BALANCED SCORECARD FOR TESCO

The Use of Balanced Scorecard for Tesco



The Use of Balanced Scorecard for Tesco

Introduction

Tesco is a prime example of the power of a multi-channel strategy. Tesco was founded in the aftermath of the First World War and created the concept of discount supermarket or superstore in Britain in 1967. The company now offers a comprehensive in terms of sizes: Extra, which follows the format of hypermarket offering of food and non-food, on the outskirts Superstores, Compact immediate periphery, Metro downtown. Express service station with long opening hours. Since 1995, Tesco is first English string with a 16% market share in 2001 and 22.7 billion pounds of revenue. After conducting various experiments since the mid-90s, Tesco has adopted original online sales. This model is characterized by caution and pragmatism. The principle of this system is that all deliveries are made from Tesco 250 stores on the 690 that make up the chain in Britain are delivery points which cover 91% of the population.

Discussion

These clients potential live all within half an hour drive from a Tesco store. Delivery from outlets raises formidable difficulties. All stores do not have the same range and do not practice all the same pricing policy. Indeed, supermarkets or specialized distribution adapt their pricing policy based on local competitive environment (Tesco, 2006). Thus, it may seem very difficult to manage the information and decision online ordering should be adopted in line with the common minimum range 250 outlets.

Caution with Innovation

Club card in the first decade of his work brought a tremendous success because Tesco was the first company that has become so regularly collect information about their customers, and then use it in building their business models. No less successful, at least at first, began experimenting with the format of shops except for super and hypermarkets Tesco in the early 2000s launched a small convenience store, suitable for city centers, with their expensive real estate, where the stake on the finished products and ready meals (Witcher, & Chau, 2008, pp. 101-114). Then the format was copied by many networks of competitors.

However, in the scientific approach Tesco analysts now are not so sure. They decided that it was too bright (Bowhill, 2008). They believed that the science of analyzing data cards to store format and organization of logistics will be the foundation of their success. In Tesco thought: we have a huge pool of buyers, though now they open their wallets. But it forgot to think about the fact that retail sales are primarily a communication with the buyer. What is an art, not a science said by experts (Smith, 1990, pp. 24-64).

An illustrative example is the U.S. division Tesco stores Fresh & Easy. The British retailer has entered the American market more precisely, on the West Coast of the U.S. market at the height of its market. The first store in the U.S. opened in November of 2007, and it was planned that during the first year the network will ...