Vision, values and business strategies
A Tesco case study

Page 1: Introduction

Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Today it is one of the largest retailers in the world. Tesco’s core business is retailing in the UK, which provides 60% of all sales and profits. Tesco has the widest range of food of any retailer in the UK. Its two main food brands are its Finest and Everyday Value ranges, each sell over £1 billion...
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Page 2: Vision and mission

Companies, like Tesco, that enjoy long-term success, are focused businesses. They have a core vision that remains constant while the business strategies and practices continuously adapt to a changing world. In an increasingly competitive global environment, without a clear vision a business will lack direction and may not survive. Tesco has a seven part business strategy to help it achieve its...
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Page 3: Values

Whilst a vision is important, without values a business such as Tesco would struggle to remain competitive. Tesco’s values are: No one tries harder for customers. We treat everyone how we like to be treated. We use our scale for good. Tesco’s values are vital to its success, as shown in the quote below from Group Chief Executive Officer (CEO) Philip Clarke: ‘The Tesco values...
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Page 4: Strategy

A strategy is a plan which sets out how a business deploys its resources to achieve its goals. The company’s values set the tone for the decision-making process. In May 2011, Tesco committed £1 billion capital and revenue investment to improve the shopping trip for customers. It set out a seven part strategy designed to achieve its goals of being highly valued by customers and enjoying...
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Page 5: Monitoring and evaluating performance

Strategy, vision, values, aims and objectives are meaningless if their impact is not monitored and evaluated. Tesco uses a range of methods to collect data and evaluate progress against targets. It uses its Clubcard scheme, along with telephone based research and an online panel of customers, to determine what customers want and how satisfied they are with Tesco’s performance. Its...
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Page 6: Conclusion

Tesco is one of the largest retailers in the world. This success has not come about by chance but is the result of effective leadership and management. The setting of a clear vision is central to Tesco’s success, supported by a commitment to establishing and monitoring specific objectives and devising strategies to ensure these are achieved. All aspects of the business are regularly...
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