Tesco set targets for each objective in every segment of the Steering Wheel and uses Key Performance Indicators (KPIs) to measure their progress. They review their KPIs annually to ensure they are still accurate and robust measurements of their performance. Tesco makes its balanced scorecard using these key performance indicators. According to Kaplan and Norton (1992), balanced scorecard is a set of measures that gives top managers a fast but comprehensive view of the business. The balanced scorecard allows managers to look at the business from four main perspectives: Customer perspective, internal perspective, innovation and learning perspective and financial perspective. Kaplan and Norton define balanced scorecard as a cause and effect relationship between the four perspectives.

Tesco is already preparing a balanced scorecard from many years. For me it becomes a bit difficult as I cannot just copy the balanced scorecard as done by the company. I have tried below the balanced scorecard for the company keeping in mind the four main perspectives of the Kaplan and Norton’s balanced scorecard.

Customer perspective: According to Kaplan and Norton (1992) customers tend to concern about four main things: time, quality, performance and service and the cost. Tesco articulates these concerns into their objectives and then it measures it objectives through its steering wheel. The main objectives of the Tesco regarding the customer are-

• Highest quality
• Lowest price
• Customer satisfaction with product quality and price
• Customer Retention

Tesco’s main aim or goal is to earn lifetime loyalty of the customers by giving them highest quality products. It is measured by the percentage of defective products returned to them by customers. Tesco can use Total Quality Management to improve their quality and decrease their cost which many companies have been successful in doing that. In order to earn the lifetime loyalty of the customers the prices of the products should be low as compared to other supermarkets such as Sainsbury and Morrisons. The prices of some products are cheaper than the other supermarkets. For example, bread is cheaper in Tesco than Sainsbury and Morrisons but it is costly than Asda. My sister does shopping at Tesco and she told me that she finds Tesco the best out of the other supermarkets as it is cheap and good place to be in shopping. Ove