The Balance Scorecard of Tesco
Introduction:
Tesco is the largest retailer in the UK and the third-large supermarket worldwide with total amount of sales exceeding £19.4 billion in 2010. It was originally specializing in food product, but in recent years it has provided different products and services from clothing, telecoms to financial services. Additionally, Tesco is the most extensive online grocery retailer in the world and it recognizes product images and pack information are essential for online shopping. In recent past, huge development has been made on international strategies. Its store are located in 13 countries and number would be still increasing as it has diverse strategies in order to satisfy different locations. The principle of Tesco is letting customers know they can pick what they want, when and where they want it.
Balanced Scorecard:
The Balanced Scorecard is a comprehensive framework to achieve the company’s vision and strategy. In addition to measuring the financial side, the work surface also is added to make up for traditional performance evaluation, which emphasizing on financial data. Therefore, the Balanced Scorecard can be said a new system of strategic management with the company strategy, vision and performance evaluation, and not just a performance evaluation system. The Balanced Scorecard is divided into four important perspectives, including financial perspective, customer perspective, internal perspective and innovation and learning perspective. Organizations design performance indices basis on the perspectives to measure the performance, the entire sector information and the organization 's strategy and vision, which are matched together to achieve goals. It is to balance the implementation of organizational performance, seeking short-term and long-term goals, financial and non-financial measurable, and the balance between the performance of the external and internal perspectives (Kaplan and Norton, 1996).
1. The Financial Aspect:
It can be seen that
Tesco is the largest retailer in the UK and the third-large supermarket worldwide with total amount of sales exceeding £19.4 billion in 2010. It was originally specializing in food product, but in recent years it has provided different products and services from clothing, telecoms to financial services. Additionally, Tesco is the most extensive online grocery retailer in the world and it recognizes product images and pack information are essential for online shopping. In recent past, huge development has been made on international strategies. Its store are located in 13 countries and number would be still increasing as it has diverse strategies in order to satisfy different locations. The principle of Tesco is letting customers know they can pick what they want, when and where they want it.
Balanced Scorecard:
The Balanced Scorecard is a comprehensive framework to achieve the company’s vision and strategy. In addition to measuring the financial side, the work surface also is added to make up for traditional performance evaluation, which emphasizing on financial data. Therefore, the Balanced Scorecard can be said a new system of strategic management with the company strategy, vision and performance evaluation, and not just a performance evaluation system. The Balanced Scorecard is divided into four important perspectives, including financial perspective, customer perspective, internal perspective and innovation and learning perspective. Organizations design performance indices basis on the perspectives to measure the performance, the entire sector information and the organization 's strategy and vision, which are matched together to achieve goals. It is to balance the implementation of organizational performance, seeking short-term and long-term goals, financial and non-financial measurable, and the balance between the performance of the external and internal perspectives (Kaplan and Norton, 1996).
1. The Financial Aspect:
It can be seen that