Operations Management in Tesco: Strategies and Effectiveness

Running head: OPERATIONS MANAGEMENT
Name of the Student
PGBM03 Operations Management
Module Assignment 2016/17
Name of the University

OPERATIONS MANAGEMENT
Contents
Introduction......................................................................................................................................1
Company overview..........................................................................................................................1
The target market.............................................................................................................................1
Operations objective of the company..............................................................................................1
Operations strategies undertaken by the company...........................................................................2
Evaluation of the effectiveness of the process.................................................................................2
Recommendation.............................................................................................................................2
Conclusion.......................................................................................................................................3
Reference list:..................................................................................................................................4
Appendix..........................................................................................................................................5

OPERATIONS MANAGEMENT
Introduction
A business organisation sells products or services to the end customer to earn revenue
and generate funds for the company. Operations management looks after the day to day fuctions
of the business. it is a part of the administrative function of an organisation which deals with the
planning monitoring as well as delivering the process of manufacturing of a product or
provisions of a service. It is concerned with the day to day running of the business and focuses
on the efficiency of the process without compromising with the quality (Brown and Bessant
2013). The operations of the business are the most important aspect that ensures revenue and
consistent flow of finance in the company. The operations are directly responsible for the flow of
funds within the organisation. Strategic management allows every business operation to build
objectives which has to be achieved, these objectives depend on the values and principles that the
organisation follow, operations management play an important role in achieving these
operatives. One of the major roles of operations management is to ensure optimal and efficient
use of resources in terms of raw material as well as labor, technology or any other kind of input
in order to maximize the output in terms of value and quality as well as number. Inventory
management, operations planning, production or manufacturing management, distribution and
logistics, organisations of training and program are some of the functions of an operations
manager (Jacobs et al. 2014). Randall Schaeffer has states the following as some of the
principles of operations management:
• Reality. Focus on the barriers and use logical reasoning to plan and design the policies
and procedures

OPERATIONS MANAGEMENT
• Organization. In order to achieve a common goal it, it is essential to interconnect all the
process of production as the alignment of the interest of each of the department will only
ensure success.
• Fundamentals. Values and principles of the company form the fundaments of the
organisation. 80% of accomplishment by maintaining records and disciplines, and only
20% comes from applying new techniques to the processes.
• Accountability. People recognize their responsibility with the help of constant
monitoring, support and guidance from the management and supervisors.
• Variance. Creativity and innovation is the process of development and success.
• Causality. Issues have to be tackled by the company with the help of attacking the
underlying cause or it will reappear.
• Managed passion. Motivation is important to generate passion among the employees
• Humility Acknowledgement of issues and grievances and working towards solving them
is the duty of the manager
• Success. This is achieved when all the aforementioned principles are implemented
• Change. Stability is essential in the organisation but changes are also important to meet
the dynamics of the industry .
Company overview
Established in 1919, Tesco has grown to be one of the leading retail organisations in the
industry. It is a multinational organisation that employees and serves a number of people and
thus has an impactful presence on the economy as well. The company operates in more than 12
countries. The company has expanded exponentially and today they have 6,809 stores around the
world. The organisation has also changed and adopted with the dynamics of the industry, they