Tesco's 'Steering Wheel' Strategy

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : BSTR187 Electronic Format: Rs. 400;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies


Growth Strategy | Balanced Scorecard
Case Length : 21 Pages
Period : 1995-2005
Organization : Tesco
Pub Date : 2005
Teaching Note : Not Available
Countries : UK
Industry : Retail


The case describes Tesco's 'Steering Wheel' strategy and explains how it enabled the company to emerge as the largest retail chain in the UK. In 1997, Terry Leahy (Leahy) took over as CEO of Tesco. He aimed to make Tesco a 'Value Retailer.' Leahy named the strategy he wanted to adopt as 'The Tesco Way' which comprised of the company's core purpose, values, principles, goals and the Balanced Scorecard. Tesco adapted the Balanced Scorecard approach to meet its own requirements renaming it the Steering Wheel which had four quadrants - operations, people, customers and finance. The case highlights the approach of implementing the 'Steering Wheel' strategy in Tesco and the benefits reaped by the company after implementation.


Role of core purpose, values principles and goals in the growth of an organization
Process of implementing 'Steering Wheel' strategy
Benefits of 'Steering Wheel' strategy


  Page No.
Introduction 1
Background Note 2
Tesco's Business Operations 3
Tesco's Steering Wheel 4
Earning Customer Loyalty 5
Focus on Employees 7
Making Operations Efficient 9
Finance 10
The Crticism 12
Exhibits 13


Tesco, Steering Wheel, Balanced Scorecard, Tesco Way, Key Performance Indicators, Customer Loyalty, Employee Focus, Continuous Replenishment Program, Employee Motivation, Corporate Responsibility Committee, Store Format, Tesco's Principles, Core Purpose, Values

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