Tesco: Vision, Mission and Values

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Assignment No: 3

Date: 7th September, 2015

BUSINESS STRATEGY

Assignment

Submitted to: Sir Shahid Malik

Name: Noreen Akhtar

Roll no: 12-4928

Section: B

                                        TESCO- VISION, MISSION & VALUES

Q1. Describe what a vision is.

Ans. A vision is something important to a business. It’s not just a statement but the actual desired future state of a business i.e. the ultimate destination where business wants to reach. Vision provides inspiration and motivation to succeed. Vision provides the direction to a business about defining goals and making strategies. It keeps the business aligned in a direction keeping management, employees and shareholders on the same page of reaching the aspired state. In short, vision is something a business aspires to be.

E.g. Tesco’s vision:  

“To be the most highly valued business by: the customers we serve, the communities in which we operate, our loyal and committed colleagues and of course, our shareholders.”

It is evident from the vision statement of Tesco that what desired future state Tesco is working for.

Q2. Explain how Tesco’s values help support its seven part strategy.

Ans. Values of a business helps it always to go big and same is the case with Tesco. They have fully engraved their values into their systems and people. They have aligned the business according to their values. Values have been rooted at every business level i.e. from top management to a lower level of employees. Being a community focused global business, Tesco’s values are in complete alignment with its business strategies. It is clearly evident from the relationship established below that each value Tesco has, is correlated with its business strategy. In short, the strategy and values are helping and serving each other i.e. if one achieved, the other is automatically accomplished. The support provided by values to business strategies is established as a relationship below:  

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Q3. State Tesco’s core purpose and analyse the importance of strategic planning in helping it to achieve its core purpose.

Ans. The core purpose of a business is its mission, the motive behind its existence. The core purpose of Tesco is:

“We make what matters better, together.”

Tesco’s mission is to get better and all of their strategies are to serve their core purpose. Tesco put a lot of emphasis on their strategic planning and they continually develop new strategies, monitor and reassess older ones to achieve the goals and the mission they are working upon. Tesco’s whole philosophy is focused towards making things better for customers, employees, society, shareholders and stakeholders. Tesco’s strategies are driven due to price, quality, range and innovation as well as delivering great multichannel customer service to fulfil their core purpose. For Instance, Tesco’s strategic planning consists of 7 part strategy which are as follows:

1. To grow the core UK by hiring more number of staff and investing in maximizing the customer satisfaction by giving them a great shopping experience is a part of their strategic planning and if they achieve this goal, they are ultimately making the customers feel better.
2. Tesco have put their responsibilities towards the communities as a core part of their strategy i.e. CSR. Thus, by working for community, having a focus on Big Three Ambitions they are making lives better as a whole for their employees, society and customers which is fulfilling the core purpose of their existence.
3. Tesco has a focus on creating value for customers by their best customer service their employees are giving to make them brand loyal. Also, Tesco has a focus on giving the best opportunities to their employees for growth etc. Both the loyalty and employee growth is helping Tesco achieve its core purpose.
4. The strategic planning of Tesco involves diversification into new products, capturing newer markets, creating employment opportunities, serving the customers as no one other has yet done and valuing the community as a whole is resulting in success.

The above few examples of strategies followed by Tesco makes it obvious that the strategies they have developed are helping them getting their core purpose. It’s the strategic planning that is leading to Tesco to reach their destination and becoming a worldwide success by achieving the mission of doing better.  

Q4. Using data in the case study, evaluate the extent to which Tesco’s vision and values affect its success.

Ans. Tesco’s vision and values matters a lot in their success. It is their excellent values and vision that has helped them in achieving success all over. Tesco visions and values would not have been helpful in success if proper strategic planning had not been there to achieve vision and values. Tesco’s best part is that at first, they have set up world class vision, mission and values, secondly they have done excellent strategic planning to attain the desired future state of business, thirdly they have made concrete targets, plans and tactics to get the results. They have continually monitored, assessed their strategies and reshaped them according to the changing trends, demands, newer markets demographics and aligned them with their ultimate vision and mission. The monitoring part of strategic implementation is very important and Tesco has done it the best. All the employees, management and shareholders Tesco have work for the BEST and they have never settled less than the best. Everything Tesco has done is benefiting either the customers, suppliers, community or the staff. The results of KPI’s Tesco has developed to monitor their targets clearly demonstrate that the results of KPI’s like supporting local communities, buying and selling products responsibly, caring for the environment, providing colleagues and customers with healthy options are even better than the targets which is a remarkable accomplishment. It is worth mentioning that schemes like Tesco in Society, Three Big Ambitions, The Essentials, Click & Collect, introducing F & F products and many others are accommodating their success and these schemes have obviously emerged due to the vision and values Tesco have. From each bigger goal to every small move, they have made their customers more brand loyal and staff more productive and loyal as well.