Apart from the balanced scorecard there are other methods which are used by companies for performance management. Activity based Management is one of the method of performance management. This method basically focuses on customer satisfaction by adding value to the customer. Business process re-engineering is another method which some companies adopt for measuring their performance. It focuses on improving business processes by focusing on cost reduction, improved quality and customer satisfaction. According to Colin Drury (2009), in today’s global competitive environment companies are focusing more on customer satisfaction. One such important method is Total Quality Management (TQM) which is customer oriented process which focuses on improving products and services with high quality at perfect time. This project will show the use of balanced scorecard by a retail company Tesco Plc and how does the scorecard by Kaplan and Norton act as a framework for the balanced scorecard prepared by Tesco plc.

REVIEW OF TESCO PLC:

Tesco was founded in 1919 by Jack Cohen now led by David Reid the non-executive Chairman of Tesco plc and one of the boards of directors is the 3rd largest retailer in the world. Other boards of directors include Rodney Chase and Sir Terry Leahy to name a few. The first brand product sold by Jack Cohen was Tesco Tea. The name of Tesco comes from the initials of TE Stockwell who was a partner in the firm of tea suppliers and CO from Jack’s surname. In 1932, Tesco stores limited became a private company. Tesco stores (Holdings) Ltd floats on share markets with a share price of 25p in 1947. In the year 1956 Tesco’s first self-service supermarket opens in a cinema in Maldon. In 1979, Tesco’s annual sales reached £1 billion. Tesco stores (Holdings) becomes Tesco PLC in 1983. Company’s main strategy ‘EVERY LITTLE HELPS’ was introduced in 1992. In 1995 and 1996 Tesco enters many European countries such as Hungary, Slovakia and Poland and also enters Asia in late nineties. Tesco introduced loyalty card for their customers known as Clubcard in 1995. Tesco launched its ‘unbeatable value’ campaign in 1996 and went in for massive price reductions. The company adopted the strategy of ‘Everyday Low Pricing’ (EDLP), while continuing its other promotional activities. The EDLP program aimed at regularizing low prices for Tesco customers. It was not merely a strategy used for the occasional sale, but on a daily basis. In 2000, Tesco’s website Tesco.com was launched. At present Tesco Plc have more than 2300 supermarkets around the world and over 326,000 employees.Tesco has over 180,000 employees working in international businesses, serving in 2,026 stores and generating £17.9 billion sales and over £700 million profit. Tesco’s half of the selling space is now outside the UK. Tesco’s UK business is significant within the group and around 70% of group sales and profits come from the UK business.