Operations Management Analysis: Tesco's Key Approaches and Factors

This report provides an in-depth analysis of operations management, using Tesco as a case study. It begins with an introduction to operations management and its core principles, followed by an examination of key approaches such as Total Quality Management, Six Sigma, supply chain management, business process redesign, and lean manufacturing. The report then highlights the importance and value of operations management, focusing on how it improves productivity, utilizes resources, increases goodwill, and enhances quality and safety within an organization. Furthermore, it delves into the factors that influence organizational decision-making, including the business environment and a detailed PESTLE analysis, which assesses political, economic, social, technological, legal, and environmental factors. The report concludes with a summary of findings and provides recommendations for Tesco, emphasizing the need for continuous improvement and strategic management of operations to achieve its goals. The references section includes relevant academic sources supporting the analysis.

Management and
operations

 Introduction
 Key approaches of operation management
 Importance and value of operations management
 Factors that affect decision making of organization
 Conclusion
 Recommendations
 References
Table of content

Operation Management refers as the capability to transform raw materials in
finished goods. It analyse the requirement of potential consumers for their
high level of satisfaction which result in maximisation of revenue and
profitability ratios. The organisation which is selected for this project is
Tesco as being the British multinational groceries and its general
merchandise retailer.
Introduction

The key approaches of operation management within business are to manage
the quality of produced products. It develops competitive strategies
through internal strength and external opportunities to compete with
rivalries in order to sustain in global market.
Key approaches of operation
management

The Dave Lewis joined the Board of Tesco PLC as Group Chief Executive
on 1st September, 2014. This has much experience in brand marketing,
customer relationship with highly motivated and target-oriented skills. Its
qualification was MBA from Harvard Business School with Bachelor’s
degree from University College Cork. The career objective of Tesco CEO
is being committed to retaining its own position as UK’s largest
supermarket retailer for being stable in global market by competing with
rivalries.
Individual Biography and Career
Objectives

These key approaches are explained with reference for Tesco organisation is as
follows:-
 Total Quality Management:- It refer to focus on improving quality to manage
its effectiveness that meets the needs of target market.
 Six sigma:- This is described as the set of management techniques that improve
business process by restricting errors which increase time consumption that
delay in goal achievement.
 Supply chain management:- It is the procedure utilised by producers in
delivering finished products to target audience for satisfying their needs, desire
and wants.
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 Business process redesign:- This focus on improving efficiency by
diminishing the slack and excess, minimising the cost, total quality
management, etc.
 Lean manufacturing:- This methodology focus on reducing the wastage
of production which creates to opportunity to maximise profits with
minimising cost.
Continue….

Operation management plays major role for an organisation to achieve its
goal and objectives for attaining success. This is the procedure of
transforming raw material into finish goods for satisfying the requirement
of potential consumers through their high quality products. Some of these
importance are mentioned below with reference to managers of Tesco are
as follows:-
 Improve productivity of employees:- Managers focus on quality
improvement of production from their employees by guiding them to
reduce the time consumption with superior quality.
Importance and value of operations
management

 Able to utilise resources:- The main purpose of every business is to fully
utilise scarce resources in global environment that results in effective and
efficient goal achievement (Lucas and et.al., 2014).
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Management of operation is very essential in creating business value through
improving their core competence with rivalries to sustain in global market.
Some of these business values are explained with reference for managers
and leaders of Tesco are as follows:-
 Increase goodwill:- The main aim of operation management is to increase
goodwill of business by taking high risk for achieving high return in
future.
Continue….

 Improve quality and safety:- This procedure is the ability to create
opportunity for business employees to increase their product quality. The
managers provide safety gears to their workers through enhancing
insurance, food, cloth, shelter, etc.
Continue….

Business Environment:- It is described as the combination of internal and
external surroundings which develops competitive strategies for an
organisation. The intrinsic environment develops strength over weakness
which is controllable risk whereas extrinsic atmosphere create
opportunities to overcome threats as these are uncontrollable risk.
Factors that affect decision making of
organization

PESTLE Analysis:- This framework analyse the changes in macro-
environmental factors that affects growth and stability of business either
positively or negatively for achievement of success. These factors are
explained with reference to role of managers and leaders in Tesco are:-
 Political factor:- This factor determine the rules and regulations governed
by government which affects the stability of business in global market.
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 Economic factor:- It is the element which consist of economic growth,
disposable income, interest rates, foreign exchange rates, etc. The roles of
managers in Tesco are adversely by fluctuating rates through inflation and
deflation affects the business in economic growth and its stability in
competing with competitors.
 Social factor:- It includes the determinant such as population growth,
demographic conditions, age and income distribution, health consciousness,
etc. The roles of managers in Tesco are favourably affected as they create job
opportunities for society members who are literate and result in increasing
efficiency.
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 Technological factor:- This factor involves new technology, automation,
innovating ideas, etc. The roles of managers in Tesco are favourably
affected as the business promotes and position goods to consumers that
result in maximisation of revenue and profitability ratios.
 Legal factors:- It consists of legal and lawful obligations, health and
safety, consumer protection rights, product labelling and safety, etc. The
roles of managers and leaders in Tesco are adversely affected by this factor
as they have to pay minimum wages to employees as per government
regulations.
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 Environmental factors:- This consists of pollution targets,
business stability and instability, utilisation of scarce
resources, etc. The roles of managers and leaders in Tesco are
positively affected as they concentrate on these environmental
issues by taking corrective measures that result in increasing
consumer support and loyalty.
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 From the above discussion it have been concluded that operation
management plays very essential role in manufacturing products with
superior quality that create opportunity for growth and success.
Conclusion

From the above discussion it is suggested that management operations
have played major role in achievement of organisation goals and
objectives. The managers of Tesco are suggested to manage the quality of
their products which enlarge customers by enhancing market share. This
will further result in economic growth and stability of business to compete
with rivalries. It further focuses to fully utilise the scarce resource that
develop competitive strategies which analyse the macro-environmental
factor that may impact in stability of business.
RECOMMENDATIONS

Tesco managers have to determine the positive and negative impact of
these elements and take corrective measures to control their threats that
delay in target accomplishment. It is recommended that managers of Tesco
must focus on Total Quality Management ( TQM), Six sigma, Supply
chain management, etc. This improves productivity of employees that
result in increasing goodwill, copyright and patent.
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 Hanif, S., and et.al., 2017. Distributed congestion management of
distribution grids under robust flexible buildings operations. IEEE
Transactions on Power Systems. 32(6). pp.4600-4613.
 Lucas, C. L., and et.al., 2014. Heterozygous splice mutation in PIK3R1
causes human immunodeficiency with lymph proliferation due to
dominant activation of PI3K. Journal of Experimental Medicine. 211(13).
pp.2537-2547.
 Qi, W. and Shen, Z. J. M., 2019. A smart‐city scope of operations
management. Production and Operations Management. 28(2). pp.393-406.
References

Thank you