Operation Management Report: Critical Analysis of Tesco Operations

This report provides a comprehensive analysis of Tesco's operation management, examining critical issues and problems within the organization. It delves into challenges such as employee turnover, internal communication complexities, economic impacts, and the importance of maintaining customer loyalty in a competitive retail market. The report outlines Tesco's responses, including the implementation of ERP and CRM systems, staff training, and strategic adaptations. It further explores how managers perceive these issues, utilizing a transformational model to evaluate the organizational structure and processes. The findings are interpreted in light of existing literature, and the report concludes with actionable suggestions for improving Tesco's operations, including enhancing online visibility, reducing customer wait times, updating displays, and providing staff training. The analysis underscores the importance of effective management in navigating challenges and driving organizational performance within the dynamic retail sector.

Management
Of Operation
Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
(a) Critical issues or problems emerge in the organisation.........................................................1
(b) Responses by Organisation....................................................................................................2
(c) Ways perceive by manager for issues and responses............................................................3
(d) Interpret and evaluate finding in light of the literature..........................................................4
(e) Suggestion for improvement..................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
An organisation conduct several operation that related to different departments. For this
required to manage in proper manner to complete in certain period of time effectively. These
operations are related to organisational goals and objectives (Song and Parola, 2015). Operation
management is the part of the business practices where develop highest level of efficiency with
possibility of a business. To understand of the report selected organisation Tesco which is UK
based and belong from retail industry. It is mainly dealing into groceries and merchandise to
attract customers. This report consist of issues or problem of an organisation, solutions, ways the
managers to perceive the issues and responses. Along with interpret and analysis the findings and
provide suggestions for improvement.
MAIN BODY
(a) Critical issues or problems emerge in the organisation
In present time market become dynamic so it will impact on the performance of different
organisation whether retail or manufacturing. They are facing several problems to remain in
competitive market. The retail industry is perpetually changing and face new many problems due
to perform in competitive market. In 2007, many retail organisation face the problem of bank
bankruptcy and it continue many years. There are defined issues for Tesco such as: Employee Turnover: Retail is one the major industry where highest employees turnover
rates. To retain employees long time in the company face by the Tesco. Due to come and
out of the employees increase cost of company and require a lot of energy. As a result it
will show negative impact on the company performance and provide training to new
employees and they take more time to learn activities. Managing internal communication: Retail industry face complex operation to manage
internal communication with all the staff members. In the retail sector, company have
several division so required to circulate information to everyone otherwise create disputes
among the employees (Meredith and Pilkington, 2018). Economic Challenges: It is another issue that face by the Tesco due to moving forward.
The retail industry mainly depended on the economic condition of the nation. If people
have more money so they are easily spend more money otherwise it will create problem
with potential shrinkage. If UK government has been changed so they are changing
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economic policies and rules & regulations for all industry. It will become complex for
Tesco to change activities according to economic changes and again prepare strategy for
company and staff members. Maintain customer loyalty: Good customer experience is a major element that create
customer loyalty. Due to enter new competitors people attract for the new store and easily
replace the store. So it is required to keep customer brand loyalty is hard and it will affect
to business growth in direct manner (Manzini and Di Serio, 2017).
 Technology: In present time develop advance technology that provide by the several
businesses to attract customer and make work simple. Retailers want to best software that
effectively apply in the Tesco to simplify business processes. Otherwise wrong software
create problem to overcome retail issues.
(b) Responses by Organisation
Tesco has been faced several problems that require to sort out in appropriate manner. In
the retail industry have various issues the impact on the organisational performance as well as
process effectively.
Apply ERP system: To sort the issue of managing internal communication apply ERP
system where all the employees are attached with each other. This software able to centralize all
the business operations, broad reports and create real time for every department to assure about
the business procedure of Tesco. Through this system every employee connect with each other
and department head supply information through this system (Dolgui and others, 2018).
Provide regular training: To face the issue of employee turn over require to increase
relation with staff members and provide training time to time. As a result they learn new things
and create closely relation with mentor. There is required to focus on automated solution like HR
management system as well as competency management system.
Apply specific system: To address the problem of technology require to select specify
system that develop for retail industry. It will help to conduct all the operational activities to
manage stock and sales to arrange prospects and consumers. Additionally, to easy to apply the
software should provide ease of integration with the system like barcode and POS (Swink and
others, 2017).
CRM system: Due to promote and provide discounts are still working in the retail store
for the customer. The real key to an amazing customer experience is personalization. To
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maintain customer loyalty required to use personal approach. For this apply customer
relationship management system that support to interact with customer and sort out their problem
on time. Tesco send mail regarding to offers and discounts and invite to visit the store and
website for shopping.
Take advise from expertise: To face economic challenges Tesco take advise from expert
who have knowledge these types of situation. According to changes they are prepare plan and
advise to management how to take action for these changes. According to that company develop
plan and implement effectively (Goldschmidt and Kumar, 2016).
(c) Ways perceive by manager for issues and responses
The managers or practitioners can solve issues and problems and respond by developing
an impressive organizational structure that can be able to manage day to day operations. The
management of selected organization can perceive and resolve these issues by implementing
transformational model for creating an efficient organizational structure.
Transformational Model: The transformational model can be defined as a framework
that is used by the management to understand the structure of their establishment and build up or
redesign a successful model. This model helps in reducing the complexity of organizational
structure by evaluating 8 key functions that must be understood for a successful business. An
analysis of these key functions in responding to the problems of the Tesco PLC is given below:
Environment: An organization can survive in the current competitive market only by
assessing its external environment. With the help of adequate analysis tools, management can
understand those factors that affect the business. The managers of Tesco can perceive the
external factors and respond them by understanding customer perceptions and needs, analysing
competitive position, understanding technological changes and determining political social and
economical culture (Redjem and Marcon, 2016).
Strategy: This part of the model contains two types of strategies which are; business
strategy and organization strategy. By developing business strategies, managers are able to make
decisions regarding competitors and add value to the customers. On the other hand, organization
strategy specifies the mission, vision, values and principles of the company. The management of
selected company can be ready for the issues and create solutions for their problems by
developing appropriate strategies.
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Core process: Core process is the overall process and steps that will be taken to provide
the products and services to the customers. This functions includes the efficient utilization of
equipments, technology and resources. It concentrate on the focus point or activity around which
all the activities will be performed. The management of respective company can respond to
structural issues by understanding, supporting and controlling the central business process.
Structure: Structure defines the roles, responsibilities, authorities and boundaries of the
employees and workers within the organization. By creating a clear and understandable template
of flow of orders and information within the company, the management of Tesco is able to
increase the efficiency and hinder the performance of the organization. Administration just need
to ensure that structure of one department will support the work structure of other departments
rather than disturbing it (Piran and others, 2016).
Systems: System can be defined as interrelates set of activities or tasks that help the
establishment in managing and co-ordinating workflow. The administration of Tesco can
respond to the issues by developing a system such as training and development, recruitment and
selection, reward and promotion system, performance appraisals, etc.
Culture: This part is related to the workers' attitude, leadership styles, management
practices, etc. that shape the distinctive personality of a company. With the help of creating a
supportive culture, chosen organization can practice its organization strategy in a structure way
and proof its instrumentality.
Results: Results are the outcomes of the overall process that has been performed by the
organization. Results help in evaluating the performance of the establishment. By evaluating the
results, managers of Tesco are able to understand the strengths of the organization and the points
on which it have to work.
Leadership: Leadership is the key to drive the success as it provides directions and
motivation to the employees of the company. The managers can understand the organizational
structure with the help of leadership skills and change the assumptions about work, make
collaborative relations between organization and employees and make organization more
responsive.
(d) Interpret and evaluate finding in light of the literature
As per the author (Cimpeanu, Devine and O’Brien, 2017) it is finding that organisation
face several problems to operate business activities effectively. These problems are employee
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turn over, technology, economic changes and many others. To address these problems company
response through several system such as ERP, CRM, specific software etc. A retail industry is
broad industry where Tesco face huge competition and prepare effective strategy to remain in the
competitive environment. The organisation apply transformational model that supports to
understand the structure of an organisation. It is categorised in several activity that helps to
conduct operations of business effectively. These are leadership, results, culture, structure,
environment and many others. These are helping to conduct operations effectively that impact on
the performance on the organisation. It is finding that company take advise from the expertise
and apply new strategy time to time (Burgess and others, 2017).
(e) Suggestion for improvement
In the context of Tesco identify different problems and company provide responses to
these problems effectively. For this purpose organisation require to provide suggestion to
organisation that how to improve process design and analysis every business activities
effectively. There are providing several suggestions regarding to improvements:
 Increase online visibility: Many customers are arriving online and order products there so
for this required to Tesco activate on the online website. It is beneficial to engage with
customer and increase performance. It will help to increase worth and reputation in the
market effectively.
 Reduce wait time: It is suggested to Tesco to reduce wait times of customer at the time of
billing so it will show positive impact on the customer. As a result increase worth and set
good market image. For this require to apply advance software system to
 Regularly update displays: Many customer visit store and see offer. If Tesco does not
update displays on daily basis so customer distract and arrive another store that will not
good for the company. So require to update displays to attract customer and provide
information about the offers.
 Provide training to staff members regarding to work so they are perform effectively and
handle customer easily. As a result customer impress with the nature of employees and
give good reviews to store. It impact in good manner in the organisation to increase
reputation.
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CONCLUSION
As per the above report it is concluded that to operate different operations require to
maintain every activities effectively. The company face several issues that impact on the
performance of the organisation and efficiency. To sort out these problems require take
appropriate step and apply system. Along with manager apply transformational model where
consist of several stages to discuss about the issues and responses. After all the analysis it is
finding that . Additionally, provide suggestions to organisation how improve their performance
in effective manner.
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REFERENCES
Books and Journal
Burgess, T. F. and et.al, (2017). Mapping the operations and supply chain management field: a
journal governance perspective. International Journal of Operations & Production
Management. 37(7). pp.898-926.
Cimpeanu, R., Devine, M. T. and O’Brien, C., (2017). A simulation model for the management
and expansion of extended port terminal operations. Transportation Research Part E:
Logistics and Transportation Review. 98. pp.105-131.
Dolgui, A. and et.al, (2018). Control theory applications to operations systems, supply chain
management and industry 4.0 networks. IFAC-PapersOnLine. 51(11). pp.1536-1541.
Goldschmidt, K. H. and Kumar, S., 2016. Humanitarian operations and crisis/disaster
management: A retrospective review of the literature and framework for
development. International Journal of Disaster Risk Reduction. 20. pp.1-13.
Manzini, R. B. and Di Serio, L. C., (2017). Current thinking on cluster theory and its translation
in economic geography and strategic and operations management: Is a reconciliation
possible?. Competitiveness Review: An International Business Journal. 27(4). pp.366-
389.
Meredith, J. R. and Pilkington, A., (2018). Assessing the exchange of knowledge between
operations management and other fields: Some challenges and opportunities. Journal of
Operations Management. 60. pp.47-53.
Piran, F. A. S. and et.al, (2016). Modularization strategy: analysis of published articles on
production and operations management (1999 to 2013). The International Journal of
Advanced Manufacturing Technology. 86(1-4). pp.507-519.
Redjem, R. and Marcon, E., (2016). Operations management in the home care services: a
heuristic for the caregivers’ routing problem. Flexible Services and Manufacturing
Journal. 28(1-2). pp.280-303.
Song, D. W. and Parola, F., (2015). Strategising port logistics management and operations for
value creation in global supply chains.
Swink, M. and et.al, (2017). Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
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