Business Operations Management: A Case Study of Tesco

This report discusses the key functions of business operations and evaluates Tesco's operations management decisions regarding production, HR, quality control, and more. It provides a brief description of Tesco and its expansion strategies. Findings show Tesco's leading position in the market and the importance of efficient operations management.

Case study

Table of Contents
INTRODUCTION ............................................................................................................................3
Main functions of business operations..........................................................................................3
Brief description of Tesco.............................................................................................................5
Evaluate company's operations management decision regrading production, HR, quality control
and others......................................................................................................................................5
Findings of the study.....................................................................................................................7
CONCLUSION .................................................................................................................................7
REFERENCES...................................................................................................................................8

INTRODUCTION
Business operation are the daily activities of an organisation involving in the producing
and selling their product to the customers. It is the key to manage company's inner working and
the development of business which can efficiently operate the organisational administration. These
are the plans or strategics accessed by an investor and management in order to gain the
understanding of working part within organisation. Business operation is the centre of a company
as it oversee different function of the business. It evolve as the organisational growth and its
management need plan to accommodate various changes in order to prevent the glitches that
occurs in the system. The company selected in this report is Tesco that is a supermarket chain in
United Kingdom. This report will include the concept of business operation, functions of business
operation, description of the chosen company and evaluation of the company's operation
management decision: supply chain, production, quality control, location strategies and HR (Hsu,
Hsin and Shiue, 2021).
Main functions of business operations
In an organisation there are various function which are essential to operate a business as
these function play a vital role in performing all business activities. The key function of a
business operation are given below:
 Marketing function- It is the activity of getting service and product into the hands of
customers with the motive of to satisfy their needs and wants. For this, a marketing manger
should make their decision regarding 4Ps that are product, physical distribution, promotion
and pricing. Marketing function of Tesco also come up with the new marketing techniques
by which they produce some different quality products with different price. It focuses to
attract more customers by its signature strategy that is low price. It makes extensive use of
media advertising and prints as a tested channel in order to send more promotional
messages to its customers. It changes their marketing method by observing the problems
which are faced by its customers (Khorshidvand and et. al., 2021).
 Production function- In this function, there is the creation of products and services by
adopting certain processes. Production of products and services depends basically on
organisation of material, money, men and facilities into the smoothly business operation.

In context of Tesco, it produce goods such as clothings, books, furnitures, electronics,
petrol, toys, software, financial services and internet services. its production process is
very important as it changes its input into the output to sale and produced products in order
to meet their customer's needs and wants.
 Finance function- This functions is essentially responsible for the three decisions with
their proper implementation such as investment decision, finance decision and dividend
decisions. It help to provide resources in order to operate and expand a business. The
finance department of Tesco is divided into two parts that are management accounting
department . In this, they were plan their finance for future. The company also plans for
setting or allocating budgets to its department. Its financial team support commercial
department with in all aspects of its operation as they are key in to forecasting, reporting
sales and the margin (Kumar, Singh and Kumar, 2021).
 Human resources- It deals with human side of the business. This function is concerned
about increasing effectiveness of the human performance within the organisation. It main
aim is to maintain the capable and effective workforce. They motivate its employees in
order to maximise their productivity and contribute maximum to the fulfilment of
company's goals. The HR team of Tesco direct and instruct its employees effectively
towards the organisational goals. This function focus on redirecting its HR objectives
from the transactional to strategic assuring an effective path of new innovation with
forward thinking and business ideas (Visser, 2020).
 Innovation- It is an implementation of the new and significantly improved goods or
service. Innovation means the creativity that the entire organisational functions need to
adopt. Innovation include the research and development as it will help the business to
realise overall objective of a business. Innovation function of Tesco work with a purpose
to go from the initial idea to a minimum viable product in six weeks. They work with the
motive of finding new product, technology and ideas that will help them to serve their
customer, communities, colleagues and many other in future.
 Research function- In this, the staff of a company generate new knowledge as it is a
process that is undertake by a company in order to develop their new prodcut, services and
improve these products. In relation of Tesco its team's objective is to find the latest
technology to make its product with a better quality and some improvisations. Its research

department is working on to find out that how they could make efficient its products and
service (Neise, 2018)(Panikov, 2019).
Brief description of Tesco
Tesco company is a multinational retailer of the general merchandise. It is founded by Jack
Cohen in 1919 and its headquarter is situated in Welwyn Garden City, U.K. It is a leading retailer
in U.K. Industry. It carries out its business through the multi- formate stores or online. This
company operates stores in different formate which are differentiated by product's range, size and
many others. Tesco offers a large variety of food and non food items, including drink, fresh food,
grocery, bakery, home and other entertainment products. Tesco started to expand its product's
range during 1960s including clothing and household goods under Delamare brand. July 2001,
Tesco had become involve din the internet grocery retailing in US and obtained 35% stake in the
Grocery Works. In June 2003, it purchased C two – network in Japan and acquire majority stake
in Turkish supermarket chain. 9 February 2006, it it has announced its plan to move into United
State and opening a chain of the small formate groceries in Western states. It also started funding
the small film studio in 2010 with the purpose to produce Tesco exclusive direct to DVD films. It
is the biggest retailer in U.K and biggest private employer in Nation with around 330000 working
staff in 3146 stores. It introduced loyalty card and later in internet shopping sevices.Tesco offer s
cardholders a large variety of advantages main of them is the reward system in which customers
collect some points every purchase. When they have enough then these points can be exchanges
for the cash voucher that can be used by the customer-r in store (Luo and et. al., 2021).
Evaluate company's operations management decision regrading production, HR, quality control
and others.
 Supply chain decision- This decision contain four decision in supply chain that are
location, production, inventory and transportation. it is a crucial competitive value for an
organisation with the international operations. The supply chain of Tesco has evolved
essentially in last half decade. It manage their global supply chain through the lean
thinking, complexities management and vertical integration. Its opened around 5000 stores
and these are located across the world. Its inventory management has improve with the
help of automated data collection in order to feed information into the big data.

 Location strategies- This plan is used to obtain the optimal location for a organisation by
identifying the company's objectives and needs, and searching for the location by offering
compatible services. Tesco chose those location for its product, which is very convenient
for its customers. It has around 7000 stores in different countries. It offers different t type
of store at different location which is suitable for their product and generate high revenue.
 HR decision- It entails finding most effective method of investing in the people. It include
determining that where they should use resources and money in order to enhance
employees and business performance. the human resources of Tesco revolves around the
work simplification, achieving steering wheel targets and unwritten rules. They hired well
skilled workforce and provide the training and development sesscions to its employees. It
emphasis on the higher level training to its employees that result in the higher commitment
to respective company (Rezapour, Farahani and Morshedlou, 2021).
 Quality control- In this decision, a company set standards and testing to make ensure that
a services or product is done accurately. In this a department in the manufacturing plant
which is designed in order to inspect every product to make ensure that it properly put
together. In context of Tesco, all non food item are subjected to the pre-shipment
inspection in factory by Tesco colleague, a trained factory employee and approved third
party. This inspection ensure the product quality must be expected as well as legal and
safety checks (Schram and et. al., 2020).
 Production decisions- This decision is by management committee to the commerce
development or put Properties into the production. Tesco product many type of products as
it deal in large variety of goods and services. It manufacture product according to the
customers needs. For this, they determine the market area and allocate resource to product
goods in a quantity and quality manner. They provide good quality products at a
reasonable price. Its production department is concerned about mainly batch production.
 Logistic decision- It means to make sure the correct goods are procured an this they will
arive when needed. It involve the delivery of right product to correct customer at right
place and correct time with accurate quality. In context of Tesco, deliver its product to
their correct customer at the convenient and accurate location, right time amd with an
appropriate quality or quality of products to the potential customers. They take decision
by take in account its customer s satisfaction.

Findings of the study
In this study, it is find out that Tesco is the biggest retailer supermarket chain in United
Kingdom. It is at the leading positio0n in market locally and globally that is sustained the
competitive advantages in Tesco and made it stand out from its competitors. It operate under
different functions such as marketing, position, finance, production and other etc. theses function
are operated efficiently in Tesco. It expand its business differently and get success. It expand its
business at worldwide. Tesco has a good production decision in which it produce the goods
according to the requirement and on the basis of market analysis. It has a skilled workforce that is
herd by the HR department and take good decision during the recruitment of employees. It make
its location strategies by considering customer's convenience so that it can get the product easily.
Tesco despite dominant leader in this industry and shown some decline sales growth. It applies
some strategies to maintain their leadi9ng position within the market. It also increased its online
sales y taking correct decision to operate various function efficiently (Tan, Zhao and Halliday,
2018).
CONCLUSION
From the above report it is concluded that, in business operation there are various function
on the basis of which a company run. It include various functions such as production, marketing,
finance, technology, HR and many more. These function are very essential to run operate a
business successfully. By performing theses function an organisation is become enable to produce
or sell its products in the market. In business operation there are many types of decision such as
production decision, HR decision, supply chain decision and many more. These decision help the
organisation to decide about where they should locate its branches. The management decision help
a company to its planning process as what objectives they will pursue, who will perform and what
type of resource they will use and many others. So it is very essential that to for a business
operation, it it is very crucial to perform these key functions efficiently.

REFERENCES
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