Repercussions of War on Global Economy

Repercussions of war on
global economy
Table of Contents

TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
Question 1: ALDI and similar stores offer different customer experience. Do you think a
similar business model would work in other industries?........................................................4
Question 2: What are the sacrifices customers have to make in order to have access to these
shopping experiences?............................................................................................................4
TASK 3............................................................................................................................................5
TASK 4............................................................................................................................................6
How it has an impact on the operations management and overall business management of any
organisation............................................................................................................................6
What challenges this area faces daily.....................................................................................6
Reflection.........................................................................................................................................7
REFERENCES................................................................................................................................9

TASK 1
Operations management is the key administration process to articulate the high level of
efficiency and productivity in supply chain of the organisation. The operation management is all
about the transformation of the materials and labours into the successful products and services to
maximize the profits of the company. Many daily news publications report the operational
management issues in their magazines, newspaper, TV broadcasts that are impacting the
daily ,lives of consumers and businesses as well. Below is the discussion of the two news article
that represents the issue of the operational management:
Article 1: UK Supermarket giant Tesco sees profit dented by Covid- 19 related costs
Tesco is the Britain's biggest supermarket chain, but due to the Covid-19 crisis the profits
of the company slid by a fifth over the past year due to the higher costs pertained by the
coronavirus pandemic. Due to the pandemic, the Tesco has to hire more staff and also offset the
exceptionally strong sales growth (UK supermarket giant Tesco sees profit dented by Covid
related costs, 2021). The company has faced the loss of pretax profit for the year slid to 825
million pounds as compared to the past year 1 billion pounds. The major cause of the loss of the
profit is the Covid-19 related cost that involves the need of hiring the staff to cover the workers
affected due to the virus. Also the company has to spend higher cost on the store to make sure its
safety. This article demonstrates that the Tesco is facing the managing overheads operational
issue due to the Covid-19 as it has increased the demand for groceries as more meals are eaten at
home due to the amid restrictions on the hotels, restaurants and also the changes in the working
habits. Thus, to resolve this issue the company need to double its inventor and capacity to meet
the rising demands of customers. The company must build strategic plans with its incredible
financial strength and agility.
Article 2: Food shortages could be permanent, warns industry body
The food industry of the UK is experiencing the labour shortages due to which the
consumers are facing the issue of not finding the products in the shelves of the stores and
supermarkets. The reason for this issue is the inefficiency of the Just in time system as it is no
longer working. Morrisons has warned that the shortage of the food supplies will lead to high
raise of prices (Food shortages could be permanent, warns industry body, 2021). The food
supply chain of the UK is highly resilient and is coped well with the responding unprecedented
challenges. This operational management issue with the supply chain is caused due to the lack