Principles of Operations Management: Strategies for Resource Management and Risk Mitigation in Tesco

PRINCIPLES OF
OPERATIONS
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 3.................................................................................................................................................3
Strategies for resource management...........................................................................................3
Resource Based View and VRIO model.....................................................................................4
Explanation of Lean, JIT ,TQM techniques and how those they help in reducing costs in
Tesco with examples...................................................................................................................5
Explanation of McKinsey's model, its application in Tesco and the way it will help the
company in achieving its goals and objectives...........................................................................6
Cost Benefit model......................................................................................................................6
LO 4.................................................................................................................................................7
Standards and Benchmarks for Managing Risk..........................................................................7
SWOT of Tesco and how can it help in mitigating risk and developing contingencies.............7
Relationship between various stakeholders and risk...................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Operations management is the process of planning, organising, supervising and
scheduling various processes that are involved in the production and manufacturing of products
and services of a particular organisation (Bateman, Philp and Warrender, 2016). Tesco is a
British general merchandise and groceries retailer having operations world wide and
headquarters in England, United Kingdom. The report explains relevant and appropriate
resources for allocation for operations management, the various strategies of management of
resources. It also explains various models that can be opted by the respective organisation in
order to enhance its operational activities. Various standards and benchmarks are also explained
in order to manage as well as minimise risk. The report also describes the relationship between
the various stakeholders of the company and risk.
MAIN BODY
LO 3
Strategies for resource management
Resource management can be defined as the process of utilising the resources available
with the organisation effectively and efficiently whenever there is a need. Production raw
materials, human skills, inventory, financial resources, natural and IT resources can be cited as
examples. Resource management is an important aspect in operations management as it provides
an overview of the people who are involved in a particular project of the company and makes the
process of planning and formulating strategies transparent. It also helps in identifying problems
and addressing as well as controlling them on time (5 Reasons Why Is Resource Management
Important, 2020). Various strategies of resource management are explained below -
 Developing a strategic breakdown structure – It does not matter the kind of business
an organisation is into, it should take out time and create a strategic breakdown structure
wherein it align all its goals and measure them (Bromiley and Rau, 2016). Formulating a
strategic breakdown structure will help Tesco in measuring its results and adjust plans
accordingly and will also help the company by guiding its efforts.
 Planning for uncertainties – There can be cases where an opportunity can arise at the
last moment that might need assistance or can pose as a challenge. Such situations can
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