Importance of Operational Management in Tesco

Table of Content
Part 1: Business Report
1. An introduction to chosen organization p
2. An explanation of operation vs operations management p
3. A review and critique of the implementation of operations
management principles within the chosen organization p
4. An analysis of the extent to which the operations management of
the organization in the case study meets the requirements of the
organization p
5. Discussion of continuous improvement as a philosophy and
describe the Lean principles p
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review and
critique of operations management principles within your
organization p
7. Conclusion p
References p

1. An introduction to chosen organization
Main objective of this report is to understand the importance of operational
management in an organization. For this Tesco company is taking into consideration. It
is a British multinational groceries and general merchandise retailer public limited
company. It was founded by Jack Cohen in the year 1919 and its headquarter is in
Hackney, London, England, UK. It has around 7005 shops located at different countries
of world and almost 423,092 numbers of workers are successfully working with it. It
globally expand its business in the year of 1990 by establishing their business in more
than 11 other countries. It deals in various supermarket, hypermarket, superstores,
convenience shop and retail different kinds of products such as retailing of books, toys,
furniture, clothing, electronic other than this it also provide services like telecom,
financial and internet services. It achieve higher growth in the world because of its
effective operational management which helps in reducing its wastage of resources and
increase level of productivity and efficiency.
2. An explanation of operation vs operations management
Operations- it refers to the day to day activities of a business which create a
unique value and help in achieving the core objective of company (Assis and et. al.
2019). Operations play a different role in an organization which contribute towards the
growth and success of organization. Operations related to the performance of a
particular application of processes. The scope of operations is depend on the size and

type of business. It helps an manager of an organization to determine and schedule the
resources which help in achieving organizational goal. With the help of conducting
operations in organization a manager will able to match their resource input and
production target. This is possible because of regulating the speed, dependability,
quality and flexibility of organization operations. In context of selected company, it is an
retailer company which includes operations like inbound logistics, marketing and sales,
service offered to customers and so on.
Operational management- It refer to a business practice which helps an
organization in creating a highest level of efficiency (Cui and Yang, 2018). It is related to
converting the material and labor into goods and services as efficiently as possible.
Which help an organization in maximizing their level of profit. The teams of operational
management will work to balance the cost with revenue so that they can achieve
highest net operation profit. Operational management of an organization will includes
effective utilization of resources from staff, materials, equipment and technology. In
context of Tesco its operational manager will acquire, develop and provide goods and
services based on their customer’s needs and requirements. Its operational
management help organization in reducing wastage of resources and increase the level
of productivity and efficiency which helps in successfully achieving organization goal.
3. A review and critique of the implementation of operations
management principles within the chosen organization
Main focus of operational management is on forming plans and policies which
helps an organization in successfully completion of their project within a specific time
frame. Operational management is a process of an organization which focus on the
supervising various business activities and helps in successful completion of project and
achieve higher profitability (Korzh, 2019). Main objective of using this process is to
provide high quality goods and services by concerting material into finished goods and
service. Operational management includes various principles which help in increasing
efficiency of functionality of business. In context of selected firm, it is an retailer
company and regularly introduce new products and services to customers and

suppliers. For smooth functioning of various business operations of selected firm
different principles are discuss below:
Principles of operational management- There are many principles which helps an
organization in maintain its effectiveness in business. In context of Tesco various
principles followed by its manager are mention as under:
 Principle of Reality- According to this principles of operational management,
main focus of operation management is on the basic issues and not divert their
attention by finding techniques because of which the issue will be arise or in
other words the focus of operational management is on overall problem rather
than on the techniques. This is because it is analysis that there is not tool
available which is able to present a universal solution.
 Principle of Organization- This principle defines that within a production facility
everything within operations of an organization will interconnected. It is an
important principle as various elements have to be consistent and predictable. In
context of Tesco, without this principle its operation managers are not able to
achieve an outcome for profit from its various operations.
 Principles of Fundamentals- This principle of operational management is
based on the Pareto rule which is also applicable on the operations. According to
him 80% of success of organization is come from the strict adherence to
effectively maintain the records and disciplines in organization. While 20%
success is come from the applying new techniques to the process (Link and et.
al. 2020).
 Principles of Accountability- According to this principal managers of an
organization are expected to set effective rules and metrics & also clearly define
the responsibility of the subordinates. In context of selected firm, their operational
managers regularly check all activities perform by employees so that goal of
organization will successfully achieve. With the help of this principle, they are
able to enhance their workers efficiency and productivity.