Tesco's 'Steering Wheel' Strategy

Strategic Management|Management Strategy |Business Strategy Case Study|Business Strategy|Case Study|Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR187
Case Length : 21 Pages
Period : 1995-2005
Organization : Tesco
Pub Date : 2005
Teaching Note :Not Available
Countries : UK
Themes: Growth Strategy | Balanced Scorecard
Industry : Retail

To download Tesco's 'Steering Wheel' Strategy case study (Case Code: BSTR187) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


Buy With PayPal

Amount to be paid:

Prefer to pay in another currency ?
Select Currency for Payment

Exchange Rates: Click Here
Delivery Details: Click Here


For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search

Please note:

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.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

<< Previous


Making Operations Efficient

Tesco's distribution network in the UK was among the best in the world. The company emphasized the importance of putting resources to the maximum use. Tesco stores in the UK received two deliveries a day one a "fill up" delivery and the other, a "top up" delivery.

To keep the things simple for customers as well as for employees, Tesco adopted several new systems such as electronic shelf edge labeling all across the store, through which prices could be changed from a single central point; self scanning tills; self service pre-packaged products, coffee shop on mezzanine floor and also merchandising of fresh produce.

Drawers were used to store replenishment stocks. To increase stock holdings on the shop floor, the depth of shelves was increased. The supply chain and distribution system of Tesco strove to do away with non value-added costs. In the UK, Tesco operated 26 distribution centers...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies


Pricing was a key strategy and selling point for Tesco. Low prices were adopted to maximize sales. Tesco's value-added products at low prices attracted many customers. After the launch of 'unbeatable value' campaign in 1996, Tesco 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 to regularize low prices for Tesco customers; low prices were not merely a strategy used for the occasional sale, but on a regular, daily basis... Adopting the EDLP strategy demonstrated Tesco's commitment to its customers, putting their interests first...

The Crticism

Tesco's 'Steering Wheel' was successful in steering Tesco towards the fulfillment of its strategic objectives. However, Tesco's rapid growth in the early 2000s attracted severe criticism mainly for its HR policies and procurement policies. Though Tesco prided itself at being a people-centered organization, media reports said the company paid unduly low wages. One move that received lot of flak from all quarters was Tesco's stand on employee absenteeism. In order to reduce absenteeism, Tesco came up with a policy of not paying for the first three days of sick leave taken by employees. After the policy was implemented, Tesco claimed that the absenteeism came down to 4.6% from 5.8%.


Exhibit I: Tesco - Competitor Profile
Exhibit Ii: The Tesco Way
Exhibit Iii: Tesco's Store Format
Exhibit Iv: Tesco - Asian Operations
Exhibit V: Tesco - European Operations
Exhibit Vi: Tesco Personal Finance Products
Exhibit Vii: Tesco's Steering Wheel
Exhibit Viii: Tesco's Principles
Exhibit Ix: Tesco's Values
Exhibit X: Tesco's Goals
Exhibit Xi: Tesco's Core Purpose

Custom Search

Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.