Operations Management in Tesco (pdf)

Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Overview of the company............................................................................................................2
Day to day operations of the company........................................................................................2
Linkage between Tesco and TQM theory....................................................................................3
Sustainability within this selected company's value chain..........................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Operations management is concerned with administration of various business practices in
an organization in order to create the highest possible efficiency for them. It involves conversion
of raw materials into finished goods effectively and efficiently to maximize the profits. The
process aim towards optimum utilization of resources which proves to be worthwhile for them in
the long run. On the other hand, supply chain management is concerned with all the activities
outside the company like building the network to distribute the goods and services and then
achieving the competitive advantage. Tesco is a British multinational retail and grocery
company headquartered in Hertfordshire, United Kingdom. It was founded in the year 1919 by
Jack Cohen in London. The current report will focus on the overview of Tesco group, their day
to day operations, supply chain theories adopted by them and their significance in increasing
company's productivity(Wood, Coe and Wrigley, 2016).
MAIN BODY
Overview of the company
Tesco group was founded nearly 100 years ago and the company has now expanded its
activities in more than 12 locations with over 6800 stores worldwide and is also the biggest
retailer in the United Kingdom. The company employs 450,000 employees worldwide. They
have expanded their activities over the years from clothing to retail and grocery and has proved
to be beneficial for them(Khan, Habib and Bakar, 2018).
The organization has improved its operations in order to achieve an edge over their
competitors. Moreover, it has become imperative for them to follow suitable supply chain in
order to reduce the cost and maximize their revenue.
Day to day operations of the company
Tesco group has allocated various departments in order to allow smooth movement of goods
from suppliers to customers. The company follows the procedure of inventory management that
allows them to have the efficient inventory in their warehouse without any additional cost
(Ramanathan and et.al., 2017).
Tesco company follows six sigma approach to manage its day to day activities and
supply chain management. It is a disciplined and statistical approach to manage the quality of the
product and to make it perfect. The company focus on consumer requirements, and then they use
statistical analysis to identify the defects in their product and the root cause behind them. It then
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