Tesco Business Plan: Operations Management and Key Functions

This report provides a detailed analysis of Tesco's business operations, focusing on key functions such as inbound logistics, operations, outbound logistics, marketing, sales, and services. It examines Tesco's production process, highlighting the use of batch production, and explores the evolution of its supply chain strategies from direct-to-store delivery to lean supply chain practices. The report also delves into Tesco's logistics, differentiating between outbound and inbound logistics, and discusses location strategies and quality control measures using Total Quality Management (TQM). Furthermore, it emphasizes the role of HR in maintaining financial performance through effective recruitment and employee motivation strategies. The analysis concludes that effective business operations are crucial for Tesco's success, enabling efficient communication, optimized supply chain management, and high-quality product delivery.

Business Plan

Table of Contents
INTRODUCTION...........................................................................................................................2
Functions of a business operations..............................................................................................2
Company’s description................................................................................................................3
Description of company’s operations management decision......................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business operations refers to those activities of a business which are engage in a daily
basis so that it will help to increase a profit and raise the brand image of the company as well. In
this, employees are also help the business goals in order to perform some functions i.e. marketing
and accounting. The chosen firm for this report is Tesco which is top retail firm in UK and
provide range of products to their customers without affecting the quality of products. The
present study will shed a light on different functions of business operations and then provide a
description of company’s operation management decision.
Functions of a business operations
Tesco main key operations are inbound logistics, operations, outbound logistics,
marketing sales and services offered to the customers. The main functions of the business
operations are as mention below:
 The main function of business operations of Tesco is to maintain effective
communication between all the departments so that it will help to generate better
outcomes (Hazen and et.al., 2018).
 Business operations are comply with the process which means that it creates direct
impact upon the productivity and efficiency. Such that process done manually takes time,
while Tesco have advance software that helps to meet the define aim and objectives in
better manner.
 Staffing is another main function of business operation which is determined by process.
As company deal with range of products and that is why, it needs so many staff who
share their views in order to manage the thing and complete the project in better manner.
It also have specialist who assist the firm to manage the work and solve many problems
as well.
 Tesco uses advance technology in its premises in order to make its business operations
more smooth (Functions of business operations, 2019). Such that it use advance tools for
its inventory so that it will help to save the company’s time and this in help to sustain
the brand image of the company as well.

 Having effective business operations will assist a business to generate more income and
also help to make business property and asset valuable so that it easily meet the define
aim and objectives of the company.
Company’s description
Tesco is one of the top multinational company in UK which provide range of services to
their customers. As per the gross revenue, the quoted firm is known as 9th largest retail firm in
the world. Also, the company has its operations at world-wide which clearly reflect that company
has a brand image at international level. Tesco is found in 1919 by Jack Cohen and at current
situation, it have so many shops which provide best quality of products to their customers at
reasonable rate. The strength of the company is having a brand image and thousands of
employees who help the firm to meet the define aim. Also, it offer so many products and services
and keep focusing on innovation so that it will keep attracting range of new customers towards it.
Also, Tesco have subsidiaries i.e. booker group, Tesco Bank, Telecoms and Tesco tech
Support who also help a firm to increase the financial status of a company and meet the demand
off customers as well. It’s marketing strategy is unique such that it focus on loyalty cards that
attract customers and purchase the products from itself. It also chooses diversification as a
growth strategy in which is sold completely new products in new market so that company
establish its image in an entire world.
Description of company’s operations management decision
The company’s main operations included marketing and sales because it is a retail firm
and that is why, it only focus on the marketing and its supply chain so that it provide the product
and services to range of new customers in better manner. Further, there are different operation
management of Tesco which are as mention below:
Production: For Tesco, its production process is quite important because it changes the
input from output and that is why, it requires an extensive market research so that it easily
perform the task. Under this, it maintain quality assurance toll which are used during and after an
event and this in turn helps to meet the define aim and objectives. As most of the company uses
many production process, but Tesco uses batch production process which help the firm to meet
the define aim (Zhu, Zhao and Bush, 2020). As this process is mainly uses to produce similar

items in a group and that is why, Tesco is also uses this method for producing baked goods,
clothing, computer chip, software so that it will help to produce bulk of product without
considering its quality.
Supply chain: The company supply chain is changes years after years such that in 1970’s
company uses direct to store delivery, while in 1980’s it uses centralization and open many
distribution centers for selling product. On the other hand, in 1990’s it uses composite as a
supply chain strategy in which company’s regional centers were developed in order to maintain
specified products in their respective stores (Elias, Leonard and Mwakujonga, 2018). Further, in
2000 onward, vertical collaboration and lean supply chain is used which is focused on reducing
waste in supply chain by using lean supply chain practices. Along with this, the company also
uses managing complexity from 2000 in which it start offering the products through online and
also uses Balance score card and steering wheel concepts in order to measure the performance.
Through this it also develop the sustainability concepts that helps to increase cost advantage as
well.
Moreover, it also have four types of team in its supply chain system i.e. blueprint
development team who focused on availability, and also reduce the food waste. Next is, Supplier
ordering team, who manage suppliers and buying team in order to plan manufacture and also
order 30 million cases of food item weekly. Third is, store ordering team, which maintain stock
level and last is security and loss prevention team who make sure that working environment of
Tesco is proper and it also address safety standards or not.

Supply chain of Tesco
Logistics: It is divided into two types i.e.
 Outbound logistics: This is concern with a delivering of product to a customer and
currently the company added values in their home delivery services. On the other side,
other tangible are also improved such that parking facilities, staff, trolley collectors etc.
Thus, Tesco is keep focusing on the outbound logistics in order to make sure that it
executed first rather than its competitors and it will also help to save customer time and
increases the financial performance as well (Korauš and et.al., 2019). Further, Tesco is
also adding the value which is only attain through implementation of a trolley deposit
system, also keep them tidy and premise quicker that helps to attract customers.
 Inbound logistics: This includes the primary distribution and it include the receipt of
goods at a warehouse from the suppliers, internal handling and distribution to the stores
and also place a goods on display at its premises. In the same way, it also uses quality
control measures at every point to make sure that customer get true value for money and
reduce the cost of unnecessary items.
Location Strategies: The company when planning to expand its business at new state,
then it make sure, that it consider some factor i.e. facilities, feasibility, logistics labor,
community and site, Trade Zone, political risk, governmental regulation and environment

regulation. If Tesco determine that the country has strong economy and stable political situation,
then it planning to expand the business at other country. It the country also strong firm who also
provide the similar kind of product then it will be beneficial for the company to operates within a
same business (Scott-Jackson and Michie, 2017). On the other side, cost, infrastructure,
technologies are also consider while operating in another country because it will creates negative
impact when company did not find such things.
Quality Control: For controlling the quality, Tesco uses Total Quality Management tool
which help to determine whether the company uses best quality of product or not. Also, it uses
two another methods i.e. Inspecting and testing the goods and these methods are also applied to
entire process of a production. Further, Tesco is also focused on improving efficiency and
effectiveness in order to remain at its position. Company has a brand image and it is possible
only of its quality control measures that help the firm to keep attracting the range of customers
towards it. For that, company also hires new employees and highly skilled human capital in order
to continue with its high quality services and products. Not only, Tesco also arrange meting at
weekly basis in which manager keep discuss about total quality management so that its sales did
not decline.
HR: It is one of the most important key operations who plays important role in the
success of a company. Such that Tesco has skilled HR who keep making strategies in order to
maintain the financial performance of the company. For that, HR of the firm uses online
recruitment strategies in which they hire top employees who help the firm to meet the define aim
(Choi, Chan and Yue, 2016). Also, HR keep motivating their employees so that they improve
their productivity and this in turn affect the overall company’s financial performance. In addition
to this, it is also analyzed that HR also provide payroll and benefits to their employees so that
employees of the firm motivated and support company to completed the define task in specified
deadline. Also, it tries to make employee- employer relationship within a company so that
employees are comfortable within a business and support team members as well.
CONCLUSION
By summing up above report, it has been concluded that business operations plays an
important role in the success of the company. Such that Tesco’s business operations assist to

provide effective communication between the departments so that it will help to attain define
goals and objectives. Also, report concluded that company uses batch production system and its
supply chain is wide that keep help to meet the define aim and objectives in better manner. Also,
report concluded that it has two logistics i.e. outbound and inbound, while to control the quality,
it uses TQM which measure the company’s product quality is higher or not. Lastly, study
concluded that HR of the firm also assist to make better management decision and recruit best
employees who help team to meet the define aim.

REFERENCES
Books and Journals
Choi, T. M., Chan, H. K. and Yue, X., 2016. Recent development in big data analytics for
business operations and risk management. IEEE transactions on cybernetics. 47(1). pp.81-
92.
Elias, R., Leonard, W. and Mwakujonga, J., 2018. Determinants of Owner-manager
Competencies for Small Business Operations: Evidence from a Small Restaurant Business
in Tanzania. Asian Business Research Journal. 3. pp.41-47.
Hazen, B. T. and et.al., 2018. Back in business: Operations research in support of big data
analytics for operations and supply chain management. Annals of Operations
Research. 270(1-2). pp.201-211.
Korauš, A. and et.al., 2019. Using quantitative methods to identify insecurity due to unusual
business operations. Entrepreneurship and Sustainability Issues. 6(3). pp.1101-1112.
Scott-Jackson, W. and Michie, J., 2017. Culture and business operations: How the Gulf Arab
leadership style impacts a contingent human resource management. In Business and Society
in the Middle East (pp. 31-47). Palgrave Macmillan, Cham.
Zhu, Z., Zhao, J. and Bush, A. A., 2020. The effects of e-business processes in supply chain
operations: Process component and value creation mechanisms. International Journal of
Information Management. 50. pp.273-285.
Online
Functions of business operations. 2019. [Online]. Available through: <
https://www.tenfold.com/what-is/what-are-the-business-operations-of-a-company/ >.