Operations Management at Tesco: Challenges, Approaches and Recommendations

Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Introduction of Tesco.............................................................................................................1
Inter-relationship between operations, core and support function of Tesco..........................2
Input-transformation-output process review and critique......................................................2
Roles and importance of the operations management in Tesco.............................................3
Explanation of various challenges faced by TESCO in operation management....................3
Comparison between TESCO and Sainsbury's of how they measure their operation
performance and evaluate the effectiveness of each measure................................................4
Recommendations of new and emerging technologies that can use to effectively manage
overall operational activities in TESCO.................................................................................5
Part 2................................................................................................................................................5
Critically evaluate different approaches of quality management used by The TESCO.........5
Approaches of quality management and continuous improvement for providing better
customer satisfaction..............................................................................................................6
Role and scope of supply chain management in supporting different organisations.............7
Assess the organisation’s supply chain performance objectives, and their use of lean vs agile
supply networks......................................................................................................................8
Evaluate effective supply chain management options and recommendations for improvement
................................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operation management refers to process of business in which increase the efficiency
level of the organisation as it mai9nly focus on converting the labour and material into product
and service. The operational management maximize the organisation's profit as it balance the
cost and increase the sales of the company. It involves organising, planning and implementation
as these factors help to achieve the organisation's goal as it mainly focus on reduce the cost and
increase the profit of the organisation (Barnes, 2018). For the present report, Tesco is taken into
consideration. It is a famous grocery company which was founded by Jack Cohen in1919 and its
headquarter in London, England. The TESCO has been dealing its business in approx. 14
countries of Europe and Asia and It has approx. 7000 retail outlets. The respective company
dealing in wide range of products such as internet service, telecoms , financial service, software,
petrol, toys, furniture, electronic, clothing and books etc. The report will cover the concept and
theories of operation management along with the challenges associated with it. IN addition to
this, various quality management approaches will be elaborated that will help an organisation to
improve its quality.
PART A
Introduction of Tesco
Tesco is a multinational organisation which deals in general merchandise headquartered
in England. The company was founded by Jack Cohen in 1919 which is now third largest
retailers in the world and ninth largest in terms of revenue. In UK the company owns around
28.4% market share and also Tesco have shops in five countries in whole UK. The company
serves in UK, Ireland, Hungary, Slovakia and Czech Republic. Tesco carries out his business
through online and offline medium and also serve a wide variety of food and non-food items,
including fresh food, drinks, health and beauty products, consumer electronics and many more.
The company also provide consultancy, banking retail and insurance services through Tesco
Bank in UK.
Tesco is a unique brand which produces its grocery products by itself in Tesco Factory,
do not buy anything from outside world because of this reason the dairy and meat products of
Tesco is very cheap. Due to Tesco Factory the profit margins of the company is very high and it
helped a lot in the expansion of the company. Tesco was the first commercial store chain that
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released club board system for its employees which means the consumers of the store will get
some points on their every purchase.
Inter-relationship between operations, core and support function of Tesco.
Tesco has an efficient operation functions as Tesco always keep on changing its
marketing mix that brings it a competitive advantage. The company is operating at many
locations also Tesco mainly focuses on rebranding its existing products to improve the sales
(Bessant and Jia, 2018 ).
The core and basic function of Tesco is to serve its customers, society and planet a little
better every day. The company keeps on researching all the time to keep a pace with the ever
changing demands of its customers.
Tesco provides very efficient support function like the company provides 24*7 hrs
service that means a consumer can buy and avail after sale services at any time also the staff of
Tesco always wear uniform which is easy for the consumers to understand where to go.
All the operation. Core and support function of organisation is inter-related to each other
as all the functions work in a process. These functions play a major role in earning competitive
advantage over its competitor. All these functions are consumer centric which automatically
enhance the consumer satisfaction (Lee, 2018). The competitors of Tesco are Sainsbury's,
ASDA, Morrison's and Waitrose who are the well-established and well-known brands of UK but
only because of strong functions the Tesco rules 28.4% of market share all alone.
Input-transformation-output process review and critique
Input-transformation-output process is a continuous process which starts from
organisational inputs which are staff and other facilities which helps in operation function for
example computers and billing machines. Whereas, the transformation process includes selling
of goods, advising customers, working according to the company capacity and taking proper
inventory measures. The output of all the inputs and transformation provided are consumer
satisfaction, goods sold by the company and the total amount of profit earned.
The input output process of Tesco is totally consumer centric, the consumers behaviour is
quite dynamic and ever changing with the changing time so Tesco always need to spend time for
keeping pace which is time consuming and money charging at the same time as well. The
company decides it internal and external working through the behaviour of its customers so it
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