Delivering Success Harvard Case Solution & Analysis

Delivering Success Case Study Solution


Tesco Plc is one of the leading retailers in the world and it is ranked on number three in terms of revenues and on number two in terms of profits within the global retail industry. The company sells a wide range of products and it has extended its product mix to include a wide variety of goods such as consumer electronics and clothing and it also offers a wide range of services such as internet, health, telecoms, financial and insurance services.

An online supermarket has also been created by the company. The company has been growing rapidly in UK through establishing small chains of retail stores throughout the whole country and also by acquiring a range of grocery stores. Currently, the company is a market leader in the whole retail industry in UK and has acquired around 25% of the total market share of the UK retail industry. The company has now 470000 employees and 4331 stores across 14 countries.

Further, the company has also diversified into the areas of retail services such as travel, telecom, finance, apparels and other non-food activities. The premium brand of the company is Tesco Finest and all non-foods sector and food sector products are offered in different price ranges. In this position paper we evaluate what Tesco did and what are the reasons behind the huge success of Tesco and how other businesses can make use of those factors to become successful. We emphasize on the Waitrose British Supermarket retailers in this paper and recommend them actionable strategies.

Summary (Evaluation of Tesco)

Tesco Plc is a general merchandising and British based international grocery retailer. The key factor through which the company has managed its performed, delivered its corporate strategy and improved its business performance by the development of strategic performance management framework that it calls as the Corporate Steering Wheel. Such tools are considered as powerful factors to align the vision of each member of the organization into a single corporate vision and allows the company to monitor its mission and change it accordingly.

Tesco has always kept its mission in the form of a living document and it has revised these documents, the steering wheel from time to time so that the changing nature of the business is reflected within the steering wheel and the strategic priorities are incorporated within the strategic performance framework of Tesco(Cokins, 2009). The original steering wheel of Tesco consisted of four perspectives that included Operations, Customer, Finance and People and each of these four perspective include a strategic goal.

One of the major shifts in the steering wheel was when the company added a fifth perspective called as the community perspective. Tesco had realized that the impact of the climate and the climatic changes have a significant impact on the business lines of Tesco and these were important challenges that need to be addressed by the strategic priorities of the company(Cokins, 2009).

The new perspective included different community based strategic goals such as more locally sourced products, reducing the usage of the carrier bags by 50% and reducing the carbon footprint. Most of the organizations have developed their own frameworks of performance however, they have failed because they have not realized the need to update their performance frameworks to reflect the changes within their strategy(Muralidharan, 2004).

The CEO of Tesco says,

Having objectives across these five perspectives allows Tesco to be balanced in its approach to performance.’ ‘Today, the Steering Wheel creates a shared language, a shared way of thinking and a common blue print for action(Marr, 2009).”

The performance of all the functions of the company, be it in stores, head office or in distribution is measured around the above five perspectives of the steering wheel of Tesco. The Steering Wheel has also made it easy to communicate the strategic priorities to all the employees of the company as this is kept in the form of a living document. This is shown in the form of the shopping lists in figure 2 in the case. These lists were then printed and handed out to all the stores as reminders about what is important. The presence of the steering wheel at each level and within each store of the company gives it a strong hold to control the people in charge.....................

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