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.
Continue….

 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).
Continue….

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