Company Assignment Example | Topics and Well Written Essays - 1000 words

Company - Assignment Example The group sales of the company were $70.9 billion in 2014 (Tesco PLC, 2014). However, the overall growth of sales was only 0.3%. The global financial crisis of 2008 has done considerable damages to the grocery and retail industry of the U.K. Tesco had the highest market share of 31.7% in 2007 which had significantly shrunk to 28.7% in 2014 (Wood, 2014). The emergence of competitors like Waitrose, Aldi and Lidl has adversely affected the market share of Tesco as they began to provide heavy discounts to consumers. A slow growth of economy combined with declining disposable income had been driving customers away from Tesco. Originally developed by Kaplan and Norton (1992 cited in Kaplan and Norton, 2001), this approach has soon become an important tool to measure organizational performance. This approach goes beyond the traditional measures of financial performance and includes three other critical performance indicators which can measure the effectiveness of an organizational performance namely customer perspective, internal organizational perspective and innovation and learning perspective (Kaplan and Norton, 2001). Empirical evidence shows that a number of successful transnational companies in diverse industries are using the balanced scorecard approach in order to improve their performance. For instance, Hilton Group in the hospitality industry, Wal-Mart in the retail industry and Toyota in the automobile industry are already using this approach for gaining competitive edge over their rivals (Weygandt, Kimmel and Kieso, 2009). Overall 57% of global companies have adopted this approach based on the value that they add to the business (Balanced Scorecard Institute, 2014). Tesco has been struggling with dwindling sales recently. In the third quarter of 2014, the sales of the company had fallen by 3.7% while the annual profit of the company had fallen by 6% (Wood, 2014). In this scenario there are two options