The Importance Of Tesco's Corporate Goals

1.0 Introduction

Well-chosen corporate goals lead businesses into the right direction while keeping them on the right track. Goals establish where a company is heading towards, and actions lay down when it will get there. Corporate goals are established to improve the effectiveness of a company, whether the company wants to increase the market share price of the company, increase the profitability of the business, reduce overall costs of the company, or improve the quality of customer. On the other hand, actions define what a business must do, and the time. Goals are often defined in words while actions are stated in numbers; such as date. Hence, corporate goals let the company know where to go while actions lay down mechanisms on how to go

Tesco, as a global retailer, operates in more than 12 markets across Asia and Europe. Tesco currently has employees that are estimated to be over 500K (Tesco plc, 2016). Tesco like any other business sat its corporate goals and actions that are aimed at maximizing shareholders wealth. In its annual report 2015, Tesco stated its corporate goals as: maximizing sales by reducing prices so as to increase profit, introducing healthy eating products into the wide range of groceries they supply, developing a large internet shopping website, providing employment opportunities to the local community, and to becoming an outstanding international retail store (http://www.tescoplc.com,

Changes in the customer shopping behaviors meant that they are not willing to travel distance and visit large hypermarkets; instead they would prefer to have their groceries on the nearest stores, or delivered to their houses. Thus, Tesco should have small stores where customers can have access to without traveling.

• Tesco stopped innovating: since Tesco regained its position in the UK as the biggest retailer, and expanded to other parts of the world, mainly Asia and Europe, it became a bit arrogant, lost its customers focus and innovating. Customer satisfaction is vital to all companies in nowadays. As such, Tesco should honor its customers and never lose the focus.

• Incompetent management that is not trustworthy: Tesco employees, especially store managers have a bad reputation. There has been a case in the UK, where store managers are caught stealing from the store items and at time cash. Therefore, Tesco should ensure that they have the right managers and employees that are trustable, and will not be pocketing in the company’s money or