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Operations Management in Tesco: A Case Study of Store Management

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Added on 2024/07/01

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This report examines the role of operations management in Tesco, a leading UK retailer. It explores different approaches to operations management, including Just-In-Time (JIT), Kaizen, and Total Quality Management (TQM), and analyzes how Tesco utilizes these approaches. The report also delves into the specific responsibilities of a store manager within Tesco, highlighting how their role exemplifies the principles of operations management. Furthermore, the report investigates the impact of external factors, such as political, economic, social, and technological influences, on Tesco's operations and decision-making processes. The study concludes by assessing the positive and negative impacts of these factors on the business environment and the wider community.

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MANAGEMENT AND
OPERATIONS

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Table of Contents
INTRODUCTION.............................................................................................................................. 3
LO1................................................................................................................................................. 4
P1 DIFFERENCES AND SIMILARITIES BETWEEN A LEADER AND MANAGER CONSIDERING THEIR
ROLES AND CHARACTERISTICS...................................................................................................4
M1ANALYSE AND DIFFERENTIATE BETWEEN THE ROLE OF A LEADER AND THE FUNCTIONS OF
A MANAGER BY EFFECTIVELY APPLYING A RANGE OF THEORIES AND CONCEPTS....................7
LO2................................................................................................................................................. 9
P2FUNCTIONS OF A MANAGER ACCORDING TO FAYOL AND HOW A MANAGER IN YOUR
ORGANISATION PERFORMS THESE FUNCTIONS USING VARIOUS EXAMPLES............................9
P3 SITUATIONAL LEADERSHIP, SYSTEMS LEADERSHIP AND CONTINGENCY LEADERSHIP USING
VARIOUS SCENARIOS IN YOUR ORGANISATION TO SUPPORT YOUR EXPLANATION................10
M2 STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO SITUATIONS
WITHIN THE WORK ENVIRONMENT................................................................................... 11
LO3................................................................................................................................................. 0
P4 DIFFERENT APPROACHES TO OPERATIONS MANAGEMENT AND IDENTIFYING WHAT IS
USED IN THE TESCO................................................................................................................... 0
EXPLANATION OF WHAT MAKES THE ROLE AS A STORE MANAGER A CLASSIC EXAMPLE OF AN
OPERATIONS MANAGER................................................................................................................ 1
P5 EXPLAIN THE IMPORTANCE OF OPERATIONS MANAGEMENT IN TESCO..............................0
M3 THE ROLE OF MANAGERS AND LEADERS IN IMPROVING THE EFFICIENCY OF OM TO MEET
THE BUSINESS OBJECTIVES OF RETAILER SUCCESSFULLY...........................................................1
LO4............................................................................................................................................. 0
P6 IDENTIFICATION AND ASSESSMENT OF THE KEY OUTSIDE FACTORS THAT CAN HAVE AN
EFFECT ON THE OPERATIONS MANAGEMENT FOR TESCO........................................................0
M4 DIFFERENT FACTORS AFFECT THE BUSINESS ENVIRONMENT AND WIDER COMMUNITY. . .0
1

CONCLUSION................................................................................................................................. 0
REFERENCES................................................................................................................................... 0
2

INTRODUCTION
The growth of the organization is highly dependent on the functions of management as well as
the operations of the management. The management as well as operations deals with those
areas which help in involving the production process and the designing processes concerned
with the products and the services (Jacobs, et al. 2014). In this report, two organizations of UK
are taken in order to describe the management of operations within the organization through
the leaders as well as the managers. The Boots UK is the company operating in the sector of
pharmacy and has its branches in the Thailand, Ireland, and the other locations. It is
headquartered at Beeston, in the UK. The workforce of the organization is about 70,000
numbers of employees. The hierarchy structure is being possessed by the Boots UK
organization.
3

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LO1
INTRODUCTION
The aim of this report is to describe the roles as well as the responsibilities of the leader and
manager by describing the characteristics so that they can be compared through the theories
and concepts.
BODY
P1 DIFFERENCES AND SIMILARITIES BETWEEN A LEADER AND MANAGER
CONSIDERING THEIR ROLES AND CHARACTERISTICS
Management is defined as the administration possessed by the company with respect to
attaining profit or not profit or can be an authority of the government. The management
comprises of the various activities which provide a support in building the company's strategy
with the help of coordination among the workers in order to meet the desired goals and the
objectives (Bolmanand Deal, 2017). Leadership defines the person’s capability or of the
organization that helps in providing the guidance to the team members or the people.
MANAGERS
The managers play a significant role in the company concerning with the management of the
various tasks for accomplishing the goals as well as the objectives of the organization.
LEADERS
Leaders assign the work to the team members or the employees and also leadthese members
in meeting the goals of the organization (Eckesand Trautner, 2012). The encouragement is also
given to the workers by the leaders in order to improve their communication skills and the
other skills so that the company’s vision can be fulfilled.
COMPARISON OF LEADER AND MANAGER
BASIS LEADER MANAGER
Definition A leader is a person achieving A manager is a person whose
4

the goals of the organization by
influencing the subordinates.
role is to do the coordination,
planning, and the control
thereby managing the
organization.
Subordinates Its subordinates are the
followers.
Its subordinates are the
employees.
Major Focus The major focus of a leader is on
the people (Nelson, 2013).
The major focus of the manager
is on the procedures as well as
the processes.
Style Used The transformational style is
being used by the leader.
The transactional style is being
used by the manager.
Approach Used A leader sets the directions. The manager plans the details
concerned with the organization
(Hill, 2017).
Risk Factor A leader is responsible for
minimizing the risk.
The manager is responsible for
taking the risks of benefitting the
organization.
Objectives The objective of a leader is to
facilitate the growth as well as
the development of the
organization.
The objective of the manager is
to achieve the desired results.
Undertaking of Change A leader helps in bringing the
change within the organization
(Tumasjan, et al. 2010).
A manager is responsible for
reacting to the change that has
occurred in the organization.
The management team concerned with the Boots UK Company plans the various activities for
the company that will help in increasing the profitability as well as productivity. The roles, as
well as the responsibilities of manager and leader within the Boots UK, are different
whileimplementing the functions. The manager of the Boots UK is responsible for doing the
implementation of the various standards that will enhance the performance with respect to the
activities assigned to the leaders as well as the workers so that they can use their capabilities in
5

accomplishing the task (Uhl-Bien, 2011). The Boots UK leader is responsible for giving the
motivation to the employees of the organization so that they can complete the desired work.
CHARACTERISTICS OF LEADERS ROLE AND MANAGER FUNCTIONS WITH RESPECT TO BOOTS
UK
Functioning
The special functions are being performed by the manager with respect to the organization
whereas the leader does not perform the special functions.
Stability
The organization stability is being utilized by the management on a permanent basis whereas
the leader does it on a temporary basis (Koenig, et al. 2011).
Directing
Leaders give the assistance to the team members whereas the manager gives the assistance to
the leader.
Coordinating
The coordination is involved between the managers and the leaders for implementing the
strategy and procedures.
Staffing
The recruitment process is conducted by the manager for sorting out the candidates who
possess the potential (Karkand Shamir, 2013). The healthy communication is developed by the
Boots UK for enhancing productivity.
Accountability
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It is the responsibility of the manager is towork on enhancing the organization performance.
The aim of a leader is to attain the mission, vision of the organization.
Control
The control with respect to the organization is given to leader as well as the manager in
accomplishing the goals of the organization.
Planning
Planning involves the strategies to be implemented in an organization that will increase the
productivity and profitability (George, 2019). This is ensured by the manager. The leader
creates a healthy atmosphere within the workplace for enhancing the performance of the
employees.
CONCLUSION
This report helps in determining the role as well as the functions of leader and manager in the
organizational context through the implementation of the theories and the concepts.
M1ANALYSE AND DIFFERENTIATE BETWEEN THE ROLE OF A LEADER AND
THE FUNCTIONS OF A MANAGER BY EFFECTIVELY APPLYING A RANGE OF
THEORIES AND CONCEPTS
The different theories were developed so that the roles of leadership and the functions of a
manager can be determined. The Mintzberg theory has been effectively used by the Boots UK
which divides the roles in the following ways:
INFORMATIONAL ROLES
The leader is responsible for monitoring the world so that the information can be gathered
about the business environment. This information is being transferred to the staff members by
the leader (Antonakisand House, 2013). The leader is also responsible for doing the
modification in the production line with the help of presentation.
INTERPERSONAL ROLES
7

The interpersonal roles of the leader include meeting with the clients on lunch or dinner to
establish the relations effectively. The motivation is also given to the employees in order to
increase their efficiency of working (Bolmanand Deal, 2017). The leader should also establish
the relations byrepresenting in the various trade organizations.
DECISIONAL ROLES
The decisions must be taken by the leader in order to improve the projects. He also takes the
decision when any critical situation is encountered within the Boots UK such as with respect to
the suppliers, occurrences of a strike, etc. the allocation of the resources is also done by the
leader.
The different theories such as the theory of classical management, behaviour management,
chaos management, contingency management can be applied within the organization for
management and operation (Jensen, 2010). The manager at Boots UK uses the behaviour
theory in order to analyse the capabilities of the employees towards the work so that attention
can be paid to giving encouragement to the employees, resolving the conflicts so that their
efficiency can be increased.
8

LO2
P2FUNCTIONS OF A MANAGER ACCORDING TO FAYOL AND HOW A MANAGER
IN YOUR ORGANISATION PERFORMS THESE FUNCTIONS USING VARIOUS
EXAMPLES
Controlling
The implementation of the strategies by the manager of the Boots UK which results in
monitoring as well as controlling is the function of a manager (Rahim, 2017). The role of the
leader is to validate the employee's performance by monitoring it through the activities.
Planning
The function of a manager is to plan the various activities within the organization in order to
increase the productivity and profitability. The leader's role at Boots UK is to deliver the
objectives to employees so that they can make the efforts in achieving it.
Leading
The function of a manager is to interact with the leader so that planning can be done in
achieving the set target within the time duration. The managers communicate with the leaders
whereas the leaders communicate with the employees (Lester, et al. 2010). In this way, the
coordination is set up within the organization to implement the operations of the organization.
The coordination is also involved between the various departments such as the finance
department, production department, and the manufacturing department in order to produce
the quality products.
Organizing
The function of the manager is to perform the various functions by making an effective use of
the available resources in order to achieve the objectives (Starling, 2010). The leader’s role is to
provide the encouragement to the workers by allocating the resources in order to accomplish
the task.
9

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P3 SITUATIONAL LEADERSHIP, SYSTEMS LEADERSHIP AND CONTINGENCY
LEADERSHIP USING VARIOUS SCENARIOS IN YOUR ORGANISATION TO
SUPPORT YOUR EXPLANATION
SITUATIONAL LEADERSHIP
The situational leadership involves the worker's capability and the proficiency so that the
employees can be managed by the leaders by assigning them the task. This leadership quality is
being adopted by the functional department of the Boots UK in order to tackle the critical
situations encountered within the organization (Drucker, 2012). The issues of cost are being
noticed with respect to transporting the raw materials which can be effectively tackled by
situational leadership.
CONTINGENCY THEORY
The contingency theory determines the various leadership as well as the leading approaches
which are under the personality traits of the employees which will be helpful in overcoming the
situations in the organization of Boots UK but the performance of these employees’ decreases
under some extinct situations.
SYSTEM LEADERSHIP
The system leadership at the Boots UK involves the command to be taken over the
performance of the employees so that the employees can work according to the current
situation which is essential for the Boots UK (Scott, 2015). The variation must be done in the
functional department so that tasks can be executed properly by an implementation of the
operations by conducting the activities which will enhance the performance.
The issues were resolved by the operation department of Boots UK with the help of assigning
the tasks to the employees through the coordination as well as planning in order to achieve the
efficiency (McLean, 2011). The employees can be given the encouragement as well as praise so
that they feel valued by the organization and also increases their efficiency of working. The
10

Chaos theory focuses on doing the variation and the managers react to such variation through
the efforts.
M2 STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO SITUATIONS
WITHIN THE WORK ENVIRONMENT
STRENGTHS OF SITUATIONAL LEADERSHIP
 The team environment is built healthy as well as supportive which will help in enhancing
the efficiency of the employees.
 It is the feasible approach as the roles of the employees gets reversed while
implementing as well as taking the decisions.
 The awareness among the employees is being created so that they can focus on the
leadership style to be implemented.
WEAKNESSES OF SITUATIONAL LEADERSHIP
 This approach focuses on considering the recent scenario in order to overcome the
shortcomings of the organization.
 The employees are not as proficient as they lack the knowledge with respect to the
factors of demography.
 The misunderstanding, as well as the conflict, is created due to the interconnection of
the various situations within the organization.
STRENGTHS OF SYSTEM LEADERSHIP MODEL
 The system leadership model is a dynamic and adaptable model.
 By adopting this model, the effective decisions are implemented within the
organization.
 It helps in the establishment of the framework by considering the views as well as the
opinions of the workforce of the organization.
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 The overall development of the individual takes place by adopting this model.
WEAKNESSES OF SYSTEM LEADERSHIP MODEL
 The practical implementation of this model is difficult thereby affecting the processes to
get delayed.
 The interdependency is not there using this model.
 This model cannot be applied to those companies which are smaller in size.
STRENGTHS OF CONTINGENCY LEADERSHIP MODEL
 The leadership profile is being created so that effective planning can be done with
respect to the human resources with the help of data collection.
 This model helps in building the values of the employees by giving them respect,
motivation, and the perks and bonuses.
 Altering the responsibilities of the employees is done in order to complete the desired
tasks.
WEAKNESSES OF CONTINGENCY LEADERSHIP MODEL
 The lacking factor is the discipline which is responsible for delaying the work and
building a pressure.
 It involves the lesser creatures.
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LO3
P4 DIFFERENT APPROACHES TO OPERATIONS MANAGEMENT AND
IDENTIFYING WHAT IS USED IN THE TESCO
Working as a manager in TESCO supermarket, the role of operation management of the
company has been discussed in brief. Furthermore, various approaches related to OM have
been discussed to assess their benefits for company. At last, the importance of the role of the
manager has been described by the manager itself.
Operation Management (OM)
OM could be defined as an area of management which is concerned with the controlling and
designing of the production process so as to create higher level of efficiency within the
organisation (Kerzner and Kerzner, 2017). There are various approaches to OM which are as
follows:
Just-In-Time (JIT)
It is a time management approach which refers to meeting the demands of the consumers in
terms of time, quality and quantity. It helps a company to increase the efficiency of its
operation and decrease the production of waste by reducing the inventory costs associated
with the products (Monden, 2011).
Kaizen
It is an approach to create a continuous improvement in all the functions and operations by
involving all employees of an organisation. It helps in bringing efficiency in the work
environment by:
• Creation of a healthy team atmosphere
• Bringing improvement in everyday procedures
• Ensuring satisfaction among employees (García, et al. 2014)

• Ensuring safer, less tiring and more fulfilling job
Total Quality Management (TQM)
This management approach helps in increasing as well as improving the organizational
efficiency of the organisation. This approach also evaluates different needs of the people by
conducting a requirement analysis by making efficient use of available resources (Ross, 2017). It
also includes collecting feedback from the people, building teamwork for the employees and
maintaining the quality of the services and many more.
For Tesco, Kaizen approach would be very effective because it would allow bringing the
continuous improvement in the working of employees so that they would be satisfied with their
work for their best to achieve higher level of quality and thus fulfil the needs of the cusotomers
efficiently.
EXPLANATION OF WHAT MAKES THE ROLE AS A STORE MANAGER A
CLASSIC EXAMPLE OF AN OPERATIONS MANAGER
An operational manager plays an important role in the working of any organisation. As a
manager for Tesco, the role of the manager as a store manager of is an important one as they
have to perform various important functions which are part of the given organisation. The
important functions of the store manager of Tesco are:
Resource Management
The manager plays an effective role in managing raw materials which includes managing the
inventory, supplying and purchasing of the materials and many more. They also handle the
employees engaged in management of resources so as to fulfil the objective of the company
easily (Chiu, et al. 2017).
Communication
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The manager plays an important role in conveying the message from management to the
employees in an efficient way. Furthermore with their effective communication skills, they are
able to solve the conflicts and disputes and help in effective completion of the organisational
goals (Barbosa, et al. 2017).
Financial Management
The manager helps the company in preparing the budget, controlling the cost and minimise the
expenses so as to bring improvement in efficiency.
2

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P5 EXPLAIN THE IMPORTANCE OF OPERATIONS MANAGEMENT IN TESCO
The operational management plays a significant role in increasing the productivity of the
organization by using available resources which would result in growth of an organisation in a
significant way. These are:
Inventory Management
The team of TESCO is effectively concerned with handling the inventory well. This management
is done by the company to provide better quality services to the customers by decreasing the
cost of raw materials without compromising with their productivity (Annarelli and Nonino,
2016). An effective communication must be built among the workforce of the organisation
along with the suppliers as well as the retailers for providing quality product to its customers.
Quality Management
It is an important part as it is required to maintain a good quality of the goods and services
provided to the customers by TESCO. An efficient training must be provided to the employees
to provide good services such as cash on delivery, online transfer and many more so that
customers would feel satisfied.
Capacity Management
The TESCO should have a sufficient quantity of the products for its customers. In such
circumstances, an effective capacity management on the available resources would help the
products to maintain effectively and should not face either shortage or being made available in
excess (Monden, 2011).

M3 THE ROLE OF MANAGERS AND LEADERS IN IMPROVING THE EFFICIENCY
OF OM TO MEET THE BUSINESS OBJECTIVES OF RETAILER SUCCESSFULLY
These factors are:
• Providing balance to the store inventory by keeping the stock enough to fill the
requirement and manage it to ensure minimum losses
• Maintaining effective communication so as to prepare a proper plan and guide the
employees in right direction
• Increase the working capacity of the employees by utilising various OM approaches so
that they would work for their best and satisfy the customers of TESCO immensely (Ko and
Kirsch, 2017)
• Help in maintenance of proper storage capacity so as to decrease the storage of excess
goods and to prevent the shortage of goods in front of the consumers
1

LO4
P6 IDENTIFICATION AND ASSESSMENT OF THE KEY OUTSIDE FACTORS THAT
CAN HAVE AN EFFECT ON THE OPERATIONS MANAGEMENT FOR TESCO
Impact of these factors upon decision making as a store manager
The working environment of TESCO has been affected by the various external factors which
have significantly impacted on its operational management. Furthermore, these factors have a
significant impact on the decision making of the store manager of TESCO (Epstein and Buhovac,
2014). These factors are:
Political Factors
Various political factors such as interference in the operation of the company by the
government, taxation procedures, and laws related to import and export and many more
affects the working of the organisation (Wheelen and Hunger, 2011).
These would have a significant impact on the store manager as they would have to frame
policies as per the rules made by the government and should insure that these rules are
followed strictly by the management and employees and there should not be any violation
regarding these rules.
Economical Factors
It includes various factors such as inflation rate, foreign exchange, rate of interest and many
more which have a significant impact on the operation of the TESCO. Due to such factors, there
is a fluctuation in cost and selling price of the product and services provided by the company
which results in a huge impact on the efficiency of the company (Wheelen and Hunger, 2011).
The store manager is affected as it would prepare the cost of the product so that neither it
would be too high for the consumers, nor it would cause losses to the company. They have to
also ensure availability of the product at a good quality and in sufficient quantity.

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Social Factors
It includes weather and environment related issues which would affect the operations of the
Tesco and thus affects its growth and further development.
Such factors increases the responsibility of the store manager as it has now to ensure that there
has been no damage to the product due to weather related issues and they must be checked
before delivering to the consumers.
Technological Factors
With the coming of advanced technology, Tesco is compelled to use these technologies which
are available at high so as to provide high quality products to the consumers at affordable
prices (Jankalová and Vartiak, 2017).
The role of manager becomes important as it has take decisions regarding the implementation
of new technology in the working of the company without increasing its operational cost.
1

M4 DIFFERENT FACTORS AFFECT THE BUSINESS ENVIRONMENT AND WIDER
COMMUNITY
The business environment of retail store, TESCO is greatly affected by the given factors which
have wide impact on the business environment and wider community. These are explained as
follows:
Positive Impact
There would be various positive impacts on the company due to these factors such as:
• The company would utilise the best technology to increase the efficiency and the
manager would take decision to use the technology to present quality product for the
customers
• The company would then work towards producing sustainable products and managers
would ensure sustainability of the products at the retail store so as to avoid any violation of
government rules
• The company would produce goods at affordable prices on the basis of economic
condition of the people residing around given retail stores and the store manager would use
best pricing strategy to satisfy the customers (Tench and Topić, 2017)
Negative Impact
There would be negative impacts on the company also due to such factors which are:
• The company have to maintain the sustainability of the product and has to produce
goods without violation of the law
• The store manager has to follow the corporate social responsibility by taking decisions
to make available only those products which would provide benefits to their customers much at
the expense of the growth if shareholder (Annarelli and Nonino, 2016)

CONCLUSION
The given report has been based on the retail store TESCO and identified important role played
by OM and it was revealed that the company utilised the services of Kaizen approach to provide
satisfaction to its employees as well as customers. The role of store manager and their
importance for the company has also been specified. Furthermore, it was disclosed that OM
has proved to have a significant importance for the company and how various team leaders and
management helped it to have an effective functioning of its operation. Besides, various outside
factors had been discussed and it was evaluated that how they have impacted the organisation
either positively or negatively. At last, the study had fulfilled its objectives and found that OM
had proved to be beneficial for large retail store such as TESCO.

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Operations Management in Tesco: A Case Study of Store Management

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