Business Operations and Management: Issues, Ethics, Supply Chain

This report examines business operations, focusing on operational issues faced by companies like TESCO and Sainsbury, and provides recommendations for improvement, including adopting new technologies and cost-cutting strategies. It explores the customer experience offered by ALDI, analyzing the sacrifices customers make and the applicability of ALDI's business model to other industries. Furthermore, the report explains the importance of business ethics within ALDI, highlighting how ethical practices enhance employee well-being and customer loyalty. Finally, it emphasizes the critical role of supply chain management in business operations, detailing its impact on customer satisfaction, operational costs, cash flow, and inventory management, while also addressing day-to-day challenges faced in supply chain operations.

Introduction to Business
Operations and
Management

Table of Contents
Introduction:.....................................................................................................................................3
MAIN BODY...................................................................................................................................4
Task 1 : Contemporary Research about operational issues as well as recommending for
reducing the issues:.....................................................................................................................4
Task 2 :Question 1: ALDI and similar stores offer different customer experience. Do you
think a similar business model would work in other industries? Please give examples to
illustrate your answer..................................................................................................................5
Questions 2: What are the sacrifices customers have to make in order to have access to this
shopping experiences?................................................................................................................5
Task 3: Explaining the approach of business ethics in ALDI grocery store:..............................6
Task 4: Describing about the importance of supply chain management as well as its impact on
the operations management:........................................................................................................7
Conclusion:....................................................................................................................................10
References:.....................................................................................................................................10

Introduction:
The term operational management is considered as the management of business processes
in order to attain the highest level of efficiency within the company. The main role of operations
management is to transform the raw material as well as efforts of labour into finished good and
services by ensuring the optimum utilization of resources. The report will highlight the main
operational issues of selected companies that will be TESCO and Sainsbury. In addition to this,
the report will also recommend the solution of their operational problems. The report will also
explain about the customer experience provided by the ALDI grocery store. Moreover, the report
will also cover importance of ethical work culture of employees. Furthermore, the report will
also evaluate the impact of supply chain management to the daily operations of the business.
MAIN BODY
Task 1 : Contemporary Research about operational issues as well as recommending for reducing
the issues:
The operation management is crucial for every organisation as it supports the firm in
automating daily business processes in the manner which leads to higher efficiency. The
problems in operation can be defined as any problems that can arrive during different
management practises that can be in marketing department or production (Cui,(2020).
. The following explanation represents the main operational problems faced by the largest
supermarket companies of UK that is TESCO and Sainsbury are:
Operational issues faced by TESCO company:
The logistics and operations of the firm is facing great problems due to the rapid change
in technology in the grocery industry. The operations of TESCO company has greatly affected
by the stricter rules and policies imposed by the Brexit. This has posed the challenge in front of
company by putting a lot of restrictions regarding import or export of raw material from the
another countries. Moreover, the company also lacks in adopting proper logistic services in order
to deliver products to the wholesalers as well as retailers. As the result the firm does not maintain
the proper stock data which further causes conflict and complexity in doing by daily business
operations.
Solutions to the problems:

For overcoming the above stated problems, it is recommended that the company should
adopt flexible approach in identifying and practising newer technologies in effective manner.
This approach can help the business enterprise in enhancing the efficiency of day to day business
operations. In addition to this, the company can improve the problems associated to its logistic
department by enhancing the space of warehouse as well as by adopting advanced technology
such as Artificial Intelligence. This strategy will support the TESCO firm in maintaining proper
information of stocks that further leads to improved efficiency (Ghadi et.al., (2019).
Operational issues of Sainsbury:
The introduction of Brexit policy has lead to the operational problems for the company's
supply chain process. The new trade policy has put negative influence on the supply chain
process of the firm by introducing several import as well as export restrictions. In relation to this,
the recent changes in customer needs regarding wearing newer designer clothes has posed the
challenge in front company as the firm had to by newer machines to manufacture designer
clothes.
Solutions for the organisation:
In order to effectively overcome the trade restrictions of Brexit, it is recommended that
the company should make appropriate strategies. In addition to this, the company can take the
support of social media platforms in order to timely understand the needs as well as wants of
customers. This can help Sainsbury company to be prepared of the future fashion trends by
analysing the customer purchasing patterns deeply. Moreover the company is also recommended
to cut unnecessary overhead costs while performing day to day operations. This will lead the
organisation to cut the cost of their products (Orlova,(2019).
Task 2 :Question 1: ALDI and similar stores offer different customer experience. Do you think a
similar business model would work in other industries? Please give examples to illustrate
your answer.
In context to ALDI, the organisation in order to enhance and improve customer
experience uses the traditional super market model and offers a wide variety of choices to its
consumers. In reference to other industries such type of business model do not work in a
effective way as this model works the best when it comes to grocery shopping or supermarket

chain. As the organisation and its various close competitors offers a wide range of products and
services and it becomes easier for them to target locations and cover wide area but in case of
other industries it is difficult to enhance customer experience with limited products. In addition
to that organisations such as Aldi are providing top quality products which results in creating
highly competitive in a cut throat industry. It also helps the organisation to become a single
supplier of each product which helps in increasing retention of customers.
Questions 2: What are the sacrifices customers have to make in order to have access to this
shopping experiences?
In context to customers of the organisation, there are a lot of services and products that
requires money and time to design. In context to ALDI, the organisation in order to match all the
needs of the customers requires a different kind of offering for each individual customer. In
context to customers, there are various stages at which the customer is required to make
sacrifices which involves during the information search process, while purchasing the product
and during the entire customer experience. The customers need to make sacrifices while
experiencing the experience as it comprises of using resources which have effort, time and
cognitive. The consumer sacrifice is basically a gap among the needs and wants of customers and
what an organisation basically offers and delivers. In context to Aldi, the organisation has its
own brand product which basically results in increasing efficiency of management and reduces
overhead costs. Moreover, the customers need to travel from one store to another in order to
purchase a single product which might not be available at one outlet. In context to ALDI, the
organisation carries only a few variants which creates a negative impact on the customers and the
consumers do not have choices to make.
Task 3: Explaining the approach of business ethics in ALDI grocery store:
The business ethics is basically considered as the ethical actions performed by
management with the purpose of improving well-being of employees as well as customers. In
relation to this, the ethical approach is based on the the opinion that every employees have the
right to experience dignity within the company. In context to ALDI grocery store, the company
puts its emphasis more on meeting with the needs of customers by presenting the products in
systematic manner. The company provide to its customers the needs based shopping experience
in which they doesn't have to waste time by finding their needed products. This strategy of

grocery store supports the company to create a value to customers as well as encourages more
frequent visits in the grocery store. The company measures regarding maintaining low inventory
level has benefited the employees as it reduces their extra time regarding planning and
forecasting stock. Moreover, the organisation has their own exclusive brand products which
supports the company in reducing their overhead costs. This allow customers to buy products at
lowest possible price. Furthermore, proper designing of stores with the lowest product volume
support employees to minimise the challenges regarding restocking of shelves on daily basis.
This enable the staff members to lay focus on performing other business activities that can
improve their skills and knowledge. Hence, this ethical step of company assisted it to boost the
loyalty of customers as well as staff members. Most importantly this has created the healthy
working environment with the business (Teixeira, Lopes, & Matos, (2021, June).
Task 4: Describing about the importance of supply chain management as well as its impact on
the operations management:
The supply chain management plays crucial role for any business enterprise by managing
the complete system of delivering finished goods and services to the wholesalers and retailers of
the market. The supply chain management takes care of planning and management of business
processes related to sourcing as well as procurement of raw materials, their conversion to
finished goods and also manages the activity of logistics management. In addition to this, the
supply chain function business also assist the company in maintaining proper collaboration with
the different critical stakeholders such as customers, suppliers or with third part service vendors.
Moreover, the supply chain management in the company ensures that the supply and demand
management works closely with the company (Tasi, Keswani, & Bozic (2019). The following
points describes about the impact of supply chain management on overall business management
of the company:
 The improvement in supply chain process has allowed the company to focus on
maintaining both cross-functional as well as cross-enterprise integrations. The integration
with other companies can support the organisation in improving its supply chain process
by coordinating effective with different parties. In relation to this, the enhanced
coordination can also leads to the reduction of supply chain related cost. This can benefit
the marketing department to adopt low pricing strategy in order to attract large customers.

 The supply chain management supports the company to put extra emphasis on demand
management. This allow the companies to timely focus on demand made by customers in
market. This assist the operational as well as marketing department of the company to
undertake business activities based on these demands.
Importance of supply chain management to the business organisations:
Improving customer satisfaction:
The efficient supply chain process supports the company in enhancing the satisfaction
level of customers by providing goods or services at the right place and at the right time. In
relation to this, the streamline product outflow process assists the firms in meeting with the
customer demands in most effective manner (Kim, (2020).
Reducing operational costs:
The effective supply chain management process can help the firm in minimising the
operational costs by significantly reducing the costs related to warehousing as well as other
storage costs. This benefit helps the firm in effectively reducing their price structure which can
directly leads to higher market and customer share.
Improving cash flow:
The seamless supply chain process allows the organisation to properly predict which
product and in what quantity should be delivered to customers in order to fulfil their demand at
the right time. This allows the company to order raw materials according to the required volume
of products. Hence, this will improve cash flow of the company and will make easier for the
financial department to analyse financial statements.
Better inventory management:
The most important function of supply chain management is to ensure that the inventory
of the organisation is optimally managed. The just-in-time supply chain strategy can assist the
company in providing better solutions on maintaining proper stock of products (Huaiyu, &
Hailong, (2021).
Explaining about day to day challenges faced by the supply chain management:
The supply chain management of the company faces various challenges in its operations.
These challenges are discussed below:
Keeping transportation cost down:

The biggest challenge faced by supply chain management is to keep cost down
irrespective of market trends. The supply chain industry is highly affected due to high freight
charges in the global business environment.
Aligning with customer/ industry demands:
The fast as well as free shipping is pressuring the supply chain industry on daily basis.
The change in customer wants regarding faster delivery of goods with lowest transportation fees
has challenged the industry to meet with their demands in order to retain competitive advantage.
Sourcing reliable career capacity:
The other important issue faced by supply chain industry is sourcing correct capacity
careers that can effectively deliver goods to the customers without causing any damage to the
products (Ardebili, Boscolo, & Padoano, (2021).
Meeting with latest technological trends:
The other major reason that make supply chain management pressurise is keeping eye to
eye with latest technological solutions on daily basis. This causes a worry that the competition is
investing into gaining new technology.
Adopting latest government regulations:
The sudden changes in the government regulations can be challenging for the supply
chain management as the new regulations can pose the risk to the supply chain management in
terms of reducing profits. For instance, the Brexit policy has created the panic among supply
chain industry for rising transportation costs.
Individual reflection using Kolb's reflective model:
Concrete experience:
I have gained a positive experience while delivering my presentation related to the supply
chain area of management. I have learned about the importance of supply chain management
process for any organisations. I have also improved my knowledge regarding the issues which
the supply chain management faces in their day to day operations (Pezij,(2020).
Reflective observation:
While delivering my presentation in front of other students I had got the chance to
improve my presentation skills. In addition to this, the presentation also allowed to me study
different parameters of supply chain management. This has successfully improved my
knowledge about the concept of supply chain management practices.

Abstract conceptualisation:
I have learned from my experience that I have to improve my presentation skills in order
to attract favourable attention of people by practising more and more. I could have also covered
more important topics related to supply chain management process such as its benefits for the
organisations.
Active experimentation:
In order to improve my presentation skills I will try learn basic strategies which will
allow me to become better spokes person. In addition to this, I will also learn new concepts
regarding supply chain management that will support me to gain in-depth knowledge about the
subject (Goodwin et.al., (2019).
Conclusion:
It has been analysed from the above report that operations management is crucial for
every organisation in order to optimise business processes for gaining a competitive position in
the market. It was also evaluated that operations management can support the company to know
the demands of customers in most effective manner as well as attracting maximum number of
customers by producing quality goods at lower prices. The report has explained about the
operational issues faced by TESCO and Sainsbury company. Moreover, the report has also
covered about the questions related to the case study. Furthermore, the report has also explained
about the ethical policies used by the ALDI company that helped it to improve satisfaction level
of customers as well as employees. The report has also included the impact of supply chain
management process on other business functions. Along with this, the report has also included
about my reflection regarding my presentation skills.

References:
Books and Journal
Ardebili, A. A., Boscolo, M., & Padoano, E. (2021). Total quality management elements and
risk resilience at the operational level. International Journal of Risk Assessment and
Management, 24(1), 84-96.
Cui,(2020). Improving supply chain collaboration through operational excellence approaches: an
IoT perspective. Industrial Management & Data Systems.
Ghadi et.al., (2019). From active distribution systems to decentralized microgrids: A review on
regulations and planning approaches based on operational factors. Applied Energy, 253,
113543.
Goodwin et.al., (2019). Molecular approaches for an operational marine biodiversity observation
network. In World seas: an environmental evaluation (pp. 613-631). Academic Press.
Huaiyu, Z., & Hailong, L. (2021). IoT-Based Operational Information Management for Built
Landscape Projects: From Vacancy to Approaches. Landscape Architecture
Frontiers, 9(2), 83-96.
Kim, M. N. (2020). Operational Management in Journalism: From Thematic Modeling Edition
to Knowledge Management. Administrative Consulting.
Orlova, E. V.(2019). Model for operational optimal control of financial recourses distribution in
a company. Computer research and modeling, 11(2), 343-358.
Pezij, M. (2020). Application of soil moisture information for operational water management.
Tasi, M. C., Keswani, A., & Bozic, K. J. (2019). Does physician leadership affect hospital
quality, operational efficiency, and financial performance?. Health Care Management
Review, 44(3), 256-262.
Teixeira, H., Lopes, J. A. P., & Matos, M. A. (2021, June). Operational Management of Medium
Voltage and Low Voltage Networks under a Smart Grid Environment. In 2021 IEEE
Madrid PowerTech (pp. 1-6). IEEE.