Analysis of Business Operations and Management at Tesco Company

This report provides a comprehensive analysis of Tesco's business operations and management strategies. It delves into the company's background, highlighting its position in the UK and international retail markets, and explores the key functions of its business operations, including finance, strategy development, planning, people management, relationship maintenance, market research, marketing, human resource management, operations management, and research and development. The report evaluates the operations management decisions made by Tesco, focusing on production, supply chain, logistics, quality control, and human resources, emphasizing the company's use of modern techniques and its commitment to continuous improvement. The analysis underscores the importance of effective management in driving Tesco's success in a competitive market, highlighting its strategies for production, supply chain, logistics, and quality control. The report concludes by summarizing the critical functions and strategies that contribute to Tesco's strong performance in the global retail industry.

Business Operations and
Management

TABLE OF CONTENTS
INTRODUCTION................................................................................................................... 4
MAIN BODY.......................................................................................................................... 4
Company Background........................................................................................................4
Main Functions of Business Operations...................................................................................4
Evaluation of Operations Management Decisions..............................................................6
CONCLUSION....................................................................................................................... 7
REFERENCES....................................................................................................................... 8

INTRODUCTION
Business operations includes those all activities which a business run in the market for
achieving decided aims or objectives. Top-level management in each organisation is mainly
responsible to manage and operate all operational activities in their business environment.
Currently many companies and businesses are investing huge fund for properly managing
their daily operations. Operations management mainly plays great role in such companies
which runs manufacturing or production operations, because it plays great role in reducing
lots of precious time and money in production process. There are business operations and
management gives very high contribution in increasing level of customer service. This report
discusses business operations and management of Tesco. It is one of the most popular British
retail companies which currently has large customer base in international retail industry.
MAIN BODY
Company Background
Tesco is one of the leading British retail companies, headquartered in England, United
Kingdom. It was founded by Jack Cohen in 1919 in London, England. It has the largest
customer base in UK’s retail industry. Top-level management of company believes in using
modern and new business strategies in their daily business activities. Its market expansion
process is also too excellent, because currently it serves their products and services at the
very large scale in international market (Slack and Brandon-Jones, 2018). The United
Kingdom, Malaysia, Thailand, Slovak, Hungary, Czech Republic, and Poland are some major
market segments of Tesco. It still searching for new business expansion opportunity in the
international market. Currently Sainsbury, Marks and Spencer, Walmarts’s subsidiary
company ASDA, etc. are some major competitors which are currently giving very tough
competition to Tesco in UK’s retail market.
Research and development (R&D) department of company is too effective in their job role,
because this department is always trying to innovate some exclusive range of products and
services for company. Currently customers are very satisfied with company’s products and
services, because it always tries to serve the best quality products and services. On the other
side, company is taking huge advantages from marketing team, because the team is highly
succeeded in promoting company’s products and services at the large scale. Recently CEO of
company called Dave Lewis has announced that, now company will expend more fund on its
CSR (Corporate Social Responsibility) activities. This steps of company can increase its
existing brand image in international retail industry (Schönsleben, 2016). By the way,
currently it already has excellent brand image and good in their all market segments.
Main Functions of Business Operations
Some major functions of business operations within Tesco has been discusses below;
1. Finance: Finance is a very necessary under business operations of Tesco, because
without this function company can’t able fulfil its financial needs on time. It gives
opportunity to company for finding some potential funding sources. With the support
of operations management, the finance department company can easily manage their
all financial activities. Currently Tesco’s financial condition is too good because of
proper business operations.

2. Develop Strategies: Tesco is always required various business strategies to deal with
high market competition, in which this function of business operations helps to top-
level management for developing such business strategies (Pınarbaşı, 2018). There are
strategies which related to marketing, HRM, leadership etc. also comes under
business strategies. That’s why it plays great role in making or developing various
strategies.
3. Planning: Top-level management of Tesco is highly required an effective planning to
complete its each target on time. Currently there are huge competition in the UK’s
retail industry, in which effective planning is too necessary for company to deal this
market completion. In this case, business operations help to the management to make
some specific plans which will run the company on progressive path.
4. People Management: People management is another major task within Tesco’s
business operations, because without people management company can’t gain a
productive workforce (De Boer and Andersen, 2019). This function is currently
supporting to company for increasing talent and skills of their existing employees.
Tesco has large number of employees which are day or night working in the
company’s supermarkets and stores, in which this function helps to company for
taking effective work from these employees.
5. Maintain Effective Relationship: Each business or company always puts its great
efforts to build effective relationship with their customers, so this function of business
operations supports to the business for building effective relationship with their
customers. Currently Tesco has highly succeeded in building large customer base
through this function of its business operations.
6. Market Research: Market research function of business operations giving great
contribution in all over growth of the Tesco. Reason is, an organisation always
required a strong market research to beat their competitors in respective market sector
(Haendel, 2019). Currently top-level management of company is able to set attractive
prices for their products and services because of strong market research. There is this
function helps to company for analysing business environment of their competitors.
That’s why this function is too necessary for this company.
7. Marketing: Marketing is the function which supports to company for promoting their
products and services at the large scale. Tesco can’t survive in international retail
industry without this function, because marketing is the only for company to inform
people about their products and services. Currently marketing team of company is too
effective, because it always runs excellent marketing campaigns in different market
segments. In short, this function contributes in increasing sales ratio of the Tesco.
8. Human Resource Management (HRM): It is a function of business operations
which supports to company for fulfil its need of human resource. The company can’t
achieve its target or goals without this function, because HRM is the only function
which always try to provide an effective workforce to company. There are planning,
hiring, recruitment, training and development some major practices of HRM, which
contributes in providing skilled and talented employees to company.
9. Operations Management: There is operations management another major function
under business operations of Tesco. This function mainly helps to company for
reducing cost and increasing productivity in their production or manufacturing
processes. Operations management function includes some productive approaches

like; TQM (Total Quality Management), JIT (Just in Time), Lean Production etc.
Currently production department of company is taking huge advantages from this
function.
10. Research and Development (R&D): It is one of the main functions of operations
management which supports to company for gaining huge competitive advantage in
retail industry (Bozarth and Handfield, 2019). Reason is, R&D always focuses on
innovating and producing some new range of product and services. On the other side,
according to current market conditions, those companies are capable to attract large
customers which has effective R&D function, because it gives opportunity to
companies for producing some exclusive range of products and services. At the end, a
company can earn more profit than their competitors with support of this function.
That’s why R&D function plays a productive role in the company.
Evaluation of Operations Management Decisions
From establishment of Tesco to date, the existing management always focuses on
using the latest techniques, theories and strategies in operations management practices. That’s
why company’s many functions like production, supply chain, location strategies, logistics
and quality control are currently running on progressive path. Managers and leaders within
company always try to take some productive decisions for running their different areas of
operations management.
Production: Production is most important function under company’s operations
management. The management of company takes various decisions for reducing cost in their
production processes. It tasks decisions for increasing productivity of production processes as
well. Currently the management of company has decided to use some effective operations
management approaches in their production department, like; lean manufacturing, Total
quality control, and Just in time etc. These all approaches are enough to save company’s
precious time and cost in their production process. There are leaders in the company
responsible to implement these decisions of manager in production manufacturing processes.
On the other side, the management always takes decision for taking huge advantages from the
latest machineries and tools (Nedelko and Potocan, 2019). Currently company is using high-
tech machineries in their production department, because its selling ratio is increasing day by
day, so it needs to produce lots of product unites in few time.
Supply Chain: Tesco has the largest distribution channel or supply chain, because it serves
many market segments in the world. The management of company has decided to use some
skilled and efficient workers or employees in their supply chain processes. Reason is,
nowadays its competitors also has an effective supply chain in retail industry. That’s why
management has decided to hire some skilled employees for making their supply chain
effective than existing competitors. Company decided that, leader who works in its supply
chain processes are responsible to completely supervise all processes to run chain in proper
manner. Many times company faces different difficulties in their supply chain areas, like;
improper delivery, conflicts between employees and suppliers, unforeseen delays, etc. In this
case, the management has decided to develop some productive tactics to deal with these
difficulties. It is really of main tasks for management, because many times supply chain
becomes ineffective because of these difficulties.

Logistics Strategies: This is a major aspect under operations management of Tesco.
Logistics is basically second form of supply chain where company conduct flow of their
products and services from manufacturing plant to customers. In this task of operations
management, Tesco always decides to use own courier service for transporting their products
and services from one place to another. Company has decided to use new generation vehicles
in their logistics activities, because old generation vehicles are not trustable to deliver
products and services on time. The management has taken decisions for improving their all
activities which has based its logistics aspect.
Quality Control: Quality control is one of the most important factors under company’s
operations management, because currently company known for quality of their products and
services in the market (Saucedo-Martínez and et.al., 2018). People or customers are very
satisfied with product quality factor of Tesco, in which top-level management of company
has decided to use various techniques in their production processes to produce quality
products and services. Currently company has decided to total quality management
techniques use in their production department. The company can easily produce quality
products with support of this quality control technique.
HR (Human Resources): Currently Tesco has excellent workforce in their production
processes, because the management always takes decisions for hiring skilful and talented
employees in their operations management (OM). Many times HRM of company decides to
provide some useful training & development sessions to their employees. Then employees
within operations management can capable to increase their existing workability and
efficiency. These decisions of company support to employees for improving their all over
performance in OM (Ivanov, Tsipoulanidis and Schönberger, 2017). On the other side, many
times HR manager decides to use some productive motivation theories also in their daily
practices to make their employees full motivated. Currently this company is taking effective
work from their workforce in their OM activities.
CONCLUSION
It can be concluded that there are many functions comes under business operations of
Tesco. Currently existing upper management of company is running these all functions on
progressive path. Marketing management, HRM, operations management, and finance are
some major functions within Tesco. The management always need to use various business
strategies to take huge advantages from these all functions. Company can easily promote their
products and services at the large scale through marketing function. On the other hand,
finance function helps to company for identifying appropriate funding source in the market.
Tesco has highly succeeded in gaining huge profit in international retail industry with the
support of these functions. It has gained large loyal customer base also in its home country
United Kingdom with support of these all functions of business operations. Top-level
management always takes effective decisions for improving their existing activities of
operations management. Management has very effective decision making skills, which helps
in improving productivity of company’s manufacturing department. The company is able to
gain huge competitive advantage in retail industry by implementing some more productive
decisions in daily operations.

REFERENCES
Books & Journals
Bozarth, C. C. and Handfield, R. B., 2019. Operations and Supply Chain Management.
De Boer, L. and Andersen, P. H ., 2019. Operations Management and Sustainability.
Springer.
Haendel, D., 2019. Foreign investments and the management of political risk. Routledge.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2017. Global supply chain and operations
management. A Decision-Oriented Introduction to the Creation of Value.
Nedelko, Z. and Potocan, V., 2019. The Role of Emerging Information Technologies for
Supporting Supply Chain Management. In Advanced Methodologies and
Technologies in Business Operations and Management. (pp. 1236-1248). IGI
Global.
Pınarbaşı, F., 2018. The Effects of Strategic Design on Business Operations. In Strategic
Design and Innovative Thinking in Business Operations. (pp. 115-129). Springer,
Cham.
Saucedo-Martínez, J. A., and et.al., 2018. Industry 4.0 framework for management and
operations: a review. Journal of ambient intelligence and humanized
computing. 9(3). pp.789-801.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain
management within and across companies. CRC Press.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.