Explain The Purpose Of Cost Performance Objectives Of Tesco

It is important for Tesco to have motivated employees which can help them succeed and gain awards for the best customer services. Tesco’s employees also need to help the customers and other stakeholders in order for them to return. This could also lead to people buying more shares in the business. The influence is customer satisfaction, stock, whether the customer returns because of Tesco’s quality products and prices or whether their service is good, if they don’t then Tesco’s customer service is not good enough.

Their goods have to be of a high quality (depending on price) for customer demand to continue or increase and for customer loyalty. If quality drops that will have to be reflected by the price, if not then the Tesco may have to consider getting new suppliers, this means loss of income for the current supplier and job uncertainty.

Tesco's has recently had to make many changes in their staff and have had to change the management structure to be able to pay every manager fairly and pay the wages for their general employees. These effects were taken place due to a major profit change and an unstable financial system. Another effect that has been changed is the Tesco pension scheme back in 2012. The Tesco pension scheme had changed due to financial problems however this would mean employees who have a pension scheme with Tesco will have to work longer if they were in their early 60's . This became a challenge for Tesco's as they couldn't afford to pay out on pension schemes at that precise moment.

An aim is a long-term goal of which takes short – term goals to achieve this which are called objectives.

The speed objectives is concerned with how long time it will take the customer to get to the store, buy the product and arrive back home again. The customers would like to do this as quick as possible and Tesco's operation managers should try to make this process quicker than its competitors.

Tesco has different aims and objectives that they wish to achieve every day. Some of these include: ‘Cutting prices and offering more in store deals’, ‘To reduce unemployment in local areas where Tesco shops are built’. However, the two main aims for Tesco is to ‘maximise profits’ and ‘Grow and maintain the number on retail in the UK’.

Trader Joe’s is a leading firm that is taking over the supermarket industry. The company completely altered the idea of a traditional supermarket and turned it into a whole new experience for consumers. Through Trader Joe’s strategic planning, they’ve paved a way for consumers to have high-quality products while paying low prices. Trader Joe’s provides fewer products that are health-conscious, unique and privately labeled. Trader Joe’s has utilized this, secrecy, employee job satisfaction, culture and starting trends to its advantage. Within its industry companies are divided into different strategic groups. Aldi, similar Trader Joe’s strategic planning, is apart of the cultured-discount neighborhood market. This firm continues the low-stock, less-waste, small store, and low price method. A Walmart express used a hybrid strategy that made it a cross between a grocery, pharmacy, and convenience store. Tesco is the third that falls with small neighborhood markets strategy and focused on organic products, similar to Trader Joe’s. As the company grows and expands, there is caution in change of Trader Joe’s processes. With growth, there comes new management and employees which can alter the way a specific store is ran and there is worry of change in the stores normal procedures. Change that doesn’t follow the process could ultimately result in a downfall, so this can be considered a key challenge to watch in the future. Increased bureaucracy is additionally a

Tesco has a good progress and their strategy is made up of of five elements:

Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are

These objectives are specific as they explain exactly what the company expects from their employees, how they should treat their employees and customers and how the retailer should take into account environmental factors when dealing with products/services etc. They are not so much measurable as they do not imply whether they have achieved these objectives or not. They are achievable because they are straight forward. They are realistic and using the correct resources they can be met. They are not so much time bound as they do not state exactly when they wish to achieve these objectives by but you can tell they will be ongoing objectives that they constantly wish to achieve in the future.

The internet helps Tesco to be efficient as they can collect orders in advance and prepare for them. They are able to continue business in-store and serve others at home. With a couple of extra staff (to be the ‘pickers’ and drivers to deliver) Tesco are able to maximise efficiency by adding extra orders from customers that aren’t in-store and this reduces the amount of people in the store which may block shelves if it gets too crowded. Time and money is

| Yes it is likely to be achieved as it is communicated to all other employees in every single department across many of Tesco’s stores not only in the UK, but on an international level also.

The aim of this report is to examine what generic strategy Tesco employs, the position this strategy takes on Bowman’s clock and whether Tesco’s generic strategy provides an effective competitive advantage. “Strategy is the direction and scope of an organisation over the long term: which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson et al, 2005)

The reason why I have chosen to analyse Tesco’s competitive strategy and organisational structure is because both area’s concentrate on the company’s goals. Without these areas being acknowledged properly and successfully analysed they cannot achieve competitive advantage

The evaluation of the role that the five OM performance objectives( cost; dependability; flexibility; quality and speed) plays in monitoring and controlling of the business so as to remain competitive in the market.