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Case Code: CLOM016
Case Length: 06 pages 
Period: -  
Pub Date: 2006
Teaching Note:Not Available
Subject : Operations
Organization :-
Industry :Retail
Countries : -

The 'Steering Wheel' - Tesco's Balanced Scorecard*



UK-based retailer Tesco Plc., used a unique tool 'The Steering Wheel', a version of the Balanced Scorecard that directed the focus of business initiatives on delivering the core purpose of Tesco - 'create value for the customers and earn their lifetime loyalty'. The case explains in detail how Tesco developed the tool and used it successfully.
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As of 2012, the UK-based Tesco Plc (Tesco) was the third largest retailer in the world (US-based Wal-Mart was the #1 followed by France-based Carrefour). Tesco was founded in 1919 by Jack Cohen. In 1956, the first Tesco self-service supermarket was opened. By 1979, its turnover had reached £1 billion. In 1992, Tesco was the second largest supermarket chain in the UK.

As of 2012, Tesco operated 6,351stores across the world. These stores were under different formats – Express stores, Metro Stores, Superstores, Homeplus, and Tesco Extra. Tesco also retailed through online shopping channels, and Tesco Direct.

As of 2012, Tesco had more than 500,000 employees spread across 14 countries, delivering a distinct and consistent buying experience across the world.

Questions for Discussion:
1. What intangibles did Tesco bring into its version of Balanced Scorecard? If you were to design a Steering Wheel for a Tesco store, what other parameters would you add?
2. Examine how Tesco used the Steering Wheel as a control mechanism.
3. How did the 'Steering Wheel' help Tesco realize 'the Tesco Way'?
4. What are the limitations of Tesco's 'Steering Wheel'?


Poka-Yoke, Mistake-proofing, Operational problem

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.