Organizational Risk: Procurement Function and Sourcing Method Analysis for Tesco

The report will critically examine the procurement function and sourcing methods of Tesco, and evaluate the challenges faced by the company in this regard. The research will also focus on the strategies adopted by Tesco to overcome these challenges and enhance its procurement function and sourcing methods. The report will further analyse the impact of effective procurement and sourcing on the overall business performance of Tesco.

Organizational risk

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
A) Key risks in procuring goods and services through production of risk assessment...............3
Risk assessment...........................................................................................................................4
B) To critically examine the procurement function and sourcing method..................................9
Evaluation of sourcing methods................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Organisation risk can be understood to be highly essential within companies’ business
scenarios for enhanced business growth expertise dynamically, and gaining operative innovation
practically enhanced. With changing aspects and dynamic business demands, there are various
areas which needs to be considered for further expanded growth horizons reach and successfully
completing risk analysis. Report will analyse organisation risk aspects, parameters which further
lead to risk assessment goals, and new changes which further shapes procurement of goods and
services. Present report will discuss Tesco case study analysis, which is one of the biggest retail
firms having large varieties of products and services. The risk assessment plays essential role, at
business goals for further strengthening vital new rise goals and enhance practical targets for
operative innovation functionally within longer run. Risk Tesco has been evolving towards
integrating new vision scenarios for setting risk assessment targets, enhanced functional
expertise The research will present in depth research on organizational risk aspects diversely and
further generate focus towards critical examination of procurement function sourcing methods.
Research will also significantly address procurement function and sourcing methods, to further
advance up functional working goals competitively which further advances new scope variedly.
A) Key risks in procuring goods and services through production of risk assessment
There are various risks in procuring goods and services through production of risk
assessment, where there need to be functionally analysed aspects towards attending competent
growth horizons significantly. The key risks within Tesco procurement of goods and services
through production of risk assessment, can be significantly analysed as widely crucial for
strengthening optimum growth targets. Inaccurate internal needs analysis, non-compliance and
various changes in management procedures further leads to competent risks rise dynamically
among supply chain (Dellana, Rowe and Liao, 2021). Inaccurate internal need analysis: This has been found as one of the key risk factors
were inaccurate internal needs analysis parameters, further leads to deficiency among
operational parameters variedly. The inaccurate internal needs are common risk which
further leads to shortage and varied complications within risk assessment goals, where
Tesco faces complications. Supply chain management tools and methods evolved among

procedures should be prioritized significantly where keeping specific check on internal
needs will strengthen up supply chain needs.
 Noncompliance and contract management process: This is another risk where non-
compliance and contract management process hold specific essential role for company to
enhance new contract management proceedings in business goals. The non-compliance
among laws in contracts further hinder methods among operations, where Tesco aims to
further keep compliance under check by eliminating procedural mistakes (El Baz and
Ruel, 2021). Supply chain non-compliance, contract management procedures need to be
checked for attending towards new targets and determining leveraged specific goals
within longer run. Delays in procurement: The delays in procurement among supply chain within retail
company further also plays crucial role, where changing dynamics and delays in
procurement leads to mismanagement among supply chain. This risk further has been
found to be essentially one of the critical aspects which shapes company long lasting
business position, and generating functional growth among targets Delays in procurement
needs to be monitored significantly and generate wider scale targets further leading to
competent vision.
 Cost and quality risks: This is another key risk where cost and quality risk specifically
play crucial role which needs to be evaluated dynamically for reaching active targets.
Resources cost and quality should be affirmatively monitored, for strengthening wider
reach rapidly within retail company business goals significantly. Furthermore, cost and
quality risk factors play specific importance in further evocatively building strong basis
in recent working targets. Tesco cost and quality risks among retail services need to be
also checked for attaining wider growth horizons, determine cost effective costs and also
attain dynamic specifics within longer run (Fatorachian and Kazemi, 2021).
 Errors in manual internal processing: There are various errors which may be found in
manual internal proceedings within supply chain parameters diversely for further
extending functional working goals rapidly. Errors among manual internal proceedings at
supply chain management needs to be evaluated and further checked, which may lead to
complications rise among business goals diversely. Tesco manual internal processing
within procurement of goods and services should be checked, for significant growth rise
diversely.
Risk assessment
Risk assessment will essentially enable risks identified to be assessed as per set targets,
generate working targets worked on for stability among working decisions within supply
chain management horizons significantly. It has further been evolved that Tesco risk
assessment working goals will be practically evolved by building new targets in
performance and extending pathways to further adhere new pathways dynamically. It has

been also found that Tesco further also aims to improvise new strategies for risk
assessment working goals and generate wider scale functional growth targets.
Tesco aims to take up risk assessment strategies by strengthening effective
implementation of new competent productivity in check essentially and also operatively
bring forward wider growth variedly. There are various risk assessment stages which can
be analysed as follows:
 Stage 1 Hazard identification: At the first stage, Tesco identifies risk and hazards within
business supply chain aspects evolving among varied expanded parameters significantly.
Hazard identification, will further enhance operations and functionally focus towards
changes which needs to be done in company supply chain tools and procedural aspects
(Gurtu and Johny., 2021). Stage 2: Response assessment|: The second stage, response assessment further evolves
focus on fact that Tesco aims to monitor risks rapidly and generate strategies which will
keep check on attaining new business growth targets. Top management at this stage will
formulate new investments for responding towards responses of assessment, new targets
to be achieved and expanded up competent long-term productivity.
 Stage 3: Exposure assessment: The stage 3 is related with exposure assessment and
estimating measuring of magnitude, frequency and dilation of exposure of agents within
business characteristics plays crucial role. Exposure assessment further signifies business
reach to be analysed, gain specific focus towards measured risks and also practically deal
with competencies rapidly. The stage will also further take up focus to attain specific
targets of varied exposure goals, where keen new strategies can be formulated.
 Stage 4: Risk characterization: The stage 4, risk characterization will further focus on
specific characteristics which is final stage where problem formulation, analysis of
observed effects is further evolved. Risk characterization also advances focus on
strengthening vital engagement goals of the best assets, strategies and resources where
Tesco will be using effective risk characterization goals (Karimi and Bandesi., 2021).
Risk register
The risk assessment will be also analysed by formulation of risk register which will
significantly focus on strengthened pathways, where Tesco will be further evolving to gain new
keen targets and generate leveraged functional growth horizons variedly. Tesco risk register,
will be further shaping productive business goals where further establishing new keen domains
will enhance functional targets reach practically. There will be further establishment of new
technical aspects to enhance functional competitive abilities diversely, for strengthening wider
stakeholder’s engagement actively (Negri and Sarkis, 2021).

Description of
risk
Impact Scale of
severity
Risk response Risk
management
strategies
Stakeholders
involved
Noncompliance
and contract
management
process
It may
impact
company
contract
proceedings
and varied
management
procedural
functional
parameters.
7 out of
10
The risk
response will
be further
focused on
adopting
effective
contract
policies and
adopting
effective
strategies for
further
extended
growth rise
competitively.
Risk
avoidance.
Tesco will be
significantly
focusing to be
effective in
compliance of
management
procedures
significantly
for further
extended
business
growth
parameters.
Top
management
and contract
procedures
management
holders are the
main
stakeholders
which will be
taking effective
step in building
compliances
significantly on
management
procedures.
Delays in
procurement:
Delay in
services
reach to end
consumers,
and
procurement
delay will
further lead
to varied less
targets
completion.
5 out of
10
Response of
delay in
procurement
will be
checked and
responded by
further
building new
specific
efficacy
among
performance
horizons
Risk
acceptance will
be done for
extended
competitive
performance in
business
working goals
dynamically.
Top
management
and contract
procedures
management
holders
Cost and
quality risks:
Impact of
cost and
quality risks
can be seen
directly from
company
revenue
decline or
customer
goodwill
decline
which may
6 out of
10
The risk
response is
focused on
enhanced new
significant
parameters
where cost
and quality
risks will be
further
measured
immediately
Risk mitigation
will be done as
it is main aim
for company to
use best cost
and quality
factors for
eliminating
any errors
among retail
business
services
Top
management
and contract
procedures
management
holders, also
stakeholders in
production
department.

hamper
functional
working
reach.
for checking
optimum
grounds
determinants
variedly.
rapidly. It also
determines
new keen
domains for
gaining
productivity in
check before
final services
are reached
among
customers.
Errors in
manual
internal
processing:
Impact will
be seen on
reduction in
efficiency
among
working
criteria and
also placing
new keen
functional
growth
horizons
parameters.
7 out of
10
Risk
response will
be based on
fact that
company
internal
proceedings
will be
monitored by
further using
optimum
growth targets
worked on for
larger scale
growth.
Risk mitigation
will be done to
check proper
regulatory
framework and
generate longer
scale business
positioning
strategically on
wider horizons
rapidly.
Top
management
and contract
procedures
management
holders are the
main
stakeholders,
where Tesco
aims to take up
new scale
working
proceeding and
generate wider
scale efficacy
horizons worked
on practically.
Technology
failure
Impact of
technology
failure will
be checked
and seen
immediately
on supply
chain aspects
and retail
services
among
customers
variedly.
8 out of
10
Response of
technology
failure will be
further
significantly
evolved by
further
building new
pathways for
checking
specific
targets and
improving
cost effective
functional
usage.
Risk reduction
will be
appropriate at
this step for
strengthening
proper
technology
oriented
functional
growth goals.
 IT
departme
nt
professio
nals and
top
manage
ment
stakehol
ders are
the main
prime

stakehol
ders
which
are
specifica
lly
responsi
ble for
technolo
gy
failure
(Shinde,
and
Landage,
2021).
From the above analysed aspects in risk register, it has been found that Tesco further
aims to evolve on new specific horizons for using cost effective technologies and working
pathways for scaling higher pathways. This will further also have optimised by determining
long term vision oriented goals and primitively building strengthened benchmarks for
shaping goodwill diversely within retail industry positioning. It can be further evaluated to
scope on stringent pathways, company where aims to further evolve on longer scale risk
assessment working targets diversely Furthermore, it can be also evolved that there is
specific functional growth scope towards extending new resource, where TSECO aims to
extends strengthened vision rapidly on extended pathways. From the above functionally
analysed pathways. It has been found that Tesco aims to productivity leverage working
targets practically and shape wider scale optimistic new vision significantly. This will also
enhance new working goals for company to attain wider targets rapidly (Stampe and
Hellingrath, 2021).

B) To critically examine the procurement function and sourcing method
Procurement is process of purchasing good and services by business in order to convert
raw material in finished good with an objective to earn high profit margin and sales volume. In
another words, it is one of the significant function of the company in which it finds alternative
sources from which products can be procure, then making an agreement with party to purchase
or acquire the same. In recent scenario, there is scarcity of resources so company have to put
emphasis on finding different sources or suppliers through which it can get sufficient resources
to operate its business successfully (Brandon-Jones and Kappa, 2018).
In addition to this, there are seven steps that are being followed by the manager
of Tesco while procuring the necessary products and services. Such as need recognition,
purchase requisition, requisition review, selecting a particular supplier, evaluation and making
contract. Order management, invoice approvals and disputes and record keeping are various
function of procurement being performed by the manager of company so that it has sufficient
resources to meet its objectives. Tesco being one of the biggest retailer or supermarket chain
with number of resources and products has performed numerous functions in order to procure or
have sufficient resources so that the desired wants of customers can be fulfilled in limited time
frame. Therefore, the different procurement function that has been performed by the Tesco to get
or have sufficient raw material in the organization can be explained in detailed as follows:
 Identifying the needs of goods and services: The first and foremost function that has
been performed by the Tesco manager in context of procurement is identifying the need
or demand of specific products by customers. Thus, on the basis of actual demand
manager decide particular quantity of products that need to be purchased by the firm in
order to meet requirements of all the individuals. It also helps in saving cost and reducing
wastage by avoiding unnecessary stock of material in the warehouse.
 Finding suppliers: Second procurement function being performed by the Tesco manager
is finding different suppliers through which company can get qualitative products at
minimum price possible. Tesco is huge organization with strong brand image so it has
numerous opportunities to have a supplier that can offer specific products and services to
company for its smooth operation. Along with that it has maintained good relationship
with supplier by paying money on time that has helped it in receiving the material as and
when required for accomplishment of end goals.
 Requesting proposals/quotations (RFP/RFQ): Moreover, the firm in order to procure
resources has motivated suppliers to send quotation or requesting proposals so that it can
take right decision to purchase from specific organization (Collins Aching, 2020). So
through quotation, company is able to decide and analysis which of the suppliers is
offering qualitative products at reasonable prices to select the best among them for
benefits of Tesco.
 Negotiating with suppliers: It is also one of the function of procurement in which Tesco
manager has negotiated with the suppliers on the basis of quality, quantity and price at
which company wants to get material. So that it can easily offer range of products and
service to customers at minimum prices possible (Wang and et.al., 2021). Tesco is
reputable organization so it have more power to negotiate with suppliers as it can easily
get products from different sources. Therefore, it has helped company in earning more
profitability and revenue.
 Agreeing terms with suppliers: After negotiation, the another function that has been
performed by the Tesco for procurement is making agreement with the selected suppliers

to have specific quality products at low price possible. The agreement has clearly
mentioned about the quantity, quality and at which price the company wants to have
products in order to offered to customers for satisfaction of their respective requirements.
Therefore, it has also helped in reducing the chance of conflict and confusion to
maximum extend between the company and its suppliers for better outcome.
 Arranging and receiving products/services: It is one of the important function being
performed by Tesco manager in order to have sufficient resources to promote its smooth
operation of business. Manager has replanted or make necessary arrangement in order to
store sufficient material that can be used to convert into inventory to finally delivered to
customers. Therefore, it has helped company in meeting the expectancy of the customers
in limited time frame (Stretch, Bretschneider and Hsueh, 2018).
 Performing quality assurance: Moreover, Tesco manager also perform function of
quality assurance in procurement through checking and reviewing whether the products
delivered are of set standard quality or not. This has helped company in ensuring the
quality of raw material and fulfilling the wants of customers beyond their expectancy
level.
 Analyzing results and margins: Lastly the procurement manager take steps to analysis
the results and overall margin that company will gain after selling particular products and
services to the customers. Likewise, Tesco manager put efforts to understand the overall
cost or expense that has been made by company to gathered sufficient resources and the
final profit that it will earn through offering products to end customers. By keeping check
on results and marking, procurement strategies are effectively evolve by further building
new pathways and further building new working efficacy significantly.
So from the above analysis it can be stated that positive impact of procurement function
performed by Tesco is that it is able to store and maintain stock of inventory in the firm to timely
meet the requirement of customers. At the same time, the benefits of procurement functions is
that company is able to maintained and build strong brand image in external environment
through making individuals happy and satisfied (Wontner, 2018). On the other hand, in order to
complete all the function of procurement there are lot of time as well as expense that need to be
incurred by company so that it can easily meet the necessary requirements. Therefore, it can be
stated that procurement function helps company in having the require quality and quality of
products and services in the firm.
Evaluation of sourcing methods
Tesco uses multi sourcing approach, for high volume goods and single sourcing for slow
moving goods where slow moving goods are further informed by building new pathways
towards technical scope. By using various sourcing strategies, there are various advantages as
well as disadvantages, which Sourcing approaches and methods further plays critical role, to
improvise new scale competent scenarios where sourcing approach signifies Tesco supply
management parameters. The analysis of sourcing methods will further evolve growth to further
enhance operative vision significantly on building new pathways dynamically. Also company
aims to further improvise significant vision practically and adhere towards significant changes
which will extend functional working targets profoundly on wider horizons. The company has
various sourcing methods as scope, where sourcing needs to be prioritized fo extended scope and
generating practical targets for leveraged growth in revenue and consumer goodwill.
The various sourcing methods are as follows:

 Global sourcing: Tesco by using Global sourcing further aims to enhance new socpe for
extended global reach within varied working horizons where it further opens up space for
strengthened vision. Advantages of Global sourcing, are related to fact that company will
be able to further advance up among procedures for strengthening global sourcing. With
lower production costs while maintaining high quality standards, global sourcing further
enhances new efficiency scope. The disadvantage of global sourcing on other hand is that
costing is expensive and also there is major risk associated, which needs to be evaluated
for further extending new benchmarks. By adopting global outsourcing, Tesco will be
able to further expand new vision goals further for extended scope towards attaining
competent goals. This has been also found that global outsourcing method, Tesco
expands new productive goodwill horizons variedly for strengthening new arenas of
revenue targets (Dellana, Rowe and Liao, 2021). Low cost country sourcing: The low cost country sourcing is procurement strategy,
where sources can be further signified sources materials are significantly approached
from cheap labour and production costs. It has been also signified that low cost country
sourcing also enables company to get cheap sources. On other hand disadvantage, is that
low cost country saving is that there is high risk attached where there is significant
change which needs to be done strategically. It can be also understood that low cost
country sourcing chosen as method of sourcing offers company less chances, to choose
talented workforce further which may hinder growth. As Tesco, is one of the best retail
company further aiming to enhance significant benchmarks and also uprise functional
productivity among targets towards extended.
 Recruitment process outsourcing: It can be also specified that it is form of business
process outsourcing, where employer transfers all part of recruitment of varied resources
and services from external service provider. According to Recruitment Process
Outsourcing goals, Tesco has further scope to advance up procedural diversification by
opting recruitment process outsourcing method. This will further enhance competitive
business growth internationally and generate diverse business reach among stakeholders
functionally. The disadvantage of this method of sourcing has been found that it further
has costly new investments for company, which may further found as one of the key
factor which further may hinder productivity. Strategic business proceedings, also further
needs to be done where recruitment process outsourcing plays essential role to develop
competent vision variedly. By using recruitment process outsourcing, company further
evolves focus on extended scope towards determining wider range of growth goals
diversely (Collier and Sarkis, 2021).
 Knowledge Process Outsourcing: This deals with outsourcing knowledge development
that deals with product improvements, research and data analysis functional parameters
which further plays keen role. The knowledge process outsourcing enhances business
scope, where Tesco by further extending new procedures aims to further evolve among
new targets. By proceeding on KPO, TESCO will be able to enhance new pathways

rapidly and generate wider scale operations significantly which further builds wider
targets diversely. The disadvantage on other hand is correlated to fact that knowledge
process outsourcing, has been found that it comes as costly investment for company to
further practically expand pathways. Tesco knowledge process outsourcing, plays keen
role for technical business growth targets towards optimum keen domains which further
enhances scope towards extended business goals.
Legal process outsourcing: It refers to practice where legal corporation further obtains legal
support services from an external firm for varied services within business targets. Tesco by
further heading on towards legal process outsourcing will be able to get expertise oriented
sourcing, and to further extend competitive pace diversely towards extended functional growth
goals. Advantages of legal process outsourcing are, that it further opens up scope to expand new
scale working horizons' functionality within longer run. Disadvantage is based on aspect where
Tesco by further using this method, will be facing legal compliances variedly which may further
hamper proceedings. Sourcing strategies formulation, will be practically evolved for extended
growth goals for strengthened vision significantly. It has been also found that Tesco finance is
also capital growth, where business aims to extend new competitive business growth rise rapidly
for attainuibnf optimum growth horizons. There is also primitive engagement found that
stakeholders, of company are further taking effective steps for building new pathways, and shape
up productive targets diversely (Blanchard, 2021).
The above analysis of various sourcing methods, it has been found that Tesco has various
sourcing strategies and scope to further advance procedural growth within global retail industry.
By optimizing productive sourcing method, company will be further able to reach towards keen
productive efficacy within longer run and generate stringent efficacy for scaling new targets.
Tesco will be able to extend up long term business positioning, enhance determinants correlated
for yielding functional growth within longer run.
CONCLUSION
From the above analysed aspects in report, it can be concluded that Tesco further aims to
enhance new scale supply chain management proceedings for strengthened working vision
competit6ively within retail industry. It has been found Organisation risk plays crucial role for
developing integral growth towards using new resources and strategies, to evolve on wider scale
technical productivity growth parameters. Report has shed light on Tesco business goals risk
assessment targets where company aims to enhance stringent growth significantly. This will also
further shed light on productive targets, where supply chain management functionally takes u
informative growth targets for attaining new productive reach.
The research done in report has shed light on specific risks in procurement and outsourcing
aspects, where Tesco aims to further evolve on new optimistic pathways varied, it has been also
researched within study that Tucson further uses new innovative resources, for establishing
optimum growth in procurement and outsourcing of all raw materials and varied working

service. The procurement strategies have been analysed as requesting quotations, negotiating
with suppliers which further enhances productive scale efficacy significantly. Research further
also concluded analysis of global outsourcing, legal outsourcing and recruitment outsourcing
which are main parameters which further will enable Tesco to enhance outsourcing
competencies. Tesco further has been found to be one of the best retail companies within
industry, which shapes significant growth aspects to be evolved on towards new stringent
competencies (Asamoah and et.al. 2021).

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