Strategic Aims And Objectives Of Tesco
Tesco like any other company has aims and objectives that they create and try to meet within a set time. Operating on such a large scale requires a clear path for overall success and to sustain market position, therefore Tesco obviously takes setting aims and objectives as a serious task. Clearly Tesco has been successful and I believe this has been through setting ‘SMART’ objectives which provided firstly the company with a clear path on where they want to go, and each store with a path on what they must do to meet the overall goals of Tesco as a whole.
Realistically in today’s modern world there is now more need to concentrate on other factors than just financial ones for a company to be successful. Companies need to evaluate ethical factors as well as customer centred factors and examine how to meet them. Tesco states that their core purpose is ‘to create value for customers to earn their lifetime loyalty’ as their success depends on it. Tesco believe in treating their customer and staff in the best way possible and try to best meet their needs.
Tesco believes that if their team find the job rewarding then they are more likely to give a better service to their customers, thus creating a better shopping environment. In order to try and meet their overall aim Tesco introduced the ‘Every Little Helps Strategy’. This strategy was the result of years of research carried out on customers. The research basically involved Tesco asking the customers what they liked about shopping at Tesco and what they didn’t like so they could rectify the problems.
The problems were dealt with quickly and were put into Tesco’s management tool, which allowed staff to monitor the success of the strategy on a day to day basis. Tesco also created its own management tool called the ‘Steering Wheel’ which was adapted from the ‘balanced scorecard’ invented by Professor Robert Kaplan. This ‘Steering Wheel’ divides the business up into five sections – Customer, Community, Operations, People and Finance.
All these sections are monitored by managers with a traffic light system, green indicates that targets are being met and red flags up an area that needs attention. The figure below shows an overview of the Tesco ‘Steering Wheel’. Each Tesco store has its own individual Steering Wheel which targets specific areas in each section relating to the store, area and customers. This Steering Wheel strategy is an ingenious tool linking strategy to day-to-day work and helps each store achieve its objectives and meet the overall goals of Tesco.