Operational and Project Management

This report discusses the transformation model and 4Vs of Tesco, performance objectives, order winners and qualifiers, and operational challenges faced by Tesco. It also provides solutions for the operational issues. The report emphasizes the importance of operations management in any firm and how Tesco's operation function is defined by speed, quality, cost, reliability, and flexibility performance criteria.

Operational and
Project Management

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
The transformation model and 4Vs of the Tesco Plc.........................................................................3
Performance Objectives of the Tesco Plc..........................................................................................4
Order winner and order qualifier of the Tesco Plc.............................................................................5
TASK 2.................................................................................................................................................6
Identify two operational challenges faced by Tesco Plc....................................................................6
Solutions for the operational issues:..................................................................................................6
CONCLUSION.....................................................................................................................................8
References.............................................................................................................................................9

INTRODUCTION
Operation management refers to managing of business activities in order to create the
possible excellent effectiveness in the business organization. It is the process of converting
the raw material and manpower into the finished product and services in an effective manner
so that the profit it maximized. The management of this kind tries to balance costs with
revenue to that the firm can achieve the highest net operating profit. The following report
looks into the transformation model and 4Vs of the leading retail industry named as Tesco. It
also looks into the performance objectives and order- winners and order – qualifiers of Tesco.
Furthermore, this report also comprises on the operational challenges that are faced by the
Tesco. Moreover, it also contains the appropriate suggestions in order to bring an
improvement in the operations.
TASK 1
The transformation model and 4Vs of the Tesco Plc.
Transformation model is the systematic approach that provides the control and direction of
the processes that transmutes the raw material into the end product and services for the
customers. The transformation model that describes nature of operations is explained as
below:
 The input resources that are transformed into the finished goods are to be sold to the
consumers.
 The transforming resources that are converted from the input into the outputs are
employees, staff, labor and other facilities like billing machined and computers.
 The output involves satisfaction of the customers, goods sold and the profits made out
of the goods sold (Ahmed and Al Yasiri., 2021).
For differentiating in between the operation procedures there are 4Vs that are taken into the
consideration. They are namely volume, variety, variation and visibility. They are as follows:
 Volume part of the operation rely on the quantity of goods and services that are
produced by the operation. Tesco is the retail organization and the output is the
number of customers served by the company. Tesco has large number of customers as
compared to the other small retail shops this is because the business offers the
products at the low prices comparatively. The prices are comparatively less because

the Tesla purchases the products in high quantity or in bulk and as a result the it gets
them in lower rate. Buying goods in bulk helps Tesla to get reduction in the unit cost.
Thus, it can be said that the volume of the Tesla is more than as compared to the other
small retail shops.
 Variety in the distribution model means the kind of goods and services produced by
the operation. The operational procedure in the Tesco is systematized, thus the variety
of the commodities is medium to low. Team workers are given the standards and
guidelines and they perform according to them. It provides standardized goods to the
consumers. It fails to provide the products that clients ask for, they only offer the
goods that they deal in or have.
 Variation means the changes in demand for output over the point of time. Since,
Tesco is located generally in all the areas that are residential, city centers and only
focuses on the food products. Therefore, there will not be much change in the demand
because food is the basic need and everyone consumes it. In special occasions like
new year, Christmas the Tesco can predict the higher amount of demand.
 Visibility segment delivers the data on how much of the working that is performed
internally in the company is being revealed to the clients. In case of Tesco some of the
workings are clearly visible like organizing the products in racks, billing of items,
providing assistance to the customers. The activities that are not exposed are
management of supply chain, stock control. So, the Tesco has mixed visibility in
operations.
Performance Objectives of the Tesco Plc.
These are the goals that are defined by the employer to its employees for achieving the goals
of business. The aim behind communicating the goals to the employees is to make them
understand that how their roles and actions can impact the firm all in all. They are as follows:
According to this, it has 5 goals. They are: flexibility, quality, speed, cost and dependability.
 Quality: Tesco shows great devotion towards the product quality and it keeps
maintaining the novelty in food products. Tesco Plc observes the goods from each and
every aspect. They check it when it is supplied and also when stored in the
warehouse. The business organizations also keep checking the expiry date of the
product.

 Cost: The Tesco Plc keeps on supervising the quality and the cost is also perpetuated
on the low level.
 Speed: It also focuses on the high- speed delivery of goods and services so that it can
meet the demand and expectation of the customers. It makes sure that there is no
delay in the delivery of goods. In the online service of this business, it offers 24- hour
delivery service which assist the clients in saving their money and time as well. The
company can keep track of its demand and supply dynamics through the help of
advanced information system.
 Flexibility: The Tesco Plc uses internally developed problem – saving model for
bringing improvement in supply chain. In this mechanism the inventory management
system is targeted in order to make presumptions on the client’s purchasing habits. It
is also done in order to track the results of the sales offers that are offered to the
clients.
Order winner and order qualifier of the Tesco Plc.
The order winner for any business organization can be defined as the company’s potential to
achieve success in the marketplace. This mechanism is used by the customers in order to
make distinction between the products and services of the business from the other companies.
 In case of Tesco, the order winners are cost and dependability. This is because, it
provides the goods and services in the best and reasonable prices and it is very much
known for its pricing.
 Dependability: The consumers always rely on the products that are offered by the
Tesco and this helps the company in gaining the competitive advantage over the other
business organizations.
The order qualifier are the result dimensions of the corporate. Such performances are
expected by the customers as the least benchmarks. This is something that a customer expects
from the company. In Tesco, the flexibility and speed are the order qualifiers.
 The customers that purchase the products from Tesco have faith that in the delivery of
goods and they believe that speed and flexibility are the sets that creates the
benchmark for the Tesco Plc.
 When goods are purchased by the customers, they are bought by keeping in mind the
flexibility and the speed factor that this business has.

TASK 2
Identify two operational challenges faced by Tesco Plc.
Operational problems are the kind of issues that can affect the profitability of a business
concern. Such issues arise in an organization and leads to the wastage of resources and affect
the business’s profitability (Ahmed and Al Yasiri., 2021). There are lot distinct categories
that results in the operational issues. Such problems can lead to significant fall in the business
resources and energy. It can also affect the operational performance, cause problems with the
execution of policies. The current issues that Tesco Plc is facing are as following:
Decrease in the operating Profit: Operating profits is the amount of profits that is earned by
the company from its fundamental business operations excluding the interest and tax
deductions. In the financial year 2021, there was a decline in the operating profit. And as a
result, fell to 21.3 %. The lower operating profit is because of the excessive operating cost,
inappropriate revenue and in most of the cases the reason can be both.
Another problem that the Tesco Plc face is low – cost strategy: Tesco is a price leader in the
United Kingdom. Although the low pricing plays a significant role in the retail industries as it
allows the Tesco Plc to attract the new customers in order to earn more and more profits and
to accomplish the desired and stated objective of the business organization (Dargam and
et.al., 2020). But the low pricing strategy of this kind leads to some disadvantages like
negative judgements among the consumers, reduced credibility and risk of lower profit
margins.
Solutions for the operational issues:
 To increase the profitability factor and stand in the market for a long run, it is very
important for the company to overcome the problems that arise in the operations. It is
very important for the business organization to take some measures for the purpose of
solving such problems. They are as listed below:
 To increase the operating profit: For this, the Tesco needs to take the following
actions:
 Reducing the cost of goods sold: Although, Tesco Plc buys the goods in bulk and get
them on the discounted rates, but it shall negotiate on the other cost savings deal as it
will help the business organization to decrease its expenses. It shall consider those
packaging that are less expensive and can help the business to save additional cost per
product.

 Improving Inventory Management: The Tesco Plc shall conduct inspection on the
daily – basis. It shall take record from the employees regarding the stock returned and
damaged in the day end. It will help the business enterprise to take effective decisions
based on purchasing, sales, marketing and allowing the business to make more sales
and profit.
 Increase average order value: Increasing the basket size of existing customers is a
wonderful approach to boost profitability. When the business already persuaded them
to shop at the store; then it can figure out how to increase its spending. To begin, the
Tesco Plc shall look for things that are likely to be bought together. Recommend
related things when a consumer has made a buying decision. The organization may
also put the most lucrative goods in the shop window and in the best region of the
store where consumers naturally go, such as the first page of e-commerce. Another
strategy for increasing average order value is to place the top sellers and up-sells near
the counter for impulse purchases. By recommending the necessary things to
consumers before they check out.
 Automating specific tasks in the business: Automating key duties in the firm is
another wonderful method to optimize the business operations. The business can save
time, personnel, and money by repetitive processes in the firm. By examining all of
the jobs that the company and its staff perform on a daily basis to determine whether
any of them can be automated. The managers can check if the team time being
consumed by time-consuming activities? If it requires to have to re-enter data from
paper to spreadsheet or follow up on concerns through numerous chat groups to
resolve them? Looking for solutions that can handle such solutions (Teslia and et.al.,
2021).
 A corporation must have a deep awareness of expenses and how to consistently lower
them in order to pursue a low-cost strategy. In order to keep costs down, the Tesco Plc
must be prepared to standardize its services, which means that exceptions sought by
prospective clients must be limited or excluded.
 Differentiation is the second strategy that a business organization must looking into.
Differentiation refers to being viewed by the market as providing a better value to the
customer or user than rivals' goods, frequently at the same or even higher pricing
levels. These are different clients who aren't buying just on the basis of pricing. In
order to implement a differentiation strategy, a firm must have a thorough
understanding of its consumers' requirements and preferences. It must be pushed to

innovate in order to meet those aspirations and requirements on a continuous basis. In
order to keep its position and exposure, it must also grow its brand.
 Companies may save money by increasing their efficiency. One example is the
employment of software to minimize the number of individuals needed to complete a
task, resulting in lower wage payments.
 However, cutting personnel numbers isn't the only approach to boost productivity and
cut expenses. Faster production timeframes for bespoke orders mean that a firm may
be able to charge a higher price for quick service even if it doesn't have to spend as
much for power and other manufacturing costs. Companies without specialized items
can still benefit from increased productivity. So, the above mentioned methods can
help the Tesco Plc to overcome the operational problems.
CONCLUSION
From the above report it can be concluded that, Operations are the day-to-day
operations of an organization, whereas systems are a collection of interconnected components
with a common goal that serve as the overall driving force. Within an organization, operation
system management defines open standards that communicate with the other systems within
the larger network, taking into account the environment within its field of operations to
design strategies that provide it a competitive edge. Tesco is a profitable company that
employs effective operations management. The importance of operations management in any
firm cannot be overstated. Tesco's operation function is defined by speed, quality, cost,
reliability, and flexibility performance criteria. The company's strengths include speed,
adaptability, and product quality. The flaw is in people's attitudes toward adoption.
Innovations, on the other hand, eliminate the flaw. Innovative strategic management in
today's organizations need astute operational systems with ongoing quantitative performance
evaluations. As a result, a system process approach effectively tracks the performance of
multiple systems and subsystems along the value chain, from inputs to transformation and
final output, while keeping a close eye on total external resources such as human resources
and supplier performance as measured from the client's perspective.

References
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