Strategic Quality and Systems Management Report for TESCO: Analysis

This report provides a comprehensive analysis of strategic quality and systems management at TESCO. It begins with an executive summary and an introduction to TESCO's current quality management systems, emphasizing the importance of operations and quality management in achieving business objectives. The report evaluates the success of existing procedures and identifies the need for strategic quality change, exploring the driving factors, resource implications, and a strategic quality change (SQC) plan. It also examines the external implications of strategic quality change on TESCO, the existing quality culture, and outlines the outcomes of the strategic quality change process. Finally, the report offers suggestions for areas where improvement is needed to align with TESCO's strategic objectives, supported by relevant references.

Strategic Quality and Systems
Management
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Table of Contents
1- EXECUTIVE SUMMARY.........................................................................................................3
2- Introduction of TESCO and current quality management systems within company.........4
3- Importance of operations and quality management to achieve TESCO business objectives
................................................................................................................................................4
4- Evaluating success of quality and operations management procedure in achieving TESCO
strategic management objectives............................................................................................6
5- Need for strategic quality change, factors that drives need for strategic quality change,
resource implications and SQC plan......................................................................................6
6- Implications of strategic quality change on TESCO from external perspective..............12
7- Quality culture in TESCO and effective quality culture to assure continuous monitoring
and progress..........................................................................................................................13
8- Outcomes of strategic quality change and suggestion related to areas where improvement is
required to strategic quality change......................................................................................16
REFERENCES..............................................................................................................................19
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1- EXECUTIVE SUMMARY
System and Quality management are the key elements of business growth and success
(McAdam, Miller and McSorley, 2019). Quality management is defined as act of overseeing all
tasks and activities required to maintain a desired degree of excellence. While system
management refer to centralize administration of information technology in a company. Both
components are playing vital role in increasing productivity and improving performance of firms
in effective manner. The current assignment will be based on TESCO, which falls under list of
leading retailers in the UK. This study will explore the significance of operations and quality
management in context of achieving organizational objectives and will also evaluate success of
current operations management as well as quality management procedure in achieving
organizational strategic management objectives. Furthermore, this report will explain need for
strategic quality change and factors that drive this. It will define resource implications for not
responding to these changes, plan for strategic quality change and its implementation to enhance
organizational activities. It can be said that to make plan successful organization will be used
systems, tools and resources that will support business procedures included in quality change
process.
Moreover, this assignment will clearly evaluate wider implications of strategic quality
change on TESCO from external perspectives that can impact on systems, workers and functions
performance. It will define quality culture in company and outcomes of strategic quality change
process then suggestions for further improvement aligns with organizational objectives. With the
help of considering appropriate recommendations TESCO effectively improve areas to strategic
quality change.
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2- Introduction of TESCO and current quality management systems within company
TESCO Plc is one of the most popular and leading British international general
merchandise and groceries provider retailers (Awadari and Kanwal, 2019.). As a leading retailer,
they work with over than 400,000 workers who are able to serve millions of consumers every
week in ethical manner. It is a famous United Kingdom supermarket chain that recently operates
in more than 11 varied nations, becoming one of the world’s biggest retailers. Organization
manages their range of operations functions in effective manner by using the best organizational
structure for. Supermarket has hierarchical structure where many workers within different
departments work and act to gain competitive benefits. Each applicant wants to provide excellent
services and quality products to its consumers, for which they use varied tools and suitable
quality management systems.
TESCO to manage the quality of their goods and satisfy target market used total quality
management system within its organizational structure (Abbas, 2020). They utilized TQM to
improve their quality of every service and item it caters to millions of buyers across UK.
Through this technique management were capable to achieve higher and greater consumers
satisfactions because output were error and manage free on big scale and all these things was not
possible without using TQM as quality management system.
3- Importance of operations and quality management to achieve TESCO business objectives
Objectives of TESCO are as follows-
 To increase sales and with doing so maximize profitability.
 The second objective of company is to make shopping cheaper for consumers.
 To gain competitive advantages by providing healthy eating items
 Fourth objective of TESCO is to satisfy buyers with better quality management practices
and meeting the needs of target market.
Significance of quality and operations management-
TESCO and its management are focusing on satisfying people and providing better
shopping experience to them. They also concentrate on improving performance and procedures
of supermarkets that can aid to produce quality items. For these things, operations management
activities and quality management practices can apply for production department, quality
function, information system, procurement and other departments as well.
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Operations management can be defined as administration of organizational practices to
create highest level of efficiency possible within a company (Reid and Sanders, 2019). It play
vital role in TESCO by planning, controlling and measuring overall procedure related to
manufacturing and supplying goods. It is important in firm because operations management aid
effectively manage, control and supervise items, services and workers. Operations management
help to achieve set objectives of company by assuring that each applicant know his or her roles
within supermarket, which makes them able to accomplish day to day activities on timely
manner which turn into increasing productivity and profit margin. Quality management is
important within TESCO as they play role to reduce water and unnecessary things in production
process and help to increase operational efficiency even better.
Quality management includes identification of a quality policy, developing and
implementing quality planning and assurance and quality improvement (Nguyen, Phan and
Matsui, 2018). Along with operations management, this element is also important for TESCO in
term of achieving its above objectives and providing desire outcomes. It helps to assure high
quality grocery and other products and services by reducing defects and incorporating continuous
changes and further improvements in production and other systems. When manager and leader in
supermarket follow the principles that relate to both terms it can help them to increase efficiency
and reduce waste. TESCO objective is to increase profitability and gain competitive edge that
can be possible when management follows overall principles of quality and operations
management as it shows the path to achieve above established objectives in systematic manner.
It can be said that quality and operations management procedures help companies to
effectively establish their tactics to achieve set aim, vision and objectives (Machado and et.al.,
2017). It aid supermarket in varied ways to add values to add extra values for manufacturing and
other procedures that can aid firm to be more productive in retail sector and maximize high
market share than its competitors like ASDA, Aldi and Sainsbury. Quality and operations
management help to higher productivity and increase profit margin of firm by delivering quality
items to consumers that aid to provide appropriate satisfaction to them. Both management can
aid a company achieve greater consistency in activities and tasks that are included in
manufacture and supply chain of fresh food items.
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4- Evaluating success of quality and operations management procedure in achieving TESCO
strategic management objectives
Current operations management and quality management procedure in TESCO provide
several benefits to business (Wilcock and Boys, 2017). It helps to achieve strategic management
objectives in effective manner by working and considering quality points. For example, the first
point that relate to quality of products freshness. Operations and quality manager must assure
that each item collect from supply chain needs to be fresh and organic that actually many
customers wants in market to make their live healthy and well. Every person needs to purchase
fresh food items from grocery stores or supermarket, it consider as main attraction point. This
point helps to achieve supermarket business objectives in term of increasing consumer base and
profit margin more than other companies.
Organizational objectives Quality points
Retain consumers and gain
attention of new buyers
Fresh food and other products
Increase consumers base and
profitability
Select correct supply network
Provide organic food products Gather products from farmers
who grow items without using
chemical
Another point, management can recognize to achieve their objective that related to
quality is supply network. They should choose the right supply network, which allow
management to delivery grocery products to each buyer on time without making any mistakes
and compromise on quality. Quality and operations management get success in firm by achieving
their objectives. They should collect items from good farmers who are not using any chemicals
to grow vegetable and fruits faster.
5- Need for strategic quality change, factors that drives need for strategic quality change,
resource implications and SQC plan
Needs for SQC-
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 Gain competition advantages- TESCO can gain competitive edge when they make
changes in quality of products and improve production and other functions practices in
effective manner (Stracke, 2017). This creates a real need for change within organization
operations and functional functions. It will make supermarket able to gain attention of
more buyers towards purchasing.
 Increase consumers base- Strategic quality change within environment and culture of
firm can affect entire vision of supermarket and thus improve aspect of its venture
procedure. TESCO plan for strategic quality change because they want to increase its
customers base more than its competitors, operating business in same sector (Felderhoff
and et.al., 2020).
 Meet consumer’s needs- In recent time, buyer’s needs related to fresh food and other
grocery items have been changed. They focused on quality of products and their supply
chain activities. These things require strategic quality change within TESCO and drive
management towards making plan accordingly, which is quite beneficial for business.
PESTLE analysis to identify external factors-
 Political factor- Political stability, instability, changes in trade policy and taxation rules
are considered as political elements (Haseeb, Wattanapongphasuk and Jermsittiparsert,
2019). All these forces can affect ways of companies related to production, supply chain
and trading. UK government has adopted a tax measures and also proposed to adopt a fat
tax, both these factors directly affecting sales and revenues of certain items retailed by
TESCO supermarket. It put negative impact on profit margin and growth of company,
which is not suitable for them. Due to this element company can drive towards making
change in ways they work that takes a lot of time. When government adopt tax measures
they can affect each activity of company.
 Economic factor- Economic growth, higher population and unemployment rates are
included in list of economic factors that can affect any industry and sector in negative or
positive way. In context of TESCO supermarket, unemployment is one of the economic
factor that impact supermarket performance and productivity in positive manner because
it give management change to hire local people who are highly talented with set of
required skills (Islam and et.al., 2017). Organization due to this factor gets opportunity to
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recruit individual in pool of talent who are able to work better and contribute to increase
performance of supermarket than others in retail sector.
 Social factor- It can be said that due to variety of social changes, trends indicate that
buyers in the United Kingdom have derived towards one stop and bulk of shopping
(Horváth and Adıgüzel, 2018). It affects performance of TESCO positively because they
increased number of non food products offered for sale. Kind of services and products
demanded by people is mostly influence by their attitudes and beliefs. Tesco change the
ways provide items, they adopt changes by accommodating needs and demand for
organic items. These actions of supermarket effectively drive them towards enhancing
performance and gaining attention of new buyers towards them.
 Technology factor- Technological advancement is one of the technology factors that can
put positive impact on organizational performance, productivity and production function.
It can be said that with the help of advanced digital marketing technologies and
platforms, TESCO can promote their quality items in market where millions of people
seek to purchase fresh & organic goods. This factor drive company towards need for
quality change and allow them to implement advanced technologies in context of
manufacturing and supplying quality things. They can use cloud computing with current
systems for managing and improving quality, which is quite beneficial in term of
maximizing consumer satisfaction. It can be said with the help of implementing the latest
technologies company can perform even better. They can use technology in production,
marketing and supply chain functions.
 Environmental factor- Customers and government in recent time are more focused on
reducing carbon foot print that can help to make environment healthy and safe for longer
period. Local and national government put pressure on TESCO and other players of retail
industry to reduce their carbon foot print and take part to make environment healthier.
This factor drives TESCO towards needs for quality change procedure. For example,
instead of selling food items that are grown with the help of chemicals TESCO can sell
organic items. This activity can put positive effect on overall industry and brand image in
market or all over the world.
 Legal factor- Government regulations and policies also directly affect performance of
retail industry and companies running under this sector like TESCO. These legislations
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can be relating to quality of raw materials and consumers health and safety that drive firm
towards improving their and changing their ways of supply chain management. It can be
said that this factor put positive impact on chosen supermarket image in market because
TESCO with their effective management always choose the best for target market and
offer things that are beneficial for their health. They provide range of organic items to
buyers including pasta, olive oil and cooking sauces.
SWOT analysis-
Strength-
Diversified outlets are the strength of TESCO, which makes them able to satisfy buyers
and increase their profit margin. Each organization has several strengths, which make them able
to sustain within their industry for longer period of time. Along with above one, TESCO also
have strength and that is efficient supply chain network.
Weakness-
Due to credit card liability and high debts, TESCO financial profits are profoundly
decreased. Low cost pricing strategy is another weak pint of company that directly decreasing
profitability of business. Due to these weaknesses company may face many issues and challenges
as well.
Opportunity-
Joint venture is one of the best opportunities that company can consider in those regions
where firm store are underperforming. Furthermore, advancement of technology also gives new
chance to TESCO which they can use to gain competitive edge.
Threat-
High competitive environment is one of the threats that impact marketing and other
tactics of company. Rivalry between existing players in retail industry put high pressure on
TESCO to make change in their current strategic management practices.
Assessing resource implication for not responding to changes-
It can be said that in order to satisfy consumers, gain competitive edge and become global
leader in retail industry, TESCO and its management need to respond change, which is quite
beneficial and essential for its business. But when required change is ignored it can negatively
affecting sales and profitability of any company. Without considering change and responding
them, organization would not be able to sustain for longer period of time within retail industry
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and loss their competitive position as well. When required change is ignored company will not
be able to beat their competitors and increase profit margin. Change is a part of organizational
culture and structure, it allow firm to run and manage business operations within sector
effectively. When things that firm will ignore it can cause them to decrease performance and
productivity level and in some cases decrease consumer base.
Change implementation plan-
 Nature of plan- Evolutionary, revolutionary and proactive is the nature of strategic
quality change plan that firm intent to consider. This plan aid TESCO supermarket
manager change procedure and also assure control in schedule, resource, budget and
scope. It can increase impact a change can have on venture, workers and consumers as
well as other essential stakeholders. This quality change plan will help firm to identify
gaps, needs for change and assure appropriate quality of work will be done in workplace.
It can be said that revolutionary change is happen when something shakes firm like trends
and demands, presenting a clear need for major things, which would modify culture
because organizations will never be same again. Both evolutionary and revolutionary
change, are quite different from each other because evolutionary change evolved
gradually. The type of nature of plan is proactive change that is initiated by an company
because it is desirable to do so.
 Change perspective- Perspective of change can be distinguished into two types
contingency perspective and resource dependency perspective (Termeer, Dewulf and
Biesbroek, 2017). Consistency perspective to change assumes that situations, workers
and companies change and vary over period. Appropriate change management concepts
are useful and beneficial in ways that they simplify and define a procedure so that norms
can be applied and understood; here Kurt Lewin change management model is suitable
and appropriate. It should be regarded as an orienting tactic. Resource dependency
perspective of change is based on principle that an firm such as a business company, must
involved in transactions with companies and actions in their environment in order to get
the best resources for them. Consistency perspective of change is appropriate and suitable
for strategic quality change plan because it suggest to change everything according to the
requirement and to respond change effectively.
Kurt Lewin’s 3 step change model-
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It is one of the best and most effective models developed for comprehending
organizational change and suggest ways to respond in systematic manner (Hussain and et.al.,
2018). Kurt Lewin change model is consisting three different stages; unfreezing, changing and
refreezing. It is widely utilized by many companies to respond change and obtain desire
outcomes after it. It unfreeze current procedure and behaviour of management, make changes
organization needs and then practice and freeze new practices and action into day to day actions,
which is quite essential for TESCO to be competitive. This concept represents a quite east and
practice model for comprehending change procedure. It can be said that the procedure of change
entails developing perception that a change is required, then driving towards doing something
new, desired degree of behaviour and finally, solidifying that new nature or practice as norm.
Three stages of this model clearly define process of change within company and ways to manage
it effectively.
This model benefits company in term of making changes within its organizational
structure (Burnes and Bargal, 2017). It makes easy to implement plan and get workers ready to
work with new things that can enhance their performance and productivity level even better than
last few months. This model does not effort to decrease difficulty with opposition by considering
it head on. It just helps to solve issues and resolve complications.
Implementation procedure-
PHASE RESOURCES TOOLS SYSTEMS
Unfreezing When a structure and
resource has been in
workplace for while, routine
and habits have naturally
settled in. This phase
encompasses assuring
readiness of change, by
preparing and managing
company to comprehend
and accept criticality of
need for change which is
related to organizational
Communication
tools, monitoring
tools and other.
Change management
systems and IT
systems.
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structure. It requires Human
resource, strategic plans and
strategies as well.
Changing Once workers are ready to
except new organization
structure and work with it,
the overall procedure moves
at second phase that is
changing. After
understanding the needs for
change, employees and
leaders drive towards
performing well with new
change that is beneficial for
organization and everyone
who are working with them.
To get desire outcomes
organization can use varied
resources they communicate
with applicant. They can
conduct meeting.
Monitoring tools. Training and
development systems.
Refreezing By refreezing or freezing,
management can assure that
change can be implemented
at workplace. Employees
feedback and resistance
management as resources
are required.
Performance
management
tools.
TQM
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