Service Management & Marketing: A Comprehensive Analysis of Tesco

This report provides a detailed analysis of Tesco's service management and marketing strategies, focusing on service process design, the role and ethical implications of technology in service delivery, and the management of service capacity and performance. It explores how Tesco uses technology, such as mobile applications and big data, to enhance customer experience and operational efficiency while addressing ethical considerations related to data privacy. The report also examines Tesco's value chain to identify areas for improvement in service design, delivery, and management, recommending strategies such as augmented reality integration, AI-powered inventory management, and enhanced online customer retention programs. The conclusion emphasizes the importance of a robust service process design for gaining a competitive advantage and achieving long-term profitability.

Service Management
& Marketing

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyse of service process design-..............................................................................................3
Evaluation of role and ethical implication of technology in service delivery-............................3
Management of service capacity and performance-....................................................................4
Recommendation for improvement in service design, delivery and management- ....................6
CONCLUSION ...............................................................................................................................7
References........................................................................................................................................7

INTRODUCTION
It is necessary for a business entity to conduct a continuous check on the quality of services they
are offering to individuals. There are different departments has been established in a
management for conducting various services, and for proper management of operations related to
the service various individuals are considered like groups of experts who will design the types of
services offered by the firm, for calculating the behaviour and interest of customers there is
customer success team. All the members who are involved in the service operations works in the
direction of service process design, it is a type of structure which used to design the varieties of
services which are provided by the companies (Dedeić, Hrustemović, and Ovčina, 2019). Tesco
is British retail company, which is established by Jack Cohen in 1919, its headquarter is located
in Welwyn Garden City, United Kingdom. Company is operating thousands of stores in all
around the world. Company is working in improving its service operations for making it easy for
their customers to shop from their stores. This report is a detailed discussion on the service
structure of Tesco and use of different technology which is used by company in its delivery
process. It will also evaluate the management of service capacity and performance of the
company, along with a recommendation for further improvement in its operations.
MAIN BODY
Analyse of service process design-
For making service process design worthwhile, Tesco concentrate on examining the needs and
preferences of their customers. While focusing on this factor company also keep aware itself
about the sight of the business. By doing complete evaluation of the needs of the consumers,
Tesco get to know about the organisation between the services which is offered to the customers
and what they are expecting from the stores. After this management team of Tesco, start doing
planning regarding the changes which can be bring in the service operations. And start executing

the plans according to this, along with this company keep on checking the service process design
and make changes, if any required (Lai, and Tsai, 2018).
Evaluation of role and ethical implication of technology in service delivery-
Tesco is moving forward with the motive of maximum use of technology in its store or other
operational activities. Company knows this very well that how these technological advancement
could help the company to achieve their long term profitable goals and make their performance
effective and efficient. For its service sector company is using different advanced techniques to
attract the customer and making it difficult for the competitors to survive in the market. For
instance, Tesco has launched an application for their customers who visit to the stores, this app
will allow them to avoid those long queue for billing purpose. Now they can pay there bills by a
quick scanning from their smartphones, which is also helpful in saving their time. For checking
the amount customers who come to the stores, Tesco is using 3 dimensions camera, which is able
to give a complete overview about the availability and interest of consumers in the business.
Company also working in providing home delivery services for the grocery items to their online
customers, this make it easy for them as it supports in overcoming the problem of movement
towards the stores (Jalil, and Yeik, 2019). Tesco also focus on fulfilling its ethical obligation
towards their customers while they are using technology for the delivery service. Their main aim
is to provide complete privacy to the data which is shared by the consumers or other individuals
who are involved with their service operations. This type of actions by any business firm is
helpful in achieving the trust of the stakeholders in the management and give them competitive
advantage. Use of big data tool is another technological advancement which is adopted by Tesco
in its service delivery, as it will allow them to track their products while they are being delivered
to the customers. All these technological factors is supporting the company to develop in the
market.
Management of service capacity and performance-
Service capacity of any business refers to the process by which the production unit is able to
produce the amount of relevant units. By this company is able to carry off its demand for the
product according to the preferences in the market. Tesco believes in using distinguished plan of
action for the delivery of the products by making different design and regulations (Gleason, and
Bohn, 2019). Company is trying to make their management activities quite different to their
competitors, to avoid the similarities of the products with them. So as to grow their service

capacity, company needs to build such business plans which are better than their competitors,
which helps them controlling the market more. After COVID company is continuously following
the objective to provide the products to the maximum range of customers by bringing necessary
changes in its service capacity. Company's IT department constantly contributing their potential
efforts to make this target achievable. Service delivery of the company can be more
understandable with the help of value chain analysis of the business. It is that structure of a firm
which will give a complete information regarding the all those factors or components of the
operations which have enough potential to bring value to the company and make it superior from
its competitors by achieving competitive advantages. This analysis has divided the business into
two parts i.e., primary and support activities, which are listed below-
Primary Activities-
 Inbound Logistics- It is the method by which different material or product is transported
to the company. There are thousand of product is being supplied to the several stores of
Tesco and this make company's operation more difficult. Various challenges has been
faced by company in this activities like time lag between the payment of receipts
(Muflikh, Smith, and Aziz, 2021).
 Operations- It refers to the activities in which the firm is being involved like Tesco is
operating in retail, banking and manufacturing industry. Retail stores of the company is
operating in different structure on the basis of its size and functioning.
 Outbound Logistic- It is concerned with the delivery and transportation of the product to
the consumers. For smooth functions of this activities stores are working in providing
home delivery services to their online customers.
 Marketing and Sales- It is related to planning for the distribution of product and issuing
information about the product to the customers. Different type of marketing strategies has
been used by Tesco to improve and develop the sale of the stores like every little helps.
 Service- The method by which company is providing its outputs to the consumers is
known as its service. It has been noticed that Tesco is continuously trying to improve this
sector of its business, so company can provide maximum satisfaction to their customers.
By making their service sector more simpler, company is able to connect more customer
with them. Tesco is trying to improve its service capacity and at the same time also
focusing on reducing the its cost of operations. Company is developing its service

capacity thorough online as well as offline medium, and trying to get continuous
feedback regarding the quality of services they are offering (Wright, and Schultz, 2018).
Support Activities-
 Firm infrastructure- Tesco has very influential infrastructure, which make the company
to face any kind of unexpected risk. This helps the company in going global and increase
its brand value in the retail business.
 Human Resource- In order to make a better human resource force, Tesco adopts several
techniques to motivate its employees like offering rewards, perks and benefits Company
also conduct necessary training programmes to improve the skills of the labour.
 Technology Development- Tesco's main aim is to emerge in the field of technology to
make their functioning more easy and convenient. Various technological changes has
been developed in the business.
 Procurement- Company carefully analyse of procurement activity to carry out its daily
operations smoothly without affecting the profit generating ability of the company.
Recommendation for improvement in service design, delivery and management-
There are several changes which Tesco can bring in its operations like in its online delivery
system. Company must focus on retaining their customers by issuing them different offers and
discounts on the products they want to purchase. Tesco needs to advertise and convince
customers to place orders from their own site, this will helpful in gaining the maximum reach for
the company's website. Customers does not want to pay the charges for the delivery of the
product, in this way company can pull these customers to their stores by offering them free
shipping on the product they have been ordered (Edition, 2018). Tesco can upgrade the use of
augmented reality in its different stores which will provide customer a great experience by
keeping them updates about the necessary information regarding the product. This will benefits
the company's overall sales by enhancing the demand of the products, and the risk which is
associated with product return will be low as customers are already aware about the product.
Stores are also able to collect significant information about the types of product which are
demanded by the customers. Recently, company has given a statement they are planning to use
augmented reality in their stores for better customer experience. For making management of
stores more effective company can take use of smart AI system in their operations, can improve
the availability of products in the stores. Use of such technology can help in solving the queries

of the customers in relation to the services which are provided by the company. By using data
base management system company can avoid the use of old method of inventory control, by
recording all the relevant data in this system. It also enhances the stores ability to predict the
accessibility of the material and make it available when there is need (Brown, 2022).
CONCLUSION
In the conclusion of above report, it is important for every business firm to adopt an optimum
framework for service process design to make their delivery process more simpler, through
which company is able to gain more customer base. This report discusses the service operations
of Tesco, in which it has been observed that the company is using various strategies in order to
make their service delivery more effective and efficient. Use of different technological method in
the stores and ethical implication is also mentioned in this report. These techniques are helpful
for the company to make its operation efficient which results in long term profitability in the
management. A detailed recommendation on the improvement which company can take in its
service designs and delivery management has been discussed.

References
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Lai, C.J. and Tsai, C.P., 2018, March. Design of introducing service robot into catering services.
In Proceedings of the 2018 International Conference on Service Robotics Technologies
(pp. 62-66).
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use of self-service checkout. In Proceedings of the 2019 3rd International Conference
on Education and E-Learning (pp. 122-127).
Muflikh, Y.N., Smith, C. and Aziz, A.A., 2021. A systematic review of the contribution of
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Systems, 189, p.103044.
Edition, A.P.S., 2018. Global Value Chain Analysis. Global Value Chains and Development:
Redefining the Contours of 21st Century Capitalism, p.305.
Brown, T., 2022. Blockchain and its Dependent Technology's Ethical Implications. Available at
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Wright, S.A. and Schultz, A.E., 2018. The rising tide of artificial intelligence and business
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Gleason, B. and Bohn, J., 2019. Using small step service design thinking to create and
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