
As the business has grown and still growing they are offering even wider variety of products to their customers in coming years. They now aim ‘To be as strong in everything we sell as we are in food.’
4. To Grow Retail services in all our markets:
Tesco Bank is a key part of potential in growing retail services in all the markets. Tesco Bank generated £1billion revenue in 2011.
5. To put our responsibilities to the communities we serve at the heart of what we do:
In 2007, Tesco added a fifth element in their strategy to attach their commitment to communities and environment. They updated this objective slightly in 2011 by emphasizing their responsibilities in these areas. Their goal is ‘To put our responsibilities to the communities we serve at the heart of what we do.’
6. To be a creator of highly valued brands:
The brand has evolved from a logo above many stores in UK to wide range of products and service brands across the world. This appeal to diverse customer needs, providing them with the quality products they are looking for at competitive prices. Their objective is ‘To be a creator of highly valued brands’.
7. To build our team so that we create more value:
Their final goal is ‘To build our team so that we create more value.’ As the business continues to grow and diversify Tesco need more leaders to run the many substantial businesses and support functions within the group. Tesco’s important asset will always be its people because the leaders not only have an important role today; but also have the responsibility to build a bigger and better team for the future. They live with the values to do the very best for the customers.
Tesco Annual Report (2012) available at: http://www.tescoplc.com/files/pdf/reports/tesco_annual_report_2012.pdf. [accessed 07/01/2013]
How to reference this:
This was done as part of a project of controlling at the University of Applied Sciences Upper Austria, Read the whole Balance Score Card for tesco. Please like my Facebook page and also reference this article in case you use it: