Operational Issues and Business Ethics: A Case Study of TESCO, Sainsbury and ALDI

This report discusses the operational issues faced by TESCO and Sainsbury, the unique customer experience of ALDI, the role of ethical business culture, and the production department's challenges. It also includes a class discussion and references.

Portfolio

Table of Contents
Introduction:.....................................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1 : Contemporary Research................................................................................................3
Task 2..........................................................................................................................................5
Question-1) ALDI and similar stores offer dissimilar experience of customers. Do you think a
similar business model would work in other industries? Please give examples to illustrate the
answer ........................................................................................................................................5
Question 2) What are the sacrifices customers have to make in order to have access to this
experience of shopping ..............................................................................................................5
Task 3: Business Ethics:..............................................................................................................6
Task 4: Class Discussion:............................................................................................................7
Conclusion:......................................................................................................................................8
Referencing......................................................................................................................................8

Introduction:
The term operation management is considered as the activity related to managing raw
materials as well as resources in order to ensure the optimum utilization of them in the business
activities. The main purpose of operation management is to automate business processes in the
way that leads to maximum efficiency within the organisation. The report will include the
operational issues of the company such as TESCO as well as Sainsbury. In addition to this, the
report will also address about how ALDI grocery store delivers unique customer experience. The
report will also highlight the role of ethical business culture for employees and the report will
cover about impact of operational management on the industry of motor garage.
MAIN BODY
Task 1 : Contemporary Research
The operational problems can be termed as any kind of problems that can arise in
business processes. That problem can threat the efficiency of the business operations as well as
also put an effect profitable level of business in the long run. The main operational problems and
the measures to overcome those problem are discussed below:

Operational issues of TESCO organisation:
The logistics as well as operations of the company is facing the challenge because of
rapid improvement in the technology related to grocery industry. In addition to this, the TESCO
company still lacks in delivering effective customer service as compared to the service provided
by its competitors. The Brexit policy has also put a challenge on the operations of the company
by putting a lot of restrictions related to import of raw materials form other countries. Moreover,
the firm doesn't undertake use of proper logistic services while delivering goods and services to
its retail store. Due to this, the company is unable to maintain a proper stock information which
likely creates conflicts as well complexity of business processes in the organisation(Chaudhary,
Gupta and Gupta, 2018).
Solution to the problem:
In order to overcome the above issues, the company should properly identify and analyse
the newer technologies that can be related to new production machines. This can support the
organisation to improve their business operations without any disruptions. In addition to this, it is
also advisable that the firm should make their customer service effective by properly analysing
customer purchasing trends in the market. Moreover, the organisation can improve their logistic
services by optimising their warehouse space as well as by enabling efficient management of
warehouse. This will assist the organisation to systematically maintain proper stock information
that can lead to improved efficiency in the business processes of the firm(Di Vaio and et. al.,
2020).
Operational issues of Sainsbury:
The operational issues has occurred in the company due to introduction of Brexit policies
in the United Kingdom. This has negatively affected the supply chain process of the company by
making restriction related to the export and import level. In addition to this, the firm is facing a
difficulty in effectively facing their competitors as the competitors provides the substitute of
their products at the lowest cost. Moreover, the fluctuation in the demands of customer related to
wearing new designer clothes has also provided a challenge in-front of the company operations
to adopt different machines in order to make products according to the demands of customers.
Solutions:
In order to reduce the challenges, the company can make effective strategies in order to
overcome the issues related to Brexit. In addition to this, it is recommended that the firm should

take the help of social media platforms in order to timely the analyse current trends of the
clothing industry. This will allow the firm to improve their competitive edge in the market. The
company should also take measure to reduce their unnecessary overheads costs by doing so can
support the firm to reduce their pricing strategy that can attract large number of customers
effectively(Love and Matthews, 2019).
Task 2
Question-1) ALDI and similar stores offer dissimilar experience of customers. Do you think a
similar business model would work in other industries? Please give examples to illustrate
the answer
It is impossible that similar business model would work in other industries into effective
manner because every business have their own targets and vision as well. So their way of
working is totally different into different industries. The similar business model can't fulfil the
basic requirements of business into positive manner. In context to ALDI company, they have
focused on efficiency parameter and also challenges the traditional supermarket model that
basically operates on thousands of square metres and also offers the wide variety of choices as
well. Business models basically provides the investors with the knowledge about the competitive
edge of the company and also gives better insight into working of the company(Aldi and et.al.,
2015). It has been observed that for different industries there has been different kinds of
competitors into the market due to which same business model can't be implemented into
positive manner.
So it has been observed from different examples of TESCO, Amazon, HCL, Jaguar all
have their different business model because they deal into different products and services due to
which their approach towards the success is totally different. That's why it has been totally
agreed that different industries have their different business model and on the basis of that they
take their further decisions from the perspective of long run.
Question 2) What are the sacrifices customers have to make in order to have access to this
experience of shopping
There are certain kinds of sacrifices customers have to make in order to have access to
this experience of shopping which is defined into the following manner:

With this kind of experience of shopping customers have to sacrifice into this context
that they don't have more variety for each product sometimes it lead towards the choice to one.
This type of approach of shopping experience has reduces the total number of products which is
carried to approximately ten to fifteen percent of tradition supermarket selection(Kristiana and
et.al., 2015). According to study, it has been observed that consumers majorly prefer for stock
up visits and this one stop shopping experience had take most of the world by storm a couple of
decades ago is changing and ALDI is a supermarket of Germany which pioneers the way.
Customers have to certainly sacrifices in various aspects but these aspects can't be
considerable into practical manner with the industry terms so its important that customers have to
choose the right option for the purpose of shopping. As a result they don't need to sacrifice when
they have proper awareness about the market and their related aspects as well.
Task 3: Business Ethics:
The positive ethical approach is basically the best ethical actions practised by the
management in order to protect the protect ethical rights of the employees within the company.
In addition to this, the positive ethical approach is founded on the belief that all humans have the
right to experience dignity in the organisation. In context to the ALDI grocery store, the
company focus more on satisfying the needs of clients by arranging the stock of grocery items in
the well systematic manner. The company effectively provide a service to the customer by
encouraging needs based shopping in which the customers don't have to look upon larger stocks
as well as doesn't have to move longer in order to select the products they need the most. This
policy of the grocery store creates a value to the customers as they don't have to travel to the
larger distance areas and also encourages the customers to make frequent visits to the store. The
policy of the company is in favour of the employees as the lower inventory policy of the
organisation leads to lower problems regarding taking care of inventory as well as this also
lowers the activity related planning and forecasting due to limited inventory. Moreover, the
ALDI has their own exclusive brand products that greatly reduces the overheads costs which
support the customers to buy products at the lowest price possible. Furthermore, the
establishment of stores with a lower product quantity assists the employees to reduce the

problems regarding restocking of shelves. This support the employees to effectively perform
other business processes that are crucial for the firm in order to attract large amount of
customers. This positive ethical approaches has supported the company in boosting the morale of
customers to work in their best mode. Furthermore, this also supports the business in create an
healthy environment. The policy of the company also assisted it in promoting the integrity of
their employees as well as also helps in gaining support from the stakeholders of the organisation
such as customers, suppliers as well as staff members(Okanazu, 2018).
Task 4: Class Discussion:
The production department is the important aspect in managing different relevant options
for sourcing the raw materials as well as resources that are necessary for initiating the
production process of the company. The main aim of production department is to procure the
right amount as well as right quality of raw materials that best suited with the companies
production model. In addition to this, the production department is also focused in managing the
production process effectively by properly deciding how many workers are needed as well as
how many equipment are needed in order to undertake a smooth operation of the production
activity(Smith-Ditizio and Smith, 2019). Moreover, the strong production process is necessary
for the company by ensuring that the less cost is involved in the process without compromising
the level of quality. The production department also plays a crucial role in improving the
satisfaction level of customers by proving lower quality products as well as high quality of
products. The production department faces different issues related to difficulty in forecasting
future demands in the market in order to adjust accordingly with the needs of the market. The
correct inventory management challenge is also the main problem in the manufacturing
industries. The inventory tracking is also a time taking process if done by using the old
technology and methods. The reducing economic conditions can also provide a challenge in the
smooth production activities due to the reduction in consumer purchasing power patterns. The
decline in consumer purchasing pattern can make a difficult for the organisation to maintaining
their ROI policy. The company can reduce the chances of threats by effectively analysing the
current trends in the market as well as through evaluating the demands of customers in the most
timely manner(Sopadang and Wichaisri, 2021).

Conclusion:
It has been concluded from the above report that business operations is crucial for nay
business in order to attain a competitive position in the market. It has also analysed that effective
operation activities can lead the firm to attract large number of customers by selling quality
products at the lowest possible. The report has covered about the operational issues faced by the
TESCO as well as Sainsbury organisations. Moreover, the report has also covered about the
questions related to the case study. Furthermore, the report has also discussed about the ethical
measures used by the company that supported it to foster the satisfaction level of customers as
well as employees. The report has also discussed about the role as well as problems that can
takes place in production activity.
Referencing
Books and Journal

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