Performance management in Tesco


For some organisations, separate goals and objectives are set by the firm for each department and then accordingly performances are evaluates but or Tesco the performances of their different functions are all highly interrelated to each other and therefore they manage the performance objectives accordingly.

Performance management of Tesco

The Tesco supermarket has their own way of managing the performance of the different management departments of their organization. The specific way of managing their performance is through a Steering Wheel designed by Tesco and this wheel has been segmented into four quadrants. Each quadrant represents the important area or function for Tesco and towards which they strive to perform well. The four quadrants are named as Customers as the first quadrant, Operations as the second quadrant, People as the third quadrant and Finance as the fourth quadrant (Tesco Corporate Responsibility Review 2005, 2012).

All these respective quadrants consist of further segments and each segment has their own key performance indicators set for the organization. For example, the performance objective of one of the quadrant segments is that they are working in a responsible and safe way. The quadrants of customers, operations, people, and finance are all interlinked with each other and the Tesco staffs needs to ensure that their performances need to be outstanding as any drawbacks in performances may have an impact on all the rest of the quadrants (Tesco Corporate Responsibility Review 2005, 2012).  These key performance indicators are regarded as demanding by Tesco but also are targets that are achievable by the employees of Tesco supermarket.

The board members of Tesco review the performance report of the employees every quarter and their report is sent to the top managers who further deliver the reviews to the respective employees. The senior management salaries are based upon the key performance indicators set by the firm. This is a feasible standard set by Tesco as it ensures that the senior management will concentrate on all the objectives that are set for the business. The bonus of senior management is dependent upon the achievement of targets that are mentioned in the Steering wheel of Tesco (Tesco Corporate Responsibility Review 2005, 2012).

Future performances of Tesco

Tools used by Tesco for measuring their present and future performances are 360 degree feedback, balance scorecard, the management by objectives tool and also the techniques for managing customer’s tool (Tesco Corporate Responsibility Review 2005, 2012). These particular tools are used for assessing the present performance of the staff at Tesco and then accordingly strategizing the future performances of the employees of Tesco. The key performance indicators current scenario is kept under record and accordingly reconciliations for future performances are designed (Armstrong, 2004). By this process, measures for remedial can be implemented in a systematic manner. By conducting a SWOT analysis, all organisations can easily assess their current situation in the market and accordingly make plans for future decisions. Strategic capabilities of the organisation can be worked upon by the firm and then future strategic plans can be developed for the organization (Johnson et al, 2006).

Tesco supermarket uses the SWOT analysis method so that their targets of performance can be streamlined and strategized for attaining their set level of objectives for the firm. The employees that are hired by Tesco to look after the recruitment and selection department of Tesco need to possess the required level of qualification and experience to perform the job roles of the department. The staffs need to be formulated strategically so that the overall goals and objectives of Tesco can be met (Johnson et al, 2006).

SWOT Analysis

Ability of performing according to job roles and credibility in the outcome of work needs to be reflected by the staff of Tesco so that the organisation becomes successful. The SWOT analysis tool, when used for assessing the performance of employees allows the organisation to focus on the internal and external factors that affect performances so that accordingly conditioning of employee performances can be conducted. This way all set targets of performance objectives may be easily achieved (Johnson et al, 2006). Tesco conducts their SWOT analysis and then accordingly sets their goals and targets that are to be achieved in the particular quarter and then constantly works upon monitoring the performance (Armstrong and Baron, 2005).

The firm Tesco ensures that all the job roles of their firm are being performed in alignment with attaining the objectives of the business. The steps taken to ensure business objectives are achieved, they aim towards hiring the right people for the right job with the required skills and experience for conducting the task effectively. The recruitment and selection processes for Tesco are structures and accordingly they attract candidates for both the managerial roles of the firm as well as the operational roles (Tesco Corporate Responsibility Review 2005, 2012).

Enterprise Applications

Enterprise applications are usually defined as the business applications, it is considered to be one of the large business applications for the business functions.  The enterprise applications have characteristics of being complex, being scalable and distributed around the organisation network; enterprise applications also have the characteristics of being component based and are also critical to the mission statements set for the firm (Launching and Managing Enterprise Applications, 2012).

Enterprise applications can be deployed from a number of different platforms in the organisation, can b deployed in the networks at the corporate level, be used in the intranets or the internet, the most common form.  Further characteristics that are part of enterprise applications are that they are data centric, easily understandable for the users, highly secured in the areas of maintenance and administration.  They can be categorized as systems that are highly complex (Launching and Managing Enterprise Applications, 2012).

Implementing Enterprise Applications

The enterprise applications can be an effective tool to manage the finance function, and the customer base for Tesco organisation. Many segregated requirements of the business function can be conducted systematically with the help of enterprise applications (Launching and Managing Enterprise Applications, 2012). For Tesco it is very important to maintain their customer base, and therefore managing the performance of the staff at Tesco is important so that they provide good services to the customer that visit Tesco. Customer demands need to be taken care of and products that are in demand should be present on the store shelves at Tesco.

The decisions that are taken for the development of any one function may have its impact on the other functions at Tesco. With the implementation of Enterprise Applications, the impact of decisions at other departments can be observed and accordingly changes can be made for the developments being planned for the firm. The consequences of the decision can also be witnessed with the layout being shown through the enterprise applications (Launching and Managing Enterprise Applications, 2012). The enterprise application sorts out the requirements for the business function in a segregated but in categories that are interdependent. Also the diagram in the application portrays how each requirement is connected to the other requirements. By making balanced developments and decisions, the damage of overlooking some aspects and conducting errors can be avoided to the maximum extent.  The consideration in design can be overlooked if all aspects are not considered but with enterprise applications the whole scenario is analysed and then proper decisions are made.

Tesco & Steering Wheel

Tesco organisation uses steering wheel for assessing their performance objectives. Each quadrant in the steering wheel is segmented and targets are set for the quadrant. With the use of enterprise applications, the decisions that will be taken in one quadrant may have impact on the other quadrant and this can be visible to the entire management that is involved in the decision making process. The decisions of increasing the customer base for Tesco may impact the finance department as well as the planning department of Tesco.

The transactions of any business tend to cross many number of components that are present within the physical environments of the business as well as the virtual environments of data centre. The business transactions have to pass through the web servers as well as the application servers, they have to cross through the firewalls of the system, the various file systems, the multiple databases present on the system, and the operating systems. To view the impact of the transactions, the enterprise application system may prove to be highly useful (Launching and Managing Enterprise Applications, 2012).

E-business tools

The e- business is one of the latest phenomenons in the business world. Many businesses are striving to set up their e-business units so that conducting business becomes easier, faster and convenient for both the customers and the organisation. The different types of e-business adoption methods are cloud computing technologies, business intelligence methods, implying social media networks, mobile applications, open source applications and RFID technologies. It depends on the business as to which methods they want to imply in their organisation for maximising the business performance and long term growth.

Business Intelligence and Social media networks are the tools and technology that can be implied at Tesco supermarket for maximising the performance of the business and also ensuring long term growth.

Social Media and Tesco

The use of social media technology has gained high relevance in the functions of business such as the marketing function, the need of public relations and lastly social media acts as a critical tool for building strong customer relations. In the digital era, businesses that do not use the tools of social media technology are considered to be at disadvantageous position in terms of their visibility to the customers and also the ability of generating the sales for the business (How to Maximize Your Social Networking Time, 2012). Social media can be defined as a group of applications that are based on the internet and the foundations on which they are formed are ideological and technological aspects of Web 2.0 technologies. The social media technology allows the content that is user generated to be created and exchanged on the internet (CRM and Social Media: Maximizing Deeper Customer Relationships, 2008).

 In this technology, users are constantly in touch with the latest happenings through discussions, networking, talking, bookmarking and other such activities. In some of the social media networking websites, the users of the network are encouraged to comment and like any other comments as well. This depicts the demands and likes of the target markets for the organisation (CRM and Social Media: Maximizing Deeper Customer Relationships, 2008). Effective sales and marketing strategies can prove to be successful and show an increase in sales with the effective use of social media networks. The social networking sites such as Face book, MySpace and Twitter are few of the most famous popular networking websites and consist of a large customer base (How to Maximize Your Social Networking Time, 2012).

Placing advertisements on such websites has the potential of attracting target customers who may prove to be worthy customers that may allow the business to earn more revenues and profits (CRM and Social Media: Maximizing Deeper Customer Relationships, 2008). If Tesco makes their online presence on the social networking websites, they can start gaining more customers and also create awareness about their products and services to other customers. Feedback from the customers can be easily gained on the social networking sites and also demands of the customers may also be retrieved through these websites (How to Maximize Your Social Networking Time, 2012). By gaining feedback, Tesco will timely improve their performances wherever it is required. Business intelligence implementation in Tesco will allow the individual performances of the employees as well as the team performances of the employees to improve immensely.

Business Intelligence

By implementing the business intelligence tool, the organisation can operate the business based upon the concerned measures of their business. The analysis of the business can be based upon the indicators of the key performance of the business and also by joining all the required measures for running a successful business such as the net interest income, the profitability level of the product and other such measures. The business intelligence model allows the sources of data to be categorized as trustworthy as in the business intelligence the processes of identification of data along with reconciliation and integration of data is involved. While dealing with any sort of data related to consumer preferences or related to finances for the firm, the organisation needs to be careful in maintaining the integrity and confidentiality of the data from the ethical perspective as well.  With business intelligence tool, the organisation can ensure that whatever decisions are made; they are according to the latest availability of data as data is constantly updated in this technology. By working on latest data, the chance of attaining a larger market share increases as all operations in the organisation are being conducting according to the latest market requirements and trends.

If Tesco operates their business on the latest data available in the market and also according to the latest demands of the customer, they can work towards becoming a more competitive organisation and also make decisions according to the market trends. The information is available to the entire organisation at the same time with the implementation of the business intelligence tool so that whoever needs the data for conducting their work operations can easily do so without any delays. All the concerned departments of Tesco will know about the changes in any type of data that has occurred and accordingly each department can make the changes without the need of any one person to communicate the changes to the rest of the departments (How to Maximize Your Social Networking Time, 2012).. The data and figures are of high concern to the finance department and they need to constantly update their workings according to the latest data.

With this tool reports and dash boards can be easily modified without having to wait for any technical expert to come and assist them. This allows decision making to be conducted in a highly timely manner especially for the top management of the firm (Armstrong and Baron, 2005). For Tesco, business intelligence and social media technology will prove to be advantageous and will also allow them to maximise their profits and business performance along with ensuring long term growth for the business. For any product or service oriented organisation, it is extremely vital to ensure that they gain loyal customers so that success in the long term can be guaranteed and by constantly being in interaction with the customers, the customers may feel valued that their preferences are being acknowledged by the organisation.

Analytical Tools

The analytical tools in strategic management are Porter’s five forces model, the SWOT analysis model, PESTLE analysis, analysing key factors of success, and finally analysing the mission and vision statements of the business (Johnson et al, 2006). All the forces that are affecting the business need to be considered for Tesco to formulate their e-business strategy. Tesco is one of the giant UK retailers of grocery supermarket. It has many competitors and therefore it needs to develop strategies according to its competitors. It needs to ensure that the customers and suppliers, all are satisfied with the dealings of Tesco as this is the way of ensuring long term growth and success for the firm.

The Tesco being a giant retailer has many customers that they have to cater constantly. If they strengthen their online business presence, they can cater to wider markets and allow their customer base to expand further as grocery products are not the only offerings by Tesco. As it provides versatile products for its customers it can use their website to increase their business presence and also target more customers (Role of e-Business Intelligence— MindScape, 2010).

Proposed Strategy

E-business intelligence can be one of the most competitive E-business strategy for Tesco organisation. The E-business intelligence allows the organisation to attain vital feedback from the market of internet users. The e-business intelligence method is an enterprise method that organisations use for managing and measuring their return on investment (ROI) (Role of e-business Intelligence— MindScape , 2010).

The e-business intelligence strategy is implemented by keeping in view certain important questions that are listed below:

  • The business organisation website, Tesco in this case, needs to ensure maximum users visit their website.
  • The Tesco website needs to focus upon being associated with the right affiliations of Internet.
  • The way information or products and services are being spread on the internet.
  • The Tesco website needs to find out if at all other businesses leveraging the Tesco business for operating their businesses.
  • Lastly, the Tesco website needs to find out whether the affiliates are following the guidelines that have been set for them.

When Tesco answers these e-business intelligence questions, they are in a strong position for becoming a strong threshold for their business strategies in the future. During the implementation phase the strategies that are implemented are constantly monitored to determine their affect in the return on investment for the Tesco business.

E-business models

The Tesco organisation also can use the various types of e-business models for generating revenue for their business. The different types of e-business models for Tesco could be advertising, in which revenue can be attained by the number of users visiting the website. E-retailing, is another e-business model, in which revenue is generated by sales directly on the internet. Channel e-business model is one in which the revenue is generated by maintaining the integrity aspects of the current channel. The affiliate e-business model earns revenue by the paid alliances of the marketing firms. The franchise e-business model generates revenues through the agents that are authorized (Role of e-business Intelligence— MindScape , 2010).

Store front model is also one of the most suitable E-business models for Tesco according to the nature of business for Tesco. This is one of the simplest types of e-business model available for organisations. This e-business model has gained a lot of popularity in the areas of business to consumer transactions. The store front model has the option of shopping cart technology that facilitates the customers towards buying all their products of interest into the cart and then in the end can sort out which products they want to buy and which they want to leave. The main advantage of shopping cart technology is that as and when customer is viewing the products they may start inserting the products that they want in the cart, in the end they can view their total number of shopping items and accordingly sort them out. Doing this online is much easier then actually doing it in the stores when you have to find the aisles of the various products that you plan to return to the shelves of the store.

Successful implementation of this e-business strategy will result in allowing Tesco to attract new customers towards their grocery store; a user friendly website will allow the customers to retain their interest in the superstore as the latest offerings in the store will be conveniently available in the website for the customers to view. Rather than waiting for the brochures to be available for viewing the offerings, by visiting the online website from anywhere by the customers is a more convenient option. Through their website, Tesco has the potential of increasing their sales, they can stream line their process of sales and allow customer to have a good online shopping experience, when customers have the feeling of being valued by the organisation as Tesco is working constantly toward providing customers with convenient ways of shopping there are high chances that customers may start becoming loyal customers of Tesco.

A satisfying online transaction at the customer’s end leads towards gaining the trust of the customers. Tesco also needs to ensure that the process of making online payments is done in easy steps as anything complicated in making payments will again not be appealing to the consumers. Through e-business operations, customers are in a better position to be able to communicate with Tesco by the various online tools available. For Tesco, the operating costs can be reduced immensely and also efficiency in work procedures can also be observed. Through e-business intelligence strategy, Tesco will become in a better position to promote and enhance their brand image to the diversified customers. When the website is running under proper planning and monitoring, Tesco can have the opportunity to work upon additional features on their e-business website and allows the functions to be performed accordingly.


The discussion above is related to Tesco organisation and their business performance is discusses along with implementing IT related solutions for maximising the performance of the business. For any organisation to become successful, it is extremely vital for the employees of the organisation to perform their best at the various job roles. The organisation needs to ensure that they monitor the performance of their employees by evaluating whether the goals and objectives of the firm are met or not. Tesco uses the steering wheel in their organisation for monitoring the performance of their overall business.

The management of the organisation needs to be up to date in implementing the latest tools and technologies required in running a successful business. The decisions made by the top management level need to consider all the aspects of the firm along with the best possible ways of conducting the business in a successful manner.

With the use of enterprise applications being implemented in Tesco, it would become easier for all the related departments to view any changes in the firm or any decisions that have been taken by the firm to be noticed immediately by all the organisations.

The embedding of latest business technologies are taking place at a vital pace for businesses to maximise their performance and focus on their long term growth. It is viable for Tesco to use the social networking tool and the Business intelligence tool as it would maximise their business performance and also focus upon the long term growth of the business.

By implementing the e-business intelligence strategy, and learning all the ways of increasing the traffic on the Tesco website, opportunities for earning more revenue can increase.

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