Tesco Operations Management Analysis

This assignment requires a comprehensive analysis of Tesco's operations management. It involves conducting a PESTLE analysis to understand the external environment, exploring the role of Lean Six Sigma in process improvement, examining workforce management strategies, and assessing the company's overall operational efficiency. The analysis should draw upon relevant academic literature, industry best practices, and real-world examples.

Management
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Define and compare the different roles and characteristics of a leader and a manager........1
TASK 2............................................................................................................................................3
P2: Role of leader and function of manager in different situational context..............................3
P3: Apply different theories and models of approach.................................................................6
TASK 3............................................................................................................................................8
P4: Key approaches to operations management and the role that leaders and managers...........8
P5: Importance and value of operations management in achieving business objectives............9
TASK 4..........................................................................................................................................10
P6 Assess the factors within the business environment that impact upon operational
management and decision-making by Leaders and managers..................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Operational management is concerned with several functions such as planning,
organising and supervising in context of production, manufacturing or the provision of services.
It is responsible to create highest efficiency level in the production activities so that maximum
outcome can be received which will result in achieving high profitability by an organisation. It
facilitate company to bring out valuable finished product from raw material that can be sold in
market at an effective price. Therefore, it is a valuable part of an organisation to achieve growth
and success as it enables to create a robust competitive advantage by improving process of
production by using of technology, resources and so on.
Tesco Plc., a UK-based multinational retailer company which is engaged in providing
multiple number of products such as clothing, electronics, furniture, financial service and many
more is selected for the purpose of preparing this report. The project includes the roles and
functions of managers and leaders in an organisation along with their application in various
situations. In addition with this, different theories and models along with their strength and
weaknesses are discussed under this report. The project also describes the key approaches of
operational management and the roles of managers and leaders in enhancing their efficiency
level (Accomazzi and et. al., 2012).
TASK 1
P1: Define and compare the different roles and characteristics of a leader and a manager
Introduction to Organisation:
Tesco is a multinational retailer company of United Kingdom which were established in
the year 1919 by Jack Cohen. The company offers multiple number of products such as clothing,
electronics, furniture, toys, financial services and many more. It becomes the third largest retailer
in the world in terms of gross revenues. At the year 2016, Tesco has employed more than
335,000 employees who are engaged in serving millions of customers (Average number of
employees at Tesco, 2018).
Tesco Plc follows a flat organisational structure in which it has attained various
functional departments where in management exert authority and control in form of chain of
command.
Meaning of Manager:
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A manager is an individual who holds different authorities and power of directing and
controlling over staff. They are held responsible to manage and monitor each business activities
so as to ensure organisation to achieve desired goals and objectives within pre-determined time
period. They performs several key functions such planning, budgeting, staffing, problem-solving
and controlling.
Meaning of Leader:
A Leader is an individual who is responsible to provide proper guidance and motivate
employees to work in team so as to achieve maximum possible result. They play a major role in
bringing out maximum from their employees which can be either through identifying their needs
and requirements at workplace or rewarding them for their high performance (Baird, Jia Hu and
Reeve, 2011).
Different between the role of manager and leader
Basis Leaders Manager
Risk taking Leaders of Tesco are risk
takers who encourages
employees as well to find out
new things to complete their
allotted task in more effective
and efficient manner.
Managers of Tesco Plc is
working in reducing the risk as
far as possible so as to prevent
company from indulging in
any issues or problems that can
affect the stability of an
organisation in market.
Focus They focuses on people to
motivate them to realise their
vision and work towards it.
Managers mainly focuses on
structures and analytical
concepts in order to ensure that
all the systems are placed to
achieve desirable outcomes.
Working style Leaders adopts motivational
style in order to bring spark
and zeal in their team members
so that maximum possible
efforts can be gained in
Managers of Tesco Plc adopt
authoritative style in order to
keep power with themselves
and instruct employees to
perform according to the
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achieving desired target. directions provided by the
policies and plans formulated
by them.
Characteristics of Managers
Versatility: It is an important characteristic that managers of Tesco Plc should possess as
it enable them to make quick and efficient respond to the changes and be reactive to consider
new and innovative ideas and methods generated by their employees. It can be possible through
making some changes in their existing working style.
Knowledge: Another important characteristic that manager of Tesco Plc should attain is
to have a thorough knowledge base about their field of work. It helps managers to develop an
appropriate actions and make them more capable to deal with market situations which is
uncertain (Benjaafar and Daskin, 2013).
Characteristic of Leaders
Good communicator: Communication is an important characteristic that enables leaders
to provide guidance and motivate its team members to perform in right direction. Identifying
needs and issues of staff at workplace can be easily identified by having better communication.
Therefore such quality is essential to be present in an individual to become a good leader.
Empathy: It is another important characteristic that a good leader should attain as it help
them in understanding the problems and issues of their employees and accordingly providing
viable solution so as to maximise their working behaviour in an organisation. A leader should be
dedicated and motivated towards its target due to which they can motivate others as well to deal
with complex situations in order to achieve competitive result that can help them in achieving
personal as well as professional goals.
TASK 2
P2: Role of leader and function of manager in different situational context
Tesco Plc is a multinational retailer company of UK which are having an effective
management and skilled leaders who leads organisation in present dynamic business
environment which are more competitive in nature. It concentrates on following managerial
leader where in the roles and functions of both manager and leaders are reshuffling according to
situations in order to achieve desired goals within pre-determined time period (Blomme, 2012).
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Here are the some functions of managerial and roles of leaders of Tesco Plc and their application
in various situational context:
Functions of Managers:
Planning: It is an important function which is performed after identifying availability of
resourced and mission, vision and objectives of an organisation. Managers of Tesco Plc should
prepare an effective plans and policies to assist organisation in dealing with future contingencies
which can affect the performance of company. It enables company in achieving competitive
advantage in market.
Organising: This is the another function that need to be performed by the Managers of
Tesco Plc as it is important to organise entire workforce and structure more effectively and align
activities so as to maintain better work environment and achieve maximum positive results.
Manager is responsible to recruit and train right people for right job profile so as to make their
workforce more capable and educated (Bromiley and Rau, 2016).
Commanding: The performance of organisation is based on the efforts and contribution
of employees which can be gained through sharing company's objectives and policies to their
employees. They are required to supervise staff in their routine work, command them to maintain
consistency by following company's policies and plans.
Coordinating: Another function that to be performed by the managers of Tesco Plc is
coordinating with the employees in order to analyse their performance to ensure whether they are
performed according to the desired goals and objectives of an organisation. Managers are
responsible to both internal coordination in order to bring harmony among employees as well as
external coordination that involves better coordination with external parties such as government,
public, trade unions etc.
Controlling: Managers are accountable to control excessive cost of operations which
affect the profitability of company. For this, managers of Tesco Plc are required to properly
observe, evaluate and report any deviations in performance from original plans. This will enable
to make corrective actions to remove potential gaps more effectively (Drake and Spinler, 2013).
Role of Leaders:
Goal setting: The main role of leader of Tesco Plc is to lay down goals and policies in
order to influence their team members to work hard and perform with enthusiasm and
confidence.
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Initiating actions: Another important role of leaders is to take right decision in complex
situations without depending on others to initiate an action.
Direction and Motivation: I]t is more important and primary role of leaders of Tesco Plc
wherein they are responsible to direct and motivate its team members through adopting
motivational theories, training and development programs, appreciation of work etc It increases
satisfaction level of employees which in result increasing their work commitment with company
as well for longer period of time.
Tesco Plc is an international brand due to which the company has facing various
complexities and contingencies that can affect their working style as well. Here are the some
roles of leaders and functions of managers in different situations:
Stable situation: It refers to such situation which involves little or no sudden change
encountered by an organisation. In order to achieve competency in such situation, it is the
responsibility of managers to analyse the market situations and accordingly make an effective
decisions and plans to cope up with the changes arises due to such situation (Garcia‐Sabater,
Marin‐Garcia and Perello‐Marin, 2012). In the context with Tesco Plc performance appraisal
forms to be a stable change as it is conducted once in year due to which no sudden or unexpected
change can be identified in the performance of workforce. The role of leader also provide
maximum support through tracking record of performance of each workers which assist manager
to make relevant decision related with promotion, training, transfers etc.
Moderate situation: It refers to such situation which demands of bringing some changes
such as innovation or renovation in product, customer's demand, market etc. Tesco Plc is
engaged in providing multiple number of products such as clothing, electronics, furniture etc.
which is mainly depend on the customer's needs and preferences. Therefore, any changes in
customer's requirements, purchasing power etc. affect the profitability and sustainability of
Tesco Plc in competitive market. In this regard, the manager need to monitor market scenario
through conducting research and should be more flexible in bring new changes in their existing
pricing policies, products etc. Along with this, leaders also required to act in such situation in
terms of making their staff more capable to deal with customers and communicate about the
benefits of purchasing from the company's stores (Ham, Hitomi and Yoshida, 2012).
Rapid situation: It refers to such situation where in sudden or unexpected changes are
occur which is more adversely affect the stability and profitability of company. In the context
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with Tesco Plc, such situation may arises due to sudden popularity of buying products through
using online platforms. For this, the managers need to react more fast and should focus on
analysing the market trends so that proper actions to be taken in favour of market. Such actions
may be related with upgrading existing technologies, investing more funds in launching a new
mobile app to facilitate its targeted customers to buy their products through using such app
without visiting at their store. In addition with this, the leaders also play an important role in
communicating the benefits of new technology introduced in business operations to the
employees so that it can be profitably utilised by them for the betterment of company (Javadian
Kootanaee, Babu and Talari, 2013).
P3: Apply different theories and models of approach
In business organisation, leadership forms multidimensional managerial function that
enable managers to gain maximum contribution from their subordinate in order to achieve
desired goals and objectives of company within pre-determined time period. Tesco Plc is a
customer centric organisation whose success and growth is very much depend on their targeted
customers. The main objective of company is to enhance the satisfaction level of customers
which can be possible through educating and motivating its employees. For this, various
leadership theories are more beneficial for Tesco Plc to adopt which are briefly described as
under:
Situational leadership: This is such leadership theory which implies that there is no
single theory which can applied to every business scenario. Therefore, it is the responsibility of
manager to first identify the situations and on the basis of which decide which theory shall
become more effective to deal with such situation. Tesco Plc is a global brand employing large
number of employees. Therefore, to deal with such situation with the help of skilled and
knowledgeable employees democratic style will be better to adopt as such style allows
employees to share their ideas and suggestion in decision-making process. On the other hand,
while dealing with unskilled and low experienced workers at such situation authoritarian styles
will be better as it allows managers and leaders to take decision single handedly (Jones and
Robinson, 2012).
Advantage Disadvantage
This leadership style helps in boosting up the There is chances of confusion within the team
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motivation of workforce as they feel confident
and associated with organization.
as the situations are interconnected and
interrelated with various different factors.
System leadership: This is the leadership approach which is defined as leadership across
company boundaries, beyond individual professional discipline within limit of organisational and
stakeholders cultures. Adoption of such approach enable leaders to not only think about their
own perspective but to apply broader approach for developing firm as well as its stakeholders. In
context with Tesco Plc, using such leadership style helps leaders having long term vision for
company to build strategies and procedures that will enable an organisation to gain new
uniqueness in its business functions that is hard for competitors to attain (Kusluvan and et. al.,
2011).
Advantage Disadvantage
It provides framework for clarifying thought
on complex and dynamic business environment
and to interpret realities.
This leadership theory is complex to be applied
as it involves various interrelated parameters in
it.
Contingency theory: This is the theory which states that there is no best theory which can
be profitable for every situations of a company. Therefore, it requires proper actions that to be
taken on the basis of the capabilities, skills, tasks and composition of a team. In the context with
Tesco Plc, using such theory leaders try to match their leadership style to a given situation.
Advantage Disadvantage
It enables organization to identify the best
potential leaders on basis of task or
relationship orientation for a particular group
or team
When applied in an organisational context, this
style of leadership is quiet complex as
determining situation in which a particular
managerial action fits involves analysis of
various factors that is hard to be evaluated
correctly.
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Impact of leaders and managers
These leadership theories when applied within an organisation more effectively then it
will help organisation to design a new and innovative ways so that the employees should be
encouraged to maximise their contribution towards organisational objectives. The managers and
leaders play a prominent role in adoption of such theories as they are much aware about the
working procedure and goals of an organisation which drives them to bring out maximum efforts
from the workforce. Both managers and leaders form cornerstones for a company to achieve
growth and success in competitive market as it enable company to gain competitive advantage
with the help of proficient and committed teams (Lewis and Brown, 2012).
TASK 3
P4: Key approaches to operations management and the role that leaders and managers play
Operation management is subset of function and activities that allows to gain profit by
transforming inputs into output. The inputs of operation management includes materials, capital,
machinery, labor while outputs involves finished goods and services. It is responsibility of
operation management to make optimum use of resources and produce finished goods to meet up
customers satisfaction. In context to TESCO, managers and leaders follow up various methods of
operational management to gain competitive advantage over other competitors in supply chain
management. Some of the methods are as follows:
Total Quality Management: TESCO managers and leaders are making continuous
efforts and taking responsibilities in order to identify errors and reduce it to produce effective
finished goods and products for their customers. They are focusing on continuous replenishment
in their supply chain management that is triggered on changing demand of customers. TESCO is
earning competitive advantage over its competitors by implementing creative ideas in supply
chain like automated warehouse control and use of point of sale scanning. This method adopted
by TESCO is crucial for maintaining effective supply chain management and find out any errors
to take corrective actions in the production of goods and products (Paryani, 2011).
Six- Sigma: Six- sigma approach is implemented by managers and leaders of TESCO to
reach goal of zero defects. It allows operation managers to create a center idea that helps them to
identify defects in their implemented operation process. With the help of implementation of six-
sigma, managers are able to focus on initiative integrates which includes future strategic
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planning, knowledge management, bench marking and improvement teams. With the
implementation of six sigma approach, TESCO is able to reduce defects and scrap work.
Moreover, with the help of six sigma managers are able to simplify operations and improve
competitive position (Prahlad and et. al., 2012).
(Source: Six Sigma, 2018)
Continuous Improvement: TESCO managers are concern about continuous improvement
and changes in their supply chain management. They emphasis on the needs and demands of
customers, then according make changes in supply chain management. TESCO managers are
familiar with changing business environment, so to survive in the competitive market they prefer
to make changes and update operation procedures to maintain competitive advantage over other
competitors. For continuous improvement TESCO managers focuses on reducing errors, make
the operational process safer and satisfying for the workers. They implement improvement
strategies that includes repair, refinement, renovation and re-invention (Smilowitz, Nowak and
Jiang, 2013).
Just-In -Time: Another approach that is adopted by TESCO to improve its operational
management is just-in-time. Managers mainly emphasis to operate with minimum limited
resources that is required to deliver finished products with consistency. Managers and leaders at
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Illustration 1: Six Sigma

TESCO usually believes in demand forecasting to identify what is needed by the customers
within what amount and time frame. Just-in-time method helps TESCO managers to find out
which products is in demand, where and when produced products are needed. Just-in-time is long
time continuous process for improvement and development of operation management. This
method helps TESCO to maintain levels of costing, improve customer's satisfaction,
responsiveness and improve quality (Swink and et. al., 2017).
P5: Importance and value of operations management in achieving business objectives
Operational management performs several functions such as monitoring, designing and
managing process of production and distribution with an objective of maximizing efficiency
level in the process of production to delivery final goods to targeted people. In the context with
Tesco Plc wherein there are various departments which are more dependent on operation
department due to which it is important to understand the importance of operation management.
It is further understood under the below:
Control and distribution system: It is an important function of operation management as
they are liable to manage and handling production process and enhance distribution system so
that finished goods can be successfully delivered to targeted clients (Tenera and Luís Carneiro,
2014). It makes direct positive impact on the satisfaction level and buying behavior of customers
which in results achieving huge customer strength. In the context with Tesco Plc which is retailer
company of UK thus it requires maximum support from operation department to serve millions
of customers.
Quality improvement: Quality is an important factor which attracts the interest and
buying decision of customers as nowadays people prefer quality over price. Therefore, operation
management should focus to sell quality products of known brands so that it maximizes the
satisfaction level of customers and retain their loyalty for company for longer period of time.
TASK 4
P6 Assess the factors within the business environment that impact upon operational management
and decision-making by Leaders and managers
There are many macro factors of business environment that directly effect the operational
management and decision-making by operation managers. This factors are necessary to improve
the effectiveness of operation management:
PEST Analysis
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Source: What is PEST Analysis?. 2018
Political Factors: TESCO is most famous retailing company that serves all over world,
due to its operations practices in different countries political factors effects TESCO directly.
Political factors includes legislation acts, rates of tax of different countries in which TESCO
operates. Every country has its own legal laws and practices, similarly tax rates also varies from
country to country. Moreover, financial status are unstable due to which government insist
TESCO as retailer company to hire employees from parent countries and create opportunities
for employment (Wu and Pagell, 2011).
Economical Factors: In context with economic factors, TESCO should be concern with
different factors which includes demands, prices, profits as well as leverages cost. TESCO
should focus and aware about changing policies that is associated with accessibility of finance.
The main economical factors affecting TESCO is the differences in inflation rate varies due to
which value of items are affected at different countries. Moreover, TESCO as retailer company
has wider market share which increases its competition. Products served by TESCO has number
of substitutes already available at cheaper rates.
Social Factors: In context with social factors, TESCO is adopting the continuous
changing process according to the needs and demand of customers. As customers needs are
changing and they get more concision towards their eating and buying habits. TESCO has
developed club cards that gives discounts on products and along with this organic as well as
dietary products are introduced to serve best to customers needs.
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Illustration 2: What is PEST Analysis?

Technological Factors: TESCO is concerned about technological changes, they offers
online shopping for the convenience of the customers. They invest on social media which
includes advertisement and public relationship. TESCO also focused on delivery of products
door to door. There is option of self – services checkout points provided by TESCO to their
customers that reduced its manpower costs. To reduce carbon footprints TESCO has invested on
effective energy projects (What is PEST Analysis?. 2018)
CONCLUSION
It has been concluded from the above project report that operation management play a
significant role in the growth and success of an organisation as it mainly contribute to maximises
the commercial activities of a business. The managers and leaders play a critical role in
enhancing performance level of workforce through through providing them guidance and
direction with the help of application of various leadership styles. It is also more beneficial for an
organisation to adopt various approaches such as TQM, Quality management, Six sigma etc. that
can help in enhancing quality of work as well as products and services. PEST Analysis is also
required to be conduct for organisation operated at global level such as Tesco Plc in order to
analyse external influencing factors such as political, economical etc. which enables to take
corrective actions to deal with such factors in more effective and efficient manner.
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REFERENCES
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Online
What is PEST Analysis?. 2018. [Online]. Available through:<https://www.visual-
paradigm.com/guide/strategic-analysis/what-is-pest-analysis/>.
Average number of employees at Tesco. 2018. [Online]. Available
through:<https://www.statista.com/statistics/490882/tesco-group-united-kingdom-uk-
number-of-employees/>.
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